Core Insights - The four major sports brands in Hong Kong—Anta Sports, Li Ning, Xtep International, and 361 Degrees—achieved revenue growth in the first half of 2025, but profit performance varied significantly [1][5] - Increased discounting has become a common strategy in the industry, impacting profit growth and gross margins [1][2] - Trends such as "opening large stores" and professional upgrades are becoming prominent in the industry [1][8] Revenue and Growth - In the first half of 2025, Anta Sports led with revenue of 38.54 billion yuan, a growth rate of 14.26%. Li Ning, Xtep International, and 361 Degrees reported revenues of 14.82 billion yuan, 6.838 billion yuan, and 5.705 billion yuan, with growth rates of 3.29%, 7.14%, and 10.96% respectively [2] - Over the past three years, except for Anta Sports, the other three brands showed a decline in growth rates: Xtep's growth fell from 14.76% to 7.14%, 361 Degrees from 18.00% to 10.96%, and Li Ning from 12.98% to 3.29% [2] - Anta Sports has maintained double-digit revenue growth for four consecutive years, but its main brands, Anta and FILA, have seen growth rates drop to single digits, with over 10% growth driven by outdoor brands like Descente and Kolon [2] Online Sales Performance - Online channels have become a common growth highlight for all four companies, but they have also negatively impacted gross margins. In the first half of 2025, online revenue growth rates were 17.6% for Anta Sports, 7.4% for Li Ning, and 45% for 361 Degrees [2][3] - The online revenue share for Anta Sports, Li Ning, and 361 Degrees was 34.8%, 29%, and 31.8% respectively, indicating that online business has become an important revenue pillar [3] Gross Margin Analysis - Anta Sports' gross margin decreased by 0.7 percentage points to 63.37%, attributed to increased costs in professional categories and higher online discounting [3] - Li Ning's gross margin fell by 0.4 percentage points to 50.04%, due to changes in channel structure and intensified promotional competition [3] - 361 Degrees experienced a unique situation where its gross margin increased by 0.2 percentage points to 41.5%, driven by a "price for volume" strategy that lowered average wholesale prices while increasing sales [3] Net Profit Performance - The net profit performance of the four brands showed divergence, with Anta Sports and 361 Degrees facing slowing net profit growth, while Li Ning experienced a decline. Li Ning's net profit was 1.737 billion yuan, down 10.99% year-on-year [5] - Anta Sports reported a net profit of 7.031 billion yuan, a decrease of 8.9%. However, excluding the impact of Amer Sports' listing in the previous year, net profit grew by 14.5% [5] - 361 Degrees' net profit was 858 million yuan, reflecting a growth of 8.61%, down from 12.23% in the previous year [5] Industry Trends - The industry is witnessing significant trends in market behavior and strategic layout, particularly in the competitive running shoe market, where brands are focusing on original research and development [7] - Brands are increasingly targeting niche markets and launching "precisely segmented" running shoes to meet diverse consumer needs [7] - The trend of "opening large stores" is common among the four brands, with flagship stores often exceeding 1,000 square meters and offering a mix of experience, service, and social interaction [8]

