China International Capital Corporation's research report indicates that the main brand and children's clothing offline retail sales of 361 degrees (01361.HK) both grew by about 10% annually, while the e-commerce platform retail sales of 361 degrees increased by over 20% annually. The firm maintains its earnings per share forecasts for the company for the next two years at 0.52 and 0.60 yuan respectively, and retains its 'outperform industry' rating. Considering the recent industry valuation increase, the target price is revised upwards by 17% to 5.2 yuan.

The firm pointed out that 361 degrees performed well at the terminal in a challenging retail environment, with stable discounts and inventory. Meanwhile, online sales maintained faster growth on a higher base, with the company continuing to promote brand marketing and enhance product strength. Since October, sales have improved, with online and offline sales during the National Day golden week increasing by over 30% and over 20% respectively year-on-year. Management indicated that sales continued to perform well after the golden week and expressed confidence in good growth at next year's summer ordering fair.

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