Hai Lan's Home Started A Buy Back Plan Again, Its Share Price Rose Nearly 8%.

In the evening of July 23rd, Hai Lan's family issued a notice on the share repurchase plan for the repurchase company (phase second). The plan shows that the total amount of the buyback shares of the company is no less than 691 million yuan, not more than 1 billion 36 million yuan.

Stimulated by this news, the company's stock price continued to rise after opening 2.16% in July 24th. As of today's closing, the stock's gain was 7.66%, and it closed at 8.99 yuan, which was 262 million yuan a day and the latest total market value was 39 billion 736 million yuan.

　 Start the second phase buy back plan

Statistics show that the Hai Lan home, which was listed in December 2000, is a large garment enterprise, which covers the management of brand clothing and the production and sale of high-end worsted fabrics, high-end suits and professional wear.

As of a quarterly disclosure date, the controlling shareholder of the company is Hai Lan group Co., with a shareholding ratio of 39.31%. Its actual controller is Zhou Jianping and his co operative.

In view of the repurchase scheme, Hai Lan's family intends to repurchase 691 million yuan to 1 billion 36 million yuan with its own funds, and the repurchase price will not exceed 12 yuan / share. The repurchase period will not exceed 12 months from the date of the consideration of the buyback plan by the shareholders' meeting of the company.

If the total amount of repurchase funds and the upper limit of the repurchase price are calculated, it is estimated that the shares of the repurchase will be about 86 million 333 thousand and 300 shares, accounting for about 1.95% of the total share capital of the company (up to June 30, 2019), and the shares will eventually be revoked.

In fact, the repurchase is the second phase of repurchase of Hai Lan's home. The company has completed the first phase of the repurchase before that.

In November 30, 2018, Hai Lan's home issued a notice of repurchase company stock plan (phase I). The announcement at that time indicated that the listed company planned to repurchase shares at a price not exceeding 12 yuan / share, and the amount of repurchase would be 666 million yuan to 998 million yuan.

In June 17th, the company announced that as of June 16th, the company's share buyback period expired, the company actually repurchased 72 million 793 thousand shares of the company, accounting for 1.62% of the total share capital of the company, the highest price of repurchase was 10.33 yuan / share, the lowest price of repurchase was 8.05 yuan / share, the average repurchase price was 9.17 yuan / share, and the total amount of funds used was 667 million yuan (excluding transaction costs).

After the write off of the above repurchase shares, the total share capital of Hai Lan's home also changed from 4 billion 493 million shares to 4 billion 420 million shares.

It is worth noticing that after releasing the first repurchase plan, Hai Lan home also announced that in the next five years (2018-2022 years), the company will not return less than 20% of the net profit attributable to the shareholders of the listed company in the first fiscal year before the issuance of the plan, and it will not exceed 30% of the net profit of the audited shareholders of the listed company in the first fiscal year before the issuance of the plan. The total amount of specific funds for each repurchase share shall prevail within the above-mentioned principles.

That is to say, according to the corresponding plan, the company will continue to buy back the share of the repo company between 2019 and 2022.

　　 Performance growth slowed sharply

Regarding the purpose of launching the repurchase plan for the past five years, Hai Lan's home said in the announcement that based on the confidence in the company's sustainable and stable development and the recognition of the company's value, the company, based on fully considering and listening to the requirements and wishes of the shareholders, especially the small and medium-sized shareholders, combined with the implementation of the company's financial position, business situation and the future development strategy, formulating the share planning of the repurchase company in the next five years (2018-2022 years), so as to realize the company's sustained, healthy and long-term development.

In fact, since 2014, the growth rate of Hai Lan's home business has slowed down, and the share price of the company has also suffered a sharp decline. Now, the introduction of a continuous buyback plan may help to boost the share price.

Data show that from 2014 to 2018, the company's operating income was 12 billion 338 million yuan, 15 billion 830 million yuan, 17 billion yuan, 18 billion 200 million yuan, and 19 billion 90 million yuan, but its revenue growth rate was 72.56% in 2014, and then fell to 28.3% in one year. In 2018, this index was only 4.89%, while the first quarter of 2019 was 5.23%.

At the same time, the net profit of Hai Lan's home was 2 billion 375 million yuan, 2 billion 953 million yuan, 3 billion 123 million yuan, 3 billion 329 million yuan, and 3 billion 455 million yuan respectively. However, the company's net profit growth has also seen a sharp decline, which has dropped from 75.83% in 2014 to 3.78% in 2018, and has rebounded to 6.96% in the first quarter of this year.

It is worth mentioning that after the slowdown in earnings growth, the company's share price also dropped from 19.96 yuan in June 18, 2015 to 8.99 yuan now, during which it fell 54.27%.

In fact, in the case of a slowdown in performance, Hai Lan's home, which is based on "man's Wardrobe", has also undergone a series of transformation. At present, Hai Lan home, located in a diversified road, has developed business in women's wear, children's wear, home and overseas.

Statistics show that at present, there are 8 brands of Hai Lan family. Among them, black whale, OVV and AEX are all established in 2017, which are sports brand, women's wear brand and men's wear brand. Boys and girls are Hai Lan's family's brand of children's clothing holdings in 2018. The target group is 6 months to 16 years old children, positioning high quality and high performance price ratio. Hai Lan preferred life hall is lifestyle brand, main office supplies, toiletries, bedding and other ten commodity products.

In order to promote the brand, the company's marketing campaign continued, its advertising expenses in 2018 reached 627 million yuan, while its R & D expenses in the same period was only 49 million 18 thousand and 300 yuan.

Judging from the current situation, it may not be particularly successful for Hai Lan's family to rely on business transformation and marketing strategy to boost performance growth, while repo can boost stock prices in the short term, but in the long run, it plays a decisive role in the company's performance.