Financial Data and Key Metrics - Group total revenue for 24H1 reached 5.14 billion yuan, up 19.2% YoY [2][3] - Net profit attributable to shareholders was 790 million yuan, a 12.2% increase YoY [2][3] - Gross margin maintained between 40%-42%, with footwear gross margin at 42.8% and apparel at 40.2% [3] - Net profit margin stood at 15.4% [3] - Dividend payout ratio was 40.3%, with a dividend of 16.5 HK cents per share [3] Business Line Performance - Children's segment revenue grew 24.2% to 1.13 billion yuan, accounting for 22% of total revenue [1][3] - E-commerce revenue increased 16.1% to 1.25 billion yuan, representing 24.4% of total revenue [1][3] - Running products accounted for 52% of revenue, up from 46% in 2023, with nearly 40% growth [2] - Basketball products contributed 8% of revenue, growing close to 20% [2] - Sports lifestyle segment made up 40% of revenue, growing around 10% [2] Market Performance - Running shoes sales reached 432,000 pairs in 24H1, with e-commerce channel sales exceeding 700,000 pairs [2] - Basketball premium products sold 214,700 units in 24H1 [2] - Children's basketball shoes sold 150,000 pairs annually, with a 40% CAGR [2] Strategic Direction and Industry Competition - Company plans to maintain a net store opening trend for the full year, aiming for revenue to exceed 10 billion yuan [2] - R&D costs are expected to be 3.2-4% of revenue, with A&P expenses at 10-12% [2] - Sponsorships include the Asian Games, NBA star Nikola Jokić, and the 2025 Asian Winter Games [2][3] - Company has created its own events like "3rd Track" for running and "Touch the Bottom and Burn" for basketball [2] Management Commentary on Operating Environment and Future Outlook - Management expects the full-year gross margin to remain between 40%-42% [2] - The company is focused on product innovation and brand building, with significant investments in R&D and marketing [2][3] - Management is confident in maintaining a strong performance in H2, despite market challenges [5] Other Important Information - The company has a strong cash position with 3.411 billion yuan in bank and cash, and net cash of 4.69 billion yuan [3] - Accounts receivable days improved from 149 days to 148 days [3] - The company has a low debt ratio of 2.5% and a current ratio of 3.6 [3] Q&A Summary Q: H2 strategy prioritization? Is it revenue growth, inventory health, or cost control? - A: Product R&D is the top priority, followed by cost control. The company is confident in delivering satisfactory results in H2 [5] Q: E-commerce space and strategy? Why is there a gap between the 16% growth in exclusive products and 30% growth in e-commerce retail? - A: The company will focus on product differentiation and expanding overseas e-commerce. TikTok sales are profitable, with a 65-75% discount still yielding profit margins [5] Q: Will there be a price war in H2? - A: The company has four NBA stars, including Nikola Jokić and Aaron Gordon, and the overseas independent site has performed well since April [5] Q: Overseas progress and medium-term goals? - A: The company is focusing on Eastern Europe and Southeast Asia, with promising growth in running and basketball categories [6] Q: Why did footwear gross margin slightly decline? Is it due to cost or lower-priced products? - A: The decline is within control, mainly due to higher costs of premium products (699 yuan and above) with high-tech content [7] Q: Why is the growth of the sports lifestyle category weak? How will it be adjusted? - A: The market is shrinking as consumers prefer more professional products. The company will supplement this with women's indoor, badminton, and football products [7] Q: H1 net growth in adult and children's stores. Any updates on the 2024 store growth target? - A: The company aims to maintain the current number of stores, with net growth in both adult and children's stores in 24H1 [7] Q: How is the company driving store efficiency growth amid offline traffic pressure? - A: The company is focusing on member management, store upgrades, and live streaming to drive traffic and sales [7] Q: A&P full-year level? - A: The company plans to maintain A&P expenses at 10-12% of revenue, with marketing expenses at 20-23% and R&D at 3-5% [7]

