Hailan House (600398): Q4 revenue picks up; main brand same-store stores stabilize; platform brand group prospects look promising
The event company announced its 2018 annual report, which is expected to achieve operating income of 190.
90 ppm, a ten-year increase4.
89%; net profit attributable to mother 34.
55 ppm, a 10-year increase3.
78%; net profit after deduction to non-mother 32.
68 ppm, a decrease of 0 per year.
The company decided to distribute a cash dividend of RMB 3 for every 10 shares.
80 yuan, a total distribution of 17.
10,000 yuan, plus 0 for share repurchase in 2018.
27 trillion, gradually formulate a cash dividend of 50% of net profit attributable to the mother.
Brief comment on Q4 revenue has picked up, the main brand rebounded in the same store, and the new brand actively expanded the company’s scale. Revenue increased by 4 as well.
89%, a ten-year growth rate average of 2.
17 pct, mainly because Q2-Q4 was affected by the large consumption environment, the reasons for autumn and winter weather, sales improved, Q1-Q4 revenue growth rate was +12.
2% / + 3.
1% / + 5.
The company opened 1181 new stores, closed 300 stores, and opened 881 to 6,673 stores (excluding boys and girls consolidated in 2018Q3).
From the time 天津夜网 point of view, Q1-Q4 opened a net of 68/237/304/272, respectively. Store openings are still concentrated in the second half of the year, and new stores have limited contribution to revenue growth.
From the perspective of type, 244 directly operated stores opened net, mainly new brands and overseas stores opened directly attached stores; affiliated stores and franchised stores opened 637 nets.
At the end of the year, there were over 1,300 shopping malls and malls, accounting for nearly 20%.
Hailan House (main brand HLA + Black Whale) has a net opening of 594 to 5,097 stores, of which Q1-Q4 has a net opening of 20/171/197/206, and direct-operated stores have expanded to 144 to 175.
The total area of shops at the end of the year was 86.
270,000 square meters, an increase of 7 earlier.
76%. At the end of the year, the area of a single store was about 169 square meters, a slight decrease of 4 compared with the earlier period.
Brand same-store growth was close to 1%, and after a slight margin of same-store growth in 2016 and 2017, it stabilized and rebounded.
The highest brand revenue increased by 2.
62% to 151.
$ 4.4 billion, a growth rate previously budgeted2.
56%, Q1-Q4 revenue growth rate was +9.
5% / + 1.
4%, noticeable in the second quarter.
Aijutu’s high-level net opening of 231 to 1281 stores, expansion is still relatively fast.The total area of the shop at the end of the year was 15.
730,000 square meters, an increase of 17 earlier.
53%. At the end of the year, the area of a single store was about 123 square meters, which was slightly reduced earlier.
The highest brand revenue increased by 22.
68% to 10.
9.8 billion yuan, Q1-Q4 revenue growth rate was +71.
8% / + 97.
5% / + 3.
San Keno’s average income increased by 12.
82% to 21.
US $ 2.1 billion, the company opened a new San Keno plant in Henan to ease the problem of previous capacity replacement.
Other brands (Haiyi, AEX, OVV, Hailan Preferred, etc.) have a total of 56 to 295 net stores, of which Haiyi is still the main (close to 200 stores), and the remaining new brands have more than 90 stores, mostly in shopping malls.In the mall.
The company continued to adjust one store in Hainan and actively expanded new brands. Among them, 74 directly operated stores opened and 84 at the end of the year.
The combined revenue of other brands increased by 25 per year.
78% to 3.
7.7 billion yuan.
Looking at the overall channel, offline revenue previously increased by 4 as well.
8% to 175.
880,000 yuan, of which Q1-Q4 revenue growth rate was +9.
2% / + 9.
2%, a marked rebound in the fourth quarter.
Online Jingdong, Vipshop will achieve high growth, and began to try to gather social e-commerce and other small red books, so online income increased by 9%.
2% to 11.
51 ppm, Q1-Q4 revenue growth was +9.
1% / + 2.
7% / + 16.
