Jinwu Financial News | According to CMB International Development Research Report, sales and profit rose 21% and 29% respectively in 361 (01361) FY23, which is roughly in line with expectations, but the dividend payout ratio increased to 40%, which is better than the 30% expected by CMB International. The current dividend rate is approximately 4.5%.
The bank is still optimistic about growth in FY24. On the one hand, the company's orders are expected to grow steadily (about 15% to 20% in the first three quarters of FY24), and the sell-out rate in the first three quarters of FY23 is also healthy (80% or more). On the other hand, the first two months of FY24 saw a strong increase of 20% or more (10% to 15% for large goods, more than 20% for children's clothing, e-commerce faster), and the company's running and basketball categories are still enjoying the dividends brought by last year's core product upgrades (the two categories increased by 20% and 40% respectively), and the future offline growth rate It may continue to be strong. In addition to the acceleration of store openings and the increase in the share of 9th generation stores, improving store efficiency this year (increasing the connection rate and strengthening member management, etc.) is also one of the key points.
The bank believes that the company still has the potential to be re-evaluated, mainly a fundamental reversal, and this year's turnover growth is expected to continue to outperform the industry. The current price valuation, which is 8 times the projected price-earnings ratio for FY24, is still quite attractive. It slightly raised the target price from HK$6.23 to HK$6.25, corresponding to a price-earnings ratio of 10 times, which is in line with the industry average. Maintain a “buy” rating.