Financial Data and Key Metrics - Group total revenue for 24H1 reached 51.4 billion yuan, a 19.2% YoY increase, with children and e-commerce segments performing exceptionally well [1] - Children's business revenue grew by 24.2%, while e-commerce revenue increased by 16.1% [1] - Gross margin for footwear was 42.8%, with a slight decline due to higher proportion of premium products [2] - Net profit attributable to shareholders was 7.9 billion yuan, a 12.2% YoY increase, with a net profit margin of 15.4% [2] Business Line Data and Key Metrics - Running products accounted for 52% of revenue, a significant increase from 46% in 2023, with nearly 40% growth [1] - Basketball products contributed 8% of revenue, with a growth rate close to 20% [1] - Lifestyle products made up 40% of revenue, growing at around 10% [1] - Children's business showed outstanding growth of 24.2% [1] Market Data and Key Metrics - The company's e-commerce sales reached 12.5 billion yuan, accounting for 24.4% of total revenue [7] - Children's business revenue was 11.3 billion yuan, representing 22% of total revenue [7] Company Strategy and Industry Competition - The company continues to enhance brand awareness through sponsorships, such as the Asian Games and NBA partnerships [4] - Product innovation remains a key focus, with the launch of high-performance running shoes and basketball products [5] - The company plans to maintain a gross margin between 40%-42% for the full year [3] Management Commentary on Operating Environment and Future Outlook - Management expects full-year revenue to exceed 100 billion yuan, with a profit margin of 10-12% [3] - The company is optimistic about the growth potential of its children's and e-commerce segments [7] Other Important Information - The company declared an interim dividend of 16.5 HK cents per share, with a payout ratio of 40.3% [3] - R&D expenses are expected to be between 3.2-4% of revenue for the full year [3] Q&A Session Q: What is the strategy for H2? Is revenue growth, inventory health, or cost control the priority? - A: Product R&D is the top priority, followed by cost control. The company is confident in delivering satisfactory results for H2 [26] Q: What is the strategy for e-commerce growth? - A: The company will focus on product differentiation and expanding overseas e-commerce, with a strong emphasis on profitability [27] Q: Will there be a price war in H2? - A: The company expects seasonal fluctuations but believes its product competitiveness will help maintain market position [28] Q: What is the outlook for product R&D? - A: R&D expenses will be maintained at around 3.5% of revenue, with cost reductions in other areas such as employee and administrative costs [29] Q: What are the growth expectations for different product categories in H2? - A: Women's fitness products are expected to grow rapidly, while basketball products will benefit from NBA endorsements [29] Q: What is the progress and mid-term goal for overseas markets? - A: The company is focusing on Eastern Europe and Southeast Asia, with strong growth in running and basketball products [30] Q: Why did the gross margin for footwear decline slightly? - A: The decline is due to the higher proportion of premium products, which have higher costs but are expected to maintain a gross margin above 40% [31] Q: What is the strategy for the lifestyle product category? - A: The company will focus on indoor sports such as women's fitness, badminton, and football to address market demand [32] Q: What is the target for store growth in 2024? - A: The company aims to maintain the current number of stores, with a focus on improving store efficiency [32] Q: How is the company addressing offline traffic pressure? - A: The company is focusing on membership management and live streaming to drive store efficiency and customer retention [32] Q: What is the expected A&P spending for the full year? - A: A&P spending is expected to remain at 10-12% of revenue, with marketing expenses at 20-23% and R&D at 3-5% [33]

13 Aug 2024 CMB International Global Markets | Equity Research | Company Update 361 Degrees (1361 HK) The cautious outlook is likely priced in We are certainly cautious about the sportswear sector. However, brands like Anta, Xtep and 361 Degrees have outperformed in 1H24 and we think this should sustain into 2H24E. For 361, supported by stepped-up efforts in 2H24E and its fairly undemanding valuation at 6x FY24E P/E and 7% FY24E yield, we maintain BUY. FY24E guidance maintained but we are more cautious on m ...

13 Aug 2024 CMB International Global Markets | Equity Research | Company Update 361 Degrees (1361 HK) The cautious outlook is likely priced in We are certainly cautious about the sportswear sector. However, brands like Anta, Xtep and 361 Degrees have outperformed in 1H24 and we think this should sustain into 2H24E. For 361, supported by stepped-up efforts in 2H24E and its fairly undemanding valuation at 6x FY24E P/E and 7% FY24E yield, we maintain BUY. ■ FY24E guidance maintained but we are more cautious on ...

证券研究报告 | 2024年08月13日 361 度（01361.HK） 优于大市 上半年收入增长 19%，儿童业务引领增长 上半年收入增长 19%，中期派息率 40%。2024 上半年公司收入同比增长 19.2% 至 51.4 亿元，归母净利润同比增长 12.2%至 7.9 亿元。毛利率同比-0.4 百 分点至 41.3%，主要因鞋类和 361 度儿童业务毛利率同比下滑 0.7 百分点所 致，其他业务毛利率均有所提升；其中儿童业务毛利率下降主要由于推出多 款平均批发价具竞争力的新产品。销售费用率/管理费用率分别同比 +0.2/-0.6 百分点，其中销售费用率增长主要受广告宣传费用增长 42.4%影 响；经营利润率和归母净利率分别同比-2.4/-1.0 百分点至 20.6%/15.4%， 维持在健康水平。拟派发中期股息每股 16.5 港仙，对应分红率 40.3%。 儿童业务引领增长，成人和童装门店持续优化。2024 上半年成人业务收入同 比增长 18.1%至 39.4 亿元，其中两大核心产品鞋类和服装收入分别同比 +20.1%/15.7%。儿童业务表现出色，收入同比增加 24.2%至 11.3 亿元，营收 占 ...

