CICC: Raise target price by 361 degrees (01361) to HK$5.2 to maintain “outperforming the industry” rating

The Zhitong Finance App learned that CICC published a report stating that it raised its 361 degree (01361) target price by 17% to HK$5.2, keeping the company's 2024 and 2025 EPS forecasts unchanged at RMB 0.52 and RMB 0.6, and maintaining the “outperforming industry” rating. Offline retail sales of the 361 degree main brand and 361 degree children's clothing in the third quarter of 2024 both increased by about 10% year on year, and retail sales on the 361 degree e-commerce platform increased by more than 20% year on year. The terminal performance was good, and discounts and inventory were stable.

CICC said that online sales at 361 degrees maintained a relatively rapid growth rate under a higher base. The company's e-commerce platform retail sales continued to grow rapidly under a high base, rising more than 20% in the third quarter, but still lower than the 30% increase in the same period last year. The company uses e-commerce platforms to enhance product exposure and strengthen brand building, respond to consumer hotspots in a timely manner, and provide consumers with high-value, high-tech and high-value products. In addition, the company enhances brand awareness by sponsoring the Asian Games and professional marathons. On the product side, professional products such as Feibiao 2 and Feilan 3 launched by the company were loved by consumers. In July-September, the company also received supplementary orders for some products. CICC believes this reflects consumers' recognition of the 361 degree brand.