Hailan House (600398) 2019 First Quarterly Report Review: 19Q1 Revenue under Steady Growth Under High Base, Multiple Brands Steady Progress
After short-term fluctuations, the revenue growth rate began to return to a number level in 18Q4, and the revenue growth rate in 19Q1 was 5%. The company’s operating income in the first quarter of 2019 reached 60.
89 ppm, an increase of 5 in ten years.
23%, net profit attributable to mother 12.
1 billion, with an annual increase of 6.
96%, deducting non-net profit 11.
5.4 billion, with an annual value added of 3.
In terms of single quarter revenue, 18Q1?
18Q4 revenue increased by 12.
67%, retail environment is weak since 18Q2, 18Q3 exists, but 18Q4?
19Q1 revenue maintained a growth of about 5%, indicating that the revenue growth rate has returned to a healthy level of normal numbers; if the replacement of boys and girls brands has begun to affect the consolidation since 18Q4, it is estimated that the business’s 18Q4 / 19Q1 revenue growth will be around 4%.
The growth rate of the deducted non-net profit is lower than the main income in order to accrue the increase in asset impairment losses. The faster growth rate of the net profit attributed to the parent is mainly due to the increase in non-recurring investment income.
The main brand, Aiju Rabbit’s income improved compared to 18Q4, St. Keno increased double figures, boys and girls combined to boost 1) In terms of brands, 杭州夜生活网 the company adjusted the brand statistical caliber from 19Q1, and merged Haiyi into the owner of HailanBrands, counted as “Hailan House Series” brand, love home rabbit series (including children’s clothing), San Keno professional wear continues to be single line, “Other” brands include Hailan preferred, OVV, AEX, boys and girls brands, and trackAdjustment.
Hailan House series income 49 in 19Q1.
93 ppm, an increase of 2 in ten years.
In 18Q4, the revenue of major brands increased by 9 respectively.
42%, 19Q1 As Haiyi estimates that it is still adjusted everywhere and accounts for a relatively small proportion, the growth rate of Hailan Homeowner brand revenue is expected to exceed 2%, compared to 18Q3?
Q4 is slightly different.
Aiju rabbit series income 3.
43 ppm, an 无锡桑拿网 increase of 1 in ten years.
Q4 revenue increased by 71.
43%, 19Q1 growth also stabilized.
San Kainuo professional business income 4.
930,000 yuan, an annual increase of 11.
45%, maintaining double-digit growth (18 years revenue growth 12).
82%, fluctuations in each quarter).
Potential revenue growth of other brands, realizing revenue1.
4.3 billion, an increase of 1138 at the beginning of the year.
64%, mainly contributed to the consolidation of boys and girls.
It is estimated that the male and female brand contribution income is about 80 million, Hailan is preferred, and the total revenue of small brands such as OVV and AEX is more than 60 million.
2) From the perspective of online and offline, the company’s offline revenue still accounts for a proportion (income ratio of 96%), and its offline revenue continued to increase by 5 in 19Q1.
69%, online revenue fell by 5 quarters.
3) In terms of channels, the revenue of direct-operated stores2.
92 ppm, an increase of 114 in ten years.
88%, the increase was mainly due to the company’s increase in direct store development; franchise stores and other income51.
86 ppm, an increase of 1 in ten years.
The extension of margins expanded slightly, and the number of same-sale channels of major brands increased slightly. At the end of March 19, the company’s total number of stores was 7,607 (185 newly opened and 123 closed), a net increase of 0 earlier.
Excluding the impact of the newly consolidated brand boys and girls (net reduction of 20), the number of initial business stores is expected to increase by 1 in 19Q1.
Among them, the number of Hailan House series stores was 5,369, with a net increase of 1 in the early stage.
36%, the number of Ijutu stores is 1,273, a net decrease of 0.
62%, the number of other stores is 965, a net decrease of 0.
Because the company’s online revenue accounted for a relatively small proportion, simply based on the brand revenue growth rate to replace the external deferred growth rate, Hailan House series brand single store growth was close to 1%, and Ijutu single store increased nearly 2%.
