361 Degrees 1361

361 Degrees 1361

Postby winston » Wed Mar 10, 2010 7:18 am

Not vested. From Dr. Check, The Standard HK:-

Sportswear giant sprints to profit

The Hong Kong dollar has strengthened again, indicating that money is flowing in. This suggests the Hang Seng Index is likely to edge higher but it needs to clear 21,500 points first.

Let's look today at a consumption-related share that may move upward in the medium term.

Mainland firm 361 Degrees (1361) makes and sells sportswear, including shoes, clothes and accessories, under its own brand.

Its retail network covers more than 1,600 cities. As of December, the number of outlets operated by 361's authorized retailers stood at 6,693, increasing by 638 from the first half of last year.

The firm has been appointed a strategic partner of the Guangzhou 2010 Asian Games as well as state-run CCTV's sports channel.

The group also cooperates with QQ.com and Sohu.com to promote internet sports programs.

The sportswear giant's interim net profit grew a hefty 177 percent to 357 million yuan (HK$405.69 million).

Footwear and apparel accounted for 59 percent and 40 percent of revenue, respectively. Its gross profit margin rose to 39 percent from 29.3 percent.

Bank of America set a target price of HK$6.80. The mainland firm closed at HK$5.79 yesterday, or 10 times its expected price-earnings ratio for 2010. At this level it is not expensive.

http://www.thestandard.com.hk/news_deta ... 00310&fc=4
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winston
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Lithium's Investment Journey 02 (Aug 10 - Dec 10)

Postby lithium » Sun Feb 06, 2011 10:49 am

Good morning and happy chinese new year everyone!

Here is a trading idea on 361degree (1361.HK)


Company Profile
The principal activities of the Group are manufacturing and trading of sporting goods, including footwear, apparel and accessories in the PRC.

Growth
Rev growth : 25% (Stable from explosive growth pass few years)
Profit growth: 45%
Profit Margin: 21% (Improving due to higher selling price by aggressive branding. Reducing cost by in-house manufacturing and lower raw material cost)

1. Growth is very stable and healthy at 20% with improving profit margin.
2. Expanding to Children’s wear segment
3. Improving supply chain management with ERP system to manage inventory efficiently
4. Expanding 600~800 retail outlets yearly, target 10,000 outlets by 2015

Balance sheet & Cash flow
Current Ratio : 3.4
Debt to equity Ratio: 0.34
Free Cash flow/share: Average HK0.32 for the past 2 years

Valuation
PE: 12 at ($5.59)
PEG: 2 at ($5.59)

Management Shareholding
Top management holds >60% of shares, with no institution shareholding yet.

Competitors comparison
Anta (2020.HK) current PE 25
LiNing (2331.HK) current PE 12

Target Price
$11.4 (PE 25)

Momentum Technical Analysis
Daily RSI: positive divergence, break 50
Daily MACD: positive
Daily Stochastic: positive

Wave count
Possibly wave 3 have started
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Re: 361 Degrees 1361

Postby winston » Sun Feb 06, 2011 11:06 am

Not vested

DJ MARKET TALK: 361 Degrees Off 3.0%; Industry Slowdown Weighs-GS
Jan 17, 2011

1555 [Dow Jones] 361 Degrees (1361.HK) is down 3.0% at HK$5.16, despite its 4Q same-store sales (+15% on-year) data Friday after the market's close.

Goldman Sachs says, while its latest SSS growth appears robust, the house thinks these operational updates are unlikely to dissipate investors' concerns over the slowdown in the China sports industry.

"Any strong results will likely be within expectation, and any miss to guidance could trigger another round of sell-off." The house keeps the stock at Neutral, with a HK$6.50 target.

Source: Dow Jones Newswire
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Re: 361 Degrees 1361

Postby winston » Sun Feb 06, 2011 11:23 am

Hi Lithium,

I dont really spend a lot of time on the sports apparel industry.

I think competition is very high and their margins unsustainable.

Their cost is also rising eg higher salary, high cotton prices etc.

And finally, I dont really trust some of the numbers of the industry :P

Take care,
Winston
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