Metallurgy / Chemicals / Rubber & Plastics

On the morning of June 4, the domestic sports brand 361 Degrees (01361.HK) listed in Hong Kong issued an announcement stating:

The final redemption of 7.25% senior unsecured notes due in 2021 has been completed. 361 Degrees stated that after the final redemption, no outstanding notes and notes will be delisted from the Stock Exchange of Hong Kong Limited.

In 2016, 361° issued a 7.25% five-year bond of USD 400 million (approximately RMB 2.56 billion), which will mature in June 2021.

By completing the complete redemption of the senior notes, 361°'s short-term debt pressure was basically relieved, future interest expenses were also reduced, and the financial situation was significantly improved.

According to the calculation of the financial data of the 2020 annual report of the group, after the US dollar debt is paid off, the debt ratio of the group will fall below 3% after the completion of the redemption of all senior notes.

The company's latest operating summary shows that in the first quarter of 2021, the retail sales of main brand products (calculated by retail value) have a high double-digit growth compared with the same period in 2020, and the retail sales of children's brand products (calculated by retail value) Compared with the same period in 2020, there is a low growth of 20%-30%, and the trend of performance recovery is accelerating.

Fitch International upgraded the 361° long-term foreign currency issuer default rating from “B” to “B+” on June 4, and the recovery rate was rated “RR4”. The 361° rating upgrade is directly related to the completion of the redemption of US dollar debt and the skyrocketing stock price of 361°.

However, from the perspective of Chinese sports brands such as Anta, Li Ning, and Xtep, in the first quarter of this year, Anta's stock-earnings ratio was 59, Li-Ning's stock-to-earnings ratio was 70, Xtep's stock-to-earnings ratio was around 12, and 361°'s stock-to-earnings ratio was 7.6.