Direct Broadcast Of The Normal Hai Lan Home To Spend 500 Million Buyback Shares, But Also Want To Use This Solution To Resolve Inventory Problems.

The National Men's wear brand, Hai Lan's home Limited by Share Ltd (hereinafter referred to as "Hai Lan House") issued a notice recently that the company had accumulated 15984175 shares of repurchase shares through centralized auction in May, accounting for 0.3616% of the total share capital of the company as of March 31, 2020, and the highest purchase price was 6.45 yuan / share, with a minimum price of 5.93 yuan / share, with a payment of 98535. 861.49 yuan (excluding transaction costs). By the end of May 2020, the company had accumulated 76889037 shares of repurchase shares, accounting for 1.7396% of the total share capital of the company as at March 31, 2020. The highest price of the purchase was 8.74 yuan / share and the lowest price was 5.93 yuan / share, the total amount paid was 546021302.75 yuan (excluding transaction costs).

According to the insiders, the introduction of the buyback plan by listed companies reflects the company's confidence in the future development prospects and the recognition of its intrinsic investment value.

According to public information, Hai Lan group was established in Jiangyin, Jiangsu province in 1997. It is a large consumer brand operation platform company mainly engaged in brand management, supply chain management and marketing network management. The company has long and deep ploughed men's clothing industry. The leading brand, Hai Lan home, was founded in 2002, and achieved rapid expansion of the channel through the business mode of suppliers, companies and distributors' interests binding. In 2014, the brand of "men's Wardrobe" was deeply rooted in the hearts of the people, and the leading position of China's men's wear industry was stable.

Since 2017, Hai Lan's family has been expanding the sub brands of black whale and extending its business to the whole category and multi brands. It has expanded from men's clothing and formal dress to women's clothing, children's clothing and household products. It has become the first Chinese brand clothing brand with a brand value exceeding ten billion. In 2019, when the new brand started to take shape and the epidemic hit, the company put forward the "focus on the main brand" war. Slightly, the total number of stores under the line reached 7254, covering more than 80% of the counties and cities, and further expanded to Southeast Asian overseas markets.

According to the financial report, in 2019, Hai Lan's family promoted the layout of the whole channel, further increased the market share, and realized the coordinated development of multi brand, multi-channel and multi category. During the reporting period, the company achieved operating income of 21 billion 970 million yuan, an increase of 15.09% compared with the same period last year, and the net profit attributable to the shareholders of the upper city company was 3 billion 211 million yuan. Compared with the same period last year, it dropped by 7.07%. During the reporting period, Hai Lan's family brand new store opened 655 stores, closed 354 stores, a net increase of 301, the total number of stores 5598, including 56 overseas stores.

In the first quarter of 2020, Hai Lan's family realized its operating income of 3 billion 848 million yuan, down 36.80% compared to the same period last year, and realized net profit of 295 million yuan, down 75.59% compared with the same period last year.

According to the results of the report, the inventory of Hai Lan's home was 8 billion 839 million yuan, down 7.48% from the same period last year, down 2.27% from the end of 2019. Receivables turnover slowed slightly, and turnover days increased by 9.77 to 19.44 days. In addition, net operating net cash flow has been reduced by 21.78% to 956 million yuan compared with the same period of last year, although it has been reduced by revenue. However, Hai Lan's home has plenty of cash and the money in the period reaches 10 billion 404 million yuan, which ensures the daily operation of Hai LAN's home.

In the reporting period, Hai Lan's home series, San Keno and other brands achieved operating income of 3 billion 161 million yuan, 265 million yuan and 312 million yuan respectively, representing a decrease of 36.69%, 46.25% and 118.89% respectively over the reporting period.

From the point of view of the channels, Yu Hai's LAN family's multi platform power was accelerated, and the channel integration was accelerated under the online and offline channels. The revenue was 305 million yuan during the period, an increase of 16.70% over the same period last year. The gross margin increased the discount rate due to the promotion of drainage, down 46.05% compared to the same period last year. Under the influence of the sharp decrease in the number of people and the closure of stores, the revenue in the period dropped 39.87% to 3 billion 434 million yuan, and the gross profit margin dropped to 35.12%.

In terms of stores, the continuous structural optimization was 11 to 7243 at the end of 2019, of which direct sales and franchise grew by 23% and 34% to 682 and 6561 respectively.

