Investment Rating - The report maintains a "Buy" rating for the company 361 Degrees (1361.HK) [1] Core Insights - The company achieved a revenue of 10.07 billion HKD in 2024, representing a year-on-year growth of 19.6%, and a net profit of 1.15 billion HKD, also up by 19.5% [5][12] - The earnings per share (EPS) for 2024 is reported at 0.56 HKD, with a proposed final cash dividend of 0.10 HKD per share, leading to an annual payout ratio of 45% [5][12] - The company has shown strong performance in both adult and children's apparel, with respective revenue growth of 19.1% and 20.1% [7][12] - The company is focusing on enhancing its core competitiveness through product innovation and expanding its market presence, particularly in international markets [12] Financial Performance - In 2024, the gross profit margin improved by 0.4 percentage points to 41.5%, while the operating profit margin decreased by 0.8 percentage points to 15.6% [6][9] - The company’s revenue from online and offline channels accounted for 25.9% and 74.1% of total revenue, respectively, with year-on-year growth of 12.2% and 22.4% [7][12] - The company’s total assets are projected to grow from 13.41 billion HKD in 2024 to 16.89 billion HKD by 2027 [18] Market Position and Strategy - The company has expanded its retail network, with 5,750 stores in mainland China and 1,365 overseas by the end of 2024 [8][12] - The introduction of new store formats, such as the "super product store," aims to enhance customer experience and product selection [12] - The company is also focusing on professional sports categories, including running, basketball, and football, to strengthen its brand positioning [12] Future Projections - The report forecasts EPS for 2025, 2026, and 2027 to be 0.64 HKD, 0.72 HKD, and 0.81 HKD, respectively, with corresponding price-to-earnings (P/E) ratios of 7, 6, and 5 [12][13] - Revenue is expected to continue growing, with projections of 11.46 billion HKD in 2025 and 12.8 billion HKD in 2026 [13][17]
361度（01361）：2024年业绩点评：24年业绩较快增长，期待继续强化核心竞争力