Yamato: Raised 361 degrees (01361) target price to HK$5.4 to maintain “outperforming the market” rating

The Zhitong Finance App learned that Yamato released a research report stating that it raised the target price of 361 degree (01361) from HK$4.7 to HK$5.4, corresponding to the projected price-earnings ratio of 7.5 times for the next 12 months, maintaining a “outperforming the market” rating. Yamato pointed out that revenue for the first half of 361 degrees increased 8% year over year, gross margin reached 41.8%, and net profit increased 8% year over year. The performance is in line with the bank and market expectations. It is expected to meet the guidelines for revenue growth of 8% to 10%, gross profit margin of 41% to 42%, and net profit growth for the full year of this year.

The bank believes that 361 degrees will benefit from the K-type consumer trend in China, and its cost-effective positioning makes its performance more resilient than its peers. The company recently appointed Simon Men, the former vice president of sales at Nike China, and expects more top international brand talents to join, and the product, channel and execution capabilities are expected to improve. New product order fairs will be held at 361 in the first and second quarters of next year. Yamato estimates that orders will record a high increase in the number of units at that time.