What Is The Driving Force Behind The Rapid Development Of Hai Lan's Home?

In the first half of the year, Hai Lan's new home opened 207 stores, and the total number of stores at the end of the year was 3382, an increase of 6.89% compared with the end of the first half of 2014, and the effective business area of the store increased by 18.11% compared to the same period last year.

In 2015, the business revenue of Hai Lan home plan increased by 20%-30% compared to the same period last year.

With the weak recovery of clothing consumption and the frequent occurrence of "closing shop tides", Hai Lan's home (600398) has continued the trend of high growth since its listing.

What are the driving forces behind its rapid development? What are the risks behind it?

Growth is higher than peers

Formerly known as Keno technology, it came from backdoor listing last year.

In the first year of listing, Hai Lan's home delivered a beautiful financial report. In 2014, the net profit was 2 billion 375 million yuan, an increase of 75.83% over the previous year.

Public information shows that Hai Lan's family realized a net profit of 700 million yuan in 2011, a net profit of 850 million yuan in 2012, and a net profit of 1 billion 294 million yuan after deducting the whole year in 2013.

In the first half of this year, Hai Lan's home business continued its growth trend. In the first half of this year, its operating income reached 7 billion 930 million yuan, an increase of 39.58% over the same period last year, and net profit of 1 billion 670 million yuan, an increase of 35.68% over the same period last year.

In addition, the main business revenue of e-commerce reached 209 million yuan, an increase of 95.59% over the same period last year.

Same as

The seven wolves estimated that the net profit from January 2015 to June was 90 million 748 thousand and 400 yuan to 136 million 122 thousand and 700 yuan, down 10% to 40% over the same period.

Mei Bang clothing expects its net profit in the first half will be a loss, the amount of about -15000 to 0 yuan.

Although Semir's clothing has also been increased, it is lower than that of Hai Lan's home. It expects net profit of 344 million yuan to 447 million yuan from January 2015 to June, a year-on-year increase of 0% to 30%.

Take the crowd mode to take off

Why can Hai Lan's home run many other companies? What is the magic weapon for its development? Most people in the industry attribute it to its unique business model, which is the separation of franchise and management rights.

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In fact, it only needs to join the rent and liquidity, and the management of the store is unified by the company.

Insiders say that compared with other garment enterprises, the supply chain management of Hai Lan home is different. The upstream supply chain is mainly based on consignment and buyout, while downstream supply chain is an investment plus direct management mode.

"This is a bit like the crowd raising mode. It will develop the upstream and downstream roles of suppliers and landlords as shareholders of the company, and achieve a flat upper and lower level. There is a very small proportion of the capital needed to be used in the operation process."

The industry insiders said.

According to China daily data, in the first half of the year, there were 207 new stores in Hai Lan's home, and the total number of stores at the end of the year was 3382, an increase of 6.89% compared with the end of the first half of 2014. The effective business area of the store increased by 18.11% compared to the same period last year.

In early 2009, there were 655 stores in Hai Lan's home.

In 2015, the business revenue of Hai Lan home project increased by 20%-30% compared with the same period last year, and the operating income in the first half of this year was 7 billion 933 million yuan, up 39.58% over the same period last year, slightly exceeding the company's established target.

Everbright Securities analyst Li Jie judged that the annual revenue growth is expected to achieve the expected growth rate of net profit will continue to exceed revenue growth on the basis of stable gross profit margin and continued operating cost control.

Agency hints inventory risk

Although Hai Lan's home has a strong trend of growth in a depressed consumer environment, the industry still hints at its risks.

These people believe that the good circulation of the industrial chain in the past few years has provided an opportunity for the rapid development of Hai Lan's home. However, under the environment of a depressed consumer economy, the risk of this supply chain mode is also accumulating.

Therefore, a number of brokerage analysts believe that the unique operation mode of Hai Lan's home has led to higher inventory risk. If terminal demand is sluggish, it may bring a series of risks to it.

In the risk note of research report, Li Jie said that Hai Lan's home has a lower end sales rate and a concentrated risk of franchisees and suppliers.

Orient Securities also hints at the risk of domestic economic downturn and the risk of terminal inventory backlog.

Statistics show that as of June 30, 2015, the inventory of Hai Lan home was 6 billion 494 million yuan, an increase of 23.94% over the same period last year, up 6.69% from the beginning of the year.

In addition, the balance of notes payable at the end of the first half of 2015 was 1 billion 817 million yuan, the balance of accounts payable was 4 billion 779 million yuan, and the total sum of two items was 6 billion 596 million yuan, not only higher than the 6 billion 421 million yuan at the end of last year, but also higher than the total cost of 5 billion 794 million yuan in the first half of the year, which was higher than the total inventory of 6 billion 494 million yuan at the end of the year.