Investment Rating - The report maintains a "Buy" rating for 361 Degrees (1361) [2][5] Core Views - 361 Degrees achieved strong revenue growth in H1 2024, with a 19.2% YoY increase to RMB 5.14 billion [5] - The company maintained its full-year revenue growth guidance of over 15% [2][5] - Net profit in H1 2024 grew by 12.2% YoY to RMB 790 million, with a net profit margin of 15.4% [5] - The dividend payout ratio exceeded 40%, with an interim dividend of HKD 0.165 per share [5] Financial Performance - Gross margin in H1 2024 was 41.3%, down 0.4 percentage points YoY due to product mix adjustments [5] - Advertising and promotion expenses increased by 1.7 percentage points to 10.5% of revenue, driven by brand-building efforts [5] - R&D expenses decreased by 0.4 percentage points to 2.8% of revenue, but are expected to rise in H2 2024 [5] Business Segments - Adult apparel segment revenue grew 20% YoY to RMB 2.612 billion, with running and basketball categories showing strong growth of nearly 40% and 20% respectively [5] - Children's apparel revenue increased by 24.2% YoY to RMB 1.13 billion, with a gross margin of 41.7% [5] - E-commerce revenue grew 16.1% YoY to RMB 1.25 billion, with online-exclusive products accounting for 87.3% of sales [5] Future Outlook - The company expects to maintain its store count for both adult and children's apparel in H2 2024 [5] - 361 Degrees has completed its 2025 Spring product ordering meeting, with strong dealer enthusiasm indicating continued growth potential [5] Valuation - The report forecasts 2024-2026 net profits of RMB 1.09 billion, RMB 1.27 billion, and RMB 1.46 billion respectively, with corresponding P/E ratios of 6x, 5x, and 5x [5]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 佈 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 佈 全 部 或 任 何 部 份 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 （於開曼群島註冊成立的有限公司） （股份代號：1361） 二 零 二 四 年 度 中 期 業 績 公 佈 361度 國 際 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）謹 此 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 業 績。本 公 佈 列 載 本 公 司 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 的 中 期 報 告（「二 零 二 四 年 中 期 報 告」）全 文，並 符 合 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）證 券 上 市 規 則（「上 市 規 則」） ...

Investment Rating - The investment rating for the company is "Accumulate" [1][5]. Core Views - The company is positioned as a leading sportswear brand targeting the lower-tier market in China, with a strong revenue growth rate in 2024, outperforming the industry. The high cost-performance ratio aligns with current sales trends, and there is strong enthusiasm for the Spring 2025 ordering session [5]. - Q2 revenue met expectations, maintaining high operational quality. Offline sales for large apparel grew by 10% year-on-year, children's clothing by 15%, and e-commerce by 30-35%, all in line with expectations [5]. - The company achieved impressive performance during the 618 shopping festival, with e-commerce channel growth reaching 99%, the highest in the industry. Total sales exceeded 240,000 units, a year-on-year increase of 167% [5]. - The Spring 2025 ordering session showed high enthusiasm, with expected volume growth as the main driver and a price increase of around 7%. The company has received additional orders for popular products [5]. Financial Summary - Revenue projections for the company are as follows (in million RMB): - 2023: 8,423 - 2024E: 10,004 - 2025E: 11,541 - 2026E: 13,155 - Net profit projections are as follows (in million RMB): - 2023: 961 - 2024E: 1,129 - 2025E: 1,318 - 2026E: 1,521 - The company is expected to maintain a PE ratio of 7, 6, and 5 for the years 2024, 2025, and 2026 respectively [4][5].

丨证券研究报告丨 港股研究丨公司点评丨 361 度(1361.HK) [Table_Title] 零售符合预期,产品结构优化 报告要点 [Table_Summary] 公司发布 2024Q2 零售运营数据,2024Q2 线下大装流水同比~10%增长,童装流水中双位数增 长,电商流水 30%-35%增长,流水表现符合预期。 %% %% research.95579.com %% %% 1 分析师及联系人 [Table_Author] 于旭辉 柯睿 SAC:S0490518020002 SFC:BUU942 请阅读最后评级说明和重要声明 361 度(1361.HK) [Table_Title2] 零售符合预期,产品结构优化港股研究丨公司点评 [Table_Rank]投资评级 买入丨维持 [Table_Summary2] 事件描述 公司发布 2024Q2 零售运营数据,2024Q2 线下大装流水同比~10%增长,童装流水中双位数 增长,电商流水 30%-35%增长,流水表现符合预期。 事件评论 流水稳健增长,折扣&库存保持稳定。流水稳健增长,折扣库存环比基本持平。2024Q2 公司线下大装/童装流水增速仍领跑同行, ...

2024 年 7 月 16 日 Table_Ba seInfo 公司动态分析 | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-------------------------------------| | 361 度(1361.HK) | | 证券研究报告 | | Q2 电商维持高增速,门店持续扩张 事件:361 度公布 2024 年 Q2 经营表现,其中成人线下流水同比增长约 10%,童 | 投资评级: Xx | 运动鞋服 买入 xx | | 装线下同比增长中双位数,电商同比增长 30-35%。综合考虑,我们预测 2024/ | 目标价格: 6 | 港元 | | 2025/2026 年 EPS 为 0.56/0.64 ...