SEHK:1361

Stock Analysis Report

361 Degrees International

Executive Summary

361 Degrees International Limited, an investment holding company, manufactures and trades in sporting goods in the People’s Republic of China.


Snowflake Analysis

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has 361 Degrees International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1361 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

1361

0.4%

HK Luxury

2.7%

HK Market


1 Year Return

-29.0%

1361

-21.0%

HK Luxury

-19.8%

HK Market

Return vs Industry: 1361 underperformed the Hong Kong Luxury industry which returned -21% over the past year.

Return vs Market: 1361 underperformed the Hong Kong Market which returned -19.8% over the past year.


Shareholder returns

1361IndustryMarket
7 Day1.7%0.4%2.7%
30 Day-12.4%-14.5%-7.2%
90 Day-15.5%-24.5%-12.1%
1 Year-24.8%-29.0%-18.8%-21.0%-16.9%-19.8%
3 Year-51.1%-57.1%10.1%-2.8%0.9%-9.3%
5 Year-47.3%-58.6%6.0%-10.5%-12.6%-26.7%

Price Volatility Vs. Market

How volatile is 361 Degrees International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 361 Degrees International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1361 (HK$1.2) is trading below our estimate of fair value (HK$4.16)

Significantly Below Fair Value: 1361 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1361 is good value based on its PE Ratio (5.2x) compared to the Luxury industry average (7.6x).

PE vs Market: 1361 is good value based on its PE Ratio (5.2x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1361 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 1361 is good value based on its PB Ratio (0.4x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is 361 Degrees International forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1361's forecast earnings growth (10.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 1361's earnings (10.7% per year) are forecast to grow slower than the Hong Kong market (11.8% per year).

High Growth Earnings: 1361's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1361's revenue (6.1% per year) is forecast to grow slower than the Hong Kong market (9.8% per year).

High Growth Revenue: 1361's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1361's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has 361 Degrees International performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1361 has high quality earnings.

Growing Profit Margin: 1361's current net profit margins (7.7%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: 1361's earnings have declined by -4% per year over the past 5 years.

Accelerating Growth: 1361's earnings growth over the past year (42.4%) exceeds its 5-year average (-4% per year).

Earnings vs Industry: 1361 earnings growth over the past year (42.4%) exceeded the Luxury industry 0.6%.


Return on Equity

High ROE: 1361's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is 361 Degrees International's financial position?


Financial Position Analysis

Short Term Liabilities: 1361's short term assets (CN¥10.7B) exceed its short term liabilities (CN¥2.8B).

Long Term Liabilities: 1361's short term assets (CN¥10.7B) exceed its long term liabilities (CN¥2.4B).


Debt to Equity History and Analysis

Debt Level: 1361's debt to equity ratio (38%) is considered satisfactory.

Reducing Debt: 1361's debt to equity ratio has increased from 29.8% to 38% over the past 5 years.

Debt Coverage: 1361's debt is well covered by operating cash flow (24.9%).

Interest Coverage: 1361's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet


Next Steps

Dividend

What is 361 Degrees International's current dividend yield, its reliability and sustainability?

7.79%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1361's dividend (7.79%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.66%).

High Dividend: 1361's dividend (7.79%) is in the top 25% of dividend payers in the Hong Kong market (7.15%)


Stability and Growth of Payments

Stable Dividend: 1361's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1361's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.6%), 1361's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1361's dividends in 3 years are forecast to be well covered by earnings (45.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average board tenure


CEO

Wuhao Ding (54yo)

11.67s

Tenure

CN¥1,358,000

Compensation

Mr. Ding Wuhao serves as the President of 361 Degrees International Limited and has been its Executive Director since August 1, 2008. Mr. Ding has more than 15 years of experience in the PRC sportswear ind ...


CEO Compensation Analysis

Compensation vs Market: Wuhao's total compensation ($USD192.76K) is below average for companies of similar size in the Hong Kong market ($USD359.76K).

Compensation vs Earnings: Wuhao's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Huihuang Ding
Executive Chairmanno dataCN¥1.05m16% CN¥396.9m
Wuhao Ding
President & Executive Director11.67yrsCN¥1.36m17.03% CN¥422.4m
Huirong Ding
VP & Executive Director11.67yrsCN¥1.04m15.67% CN¥388.9m
Jiabi Wang
VP & Executive Director11.67yrsCN¥602.00k8.16% CN¥202.5m
Yuen Fai Li
Independent Non-Executive Director3.75yrsCN¥446.00kno data
Ping Cho Hon
Independent Non-Executive Director0.92yrCN¥228.00kno data
Chuang Chen
Independent Non- Executive Director0.67yrCN¥123.00kno data

7.7yrs

Average Tenure

54yo

Average Age

Experienced Board: 1361's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1361 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

361 Degrees International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 361 Degrees International Limited
  • Ticker: 1361
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$2.481b
  • Shares outstanding: 2.07b
  • Website: https://www.361sport.com

Number of Employees


Location

  • 361 Degrees International Limited
  • 361° Building
  • Huli High-technology Park
  • Xiamen
  • Fujian Province
  • 361009
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1361SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2009
36LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2009
TSIO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2009
1361SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2009
1361SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2009

Biography

361 Degrees International Limited, an investment holding company, manufactures and trades in sporting goods in the People’s Republic of China. The company operates in two segments, Adults and Kids. It offers adult and children footwear, apparels, and accessories for sports and casual life under the 361 core and 361 Kids brands; and ski and outdoor sportswear products under the ONE WAY brand. The company also manufactures and trades in shoes soles; trades in children sporting goods; and operates a gas station. As of December 31, 2019, it operated a network of 5,519 stores under the 361 core brand name. The company also sells products through its 361sport.com Website; other e-commerce platforms, including Tmall, Taobao, and JD; and authorized retailers and distributors. 361 Degrees International Limited was founded in 2003 and is headquartered in Xiamen, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 13:33
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.