Guosen Securities: The home furnishing sector is currently in a trough stage, and valuations may enter a recovery period.

Guosen Securities research report stated that the real estate sector has undergone a deep adjustment, and it is expected that relevant policies will be introduced in the future to further support both supply and demand. From an industry perspective, the home furnishing sector is currently in the bottoming stage, with valuation entering a repair cycle. It is expected that the total demand for home decoration in 2026 will continue to decline but the rate of decline will shrink, and in 2027, the downward pressure will be significantly eased and remain stable; in addition, the high dividend yield provides a sufficient safety cushion.