3%, Q4 growth interruption is mainly due to the company’s active participation in last year’s double eleven efforts.
The gross profit margin expense rate doubled, the inventory depreciation reserve increased, and the investment income increased the company’s comprehensive gross profit margin in 2018 by 40.
84%, an increase of 1.
89 pct, gross profit margin of main brand increased by 3.
The 06 pct led the overall gross profit margin, mainly due to the increase in the proportion of brand non-returnable goods sales, the increase in the proportion of direct sales stores, and the change in the proportion of franchisees.
Expense rate during 2018 (excluding R & D expense rate) 15.
17%, increase by 1 every year.
67 pct, of which the sales expense rate and management expense rate increase by 0.92, 0.
The 11 pcts are mainly for the early cultivation of new brands, which lead to increase in store opening and promotion; financial expenses are -0.
4.0 billion, compared with -1 in 2017.
20 ppm, mainly due to the increase in bond index spending due to the issuance of convertible bonds.
R & D expenses increased by 95.
74% to 0.
In terms of design and development, the company ‘s main brand and San Keno professional wear are jointly developed with suppliers in terms of design and development. The supplier provides design and development resources, and the company shall bear the research and development costs.
While other brands are independently designed by the company and transformed into the cultivation of new brands, there is an increasing demand for design research and development, leading to the goal of increasing research and development costs.
Asset impairment losses in 20183.
8.3 billion, an increase of 202 every year.
97%, mainly due to the increase in provision for inventory depreciation, and the annual increase in inventory depreciation reserves increased by 2%.
Overall, the company’s inventory at the end of the year was 94.
74 million, an increase of 11 per year.
55%, mainly OVV, Hailan preferred, AEX and other new brands in 2019 to open store reserves for stocking, and boys and girls consolidated inventory increased.
Clothing chain brand inventory 88.
0.8 billion, of which non-returnable inventory (requires provision for price reduction) accounted for 44%.
The increase in the annual storage price fall reserve is mainly the accrual of the increase in non-returnable inventory for more than 2 years (supplementary accrual 2).
At the end of the year, the non-returnable inventory for more than 2 years was raised by a total of 3.
50 trillion, accounting for 93 of its carrying amount.
73%, fully accrued.
Therefore, although the gross profit margin has increased, the increase in the expense ratio and the increase in asset impairment losses have led to a slight decrease in the non-returned net profit of the buckle ring.
In addition, the company’s investment income in 2018 increased by 1153.
9% to 1.
610,000 yuan, mainly due to the transfer of 19% equity of Fast Fashion in July 2018 to achieve an investment income of 70 million yuan, and other disposal of financial assets for disposal gains increased, helping mother net profit to increase.
Net cash inflow from operating activities of the company in 201824.
19 trillion, down 15.
98%, mainly because the new brand opened stores in 2019 for stocking, and non-returnable purchases increased.
Investment income: The company’s main brand remains stable to support the continued expansion of the new brand group in 2019, which will contribute to income, coupled with the positive effect of income reduction on substitution, and the consolidation of boys and girls to increase income (2018)(Consolidated table Q4), it is expected that revenue growth in 2019 will reach 5%.
After the rapid expansion of Ijutu in the past few years, this year’s store opening has stabilized. Based on the stable profitability of the old store, this year is expected to achieve overall profitability.
The company gradually exported management capabilities to the supply side, expanded the core supplier team, stable expansion of Southeast Asian stores, good operating efficiency, unchanged new directions for new retail exploration, leading platforms, cost reduction and efficiency enhancement to improve the moat.
At the same time, the first / second repurchase plan in the five-year dividend plan will continue this year.
We expect the company’s net profit attributable to mothers to be 38-2019.
07 billion, 40.
20 trillion, EPS is 0.
85 yuan / share, 0.
89 yuan / share, corresponding to PE is 11.
5 times, 10.
9 times, as the MSCI large-cap stock index, enjoy foreign liquidity premium expectation, maintain “Buy” rating. Risk factors: Inadequate development of new brands; sales of major brands continue to slow down; decline in sales rate leads to increased risk of inventory falling prices.