Jinwu Financial News | Anxin International Research indicates that in the context of consumers pursuing the ultimate in cost performance and product power, the 361 degree (01361) company's overall performance in Q1 was good. The main brand turnover increased by double digits year on year, children's clothing increased 20-25% year on year, e-commerce increased 20-25% year on year, and children's clothing and e-commerce continued to grow well. The stock sales ratio was 4.5-5, which was basically the same from month to month. The retail discount was 30% off, which deepened slightly from month to month, but inventory and discounts were still at a healthy level. Furthermore, with the end of the 2024 Winter Order Fair, the company's orders are basically locked down for the whole year. It is expected that order performance will be strong and revenue growth is highly certain.
According to the bank, as an official partner of the fourth consecutive Asian Games, the 361 degree Asian Games have already formed a deep bond. Recently, the company has also officially announced that it has become an official partner of the Harbin Asian Winter Games. The company continues to sponsor large-scale events, increasing the brand's voice and helping the product's exposure rate and sales to a certain extent.
The bank said that after the company was included in Hong Kong Stock Connect last year, market attention was further increased, which also helped increase trading volume and liquidity. In the context of consumer stratification, consumers will pay more attention to the quality, functionality, and technology of products, and the company will continue to launch new products to seize more market share. Based on comprehensive considerations, the bank predicts EPS of $0.54/0.62/0.70 in 2024/2025/2026. Referring to historical valuation levels, it will give 2024 12 times PE and a target price of HK$7, maintaining a “buy” rating.