Investment Rating - The investment rating for the company is "Outperform the Market" [4][6][19]. Core Views - The company is expected to achieve a revenue growth of 20% in 2024, driven by high-margin products, with total revenue reaching 10.07 billion HKD and net profit increasing to 1.15 billion HKD [1][4]. - The company has maintained a stable net profit margin, with improvements in gross margin and a decrease in management fees contributing positively [1][2]. - The company is focusing on optimizing its product structure, which is expected to enhance gross margin levels and improve cash flow in the coming years [4][19]. Summary by Sections Financial Performance - In 2024, the company reported a revenue increase of 19.6% to 10.07 billion HKD and a net profit increase of 19.5% to 1.15 billion HKD, with both adult and children's clothing segments growing approximately 20% [1][5]. - The operating cash flow significantly decreased to 0.7 billion HKD due to increased inventory and accounts receivable [1][19]. - The dividend payout ratio slightly increased to 45% in 2024 [1]. Second Half Performance - In the second half of 2024, the company experienced a revenue growth of 20% and a net profit growth of 39.2%, with net profit margin improving by 1 percentage point to 7.3% [2]. Store Expansion and E-commerce - The company opened 16 adult and 3 children's stores, bringing the total to 5,750 and 2,548 stores respectively, while also launching a new retail format with the first "super product store" [3]. - E-commerce sales grew by 12.2% year-on-year, with a significant increase in the proportion of exclusive products [3]. Future Outlook - The company is projected to achieve net profits of 1.3 billion HKD, 1.46 billion HKD, and 1.63 billion HKD for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 13.1%, 12.2%, and 11.8% [4][20]. - The target price has been adjusted to 4.7-5.4 HKD, corresponding to a price-to-earnings ratio of 7-8x for 2025 [4][19].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 6.6 HKD [1][7]. Core Insights - The company reported a revenue growth of 19.6% year-on-year, reaching 10.07 billion RMB, and a net profit growth of 19.5%, amounting to 1.15 billion RMB, which exceeded market expectations [2][3]. - The company is actively exploring new channels, with a focus on e-commerce and the launch of new store formats, including the first "super product" store, which aims to enhance customer experience [2][3]. - The gross margin improved to 41.5%, with a slight increase in the gross margins for major footwear and apparel segments, while children's apparel margins experienced a slight decline [3][5]. Financial Performance Summary - Revenue and profit forecasts for 2025-2027 are projected at 11.29 billion RMB, 1.25 billion RMB, and 0.60, 0.69, and 0.76 RMB EPS respectively [2][5]. - The company plans to increase its dividend payout ratio to 45%, reflecting its commitment to shareholder returns [2][3]. - The company has expanded its store network, with a total of 5,750 and 2,548 sales points for adult and children's apparel respectively, and aims to open 100 "super product" stores by the end of 2025 [2][3].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 6.6 HKD [1][7]. Core Insights - The company reported a revenue of 10.07 billion RMB for the year 2024, reflecting a year-on-year growth of 19.6%, and a net profit attributable to shareholders of 1.15 billion RMB, also up by 19.5% [2][3]. - The company is actively exploring new channels, with e-commerce revenue increasing by 12.2% to 2.61 billion RMB, accounting for 26% of total revenue [2]. - The company has increased its dividend payout ratio to 45%, up from 40% the previous year, indicating a strong commitment to shareholder returns [2][3]. Financial Performance - The overall gross margin improved to 41.5%, a 0.4 percentage point increase year-on-year, with specific segments like adult footwear and apparel seeing gross margins rise to 42.9% and 41.3% respectively [3]. - The company’s net profit margin remained stable at 11.4%, supported by strict cost control measures [3]. - The forecasted earnings per share (EPS) for 2025-2027 are projected to be 0.60, 0.69, and 0.76 RMB respectively [1][3]. Revenue and Growth - The company’s total revenue is expected to grow from 10.07 billion RMB in 2024 to 11.29 billion RMB in 2025, representing a growth rate of 12.1% [5]. - The company has expanded its retail network, with a total of 5,750 adult and 2,548 children's clothing sales points, reflecting a net increase of 16 and 3 stores respectively [2]. Market Position and Strategy - The company has been deeply involved in the sports industry for over 20 years, focusing on high cost-performance and functional product development [3]. - The introduction of new store formats, such as the "super premium" stores, is expected to enhance customer experience and drive sales growth [2][3].