HEILAN HOME(SH:600398) Xin Lang Cai Jing·2025-12-01 07:50Core Viewpoint - HLA's strategy to transition from a domestic men's clothing brand to a global clothing brand is underscored by its recent application for a Hong Kong IPO, aiming to enhance its international market presence and accelerate overseas business development [4][5][13] Group 1: Company Strategy and Market Position - HLA has initiated a globalization strategy since 2017, opening its first overseas store in Kuala Lumpur, Malaysia, and rapidly expanding its network across Southeast Asia [5] - The company aims to transform from "men's wardrobe" to "family wardrobe," targeting a broader consumer base, although the main brand's revenue has declined nearly 4% in the first three quarters of this year [6][8] - HLA's overseas revenue for 2024 is projected at 355 million yuan, accounting for less than 2% of total revenue, indicating that international expansion is still in its early stages [6] Group 2: Financial Performance and Challenges - In the first three quarters of this year, HLA reported revenue of 15.599 billion yuan, a year-on-year increase of 2.23%, while net profit decreased by 2.37% to 1.862 billion yuan [7] - The company's inventory has increased significantly from 7.416 billion yuan in 2020 to 11.518 billion yuan in 2024, with inventory pressure becoming a critical issue [9][10] - The franchise model, which has been a cornerstone of HLA's operations, is showing signs of stagnation, with the proportion of sales from franchise partners dropping from 49.3% in 2022 to 36.2% in the first half of 2025 [12] Group 3: Market Environment and Consumer Behavior - The overall apparel industry in China is facing challenges, with a reported revenue decline of 4.63% and a profit drop of 16.19% in the first three quarters of 2025 [7] - Consumer spending on clothing has shown minimal growth, with per capita clothing expenditure increasing by only 1.6% year-on-year, reflecting a shift in consumer attitudes and spending habits [7] - HLA's transition to a direct sales model is intended to counteract the shrinking franchise channel, but it also introduces higher operational costs that could pressure profit margins [12][13]