Core Viewpoint - 361 Degrees has reported a year-on-year retail revenue growth of approximately 10% for both its main brand and children's clothing in Q4 2025, with e-commerce sales also showing high double-digit growth [1] Group 1: Operational Performance - In Q4 2025, the offline growth rate for the main brand and children's line remained stable compared to Q3 2025, both achieving around 10% year-on-year growth [1] - Online sales growth showed a slight slowdown compared to Q3 2025, where e-commerce revenue grew by approximately 20% year-on-year [1] Group 2: Product Development - 361 Degrees continues to emphasize a "technology-first, brand-first" strategy, launching new products in various categories, including running shoes, basketball shoes, outdoor gear, and women's fitness apparel [1] - Notable product launches include the new racing family models Flyburn 5 and Flyburn 5 FUTURE, as well as the upgraded Speed family and the high-performance trail running shoe Lingci 1 [1] - In the basketball segment, the second signature shoe "JOKER2" for Nikola Jokic and the sixth signature shoe AG6 for Aaron Gordon were introduced, featuring advanced technologies to enhance performance [1] Group 3: Brand Building and Partnerships - 361 Degrees announced a strategic partnership with the Asian Olympic Council and deepened collaborations with Tianjin Sports Institute and other organizations to promote sports development [1] - The company showcased its low-carbon environmentally friendly running shoes at the China International Import Expo, highlighting its commitment to sustainability [1] Group 4: Event Sponsorships - 361 Degrees has been designated as the official supplier for the 2025 WTCC World Tennis Intercontinental Challenge and continues its role as a top strategic partner for the Fuzhou Marathon [2] - The brand's ambassadors achieved significant victories in various marathons, enhancing brand visibility and engagement [2] Group 5: Channel Development - The company is accelerating its e-commerce strategy, with over a thousand stores joining Taobao Flash Sale, and has opened its first overseas superstore in Cambodia [3] - As of December 31, 2025, the total number of super stores in mainland China reached 126, indicating a strong retail network expansion [3] Group 6: Investment Outlook - Short-term benefits are expected from the consumption downgrade trend, with strong sales performance in running shoes and basketball shoes [4] - The opening of super stores is anticipated to contribute positively to store efficiency and revenue growth in the coming years [4] - The company maintains revenue forecasts of 11.616 billion, 13.353 billion, and 15.317 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 1.395 billion, 1.630 billion, and 1.873 billion yuan [4]

Core Viewpoint - 361 Degrees demonstrates strong growth across various channels in Q4 2025, with adult and children's apparel both achieving approximately 10% growth in offline sales, and e-commerce showing high double-digit growth, aligning with expectations [1][2][3] Group 1: Adult Apparel - Offline sales for adult apparel increased by about 10% year-on-year in Q4 2025, supported by a brand strategy focused on "technology first, brand foremost" [1] - The company launched several flagship technology products in the running category, including the "Feiran 5" and "Feiran 5 FUTURE," along with upgraded models like "Supai FLOAT3" and "Supai CQT3," enhancing cushioning and protection [1] - In the basketball segment, the second-generation signature shoe "JOKER2" and the sixth-generation "AG6" were launched, while the brand also expanded its offerings in outdoor, women's fitness, and cross-training categories [1][2] Group 2: Brand Development - 361 Degrees aims to enhance its influence in multiple sports by renewing its strategic partnership with the Asian Olympic Council and becoming the official supplier for the 2025 WTCC World Tennis Intercontinental Challenge [2] - The brand's ambassador, Li Zicheng, won championships and set records at the Fuzhou and Tangshan marathons, validating the market competitiveness of its professional racing gear [2] Group 3: Channel Expansion - The number of 361 Degrees super stores in mainland China reached 126 by December 31, 2025, contributing significantly to retail efficiency and overall growth [2] - The first overseas super store opened in Cambodia, marking a substantial step in the brand's international retail expansion [2] Group 4: Children's Apparel - Children's apparel sales also grew by approximately 10% year-on-year in Q4 2025, with the introduction of the "Zhengtu 1.0" lightweight outdoor shoes featuring advanced technology [2] Group 5: E-commerce Growth - E-commerce sales recorded high double-digit growth in Q4 2025, with a thousand stores joining Taobao Flash Sale, initiating a new instant retail strategy that enhances delivery efficiency and consumer experience [3] Group 6: Financial Outlook - The company anticipates a 9.5% growth in net profit attributable to shareholders in 2025, with an expected revenue growth of 11.4% [3] - Projections for net profit from 2025 to 2027 are estimated at 1.258 billion, 1.397 billion, and 1.571 billion yuan respectively, with a PE ratio of 8 times for 2026 [3]