Group 1: Core Business Insights - The company's large-scale business achieved revenue of 7.38 billion yuan in 2024, representing a year-on-year growth of 19.1% [1] - The product structure remains stable over the past five years, with footwear accounting for an average of 58.1% and apparel for 41.9% of the large-scale business [1] - The company is focusing on both offline and online channel development, targeting lower-tier markets for offline growth while exploring e-commerce potential online [1] Group 2: Children's Wear Business Strategy - The children's wear segment is expanding its store count while enhancing store quality through image upgrades [2] - The company is leveraging technology to enhance product functionality, introducing advanced technologies in footwear such as soft bounce columns and shock-absorbing materials [2] - The children's brand is creating popular products by incorporating IP elements and addressing niche market demands with items like yoga pants and competition suits [2] Group 3: Investment Outlook - The company is positioned to benefit from two growth curves in large-scale and children's wear businesses, alongside the sports and outdoor market boom [3] - Revenue projections for 2025-2027 are estimated at 11.34 billion yuan, 12.66 billion yuan, and 14.08 billion yuan, with year-on-year growth rates of 12.5%, 11.7%, and 11.2% respectively [3] - The target price for the company is set at 7.20 HKD, indicating a potential increase of 13.2% from the closing price on August 29, 2025, with a "recommended" rating [3]

Core Viewpoint - The article highlights the intense competition in the sportswear industry, leading to increased discounting practices that negatively impact profit growth and gross margins [2][4]. Revenue and Growth - In the first half of 2025, the four major sports brands in Hong Kong—Anta Sports, Li Ning, Xtep International, and 361 Degrees—achieved revenue growth, with Anta leading at 38.54 billion yuan and a growth rate of 14.26%. Li Ning, Xtep, and 361 Degrees reported revenues of 14.82 billion yuan, 6.838 billion yuan, and 5.705 billion yuan, with growth rates of 3.29%, 7.14%, and 10.96% respectively [4]. - Over the past three years, except for Anta, the other three brands have shown a decline in growth rates, with Xtep's revenue growth dropping from 14.76% to 7.14%, 361 Degrees from 18.00% to 10.96%, and Li Ning from 12.98% to 3.29% [4]. - Anta's revenue growth is primarily driven by its outdoor brands, while its main brands, Anta and FILA, have seen growth rates decline to single digits [4]. Online Channel Performance - Online channels have become a common growth highlight for the four companies, with Anta, Li Ning, and 361 Degrees reporting online revenue growth rates of 17.6%, 7.4%, and 45% respectively. Xtep did not disclose its overall online growth but noted that its main brand's e-commerce business grew and accounted for over 30% of total revenue [4][5]. - The online business expansion has negatively impacted gross margins, with Anta's gross margin decreasing by 0.7 percentage points to 63.37%, attributed to increased costs and discounts [5]. - Li Ning's gross margin fell by 0.4 percentage points to 50.04%, due to changes in channel structure and increased promotional discounts [5]. Profitability Analysis - Despite 361 Degrees experiencing a slight increase in gross margin by 0.2 percentage points to 41.5%, its net profit margin declined due to a significant rise in sales expenses, which increased by 13.2% to 1.037 billion yuan [6][7]. - Anta's net profit for the first half of 2025 was 7.031 billion yuan, a decrease of 8.9% year-on-year, while Li Ning's net profit fell by 10.99% to 1.737 billion yuan [7]. Industry Trends - The industry is witnessing a trend towards professionalization and specialization, with brands focusing on core categories and launching targeted products [9]. - The "big store" strategy is being adopted by all four brands, with flagship stores exceeding 1,000 square meters, offering a mix of sales, experience, and service [10]. - Overall, while the four major sports brands in Hong Kong reported revenue growth in the first half of 2025, they face challenges of differentiated growth rates and profit pressures, actively responding to industry competition through online initiatives, product segmentation, and channel upgrades [10].

