Hailan House (600398): Steady operation of main brand and improved operating cash flow

Hailan House (600398): Steady operation of main 佛山桑拿网 brand and improved operating cash flow

Key points of the report describe the first quarter of Hailan House’s revenue of 60.

8.9 billion, an increase of 5.

23%, net profit attributable to mother 12.

10 billion, an increase of 6.

96%, net of non-attributed net profit11.

5.4 billion, an increase of 3.

20%.

  Comment on the incident The growth of the Hailan House series is steady, and the increase in the growth rate of direct-operated stores has led to improvement in the income side.

In this issue, the Haiyi brand was merged into the Hailan House series of brands. The 19-year opening number and 18Q1 data were adjusted simultaneously.

In terms of different brands, the revenue of Q1 Hailan House series increased by 2.

16% to 49.

9.3 billion, iju rabbit revenue increased by 1.

06% to 3.

At 43 billion, San Keno’s revenue increased by 11.

45% to 4.

With a growth rate of 9.3 billion, Hailan House’s series has enjoyed steady growth, and San Keno’s revenue has performed well.

In terms of different channels, the revenue of directly-operated stores also increased by 114.

88%, franchise stores and other revenue increased by 1.

65%, benefiting from the increase in direct sales growth, offline channel revenue increased by a total of 5.

69% to 57.

1.1 billion; online channel revenue fell by 5.

90% to 2.

6.1 billion.

  The improvement of the gross margin of the Hailan House series and San Keno led to an increase in the overall gross margin.

The gross profit margin of Q1’s apparel business increased by 3.

53pct to 44.

26%.

In terms of different brands, the gross profit margin of Q1 Hailan House series increased by 4.

74pct to 45.

At 70%, the gross margin of Aiju Rabbit decreased by 8.

19 points to 17.

41%, San Keno’s gross profit margin increased by 3.

28pct to 52.

98%; by channel, the gross profit margin of offline channels increased by 3.

96 points to 43.

98%, the gross profit margin of online channels fell by 4.

20pct to 50.

25%.The improvement of the gross margin of Hailan House series and San Keno is the main driving force for the improvement of the overall gross margin.

  The increase in direct store expenses and advertising expenses led to an increase in the sales expense ratio.

In 19Q1, there were 31 directly-operated stores to 322, an increase of 267 in the earlier 18Q1 directly-operated stores.

The increase in direct store expenses and advertising expenses led to an increase in the sales expense ratio2.

81 points to 9.

32%, during which the expense ratio increased by 2.

98 points to 14.

20%, part of the compensation increased gross margin.

  The inventory turnover rate decreased, the accounts payable turnover rate increased, and the net operating cash flow improved.

In 19Q1, the inventory turnover rate also decreased by 0.

04 times to 0.

Thirty-six times, the payable turnover rate increased by zero.

13 times to 0.

60 times; net operating cash flow increases by 1.
.

2.8 billion to 12.

22 billion.

  The long-term gradual reduction of the major brand’s operating stability and the clear improvement of the medium-term growth direction have long been a factor in reducing the system, and local mass brand leaders 杭州桑拿网 are expected to enter the era of “deterministic premium”.

The 18 annual report company disclosed a cash dividend of 3 for every 10 shares.

80 yuan (including tax) dividend plan, the dividend rate advantage is significant, at the same time disclosed the share repurchase plan (the first phase) plan to repurchase 6.

66-9.

9.8 billion shares.

It is expected that in 19 and 20 years, the net profit attributable to mothers will be 36.

3.8 billion, 39.

3.1 billion, corresponding to 0 EPS.

81 yuan, 0.

87 yuan, the corresponding PE is 10.

94 times, 10.

13 times.

The company’s steady growth & high dividend yield have obvious advantages, and maintain the “Buy” rating.

Risk reminders: 1. Channel encryption diverts the risk of old store sales; 2. Risks that the new brand promotion progress is less than expected.