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].
361度（01361）：024年业绩增长20%，高毛利产品驱动增长