Men's Clothing Brand Hai Lan Home's Main Business Income Increased By 28.30% Year-On-Year.

Recently, the National Men's wear brand Hai Lan home announced second years of performance after the listing, the main business income of 15 billion 800 million yuan, an increase of 28.30% over the same period, the net profit attributable to parent company 2 billion 950 million yuan, an increase of 24.35% over the same period, once again using super excellent performance A shares.

Listed company.

2015 is

At the end of 2016, the company will end its performance pledge for 4 consecutive years when it comes back to the market and give performance commitments for third years.

Although the performance is still bright, but the company's stock surge, and the overall decline in the quality and profitability of the store is worrying.

In 2013, Hai Lan's home borrowed the technology of keno. In the scheme of that time, the company promised that the net profit attributable to the parent company after 2013-2016 years of deducting the non recurring gains and losses was 1 billion 210 million, 1 billion 470 million, 1 billion 710 million and 1 billion 910 million yuan respectively, corresponding net profit growth rate was 42%, 21%, 16% and 12% respectively.

During the period of performance commitments, if Hai Lan's home fails to reach the amount promised by the subscribers in the four fiscal years from 2013 to 2016, the amount of actual net profit that has been accumulated at the end of each period will be compensated by the company.

Over the past three years, the company has overfulfilled its objectives and even exceeded its target in 2016, even in 2014.

Now it seems that with the accumulation of the first three years, the goal of successfully completing the last year is almost without suspense.

While the revenue and net profit continued to grow rapidly, inventory data revealed the company's worries.

By the end of 2015, the company's inventory reached 9 billion 580 million yuan, an increase of 57.4% over the same period last year, accounting for more than 40% of the total assets.

According to the 2015 annual report issued by 38 listed clothing companies of A shares in wind database, the total inventory of the end of the stock market is 35 billion 396 million yuan, accounting for 21.47% of total assets.

On the 2015 surge in inventory data, the company explained in its annual report that it was mainly due to the expansion of business scale and increased stocking, and the warm winter climate in 2015 led to sales failure.

Because the data collected by the acquirers in the backdoor acquisition are the overall financial data of Hai Lan group from 2009 to 2012, the interface news collated the data of the listed subjects in the past three years based on the publicly disclosed data. From the absolute amount, the inventory level of 9 billion 580 million yuan in 2015 has doubled than that in 2013, but the situation is still relatively stable from the ratio of total assets to total assets.

The inventory assets ratio of Hai Lan's home is higher than that of its main competitors. The main reason is that the company adopts the direct operation mode to confirm the revenue after the final sale of the products, so the store display products are counted as the company's inventory, while the competitor's agent affiliate mode does not include the storefront products into the inventory.

Secondly, Hai Lan's family outsourced production links, small scale of fixed assets investment, and direct sales mode, and the amount of accounts receivable was small.

Therefore, overall, the company has a higher inventory assets ratio.

And the direct battalion mode is the unique feature of Hai Lan's home in the past years.

The company takes franchisees as "financial investors". When new stores are opened, the franchisees are responsible for the cost of shop decoration, rental, water and electricity, property and shop staff salaries. Hai Lan's home is fully responsible for the operation of the stores, including management and sales personnel training, hiring, remuneration, store distribution, replacement and store decoration, so as to achieve the requirements of "store side". Therefore, from the perspective of store attributes, Hai Lan's home has identified this mode as a direct battalion.

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This kind of direct battalion mode has the advantages of direct operation and franchisees. Hai Lan's home has strong control over the channel, directly controls the terminal sales policy and store image, at the same time, it can make full use of the social capital and expand the terminal with a relatively low initial capital.

However, the risk of this mode is that the inventory pressure is large. Once the accumulation of inventory occurs, the profitability will be greatly affected.

From the data comparison of similar men's clothing listed companies compiled by interface news, haerang's home interest rate is relatively higher than that of the other three companies under the condition that the gross margin is relatively moderate. This also benefits from the direct battalion mode which has compressed the dealers' layers of points, and the flat structure has made the company's net interest rate significantly higher than its competitors.

Guotai Junan's Hai Lan home's latest five years store data and single store income data can clearly explain why the revenue of Hai Lan's home market has increased rapidly in the past five years.

From 2011 to the end of 2015, the number of stores in Hai Lan's home was doubled, and there were 3516 stores in Hai Lan's home.

While the number of stores is increasing, the data of single store income are also rising. The multiplier effect of both companies has accelerated the overall revenue of the company.

However, these data are not worrying. With the increasing number of coverage areas and high base numbers, the number of stores has increased from over 25% to 5.02% in 2015.

What is even more worrying is that the growth rate of single store income in the first half of 2015 is still around 30%. However, combined with the disclosure of the annual report, sales in winter in 2015 are not as good as expected, and the growth rate of single store income will decline sharply in the whole year.

It can be speculated that the company's sales revenue will soon face the turning point of the growth rate decline.

At present, Hai Lan's family includes four main brands: "Hai Lan home", "Ai Ju rabbit", "Bai Yi Shun Shun" and "San Keno", covering different customer groups.

It is worth noting that obedience is mainly based on tail cargo handling. Now it is the form of brand linked stores, and plans to open stores in the future.

Combined with the analysis of the opening of stores at the end of 2015, the latest growth rate of new stores in 2015 is the fastest. This also reflects the pressure on companies to go inventory.

While announcing the 2015 annual results, Hai Lan's home also predicted sales in the first quarter of 2016. The first quarter net revenue in 2016 and net profit respectively increased by 11.9% and 10.3% respectively, and the growth rate slowed down compared with the same period last year.