Hailan House (600398) Annual Report 2018 Review: Volkswagen apparel leader steadily grows, multi-brand strategy becomes clearer

Hailan House (600398) Annual Report 2018 Review: Volkswagen apparel leader steadily grows, multi-brand strategy becomes clearer

The 18-year performance has grown steadily, and Q4 revenue growth has picked up from the previous quarter. The company achieved 190 revenue in 2018.

90 ppm, an increase of 4.

89%, net profit attributable to mother 34.

55 ppm, an increase of 3.

78%, deducting non-net profit 32.

6.8 billion, down 0.

63%, EPS0.

南宁桑拿77 yuan, proposed to send 10 to 3.

8 yuan (including tax).

In terms of quarters, the weak terminal since 18Q2 has led to faster revenue growth. Q3 saw a single quarter of growth, and Q4 turned positive and improved.

In terms of different brands, the main brand still accounts for a relatively large share of growth and performance. The leading brand’s stable attributes are prominent. 18Q1?
Q4 revenue increased by +9.

48%, +1.

76%, -2.

58%, -0.

42%, Q4 offline is now improving month-on-month.

The sales of Ijutu 18H2 significantly exceeded and fell short of expectations. In terms of different channels, offline is still conversion, and online revenue accounted for 6%.

At the end of 18, there were 6,673 offline channels, a net increase of 15.

21%, the proportion of directly-operated stores and shopping malls 四川耍耍网 increased, and the same store of the main brand increased slightly, earlier than 16?
The improvement in 17 years has improved.

Gross profit margin and expense ratio both increased, and the proportion of non-returnable goods in inventory increased. The 18-year gross profit margin was increased by 1.

89PCT to 40.

84%, benefiting from the increase in the proportion of directly-operated stores and buyouts. The current changes between quarters. The increase in Q3 is also related to the increase in the company’s scale after franchisees have crossed the profit inflection point.Expense rate increased by 1.

79PCT to 15.

43%, mainly due to the increase in direct-operated stores and bond interest rates.

Total inventory at the end of 18 was 94.

7.4 billion, of which 88 are brand clothing inventory.

0.8 billion, non-returnable products accounted for 44% (30% in 2017). The increase in the proportion was mainly due to the increase in the proportion of non-returnable products of major brands and the use of non-returnable models by small brands.

The 18-year inventory is fully accrued.

The strategy of the multi-brand group is clearer. In the past two years, the multi-point flowering company has adopted a two-pronged approach of endogenous cultivation + outsourcing investment and mergers.The living museum, the black whale has developed better. In terms of foreign investment, in 2018, it controlled the children’s clothing boys and girls, increased the capital of the infant brand Yingshi, and participated in multiple targets such as Aibe Clothing and Zhihe International Trade, and transferred the equity of Fast Fashion and Bond Culture.Multi-brand layout is basically complete and investment ideas are clearer.

18Q4 began to consolidate boys and girls, but limited contribution to performance.

Investment advice and rating companies have expanded their industry scale, scale effect and first-mover advantage, and their cost positioning has to withstand the attributes of the royal business cycle. Multi-brand development has become a multi-growth point. Repurchase + dividends account for a high proportion of net profit.

Let’s downgrade company 19 slightly?
20 years, add 21 years profit forecast, expected 19?
The 21-year EPS is 0.

82, 0.

87, 0.
94 yuan, 12 times PE in 19, maintain “Buy” rating.

Risk reminders: weak consumption of terminal equipment, abnormal weather, and reduced sales rate of terminal equipment.