The Brand Of Hai Lan's Home Brand Is Growing Rapidly In The First Quarter, And The Overseas Layout Continues To Advance.

Hai Lan's home announced a quarterly report in 2017. 2017Q1 achieved operating income of 5 billion 159 million yuan, a slight increase of 0.55% over the same period last year, operating profit of 1 billion 344 million yuan, an increase of 4.76% over the same period last year, and net profit of 1 billion 10 million yuan, an increase of 5.47% over the same period last year. make a concise evaluation Hai Lan's home The main brand is declining in the same store. The growth of AI Ju rabbit is gratifying. The ability to control fees increases and promotes net profit growth.

(1) 2017Q1's main brand has declined in the same store. The main brand hahaolan's family opened 68 stores in a single season, and 4305 stores at the end of the season. The operating income was 4 billion 374 million yuan, a slight decrease of 0.60% compared with the same store, and the same store sales fell by more than 10%. The gross profit margin was 39.85%, which decreased by 0.02pct compared with the same period last year. Brand Q1 performance pressure is mainly due to the Spring Festival holiday ahead of schedule, from the new year's day to the Spring Festival before the peak shopping season shortened, restricting business revenue further growth. On the other hand, Hai Lan's home opened 720 new stores last year. After the store was encrypted in the same area, there was a diversion of customers among shops, leading to a decline in store efficiency.

(2) young brands AI Ju rabbit At a rapid rate of growth, San Keno has risen steadily, with a higher gross margin. AI Ju rabbit channel continued to expand, 2017Q1 opened 71 stores, shops totaled 701, achieved operating income of 197 million yuan, an increase of 55.25% over the same period, the same store sales growth is higher than 20%, the single quarter gross profit margin 25.89%, an increase of 5.18pct compared with the same period last year. San keno Q1 business income of 398 million yuan, an increase of 4.88% over the same period, gross margin 51.01%. The company will hay family will serve as Harean house and AI Ju rabbit tail cargo processing channel, gradually dilute its brand operation will be taken as Q1 closes up to 37 stores.

(3) the effect of company cost control is remarkable, and the performance is remarkable. During the period of 2017Q1, the cost decreased significantly, totaling 551 million yuan, a decrease of 18.32% compared with the same period last year. The sales cost was 36 thousand and 100 yuan, a year-on-year decrease of 16.11%, and the management cost was 254 million yuan, a decrease of 6.67% compared with the same period last year. The financial cost dropped from -2465 yuan to -6333 million last year. The main reason is that the company's long-term acceptance bond has expired and interest income has increased substantially, resulting in a further reduction in the financial cost. The company cost control effect is remarkable, and the performance level is enhanced.

(4) government subsidies have increased substantially, and caution has been made in the impairment of inventories, resulting in an increase in inventory depreciation. 2017Q1's growth in government subsidies has increased its operating income by 129.49% to 12 million 140 thousand yuan a year. In addition, the company's assets impairment loss was 85 million 60 thousand yuan, an increase of 63 million 417 thousand and 800 yuan (293.05% increase) compared with the previous year, mainly due to the more cautious policy of the company's inventory impairment. However, the net profit of the company still achieves an increase of 5.47% over the same period.

(5) the integrated supply chain model has been effective and the company's operating efficiency has been improved. The company adopts the integrated supply chain mode (ISC) to improve the efficiency of supply chain management, and adopts the mode of first order plus quick reorder to ensure the speed and accuracy of supply chain reaction, control inventory level effectively and improve inventory turnover efficiency. The total inventory amount at the end of 2017Q1 was 9 billion 290 million yuan, down 2.49% from the end of 2016Q1.

The main brand channel is being squeezed by fast fashion and electricity supplier. The main brand of Hai Lan's home brand has been declining in recent years, which is mainly affected by the mainstream consumer population of domestic consumption, the sinking of fast fashion international brand channels, the rainy and warm winter weather, and the squeeze of electricity suppliers. At the same time, the company has implemented the new split mode since 2014, and the new stores and renewal stores have allocated 45% to the rent and amortization of the decoration before the annual rate of return on investment has reached more than 15%. After 15%, the proportion is reduced to 15%, and the rate of return on investment is no more than 20%. The aim is to ensure that the distributors will give more profits to the companies and suppliers after the return on investment. However, the number of new stores has increased in 2016, which has yet to grow, resulting in a reduction in the proportion of the company and the compression of the brand performance. In the future, as the new store is stable and profitable, the company's share of profits is expected to rise significantly.

Consumer Finance Companies is jointly established to upgrade the main business level with Finance + data. In April 2017, the company invested 45 million yuan in joint venture with Jiangsu bank, Kai Ji bank and Shanghai 2345 network holding group to set up Jiangsu Su Yin Kai Chi Consumer Finance Co., Ltd., holding 7.5% of the company. By investing in the establishment of a joint venture company, the company provides diversified financial products and value-added services such as consumer loans to consumers, increasing customer viscosity and accumulating user data, serving the main business of apparel retail business.

Looking forward to 2017, the brand store volume is expected to continue to improve, the new store efficiency is expected to improve, and the inventory pressure will be released gradually. First of all, the company plans to add 750 new stores in 2017, of which 350 are Hai Lan's home, and 400 are the 400 homes of AI Hai and Hai. At present, the store focuses on the high quality location of the second tier cities, and combined with the gradual maturity of a large number of new quality stores in 2016, the store efficiency is expected to improve, especially the growth rate of the new brand continues to be optimistic. Secondly, the company's supply chain management level helps to release the inventory pressure. In 2016, the company went to inventory initially, and the Q1 inventory turnover rate increased in 2017, and the business efficiency is expected to continue to improve.

Overseas layout continues to push forward, endogenetic + extension to promote multi brand strategy can still be expected. On the one hand, the company aimed at foreign markets, increased its inspection efforts to Southeast Asia and other regions, and provided the supply chain resources for the company to lay a good job in the layout of overseas markets, highlighting the ambition of overseas layout, and is expected to launch a new chapter in development. On the other hand, the company has ample cash at present, and in the case of the maturity of its main brand, it is expected to introduce new brand names such as young men's clothing, children's clothing and other brands. Moreover, the company also indicated that it will actively promote overseas brand cooperation and mergers and acquisitions business, achieve complementary resources advantages, and constantly implement the strategic objectives of the company's apparel brand operation platform, and it is also worth looking forward to.

Investment suggestions: the company promotes the product's fashion, adjusts the channel area to the high quality business circle, and constantly optimizes the supply chain management level. In the future, with the growth of a large number of new stores, the company's revenue is expected to increase significantly, and the driving performance will continue to maintain steady growth. We expect the company to achieve net profit of 33.03 yuan and 3 billion 609 million yuan respectively in the 2017-2018 years, corresponding to EPS 0.74 and 0.80 yuan / share respectively, corresponding to PE 13.8 and 12.6 times respectively. brand marketing Channel management, supply chain management and other aspects are the leading domestic companies. Adapting to market changes and actively adjusting products and brands will hopefully usher in a new development.

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