CMB International: Maintains "Buy" rating on 361 Degrees (01361) with a target price of HK$6.25.

CMB International released a research report, maintaining a "buy" rating for 361 DEGREES (01361), believing that the company still has potential for revaluation, mainly due to the reversal of fundamentals. This year's revenue growth is expected to continue outperforming the industry, with a target price of HK$6.25. The company's sales and profits in the 23rd fiscal year increased by 21% and 29% respectively, roughly in line with expectations, but the dividend payout ratio increased to 40%, exceeding the bank's expected 30%. The bank expressed optimism about the growth of 361 DEGREES in the 24th fiscal year. On the one hand, the company's order forecast is relatively robust (15% to 20% in the first three quarters of the 24th fiscal year), and the sell-through rate in the first three quarters of the 23rd fiscal year is also healthy (above 80%). On the other hand, the revenue growth in the first 2 months of the 24th fiscal year is decent, overall exceeding 20% (large goods 10% to 15%, children's clothing over 20%, and e-commerce even faster). The company's running and basketball categories are still benefiting from the upgrade of core products last year (both categories saw growth of over 20% and 40% respectively), and offline growth may continue to be strong in the future, in addition to the acceleration of store openings and an increase in the proportion of 9th generation stores. Improving store efficiency (increasing attachment rate and strengthening membership management, etc.) is also a focus for this year.