HEILAN HOME(600398) 源达信息·2024-04-14 16:00Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 9.62 CNY per share based on a PE valuation of 14.2 times for 2024 [4][6]. Core Insights - The company aims to expand its direct store count significantly, with plans to add 1,000 new stores from 2023 to 2025, which is expected to enhance revenue growth [4]. - The company operates a multi-brand retail group, focusing on high dividend payouts, with cash dividends from 2019 to 2022 amounting to 12.15, 11.06, 22.03, and 18.57 billion CNY, reflecting a high cash dividend ratio [2][15]. - The company employs a unique franchise model that separates ownership and management rights, allowing franchisees to operate stores with reduced entry barriers, thus accelerating network expansion [3][19]. - The procurement strategy emphasizes a "returnable goods first, non-returnable goods second" model, which mitigates inventory risks for both the company and its franchisees, leading to a higher proportion of returnable goods in inventory [3][22]. Summary by Sections Multi-Brand Retail Group - The company has developed a diverse product matrix, including men's, women's, children's, and professional clothing, as well as home goods, under various brands [11]. - The ownership structure is stable, with the founding Zhou family holding 60.13% of the shares, ensuring strong governance [13]. Sustainable Business Model - The "platform + brand" chain operation model allows for independent brand management while providing centralized support services [18]. - The company does not rely on discounting as a marketing strategy, maintaining a flat sales structure that enhances price competitiveness [25]. Operational Performance - The company has seen a steady increase in store numbers, with a total of 8,219 stores by 2022, despite a decline in total store count in 2023 due to the sale of a brand [28]. - Revenue for the first three quarters of 2023 reached 155.69 billion CNY, reflecting a year-on-year growth of 13.85% [30]. Profit Forecast and Investment Recommendations - The company is projected to achieve net profits of 29.41, 32.53, and 38.48 billion CNY from 2023 to 2025, with corresponding EPS of 0.61, 0.68, and 0.80 CNY [4][44]. - The report anticipates continued growth in the main brand's revenue, driven by the planned expansion of direct stores and a focus on high-quality franchise operations [44].