Hai Lan's Home, Which Has A Stock Of Over 8 Billion 800 Million, Makes A Profit Of 2 Billion In The First Half Of The Day.

According to the brand, Hai Lan's family achieved a 8 billion 628 million increase in operating income during the reporting period, an increase of 5.05% over the same period last year, achieving sustained and steady growth. By the end of the reporting period, there were 5449 stores in Hai Lan's home, 152 in the reporting period, 547 million yuan in revenue, 9.79% in the same period last year, and a slight decrease in revenue. As of the end of June, there were 1241 stores in AI Ju rabbit, 40 in the reporting period, and in the adjustment period; San Keno achieved a 936 million operating income, an increase of 12.88% over the same period last year, and the income growth was relatively stable; other brands (mainly Hai Lan optimization, OVV women's wear, AEX men's wear, boys' and girls' children's wear): the new brand cultivation effect was remarkable, and the operating income was 308 million, up 993.07% over the reporting period. As of the end of June, there were 1050 other brand stores, with a net opening period of 83.

From the perspective of channels:

Offline channels: the operating income during the reporting period was 9 billion 837 million yuan, an increase of 8.14% over the previous year, accounting for 94.41%. The growth rate was faster, mainly by increasing the location requirements of the stores, improving the layout of the benchmark shopping malls, optimizing the stock stores and increasing the single store revenue. Excluding the San Keno brand, the company's direct store revenue increased by 594 million yuan, an increase of 132.91% over the same period, and achieved rapid growth. It was mainly driven by the strong growth of the main brand of Hai Lan's home business. The franchisee achieved operating income of 8 billion 889 million yuan, an increase of 3.45% over the same period last year, and achieved steady growth.

Online channels: operating income of 582 million yuan during the reporting period, an increase of 0.28% over the previous year, accounting for 5.59%. The slow growth rate is mainly due to the strategy that the company's main brand does not discount, affecting its online traffic. It is expected that the proportion of new brand online revenue will gradually increase.

In terms of inventory, Hai Lan's home has maintained a stable overall inventory in the case of new brands and watches. By the end of June, the inventory was 8 billion 842 million yuan, an increase of 0.20% over the same period last year, which was reduced by about 600 million compared with the annual report period in 2018. Inventory turnover capacity is basically flat. In the first half of the year, the number of inventory turnover of Hai Lan home was 0.68 times, down 0.01 times compared with the same period. During the reporting period, Hai Lan's family prepared 87 million 108 thousand yuan for inventory depreciation, an increase of 13.08% over the same period last year, mainly because of the increase in the price of boys and girls.

Everbright Securities analyst Li Jie believes that from the original business of Hai Lan's home, the main brand Hai Lan's home has maintained a steady growth, and the extension shop is in line with expectations, and the same store has increased by about 2%, showing stable performance. In the two quarter, compared to the first quarter, the single quarter has improved. On the one hand, the high base effect has been eliminated. On the other hand, the company has achieved remarkable results in many aspects such as products, channels, brands and so on. For example, the selling of T-shirts in the heavenly palace joint name and the popularity of a large number of brands have promoted the brand influence, and these factors are expected to continue in the second half year. In addition, the main factor that will drag down performance in the first half of the year will be eliminated in the second half of the year. In the first half of the year, Ying baby was a loss and brought 56 million 920 thousand yuan of investment losses to the consolidated statements. In the second half of the year, its income and profits will be consolidated, and its performance in the second half of the year is better than that in the first half of the year. In the second half of this year, the company's revenue will be thickened (estimated at 500 million) and a small contribution to profits (estimated at tens of millions). In addition, the interest expense of the company has been increased since its issuance of convertible bonds in July of last year, and the net interest rate of 19H1 has increased substantially, and the 19H2 will be significantly reduced.

Liu Chang, a Dongxing Securities Research Institute, said that the multi brand layout of Hai Lan's home has been initially established. The children's clothing has been expanded through mergers and acquisitions, and the luxury brand has been cultivated through self-cultivation. Hai Lan's home also plans to spend 10% of its annual profits on the cultivation of new brands. The budget is reasonable, which helps the company to establish a reasonable brand gradient in the long run, and the company is also expected to become a multi brand and multi class platform company from men's wear.

According to public information, the home of Hai Lan was founded in 1997. It is a large consumer brand operation platform company mainly engaged in brand management, supply chain management and marketing network management. As of the end of the reporting period, the company owns brands including men's wear, women's wear, children's wear, professional wear and home furnishing.

By the end of June 30, 2019, there were 551 new stores in Hai Lan's home, 356 outlets, a net increase of 195, and a total of 7740 stores, including 5449 brands of Hai Lan's home, 1241 brands of AI Ju rabbit, and 1050 other brands.