The same brand of Hailan House is at 0?
1%, Iju Rabbit flipped in the same store.
The gross profit margin increased beyond the expense ratio, the total inventory was flat, the cash flow was healthy, and the gross profit margin was provided for improvement: 19Q1 gross profit margin increased by 3.
69PCT to 43.
59%, of which Hailan House series, Aiju Rabbit series, San Kenuo, and other gross profit margins were 45.
98 %% (+ 3.
Among them, the decrease in the gross margin of the Hailan House series is mainly due to the increase in the proportion of direct-operated stores and self-operated products, and the company’s increased contribution to each other in franchise stores.
In terms of different channels, the offline gross profit margin has been extended and increased3.
96PCT to 43.
98%, online gross margin fell by 4.
20PCT to 50.
Expense rate: During the period, the expense rate increases by 2 each year.
98PCT to 14.
Among them, the sales, management, and financial expense ratios are 9 respectively.
The increase in the sales expense ratio was mainly due to the increase in the proportion of directly operated stores and the increase in advertising expenses.
Other financial indicators: 1) The inventory size at the end of March 19 was 95.
54 ppm, an increase of 0 from the beginning of the year.
84% were basically the same. Cancellation of boys and girls was estimated to reduce the total inventory value; inventory turnover replaced 0.
36, 0 of the earlier 18Q1.
40 is slightly flat.
2) Account receivable was downgraded earlier9.
08% to 6.
23 trillion, accounts receivable turnover cost9.
31, 9 of the earlier 18Q1.
33 was flat.
3) Asset impairment losses increased by 84 in ten years.
36% to 1.
$ 5.1 billion, mainly due to the increase in the share of boys and girls brands and the proportion of self-operated products, thereby increasing the provision.
4) Net cash flow from operating activities increased by 11 per second.
75% to 12.
22 ppm, of which cash received for merchandise sales was 74.
69 ppm, an increase of 16 in ten years.
39%, the cash inflow is higher than the extra benign income; every 15% increase in cash expenditure for purchasing goods, which is slightly lower than the cumulative growth rate.
The revenue of the main brand is picking up, and we expect the chain to continue to improve in the following quarters. We believe that: 1) In the short term, the company’s consolidated statement revenue and main brand revenue have turned around in the second half of 18 in the short term of the 19Q1 deposit base.Q2 began to shift away from the weakening of the high base effect and the stabilization of the retail environment. It is expected that the company’s revenue will continue to improve on a sequential basis.
2) From the perspective of brand upgrade and innovation, the main brand launched the IP cooperation model in 1919. The sales of T-shirts in Tiangong Palace are now well received, and the company has repeatedly replenished orders. In the future, it will continue to strengthen IP cooperation and increase its appeal to young consumers.New brands are preferred. OVV, AEX, and Black Whale are relatively small, but the product style and positioning are in line with the current trend and the development potential is also one.
3) From the perspective of prolonging the cycle, the company, as a leader in national clothing with outstanding cost-effectiveness, has a large-scale effect that is conducive to reducing costs, integrates the moat, transforms the retail environment to stabilize and rise, and stimulates consumption and other tax and fee reduction effects. The company is positioned as a leader in the public.The benefit is most immediate.
The company’s large repurchase is currently in progress, and it is planned to start in December 2019 with a volume of 6 within 6 months.
9.8 billion yuan to repurchase shares, the unit price does not exceed 12 yuan / share.
As of the end of April 19, it has accumulated 3.
380,000 yuan repurchased 35.39 million shares, accounting for 0% of the total equity.
79%, the average transaction price was 9.
56 yuan / share.
In the future, the company’s continued implementation of repurchases is expected to gradually support it.
Do we maintain 19?
The 21-year EPS is 0.
94 yuan, corresponding to 19 times PE in 19 years, maintain “Buy” rating.
Risk warning: terminal consumption is weak, weather is abnormal, and terminal sales rate is reduced.