Core Viewpoint - 361 Degrees' performance in the first half of the year was slightly below expectations, raising concerns about its store opening plans, offline sales growth, and inventory days, despite management's confirmation of the fiscal year 2025 guidance [1] Financial Performance - 招银国际 maintains a "Buy" rating for 361 Degrees, raising the target price from HKD 5.97 to HKD 7.09, based on a projected price-to-earnings ratio of 11 times for fiscal year 2025 [1] - The company’s retail sales growth in the first half of the year outperformed its peers, contributing to the positive outlook despite the concerns [1] Risks and Concerns - There are risks associated with the store opening plans and ongoing pressure on offline sales per store, attributed to weak foot traffic and intensified competition [1] - An increase in inventory days has been noted, which could lead to expanded retail discounts or necessitate additional provisions in the future if the situation persists [1] Profit Forecast Adjustments - 招银国际 has revised its net profit forecasts for 361 Degrees for fiscal years 2025 to 2027 down by 3%, 5%, and 6% respectively, reflecting a slowdown in offline sales growth, a deceleration in store expansion, and weaker operational expense control [1]
招银国际：升361度目标价至7.09港元 评级“买入”