Now the funeral industry is being rectified. What will be the future development trend of funeral industry?

—— Original title: Market analysis of funeral service industry in China in 20 19: The development space is huge, and industry mergers and acquisitions will become the mainstream of funeral business in the future. The gross profit margin is high, and the future development space is still huge.

It's another Tomb-Sweeping Day, and sweeping graves is a traditional custom for people to remember their ancestors. Many people in first-tier cities such as Beijing and Shanghai want to visit graves in neighboring cities. The reason is that the price of cemeteries in these places is too high, and many people choose cemeteries in surrounding cities.

Speaking of cemeteries, it is easy for people to think of words such as "sky-high price" and "profiteering". So how expensive is the price of the cemetery? Is it profiteering? The National Business Daily reporter noted that Fucheng, the only funeral concept stock of A shares, recently released a financial report: the gross profit margin of the company's funeral business in 20 18 was as high as 87.96%. An analyst at Guo Sheng Securities believes that many listed companies engaged in funeral industry have high gross profit margins, and there is still room for growth in the future.

90% of the company's net profit comes from the funeral business.

How high is the price of cemeteries in first-tier cities? According to China Youth Network, Taiziyu Cemetery is one of the largest cemeteries in Beijing, with a large number of ashes buried. Its staff said that the prices of the double-hole cemeteries currently on sale are 95,000 yuan, 98,000 yuan and 10.8 million yuan respectively, and there are also more than 200,000 yuan of multi-hole tombs, excluding tombstone lettering and burial services. Beijing Futian Cemetery, located in Xishan Scenic Area in the suburbs of Beijing, is a traditional cemetery with less than one square meter, and the price is about 200,000 yuan.

On the eve of Tomb-Sweeping Day, Fucheng shares disclosed the 20 18 annual report. During the reporting period, the company achieved operating income of14.54 million yuan, a year-on-year increase of 6.85%; The net profit was 65.438+0.6 billion yuan, a year-on-year increase of 2.45%. Among them, Sanhe Lingshan Baota Cemetery Co., Ltd., a subsidiary of the company's funeral business, contributed a net profit of 65.438+0.48 billion yuan to Fucheng, accounting for more than 90% of the total net profit of listed companies.

It is understood that Fucheng shares landed in A shares in 2004, when its main business was cattle raising and beef cattle slaughtering and processing. 2065438+July 2005, Fucheng Company completed the major reorganization of Lingshan Pagoda Cemetery, and has since entered the funeral industry. 20 18, Fucheng shares continued to expand in the field of funeral business, and completed the acquisition of 60% equity of Tiandefudi Cemetery in Shaoshan, Hunan.

The financial report shows that from 20 16 to 20 18, the funeral business of Fucheng Co., Ltd. realized income of1970,000 yuan, 227 million yuan and 26/kloc-0,000,000 yuan respectively, accounting for 14.54% and/kloc of the company's total income respectively. In 20 18, Fucheng shares sold 2748 graves, and the gross profit margin of funeral business was as high as 87.96%.

The reporter of National Business Daily saw from official website of Lingshan Pagoda Cemetery that the cemetery provides different tomb types, including economic tombs, fine tombs and artistic tombs, with prices ranging from nearly 10,000 yuan to over 100,000 yuan.

In addition to A-shares, let's take a look at Fushouyuan, which is known as the "first stock loss" of Hong Kong stocks. Its business segments include cemetery services, funeral services and other products and services. Fushouyuan's 20 18 annual financial report shows that the company realized a profit of about 165 1 billion yuan, up about1.8% year-on-year, and its net profit was 488 million yuan, up about 17% year-on-year.

The announcement of Fushouyuan's performance in 20 18 shows that the unit price of tomb sales in 20 17 increased by 7.5% on average, while that in 20 102400 yuan.

China Life Insurance Group, another Hong Kong-listed company with the concept of funeral, has also disclosed its 20 18 annual report, and the net profit attributable to shareholders of listed companies is 8.352 million yuan, down 56.8% year-on-year.

M&A will be the theme of the company in the future.

According to the analysis of insiders, the market scale of funeral industry in China is as high as 1000 billion yuan at present, and it will further expand with the aging of China society. Due to the strong regionality of the funeral industry, the whole industry is small and scattered. There are no super-large leading enterprises in China, and the largest annual revenue of Fushouyuan is only about 654.38+0.5 billion yuan, so the market opportunity is still great.

According to the statistical data of China Funeral Service Industry Market Research and Investment Forecast and Analysis Report released by Prospective Industry Research Institute, in 20 139008, the total population of China was 139008, and the elderly over 65 were 1583 100, and the death toll was about 9.86 million, including cremation. With the aging of China's population, it is estimated that the industry market scale will be around 500 billion yuan by 2020.

China funeral association 20 14 predicts that the consumption of funeral industry in China will reach 600 billion yuan in 2020 and 1 trillion yuan in 2023. No matter what caliber, we can see that there is huge room for the growth of funeral services in China in the future.

20 10-20 17 statistics on the number and cremation rate of cremated bodies in China.

Data source: compiled by Prospective Industry Research Institute.

20 17-2023 Statistics and Forecast of the Funeral Industry Market Size in China

Data source: compiled by Prospective Industry Research Institute.

Li, an analyst in Zhongtai Securities, believes that the separation of management and operation proposed by the Ministry of Civil Affairs and other departments 16 in 2065,438+08 will provide a broader development space for private enterprises while ensuring the basic funeral services provided by the state.

Grant Hui believes that there is still a big gap between the existing funeral service level in China and that in developed countries. People need funeral services, but at the same time they are afraid to talk about the afterlife. This contradiction between actual demand and traditional concept has become an obstacle to the development of funeral services.

An analyst of Guo Sheng Securities told the reporter that there are few enterprises engaged in funeral industry in China at present, and there is a large room for development, which will definitely attract some companies to participate.

In addition, from 2065438 to September 7, 2008, the Ministry of Civil Affairs promulgated the Regulations on Funeral Management (Revised Draft for Comment). Explaining the reasons for the revision and drafting of the Regulations, the Ministry of Civil Affairs said that the prices of funeral goods and services were artificially high, and the graves in cemeteries were expensive, occupying more land and having large tombstones, which caused dissatisfaction among the masses. The New Deal makes it clear that the land use fees and maintenance management fees for operating cemeteries are subject to government-guided prices, and the fees for extended services closely related to basic services such as cosmetic surgery for remains are subject to government-guided prices.

Fucheng Co., Ltd. also mentioned in the 20 18 annual report that the establishment of a basic funeral public service system by the state, resolutely cracking down on illegal construction of funeral facilities, and effectively ensuring the healthy development of the industry are long-term benefits to the funeral business operated according to law. At the same time, the company said that mergers and acquisitions in the funeral field will be the theme of the company in the next few years.