Guoxin Securities estimates net profit of 11.4/13.2/1.53 billion yuan for 361 (01361) 2024-2026.
The Zhitong Finance App learned that Guoxin Securities released a research report stating that maintaining the 361 degree (01361) “buy” rating, the net profit to the mother is expected to be 11.4/13.2/1.53 billion yuan in 2024-2026, an increase of 18.0%/16.4%/15.6% over the previous year, and the target price will reach HK$5.7-6.
According to the report, on April 10, the company announced retail performance for the first quarter of 2024. At 361 degrees, offline retail sales of major brands recorded high double-digit positive growth, children's clothing brands recorded positive growth of 20%-25% in offline retail sales, and e-commerce platforms recorded positive growth of 20%-25%. Offline adult clothing sales increased by double digits in the first quarter of 2024, while offline and e-commerce sales of children's clothing grew by 20%-25%, maintaining expectations for 2024.
The bank said that 361 degrees performed well at the beginning of 2024, and is optimistic about professional sports series, children's clothing, and e-commerce driven growth in the medium to long term. In the first quarter, the company's turnover maintained strong growth on a high basis, and continued to maintain a relatively optimistic outlook in 2024. Since the company launched the rebranding plan, product and channel adjustments have begun to improve, brand product potential has improved, and financial management conditions have improved. In the medium to long term, the company's rich IP matrix for professional products will drive a sharp rise in volume and price, and there is plenty of room for brand growth.