HEILAN HOME(600398) 海通国际·2025-01-24 13:28Investment Rating - The report initiates coverage on HLA Group with an "Outperform" rating, setting a target price of RMB 8.56 per share [1][96]. Core Insights - HLA Group maintains its position as a leading menswear brand in China, with a strong market share and ongoing collaborations with major partners like JD.com and Adidas to expand its business [1][96]. - The company is focusing on channel optimization and overseas market expansion, with overseas revenue reaching RMB 270 million in 2023, a 24.0% year-on-year increase [1][96]. - The Adidas FCC project aims to penetrate lower-tier cities, with expectations of over 400 stores by 2024, while JD Outlets is enhancing its online and offline presence [1][96]. Financial Data and Forecasts - Key financial data for HLA Group includes: - Revenue projections for 2024, 2025, and 2026 are RMB 20.77 billion, RMB 24.13 billion, and RMB 28.13 billion respectively, with net profits of RMB 2.26 billion, RMB 2.64 billion, and RMB 3.05 billion [1][96]. - The company’s revenue and net profit for 2023 were RMB 21.53 billion and RMB 2.95 billion respectively, with a projected decline in revenue for 2024 to RMB 20.77 billion [1][96]. - The report provides detailed financial forecasts, including expected contributions from various segments such as the main brand, JD Outlets online and offline, and Adidas FCC [1][96]. Business Strategy - HLA Group is enhancing its product innovation and channel optimization strategies, focusing on cost-effective consumption through collaborations with major brands [1][96]. - The company is also expanding its product technology offerings, including advanced materials and designs, to improve competitiveness against international brands [1][96]. - The report highlights the strategic importance of the JD Outlets initiative, which aims to create a new retail model that integrates online and offline shopping experiences [1][96].