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% within the next six months [7][24]. Core Views - The company achieved a revenue of 10.07 billion RMB for the fiscal year, reflecting a year-on-year growth of 19.6%, with a net profit attributable to shareholders of 1.15 billion RMB, also up by 19.5%, meeting expectations [2][7]. - The company increased its dividend payout ratio to 45%, up by 4.8 percentage points year-on-year, signaling confidence in its financial health [2]. Financial Performance - The adult apparel segment generated revenues of 4.29 billion RMB and 3.09 billion RMB for footwear and apparel respectively in 2024, with growth rates of 22% and 15% year-on-year, driven by increased sales volume [4]. - The children's apparel segment saw a revenue increase of 19.5% to 2.34 billion RMB, with footwear and apparel growing by 18% and 23% respectively, indicating strong market demand [4]. - The company's gross margin improved by 0.4 percentage points to 41.5% in 2024, supported by effective cost control and pricing strategies [6]. Operational Insights - As of the end of 2024, the company operated 5,750 adult apparel stores and 2,548 children's apparel stores, with a 10% increase in sales for both segments in Q3 and Q4 [5]. - The company has introduced innovative retail formats, including 10th generation and super stores, which are expected to enhance brand image and inventory management [5]. - E-commerce revenue reached 2.61 billion RMB in 2024, growing by 12.2% year-on-year, with online exclusive products accounting for 83.6% of sales [5]. Profit Forecast and Investment Recommendations - The company is projected to achieve net profits of 1.30 billion RMB, 1.50 billion RMB, and 1.72 billion RMB for 2025, 2026, and 2027 respectively, reflecting growth rates of 13%, 15%, and 15% [7][13]. - The current stock price corresponds to a 7x price-to-earnings ratio for 2025, reinforcing the "Buy" rating [7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][9] Core Views - The company achieved impressive revenue and profit growth in 2024, with total revenue reaching 10.07 billion RMB, a year-on-year increase of 19.6%, and net profit of 1.15 billion RMB, also up 19.5% year-on-year [5][8] - The online business showed significant growth, contributing to the overall performance, with e-commerce revenue of 2.61 billion RMB, accounting for 25.9% of total revenue, and a year-on-year growth of 12.2% [5][8] - The company is expected to continue its growth trajectory with a focus on product innovation and channel expansion, particularly in the online segment [8] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 10.07 billion RMB, a 19.6% increase year-on-year, and a net profit of 1.15 billion RMB, reflecting a 19.5% growth [5][8] - The gross profit margin was 41.5%, an increase of 0.4 percentage points from the previous year, while the net profit margin remained stable at 11.4% [5][8] Business Segmentation - By product category, adult footwear revenue was 4.3 billion RMB, up 22.1% year-on-year, while adult apparel revenue reached 3.1 billion RMB, a 15.1% increase [5] - Children's footwear and apparel also saw growth, with revenues of 1.1 billion RMB (up 17.5%) and 1.2 billion RMB (up 22.6%) respectively [5] Cost Management and Expansion - The company maintained good cost control, with advertising and promotional expenses accounting for 12.8% of revenue, and R&D expenses at 3.4% [5] - As of the end of 2024, the company had 5,750 stores in mainland China, with a net increase of 16 stores year-on-year, indicating an active expansion strategy [5][8] Future Projections - Revenue is projected to grow to 11.33 billion RMB in 2025, with a year-on-year growth rate of 13%, and net profit is expected to reach 1.29 billion RMB, also reflecting a 13% increase [7][8] - The company is anticipated to maintain a stable ROE of 12% over the next few years, with P/E ratios decreasing from 7.8 in 2024 to 6.0 by 2027 [7][8]

Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company reported a strong annual performance for 2024, with total revenue of 10.07 billion, a year-on-year increase of 19.6%, and a net profit attributable to shareholders of 1.15 billion, also up 19.5%. The cash dividend payout ratio increased to 45% [1][6] - The main brand, 361°, continues to lead the adult apparel segment with double-digit growth, driven primarily by volume increases. The footwear segment generated revenue of 4.29 billion, up 22.1%, while the apparel segment reached 3.09 billion, up 15.1% [2] - The children's apparel segment also showed strong growth, with revenue of 2.34 billion, a year-on-year increase of 19.5%. The footwear category contributed 1.1 billion, up 17.5%, while the apparel category reached 1.21 billion, up 22.6% [3][4] - E-commerce sales remained active, totaling 2.61 billion, a year-on-year increase of 12.2%, accounting for 25.9% of total sales. The company ranked among the top five footwear brands during major sales events [5] Financial Summary - The company forecasts revenue growth of 13% in 2025, 12% in 2026, and 11% in 2027, reaching 11.4 billion, 12.7 billion, and 14.2 billion respectively. Net profit is expected to grow by 14% in 2025, 12% in 2026, and 12% in 2027, reaching 1.38 billion, 1.47 billion, and 1.65 billion respectively [6][12] - The projected P/E ratios for 2025, 2026, and 2027 are 6.9, 6.1, and 5.5 respectively, indicating a favorable valuation for a leading player in the sportswear market [6][12]

Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company reported a strong annual growth for 2024, with total revenue reaching 10.07 billion, a year-on-year increase of 19.6%, and net profit attributable to shareholders at 1.15 billion, also up by 19.5%. The cash dividend payout ratio increased to 45% [1] - The main brand, 361°, continues to lead the adult apparel segment with double-digit growth, driven primarily by volume increases. Footwear revenue reached 4.29 billion, up 22.1%, while apparel revenue was 3.09 billion, up 15.1% [2] - The children's clothing segment also showed strong growth, with revenue of 2.34 billion, a year-on-year increase of 19.5%. Footwear sales in this category reached 1.1 billion, up 17.5% [3] - E-commerce sales remained active, totaling 2.61 billion, a 12.2% increase, with a significant contribution from differentiated products [5] - The company is expected to see revenue growth of 13% in 2025, reaching 11.4 billion, and net profit growth of 14% to 1.38 billion, with a corresponding PE ratio of 6.9 [6] Summary by Sections Financial Performance - For 2024, the company reported total revenue of 10,073.5 million, a 19.59% increase, and net profit of 1,148.6 million, a 19.47% increase. The projected revenue for 2025 is 11,405.9 million, with a growth rate of 13.23% [12] - The gross profit margin for 2024 is expected to be 41.53%, with net profit margin at 11.84% [13] Product and Market Development - The company continues to innovate with new product lines, including advanced technology footwear and expanding its children's product line to cover ages up to 16 [4] - The company has increased its offline retail presence, with 5,750 stores and a focus on enhancing customer experience through new retail formats [2] E-commerce and Sales Channels - E-commerce sales accounted for 25.9% of total sales, with significant growth during promotional events, such as a 99% increase during the 618 shopping festival [5] Future Outlook - The company is projected to maintain a strong growth trajectory, with expected revenues of 12,737.8 million in 2026 and 14,191.4 million in 2027, alongside net profits of 1,470.7 million and 1,646.9 million respectively [12]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [4] Core Viewpoints - The company is expected to achieve a revenue of 10.07 billion RMB in 2024, representing a year-on-year growth of 19.6%, with a net profit of 1.15 billion RMB, also up by 19.5% [1] - The gross margin is reported at 41.5%, an increase of 0.4 percentage points, while the net profit margin remains stable at 11.4% [1] - The company has shown strong performance in various product categories, with children's clothing revenue growing by 19.5% and accessories by 27% [1] - The e-commerce segment has also demonstrated resilience, with online sales reaching 2.61 billion RMB, a year-on-year increase of 12.2% [2] Revenue and Profit Forecast - The company forecasts revenues of 11.3 billion RMB, 12.8 billion RMB, and 14.5 billion RMB for the years 2025 to 