Investment Rating - The report maintains a "Buy" rating for 361 Degrees with a target price of HKD 6.9 [1][3][5] Core Insights - 361 Degrees reported a revenue of RMB 8.423 billion for 2023, representing a year-on-year growth of 21.0%, and a net profit attributable to shareholders of RMB 961 million, up 28.7% year-on-year [2][4] - The company has resumed dividend payments with a payout ratio of 40.2%, distributing HKD 0.204 per share [2][4] - The strong performance is attributed to the recovery in consumer spending, particularly in the children's clothing and e-commerce segments, which saw revenue growth of 35.7% and 38.0% respectively [2][3] Financial Performance Summary - Revenue for 2023 was RMB 8,423 million, with projected revenues of RMB 10,013 million, RMB 11,354 million, and RMB 12,671 million for 2024, 2025, and 2026 respectively [4][10] - The gross profit margin increased by 0.6 percentage points to 41.1%, with net profit margin rising by 0.7 percentage points to 11.4% [2][4] - Earnings per share (EPS) for 2023 was RMB 0.47, with forecasts of RMB 0.54, RMB 0.62, and RMB 0.70 for the following three years [4][10] Market Position and Brand Strategy - 361 Degrees has established a strong brand presence as the official partner of the Asian Games, enhancing its visibility and market influence [2][3] - The company is expanding its store network, with a total of 6,994 large apparel and 2,545 children's clothing outlets by the end of 2023, reflecting a net increase of 254 and 257 stores respectively [2][4] - The brand is actively engaging younger consumers through innovative products and marketing strategies, including collaborations with celebrities and participation in sports events [2][3]
全年高质量增长，童装及电商持续强劲