Jingu Financial News | Open Source Securities released research reports indicating that in 2024 Q3, offline revenue of 361 degrees (01361) recorded a growth of approximately 10%, 361° children's clothing offline revenue increased by about 10%, and e-commerce revenue recorded growth of over 20%. The performance of revenue in 2024 Q3 was relatively robust, with stable operational indicators. Online revenue during the Golden Week increased by over 30%, while offline revenue increased by over 20% year-on-year.

The bank continues to point out that benefiting from the pricing advantages of cost-effective brands and the improvement of product competitiveness, the operational indicators in 2024 Q3 remained relatively stable. The inventory-to-sales ratio in 2024 Q3 was maintained at a healthy level of 4.5-5, with discounts of approximately 29% off, and a 75% sell-out rate for new products in the season. Offline revenue benefited from outlet store types and expansions, with continuous iteration of the fifth generation stores for children's clothing. As of 2024 Q3, the children's clothing area increased by a net of 2 square meters to 110 square meters compared to Q2, while the adult area increased by a net of 4 square meters to 147 square meters compared to Q2. It is expected that adult stores of the tenth generation will be established soon, and the iteration of store image is expected to further enhance store efficiency. As of 2024 Q3, there were a net increase in the number of outlet stores, with 196 large clothing outlet stores and 151 children's clothing outlet stores compared to Q2.

The bank stated that the trend is expected to continue under the promotion of the Q4 e-commerce peak season. The bank maintains profit forecasts, with an expected net income for 2024-2026 of 1.14/1.35/1.58 billion yuan, corresponding to PE ratios of 6.8/5.7/4.9 times the current stock price. The company has been constructing a professional product matrix including running, basketball, and other products at the product end, continuously innovating. In terms of channels, expanding and upgrading stores as well as new store formats help improve store efficiency. The marketing end sees continuous enrichment of brand resources to enhance brand awareness and influence, maintaining a "buy" rating.