SEHK:1361

Stock Analysis Report

361 Degrees International

Executive Summary

361 Degrees International Limited, an investment holding company, designs, develops, manufactures, and sells adults and children sporting goods in the People’s Republic of China.

Snowflake

Fundamentals

Very undervalued established dividend payer.


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


Market Performance


7 Day Return

-4.1%

1361

1.9%

HK Luxury

0.9%

HK Market


1 Year Return

-12.7%

1361

27.3%

HK Luxury

0.6%

HK Market

Return vs Industry: 1361 underperformed the Hong Kong Luxury industry which returned 27.3% over the past year.

Return vs Market: 1361 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1361IndustryMarket
7 Day-4.1%1.9%0.9%
30 Day4.4%4.3%0.4%
90 Day19.6%6.3%-5.5%
1 Year-7.5%-12.7%31.8%27.3%4.2%0.6%
3 Year-39.5%-46.9%44.2%27.1%15.5%3.9%
5 Year-6.1%-26.3%43.7%15.7%19.9%-0.1%

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$1.65) is trading below our estimate of fair value (HK$6.67)

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 (9.2x) compared to the Luxury industry average (9.5x).

PE vs Market: 1361 is good value based on its PE Ratio (9.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1361 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1361 is good value based on its PB Ratio (0.5x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is 361 Degrees International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1361's forecast earnings growth (13.4% per year) is above the savings rate (2%).

Earnings vs Market: 1361's earnings (13.4% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

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

Revenue vs Market: 1361's revenue (6.2% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1361's revenue (6.2% 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 (8.5%).


Next Steps

Past Performance

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

-0.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1361's earnings have declined by -0.6% per year over the past 5 years.

Accelerating Growth: 1361's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1361 had negative earnings growth (-29%) over the past year, making it difficult to compare to the Luxury industry average (-4.9%).


Return on Equity

High ROE: 1361's Return on Equity (5.1%) is considered low.


Return on Assets

ROA vs Industry: 1361's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 1361's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is 361 Degrees International's financial position?


Financial Position Analysis

Short Term Liabilities: 1361's short term assets (CN¥11.0B) exceeds its short term liabilities (CN¥3.4B)

Long Term Liabilities: 1361's short term assets (11.0B) exceeds its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: 1361's debt to equity ratio (44%) is considered high

Reducing Debt: 1361's debt to equity ratio has increased from 13.8% to 44% over the past 5 years.

Debt Coverage: 1361's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: 1361's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet

Inventory Level: 1361 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1361's debt is covered by short term assets (assets are 4.008310x debt).


Next Steps

Dividend

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

9.66%

Current Dividend Yield


Dividend Yield vs Market

company9.7%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Years6.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1361's dividend (9.66%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1361's dividend (9.66%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

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 (44.2%), 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 (42.3% payout ratio).


Next Steps

Management

What is the CEO of 361 Degrees International's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average board tenure


CEO

Wuhao Ding (54yo)

11.2yrs

Tenure

CN¥1,220,000

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 ($USD172.28K) is about average for companies of similar size in the Hong Kong market ($USD298.58K).

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


Board Age and Tenure

7.2yrs

Average Tenure

54yo

Average Age

Experienced Board: 1361's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥1,891,43530 May 19
Wuhao Ding
EntityIndividual
Role
Chief Executive Officer
President & Executive Director
Shares1,278,000
Max PriceCN¥1.48
BuyCN¥1,194,81629 May 19
Wuhao Ding
EntityIndividual
Role
Chief Executive Officer
President & Executive Director
Shares896,000
Max PriceCN¥1.33
BuyCN¥2,441,84829 May 19
Wuhao Ding
EntityIndividual
Role
Chief Executive Officer
President & Executive Director
Shares1,796,000
Max PriceCN¥1.36
BuyCN¥589,99829 May 19
Wuhao Ding
EntityIndividual
Role
Chief Executive Officer
President & Executive Director
Shares428,000
Max PriceCN¥1.38
BuyCN¥1,144,09429 May 19
Wuhao Ding
EntityIndividual
Role
Chief Executive Officer
President & Executive Director
Shares788,000
Max PriceCN¥1.45

Ownership Breakdown


Management Team

  • Virginia Choi (50yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Ning Lu (51yo)

    Brand President

    • Tenure: 0yrs
  • Wuhao Ding (54yo)

    President & Executive Director

    • Tenure: 11.2yrs
    • Compensation: CN¥1.22m
  • Huihuang Ding (53yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥1.02m
  • Huirong Ding (47yo)

    VP & Executive Director

    • Tenure: 11.2yrs
    • Compensation: CN¥1.02m
  • Jiabi Wang (61yo)

    VP & Executive Director

    • Tenure: 11.2yrs
    • Compensation: CN¥650.00k
  • Nina Zhan (38yo)

    Vice-President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Roger Li (58yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥355.00k
  • Wuhao Ding (54yo)

    President & Executive Director

    • Tenure: 11.2yrs
    • Compensation: CN¥1.22m
  • Huihuang Ding (53yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥1.02m
  • Huirong Ding (47yo)

    VP & Executive Director

    • Tenure: 11.2yrs
    • Compensation: CN¥1.02m
  • Jiabi Wang (61yo)

    VP & Executive Director

    • Tenure: 11.2yrs
    • Compensation: CN¥650.00k
  • Terence Hon (60yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
  • Chuang Chen (42yo)

    Independent Non- Executive Director

    • Tenure: 0.2yrs

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$3.412b
  • 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, designs, develops, manufactures, and sells adults and children sporting goods in the People’s Republic of China. The company operates in tw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:53
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.