The industry believes that the short term performance of Hai Lan home is more obvious than the impact of the epidemic. In the long run, Hai Lan's home will focus on the main brand, and the new brand will focus on improving the hematopoietic capacity. The company has ample cash and a stable dividend policy, and the valuation is expected to resume.

First, the textile network here learned that the epidemic Houhai LAN family's efforts to develop electricity supplier channels, increase platform activities, preferential efforts, and actively carry out live broadcast, live broadcast of the network, electricity revenue in the first quarter grew by 16.7%, and increased to 8% in total revenue. The online growth in 4 and May increased faster than that in the first quarter. The new product sale and brand building role of the broadcasting platform.

As for the inventory problem that the industry is concerned about, financial reports show that at the end of 2019, Hai Lan's household inventory amounted to 9 billion yuan, of which 2 billion 900 million yuan was stored in headquarters warehouse stock, 5 billion 500 million yuan was commissioned by the channel, and the rest was raw materials and half finished products.

Guo Haiyan, an analyst at CICC, said that, from the nature of the stock, Hai Lan's 8 billion 400 million stock goods and the consignment goods returned 4 billion 700 million yuan, accounting for 56%, and the non returnable commodities accounted for 3 billion 700 million yuan, accounting for 44%, accounting for 17% of the 2019 revenue, which was at the normal level of the textile and garment industry. Considering that the products not sold in the two quarter (usually 15 months) can be refunded to suppliers, buyout products can be sold through a platform in the past season.

Affected by the warm weather in 2019 and the epidemic in early 2020, Hai Lan's family reported the impairment of assets in the four quarter of 2019 and the first quarter of 2020. The loss was mainly 240 million yuan and 170 million yuan in inventory price loss. Guo Haiyan predicted that, in view of the principle of caution, Hai Lan's home will still increase the loss of inventory loss in 2020. At the same time, Hai Lan's home also plans to reduce the purchase percentage of the main brand down jacket in 2020 to 30%, further reducing the backlog risk.

Guo Qinglong, a researcher at Huachang securities, pointed out that Hai Lan's home has been in the field of men's wear for many years. As the epidemic accelerates the integration of industries and localization, it is expected to achieve a younger transformation through the advantages of mode, products, channels and marketing, and maintain steady growth. The main brand, Hai Lan's home, based on its existing cost performance advantages, has won the minds of young consumers by creating explosive funds and collaborating with IP. In terms of marketing, the company's marketing strategy is mature and diversified. It promotes brand aging through diversified ways such as Star public interest, cross-border cooperation, variety film and television implantation, and new media marketing. Hai Lan's home will continue to focus on the main brand, expand shopping centers and other core business circle channels, and force the online channel. In the future, it is expected to maintain steady growth through the expansion of channel size.

From the point of view, Hai Lan's home is constantly improving its product strength and promoting the implementation of the younger strategy by creating explosive funds and working with IP. On the one hand, we should create a high price for bursting money: introduce a good quality, simple design and cost-effective base products to attract new customers. At the beginning of 2020, a short sleeved T-shirt with a price range of 68-98 yuan was launched to create explosive products to enhance product strength and expand consumer groups. The average price of products has been maintained at 130-140 yuan for a long time, and the competitive advantage and barrier have been formed. On the other hand, Harean's home and IP have launched a series of products: in early 2019, HLA and Shanghai art film studio reached a strategic cooperation, the Chinese classic animation "the havoc of heaven" will be re interpreted through Harean's home dress. After the sale of the heavenly palace series, there was a nationwide craze for craze, some of which were out of order. In August 2019, the brand and the Blizzard Entertainment Co operated with the World of Warcraft classic game IP as the content. In early 2020, it also worked with Bruce Lee, the black cat sheriff and the three classic IP of the ninja turtle to launch the five major IP series.

Harean house believes that through the re interpretation of classic IP, the image of the brand "national tide" will be created. Harean's home aims to enhance the competitiveness of the brand market for young customers with high sentiments. With the adjustment and stability of Harean's home strategy, the brand will continue to push forward the younger generation reform and stabilize the "first men's clothing brand in China" through "Chao" brand fashion upgrades.

As of the first textile network reporter today (June 4th) evening dispatch, Hai Lan's home closed at 6.16 yuan / share, a decrease of 0.16%, and a market value of 27 billion 200 million yuan. As of March 31, 2020, Hai Lan's home stock reached 53422 households, an increase of 510 compared with December 31, 2019, with a shareholding ratio of 0.96%, with 82737.74 shares per household.