31St Degree Main Brand Fourth Quarter Sales Zero Growth Continues To Lose Lining Anta

On Monday, January 14th, the sales of the main brands in the fourth quarter were flat, while the children's clothing business had a low double-digit increase.

Preliminary results show that although the sports industry is thriving in the retail industry, the performance of the 31st degree is obviously running away from peers.

At the beginning of the month, XTEP International (1368.HK) said that the fourth quarter average double digit sales growth in the same store was similar to that in the two or three quarter.

Anta sports (2020.HK) and Li Ning Co Ltd (2331.HK), which have not yet announced their initial results in the four quarter, are expected to announce the same strong quarterly results in the near future.

Data show that in March 1-6, the income of 3 billion 16 million 900 thousand yuan was 360 yuan, an increase of 7.8% over the same period in 2017, a significant increase in the double digit growth rate of the peers. The company's medium-term net profit was 335 million yuan, up 5.3% from the 318 million 200 thousand yuan in the first half of 2017. It also lost its peers' performance. Anta's physical education and Lining's medium-term net profit rose 34% and 42% respectively, and the XTEP's first half year in the same size with the 31st degree earned more than 20.9%.

On Wednesday, Guotai Junan issued a research report that the business of the second half of the year was worse than expected and lowered the rating of Fujian enterprises to "neutral".

The agency said zero growth of core brands was the worst quarterly performance of Fujian companies in the past four years, reflecting the pressure of reduced passenger traffic in retail channels. As a result, earnings per share of 360 2018-2020 were reduced by 23.5%, 26.6% and 29.6% to 0.185 yuan, 0.199 yuan and 0.211 yuan respectively.

Guotai Junan also said that in 2018, 360 degrees also generated about 70 million yuan in exchange losses, so it predicted a 16.4% decline in net profit last year.

In the research report, the agency also slashed the target price from HK $3 to HK $2.03.

Affected by the investment bank report, on Wednesday, 361 Degrees International Limited (1361.HK), 360 degree International Limited began to investigate, as of Monday, in the sharp rebound of Shanghai Stock Exchange and hang seng index, the trend dropped four days, with a cumulative decline of 13.44%. So far this year, a 1.23% decline has been recorded. In the same period, Anta sports and Li Ning Co recorded 2.66% and 9.76% gains respectively, while XTEP international shares rose 7.76% so far this year.