Core Insights - The four major sports brands in Hong Kong, Anta Sports, Li Ning, Xtep International, and 361 Degrees, all achieved revenue growth in the first half of 2025, but profit performance varied significantly [1][8] - Increased discounting has become a common strategy among these companies, impacting profit growth and gross margins [1][8] - The industry is witnessing a trend towards "opening large stores" and professional upgrades [1][8] Revenue and Growth - Anta Sports led with a revenue of 38.54 billion yuan, growing at 14.26%, while Li Ning, Xtep International, and 361 Degrees reported revenues of 14.82 billion yuan, 6.838 billion yuan, and 5.705 billion yuan, with growth rates of 3.29%, 7.14%, and 10.96% respectively [2] - Over the past three years, except for Anta Sports, the other three brands have shown a decline in growth rates [2] - Anta Sports has maintained double-digit revenue growth for four consecutive years, but its main brands, Anta and FILA, have seen growth rates drop to single digits, with over 10% growth driven by outdoor brands like Descente and Kolon [2] Online Sales Performance - Online channels have become a common growth highlight for all four companies, although they have negatively impacted gross margins [2][3] - In the first half of 2025, online revenue growth rates for Anta Sports, Li Ning, and 361 Degrees were 17.6%, 7.4%, and 45% respectively [2] - The online revenue share for Anta Sports, Li Ning, and 361 Degrees stands at 34.8%, 29%, and 31.8% respectively, indicating the importance of online business [3] Gross Margin Analysis - Anta Sports' gross margin decreased by 0.7 percentage points to 63.37%, attributed to increased costs in professional categories and higher online discounts [3] - Li Ning's gross margin fell by 0.4 percentage points to 50.04%, due to changes in channel structure and intensified promotional discounts [3] - 361 Degrees experienced a unique situation where its gross margin increased by 0.2 percentage points to 41.5%, driven by a "price for volume" strategy [3] Net Profit Performance - The net profit performance among the four brands showed divergence, with Anta Sports and 361 Degrees facing slowing growth, while Li Ning experienced a decline [5] - Li Ning's net profit for the first half of 2025 was 1.737 billion yuan, a decrease of 10.99% year-on-year [5] - Anta Sports reported a net profit of 7.031 billion yuan, down 8.9%, but excluding the impact of Amer Sports' listing, the net profit grew by 14.5% [5] Industry Trends - The industry is characterized by a significant trend towards specialization and upgrading, particularly in the competitive running shoe market [6][7] - All four brands are focusing on original research and development to create and upgrade their flagship running shoe IPs [6] - The trend of "opening large stores" is evident, with flagship stores exceeding 1,000 square meters, offering a mix of sales, experience, and social interaction [7]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 361度國際有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01361 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | 本月底法定/註冊股本總額： HKD 1,000 ...

Investment Rating - The report gives a "Buy" rating for 361 Degrees, with a target price of HKD 7.20, indicating a potential upside of 13.2% from the closing price on August 29, 2025 [6][68]. Core Views - 361 Degrees is positioned to benefit from both its adult and children's apparel segments, capitalizing on the growth in sports and outdoor activities, as well as the opportunities presented by domestic brands [6][68]. - The company has shown strong revenue growth, with projected revenues of RMB 113.4 billion, RMB 126.6 billion, and RMB 140.8 billion for 2025-2027, reflecting year-on-year growth rates of 12.5%, 11.7%, and 11.2% respectively [6][68]. Summary by Sections Company Overview - 361 Degrees was established in 2003 and focuses on the research, design, production, and brand management of sports footwear and apparel. It has a strong presence in the domestic market with a total of 5,750 adult apparel stores and 2,548 children's apparel stores in China as of 2024 [10][11]. Adult Apparel Business - The adult apparel segment achieved revenue of RMB 73.8 billion in 2024, with a year-on-year growth of 19.1%. The product mix remains balanced, with footwear accounting for 58.1% and apparel for 41.9% of the segment [6][22]. - The company is enhancing its supply chain efficiency and embracing smart manufacturing, which includes a focus on advanced supply chain systems and 5G smart factories [6][50]. Children's Apparel Business - The children's apparel segment is experiencing rapid expansion, with the number of stores increasing from 1,797 in 2017 to 2,548 in 2024, representing a CAGR of 5.1%. The average store size has also increased, enhancing the shopping experience [54][56]. - The company is leveraging technology to enhance product offerings, introducing innovative footwear and apparel designed for children, which includes collaborations with popular IPs to create appealing designs [62][63]. Financial Projections - The report forecasts that the overall revenue for 361 Degrees will grow significantly, with net profits expected to reach RMB 12.9 billion, RMB 14.7 billion, and RMB 16.6 billion for 2025-2027, reflecting growth rates of 12.5%, 13.4%, and 13.0% respectively [6][68]. - The gross margin is projected to remain stable, with expectations of 41.1%, 41.3%, and 41.5% for the years 2025-2027 [6][68]. Valuation and Comparison - The report employs a relative valuation method, comparing 361 Degrees with other domestic sports brands like Anta, Li Ning, and Xtep. The target P/E ratio for 361 Degrees is set at 10.5 times for 2025 [67][69].

