Hailan House (600398) Annual Report 2018 Review: Revenue Growth Marginal Improvement Underestimates Robust White Horse

Hailan House (600398) Annual Report 2018 Review: Revenue Growth Marginal Improvement Underestimates Robust White Horse

The growth rate of Q4’s revenue performance returned to positive growth, essentially in line with expectations that the company will achieve revenue of 190 in 2018.

9 trillion, the same increase of 4.

89%, achieved 34.

55 ppm, the same increase of 3.

78%, intended to send 10 to 3.

8 yuan, of which Q4 achieved revenue / performance of 60.

47/8.

27 trillion, with an increase of 5.

67/1.

09%, the fourth quarter improved and resumed positive growth, the overall performance basically in line with market expectations.

The growth rate of the main brand was 北京桑拿洗浴保健 stable, new brands continued to develop mid-segment brands, and the main brand revenue was 151.

4 trillion, the same increase of 2.

62%, an improvement at high bases.

Business suit San Keno income 21.

21 trillion, with the same increase of 12.

82%, of which Q4 revenue increased significantly.

Women’s clothing brand Aiju Rabbit earns 10.

9.8 billion, an increase of 22.

68%, and basically achieved a breakeven.

Overall revenue of other brands3.

7.7 billion, an increase of 25.

78%, including new brands Hailan, OVV and AEX.

In terms of channels, online income11.

51 trillion, with an increase of 9.

25%, of which Jingdong / Vipshop will increase by about 150/80% respectively; offline revenue will also increase by 4%.

83%, direct sales income increased by 118.

37%, income from franchise and other increased by 1.

93%, mainly due to the company’s continuous channel optimization and upgrade strategy, increased efforts to expand direct sales stores to shopping malls and shopping malls, and Southeast Asia’s overseas expansion is smooth.

In terms of stores, there were a net increase of 881 stores this year, a major brand increase of 594 to 5,097, Aiju rabbit net increase of 231 to 1281, and other brands a net increase of 56 to 295.

The gross profit margin of the main brand increased significantly, and the expense ratio caused by the incubation of the new brand increased the company’s gross profit margin to 40.

84%, ten years +1.

89pct, of which the gross profit margin of the main brand +3.

06pct to 43.

4%, mainly due to the increase in the proportion of direct sales, changes in joining associates, and so on.

The gross profit margin of Aiju Rabbit decreased by 3.

86pct to 23.

92%, mainly due to the rapid expansion in the early stage, the store accounted for a relatively high proportion during the incubation period, the gross profit margin of San Keno increased -0.

88pct to 49.25%.

The company period expense rate is +1 per year.

79pct, of which the financial expense rate +0.

64pct, mainly due to the increase in the bond interest rate and the R & D expense ratio +0.

12 points, mainly due to new brand development and increased talent expansion.

The inventory turnover days increased by 9 days, mainly due to the preparation of new brand expansion.

Underestimated stable white horse, multi-brand layout stepped into expansion period, maintained “Buy” rating Looking forward to 19 years, the main brand continued to rejuvenate and personalize upgrades through cross-border cooperation with well-known IP on the product side, and the new brand layout entered the developmentIn the future, it is expected to gradually contribute more revenue and performance, and it is expected that the overall revenue will increase with a high single-digit growth. In the medium and long term, the company as a leader in the industry has variability, stable and high dividends since listing, and a 5-year share repurchase planMedium- and long-term development confidence is expected to be EPS0 in 19-21.

85/0.

94/1.

03 yuan / share, corresponding to 12 times PE 南京夜网 this year, maintain “Buy” rating.

Risk warning: main brand revenue fluctuates, new brand incubation fails to meet expectations