2027, respectively [4] - Corresponding net profits are expected to be 1.3 billion RMB, 1.4 billion RMB, and 1.6 billion RMB for the same years [4] - The earnings per share (EPS) are projected to be 0.61 RMB, 0.69 RMB, and 0.79 RMB for 2025 to 2027 [9] Channel Structure Optimization - The company operates 5,750 stores with an average store size of 149 square meters, showing a net increase of 11 square meters year-on-year [3] - Approximately 75.9% of the stores are located in third-tier cities or below, indicating a strategic focus on expanding in less saturated markets [3] - The introduction of the new "super product" store format aims to enhance customer experience and capture new market opportunities [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [4] Core Viewpoints - The company is expected to achieve a revenue of 10.07 billion RMB in 2024, representing a year-on-year growth of 19.6%, with a net profit of 1.15 billion RMB, also up by 19.5% [1] - The gross margin is reported at 41.5%, an increase of 0.4 percentage points, while the net profit margin remains stable at 11.4% [1] - The company has established a leading position in children's sportswear, leveraging professional layouts and product innovations to achieve resilient growth [2] - The offline retail performance is strong, with a high double-digit growth in Q1 and a steady 10% growth in subsequent quarters [1][2] - E-commerce sales reached 2.61 billion RMB, marking a 12.2% increase, with online exclusive products accounting for 83.6% of total retail [2] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 10.07 billion RMB and a net profit of 1.15 billion RMB, both reflecting a growth of approximately 19.5% year-on-year [1] - Earnings per share (EPS) is projected at 0.556 RMB, with a dividend payout of 0.265 HKD, representing a payout ratio of 45% [1] Product and Market Development - The children's segment generated 2.34 billion RMB, accounting for 23.2% of total revenue, with children's footwear and apparel growing by 17.4% and 22.6% respectively [2] - The company has expanded its product line to cater to the 16-year-old demographic and introduced a competitive children's racing series [2] Channel Optimization - The company operates 5,750 stores with an average store size of 149 square meters, with a significant presence in lower-tier cities [3] - The introduction of the 361º Super Store format aims to enhance customer experience and capture new market opportunities [3] Future Projections - Revenue forecasts for 2025, 2026, and 2027 are set at 11.3 billion RMB, 12.8 billion RMB, and 14.5 billion RMB respectively, with net profits expected to reach 1.3 billion RMB, 1.4 billion RMB, and 1.6 billion RMB [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [4] Core Viewpoints - The company is expected to achieve a revenue of 10.07 billion RMB in 2024, representing a year-on-year growth of 19.6%, with a net profit of 1.15 billion RMB, also up by 19.5% [1] - The gross margin is reported at 41.5%, an increase of 0.4 percentage points, while the net profit margin remains stable at 11.4% [1] - The company has established a leading position in children's sportswear, leveraging professional layouts and product innovations to achieve resilient growth [2] - The offline retail performance is strong, with a high double-digit growth in Q1 and a steady 10% growth in subsequent quarters [1][2] - E-commerce sales reached 2.61 billion RMB, marking a 12.2% increase, with online exclusive products accounting for 83.6% of total retail [2] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 10.07 billion RMB and a net profit of 1.15 billion RMB, both reflecting a growth of approximately 19.6% and 19.5% respectively [1] - Earnings per share (EPS) is projected at 0.556 RMB, with a dividend payout of 0.265 HKD, representing a payout ratio of 45% [1] Product and Market Development - The children's segment generated 2.34 billion RMB, accounting for 23.2% of total revenue, with children's footwear and apparel growing by 17.4% and 22.6% respectively [2] - The company has expanded its product line to cater to the 16-year-old demographic and has launched a children's racing series to meet market demands [2] Channel Optimization - The company operates 5,750 stores with an average size of 149 square meters, focusing on expanding in lower-tier cities [3] - The introduction of the 361º Super Store format aims to enhance customer experience and capture new market opportunities [3]