HEILAN HOME(SH:600398) Bei Jing Shang Bao·2025-09-11 13:32Core Viewpoint - HLA (海澜之家) is struggling with declining sales and a stagnant business model, prompting a shift towards international markets and a potential listing in Hong Kong to enhance capital and brand presence [2][3][4]. Group 1: Financial Performance - In the first half of 2025, HLA reported a revenue of 11.566 billion yuan, a year-on-year increase of 1.73%, while net profit decreased by 3.42% to 1.58 billion yuan [4]. - The company experienced a revenue decline of 2.65% and a net profit drop of 26.88% in 2024 [4]. - HLA's single-brand store count decreased by 110 to 5,723 in the first half of 2025 [4]. Group 2: Market Challenges - HLA's brand image is perceived as outdated, with younger consumers associating it more with "dad's wardrobe" rather than a trendy choice [6][7]. - The rise of new brands and e-commerce platforms poses significant challenges to traditional clothing brands like HLA, which has struggled to adapt to changing consumer preferences [4][6]. - HLA's reliance on a high-cost offline retail model and slow online channel development has further impacted its performance [4]. Group 3: International Expansion - HLA's overseas business has shown promising growth, with a 27.42% increase in revenue from international markets, reaching 206 million yuan [5]. - The company plans to expand its international presence, targeting markets in Central Asia, the Middle East, and Africa, with plans to open its first store in Australia by the second half of 2025 [5]. Group 4: Business Model and Strategy - HLA has historically relied on an ODM (Original Design Manufacturer) model, outsourcing most production, which has limited its control over design and innovation [8]. - The company is attempting to diversify its brand portfolio to appeal to a broader consumer base, including younger demographics through brands like HLA Jeans and OVV [7][8]. - Analysts suggest that for HLA to remain competitive and relevant, it must undergo significant transformation in its branding, product offerings, and operational strategies [8].