Hailan House (600398): Steady New Main Brand Continues
Event: Hailan House released its semi-annual report for 2019. The revenue for 2019H1 / net profit attributable to mothers / net profit attributable to non-mothers is 107 respectively.
2.1 billion, 21.
2.5 billion, 19.
900,000 yuan, at least 7.
07% / 2.
51%; 2019Q2 revenue / net profit attributable to mothers / net profit attributable to non-mothers is 46.
3.3 billion, 9.
1.6 billion, 8.
3.6 billion every year 9.
42%, performance is in line with expectations.
Opinion: The main brand is stable and the 杭州夜网 new brand is growing fast.
The income of the main brand of Hailan Home in 2019H1 reached 86.
28 ppm, an increase of 5 in ten years.
05%，2019Q2\Q1 增速分别为9.30%\2.16%, the second quarter improved.
San Kainuo brand revenue reached 9.
36 ppm, an increase of 12 in ten years.
88%，2019Q2\Q1增速分别为14.52%\11.45%, continued to maintain steady growth.
The Ijutu brand continued to adjust, with revenue reaching 5.
470,000 yuan, an average of 9 in ten years.
79%，2019Q2\Q1 增速分别为-23.57%\1.06%, is expected to continue to adjust in the second half of the year.
Other brands (including OVV, AEX, Hailan preferred, boys and girls) earn 3%.
08 million yuan, an increase of 993% in ten years.
Brand, product and marketing follow up.
2019H1 Hailan House participates in London Fashion Week, holds multiple brand launches in Thailand, 南京夜生活网 cooperates with the big trouble Tiangong IP, outdoor and TV advertising, and showcases the brand strength.
In the first half of the year, products such as Oxford-spun shirts, fly-woven sneakers, sports quick-drying series, and luminous series were launched, which continued to focus on cost-effectiveness and improved product transformation.
In the new media era, the company makes full use of new media such as WeChat, Weibo, Douyin, and Kuaishou to enhance communication and interaction with consumers.
Gross profit margin increased, expense ratio increased, net profit margin was slightly higher, and inventory turnover was stable.
The gross profit margin for 2019H1 is 41.
67%, an increase of 1 per year.08pct, mainly because the gross profit margin of the main brand of Hailan House increased by 2.
During the period, the expense ratio is maximized by 2.
81pct (of which the increase in sales expense ratio increased by 1.
61pct, maximize the management expense ratio by 0.
98pct), net interest rate per unit length is 0.
The inventory turnover days for 2019H1 were 263.
62 days, a year up 1.
65 days, stable.
Profit forecast: It is expected that the company’s revenue will increase by 5 from 2019 to 2020.
18%, profits increase by 5 per year.
33%, currently corresponding to the company’s PE in 2019 is 10.
33X, maintain BUY rating.
Risk warning: terminal consumption continues to be weak, new brands & internationalization are less than expected