Analyst Walter Woo of CMB International Securities maintained a Buy rating on 361 Degrees International (TSIOF – Research Report), with a price target of HK$5.97.
Walter Woo has given his Buy rating due to a combination of factors that indicate a positive outlook for 361 Degrees International. Despite a conservative FY25E guidance, the company has shown promising retail sales growth in early 2025, with adult, kids, and e-commerce segments performing well. The inventory to sales ratio has improved slightly, and retail discounts have remained stable, suggesting a healthy market environment.
Moreover, several growth drivers support the company’s potential to achieve its targets. These include strong sales momentum in running products, potential growth in the basketball segment with new product launches, and expansion into new categories like tennis and badminton. Additionally, the opening of more Super Premium stores is expected to contribute significantly to sales. The stock’s valuation, trading at a reasonable P/E ratio with a solid yield, further supports the Buy rating.