Core Viewpoint - 361 Degrees reported a revenue of 5.7 billion yuan for the first half of the year, representing a year-on-year increase of 11.0%, and a net profit attributable to shareholders of 860 million yuan, up 8.6% year-on-year. The company maintains a stable dividend payout ratio of 45.0% and proposes an interim dividend of 20.4 Hong Kong cents per share, indicating a solid business performance and growth potential [1]. Group 1: Financial Performance - Revenue for the adult footwear segment increased by 12.8% year-on-year to 2.57 billion yuan, driven by product upgrades and event marketing [2]. - The children's brand revenue grew by 11.4% year-on-year to 1.26 billion yuan, benefiting from increased emphasis on sports in education and the expansion of product lines [2]. - Online sales surged by 45.0% year-on-year to 1.82 billion yuan, accounting for 31.8% of total revenue, primarily due to successful promotional campaigns [2]. Group 2: Profitability and Margins - Gross margin improved by 0.2 percentage points to 41.5%, with adult footwear and apparel margins increasing by 0.5 percentage points and 1.1 percentage points, respectively [2]. - The net profit margin slightly decreased by 0.4 percentage points to 15.0%, indicating stable profitability despite slight margin compression [2]. Group 3: Operational Efficiency - Operating cash flow significantly improved, with a net cash flow of 520 million yuan, up 227% year-on-year, attributed to better inventory and accounts receivable management [3]. - Inventory levels decreased by 220 million yuan to 1.89 billion yuan, with inventory turnover days at 109 days, reflecting effective inventory control [3]. - The company has a net cash reserve of 4.3 billion yuan, providing a solid foundation for future growth [3]. Group 4: Future Outlook and Valuation - The company maintains profit forecasts of 1.31 billion yuan, 1.49 billion yuan, and 1.66 billion yuan for 2025-2027 [3]. - A target price of 8.0 Hong Kong dollars has been set, reflecting a 33% increase from previous estimates, with a price-to-earnings ratio of 11.6x for 2025 [3].
361度(1361.HK)：电商及超品店亮眼 现金流改善