Core Insights - The financial reports for the first half of 2025 from China's four major sportswear companies, Anta, Li Ning, Xtep, and 361 Degrees, reveal significant disparities in performance, with Anta leading in revenue and Xtep showing the fastest profit growth [1][2]. Revenue Performance - Anta achieved a record revenue of 38.54 billion yuan, a year-on-year increase of 14.3%, surpassing the combined revenue of Li Ning, Xtep, and 361 Degrees [2][3]. - Li Ning's revenue grew by 3.3% to 14.82 billion yuan, while Xtep reported a revenue of 6.84 billion yuan, up 7.1%. 361 Degrees saw an 11% increase in revenue to 5.705 billion yuan [2][3]. Profitability Analysis - Anta's net profit reached 7.031 billion yuan, nearly double that of the other three companies combined [3]. - Xtep's net profit grew by 21.5% to 910 million yuan, marking the highest growth rate among the four companies. 361 Degrees' net profit increased by 8.6% to 860 million yuan, while Li Ning's net profit fell by 11% to 1.737 billion yuan [3]. Strategic Focus and Business Lines - Anta continues to implement a "single focus, multi-brand, global" strategy, with its core brand revenue increasing by 5.4% to 16.95 billion yuan and FILA's revenue rising by 8.6% to 14.18 billion yuan [4][5]. - Li Ning is investing heavily in top-tier professional sports resources and increasing R&D spending by 8.7%, focusing on running, basketball, and training categories, which account for 67% of retail sales [5]. - Xtep is concentrating on the running segment, with its high-end running shoe brand Saucony achieving a 32.5% revenue increase to 785 million yuan, representing 11.5% of total revenue [5][6]. - 361 Degrees is pursuing a strategy of "professionalization, youthfulness, and internationalization," with its children's business and e-commerce showing rapid growth [6]. Operational Challenges - Anta's average inventory turnover days increased from 114 to 136 days, indicating rising inventory pressure. The overall gross margin decreased by 0.7 percentage points to 63.4% due to a higher contribution from lower-margin e-commerce and footwear products [8]. - Li Ning reported a net cash inflow of 2.41 billion yuan, with a cash cycle of 31 days, but faced challenges from reduced offline foot traffic impacting sales [9]. - Xtep's main brand revenue growth slowed to 4.5%, below the previous year's 6.6%, with Saucony not yet sufficiently supporting its "second growth curve" despite its high growth rate [10].

Core Viewpoint - The financial reports of China's four major sportswear companies—Anta, Li Ning, Xtep, and 361 Degrees—show significant disparities in performance, with Anta leading in revenue growth and Xtep achieving the fastest net profit growth [2][4][5]. Revenue Performance - Anta's revenue reached 38.54 billion RMB in the first half of 2025, marking a 14.3% year-on-year increase, setting a new historical high [4][6]. - Li Ning's revenue was 14.82 billion RMB, up 3.3% year-on-year, while Xtep reported 6.84 billion RMB, a 7.1% increase [4][6]. - 361 Degrees saw its revenue grow by 11% to 5.705 billion RMB [4][6]. Profitability Analysis - Anta's net profit was 7.031 billion RMB, nearly double that of the other three companies combined [5][6]. - Xtep's net profit grew by 21.5% to 910 million RMB, the highest growth rate among the four [5][6]. - 361 Degrees' net profit increased by 8.6% to 860 million RMB, while Li Ning's net profit fell by 11% to 1.737 billion RMB [5][6]. Strategic Focus and Business Lines - Anta's strategy emphasizes "single focus, multi-brand, and globalization," with its core brand revenue growing by 5.4% to 16.95 billion RMB [8][9]. - Li Ning is investing in top-tier professional sports resources and increasing R&D spending by 8.7%, focusing on running, basketball, and cross-training categories [8][9]. - Xtep is concentrating on the running segment, with its high-end running shoe brand Saucony seeing a revenue increase of 32.5% [10]. - 361 Degrees is pursuing "professionalization, youthfulness, and internationalization," with its children's business and e-commerce showing rapid growth [11]. Operational Challenges - Anta's average inventory turnover days increased from 114 to 136 days, indicating rising inventory pressure [13]. - Li Ning reported a stable cash flow but acknowledged a decrease in offline customer traffic, impacting sales [13]. - Xtep's main brand revenue growth slowed to 4.5%, below the previous year's 6.6%, indicating potential challenges in sustaining growth [15].

