2021 results beat consensus
During 2021FY, 361 Degrees International Limited (361 Degrees) recorded a revenue of
RMB5,933.5mn (2020: RMB5,127mn), increasing 15.7% YoY, slightly below our estimates of
RMB6,040mn but roughly in line with consensus estimates RMB5,922mn. Profit attributable
to the equity shareholders of the Company was RMB601.7 million, increase of 45% and
39.2% by compared with 2020 and 2019 respectively, above our and consensus estimates of
RMB507.4mn and RMB549.0mn respectively. Net margin was up by 2ppt YoY to 10.1%.
The revenue of footwear products and clothing products were RMB2,532mn (accounting for
42.7% of the overall revenue) and RMB2,147mn (accounting for 36.2% of the overall
revenue), an increase of 21.7% and 7.3% YoY. By adjusted the upgrade of product mix by
launching a variety of new products with a higher average wholesale price (AWP) and drove
the revenue growth from the e-commerce business, the AWP of footwear and apparel
products are back to pre-epidemic levels, increased by 4.4% and 2.3% YoY. In addition, the
sales volume of footwear and apparel products increased by 16.6% and 4.8% YoY,
respectively. This was mainly due to the recovery in the market and continuous brand image
enhancement as well as introducing high-quality new products. The sales volume of the
accessories edged down by 0.8% YoY but the AWP of the accessories increased by 31.2% YoY
which led to a YoY increase of 30.3% in the revenue to RMB69mn from the sales of
accessories. Also benefited from the recovery of the market, the revenue from 361 Degrees
Kids for the year continued to grow, recording a YoY increase of 18.7% to RMB1,107mn, and
accounted for approximately 18.7% of the total revenue during the year. The growth was
attributable to a YoY increase of 18.4% in the sale volume of products and a YoY increase of
0.2% in AWP.