Core Insights - The article discusses the rapid growth and popularity of "cooling" fabrics in the Chinese market, driven by consumer demand for comfort during high temperatures and the saturation of traditional UV protection marketing [1][8][20] - The concept of "cooling" has emerged as a new selling point for brands, replacing the previously dominant focus on UPF ratings for sun protection [8][20] Market Trends - The search volume for "cooling" has seen explosive growth, with a 264.5% increase from 2022 to 2024, indicating a strong consumer interest [1][4] - Brands like Anta and Adidas have launched products featuring cooling technologies, such as Anta's Ice Skin Technology and Adidas's CLIMACOOL [2][4] Consumer Behavior - Chinese consumers are more sensitive to the concept of "cooling" due to their preference for lightweight outdoor activities, contrasting with the more intense outdoor culture in Western markets [5][7] - The demand for cooling apparel is driven by everyday scenarios, such as commuting and outdoor leisure, rather than extreme sports [7][20] Marketing Strategies - "Cooling" serves as a fresh and easily understandable concept for brands, allowing for differentiation in a crowded market where traditional UV protection claims have become commonplace [8][10] - The marketing of cooling products often emphasizes environmental benefits, as they can reduce reliance on air conditioning, aligning with sustainability trends [10][20] Technical Aspects - The article outlines three main principles behind cooling technologies: enhancing thermal conductivity, improving moisture-wicking capabilities, and utilizing phase change materials [12][14][16] - The industry has established standards for measuring cooling performance, with a focus on both immediate and sustained cooling effects [18][19] Future Outlook - The future of "cooling" as a market trend depends on its ability to meet consumer needs for comfort and sustainability, as well as the development of more advanced technologies [20][25] - The potential for "cooling" to become a staple in the market is contingent on its ability to evolve beyond a marketing gimmick and provide real, lasting benefits to consumers [20][25]

Core Insights - The Chinese sports market is entering a deep competitive phase, with major domestic brands like 361 Degrees, Xtep, Li Ning, and Anta reporting mid-term performance [1] - 361 Degrees has shown exceptional performance with a revenue increase of 11%, surpassing Xtep's 7.1% and Anta's 5.4%, indicating a unique strategic path leading to robust growth [1] - Xtep's net profit grew by 21.5% due to successful multi-brand operations, while Anta continues to lead in revenue scale with its extensive multi-brand strategy [1] - Li Ning is experiencing a slowdown in revenue growth but is focusing on profitability and channel optimization for future strategic positioning [1] Strategic Directions - Xtep is focusing on deepening its presence in the running segment by establishing 70 running clubs and accumulating 2.4 million members, although its specialized segment's revenue of 785 million yuan has yet to significantly impact overall performance [2] - Li Ning is optimizing inefficient stores and concentrating on core segments like running and cross-training, trading short-term profits for long-term brand upgrades, despite a decline in ROE [2] - 361 Degrees is innovating internally and expanding externally, maintaining R&D investment at 3%-4% and launching over 230 new shoe SKUs, while also entering the children's sports market with over 2,494 stores [2] Globalization Efforts - Chinese sports brands are transitioning from "Made in China" to "Created in China" and "Value Export," with Anta leveraging its multi-brand strategy to enhance global presence through acquisitions like Jack Wolfskin [3] - 361 Degrees is strengthening its international influence by partnering with top global sports events and achieving a 94% growth in cross-border e-commerce, alongside significant increases in overseas orders [3] - Xtep's subsidiary Saucony's 32.5% growth reflects the effectiveness of establishing professional barriers in niche markets, while Li Ning is preparing for the upcoming Olympic cycle after strategic adjustments [3] - The ongoing competition among domestic sports brands emphasizes the importance of strategic endurance, technological innovation, and a global perspective for future growth [3]