Core Viewpoint - The company demonstrates strong growth momentum in Q4 2025, with both adult and children's apparel retail sales increasing by approximately 10% year-on-year, alongside high double-digit growth in e-commerce, despite a general industry slowdown [1] Group 1: Financial Performance - In Q4 2025, the company's retail sales for adult and children's apparel grew by around 10% year-on-year, continuing the growth trend from the previous three quarters [1] - E-commerce sales experienced high double-digit growth, exceeding expectations [1] - The discount rate remained stable at 7-7.1, consistent with Q3 trends, and the inventory turnover ratio was maintained at a healthy level of 4.5-5 times [1] Group 2: Store Expansion - The expansion of super stores exceeded expectations, with a total of 126 super stores (including 21 children's stores) by December 31, 2025 [2] - The first overseas super store opened in Cambodia, marking a significant step in international expansion [2] - Super stores, with an area of 800-1200 square meters, have a customer acquisition rate of 60%-70% and are expected to become the main focus for new store openings in 2026 [2] Group 3: Product Development and Marketing - The company focuses on high-quality, rapid product iteration, launching new products in the running and basketball categories, including the "飞燃5" and "AG6" shoes [3] - Strategic partnerships have been established with organizations such as the Asian Olympic Council and Tianjin Sports University to enhance brand visibility and marketing efforts [3] - The company has become the official supplier for the 2025 WTCC World Tennis Continental Challenge, further promoting its brand in international sports [3] Group 4: Outdoor Market Strategy - The One Way brand, established in Finland, is being repositioned to capitalize on the outdoor trend, with new product lines and six new stores opened in Q4 [4] - The company plans to introduce more footwear and women's products in 2026, aiming to create a second growth curve in the outdoor market [4] Group 5: Long-term Outlook - The company has over 20 years of experience in the sports industry and is enhancing its product, brand, and channel strategies [5] - With a focus on high cost-performance and functionality, the company is expected to achieve growth faster than the industry average, increasing market share [5] - Profit forecasts for 2025-2027 are projected at 1.26 billion, 1.39 billion, and 1.51 billion yuan, with corresponding P/E ratios of 9, 8, and 7 [5]

Company Performance - In Q4 2025, the main brand and children's clothing of the company achieved approximately 10% year-on-year growth in offline sales, while online sales grew at a high double-digit rate [1] - Retail discounts during the quarter were stable at around 7-7.1, with a healthy inventory turnover ratio of 4.5-5.0x [1] - The company successfully opened 126 super stores by the end of December 2025, exceeding the initial target of 100 stores, with nearly 50% located in first and second-tier cities [1] Brand Development - The company continues to strengthen its brand strategy, focusing on "technology-based, brand-first" principles, and has entered a new strategic cooperation cycle with the Asian Olympic Council [2] - The company has been designated as the official supplier for the 2025 WTCC World Tennis Intercontinental Challenge, enhancing brand recognition [2] - The order growth for the first two quarters of 2026 is primarily driven by volume increase, with limited improvement in average selling price (ASP) [2] Profit Forecast and Valuation - The company maintains its 2025 EPS forecast at 0.61, while the 2026 EPS forecast is adjusted down by 6% to 0.68, with a new 2027 EPS forecast of 0.74 [2] - The current stock price corresponds to 7.7/6.9 times the 2026/27 price-to-earnings ratio, with a target price adjustment of 3% to HKD 6.77, indicating a 17% upside potential from the current stock price [2]

Core Viewpoint - The company reported a stable performance in Q4 2025, with significant growth in both offline and online retail channels, indicating a positive trend in sales and market expansion [1][2]. Group 1: Sales Performance - In Q4 2025, the main brand's offline retail revenue grew by 10% year-on-year, while the children's clothing brand also saw a 10% increase in offline retail revenue [1]. - The e-commerce platform experienced high double-digit growth in retail revenue during the same period, outpacing offline sales growth [1]. Group 2: Product Launches - The company launched several new products in Q4 2025, including the "Flying Burn 5" and "Flying Burn 5 FUTURE" in the running category, and the second-generation signature basketball shoes "JOKER2" and "AG6" [1]. Group 3: Operational Metrics - The average retail discount for new products in Q4 2025 was approximately 7-7.1%, with inventory turnover maintained at 4.5-5 months, indicating stable operational conditions [2]. - The company accelerated its e-commerce strategy by entering 1,000 stores into Taobao Flash Sale, marking a new instant retail strategy [2]. Group 4: Store Expansion - As of December 31, 2025, the company had 126 super stores nationwide, with the first overseas super store opening in Cambodia, reflecting progress in international market expansion [2]. - The company also operates six stores under the Finnish outdoor brand ONEWAY, primarily located in regions with high outdoor demand [2]. Group 5: Investment Outlook - The company maintains its earnings forecast, projecting EPS of 0.62, 0.69, and 0.76 yuan for 2025-2027, with corresponding PE ratios of approximately 8.4, 7.5, and 6.9 times [2]. - The company is expected to achieve steady revenue growth due to its high-quality products and super store layout, maintaining a "Buy-B" rating [2].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [7][19]. Core Insights - The company has demonstrated strong revenue growth, with a projected increase in operating income from 84.23 billion RMB in FY2023 to 130.8 billion RMB by FY2027, reflecting a compound annual growth rate (CAGR) of approximately 8% [7][19]. - The net profit attributable to shareholders is expected to grow from 9.6 billion RMB in FY2023 to 15.1 billion RMB in FY2027, with a steady growth trajectory [7][19]. - The company has successfully expanded its "super premium" store concept, with 126 stores opened by the end of 2025, exceeding expectations and contributing to its revenue growth [7][19]. - The company has maintained a stable discount rate of 7-7.1, indicating effective inventory management and pricing strategy [7][19]. - The introduction of new product lines and strategic marketing partnerships has enhanced brand visibility and sales performance, particularly in the running and basketball segments [7][19]. Financial Data and Profit Forecast - Revenue projections for FY2023 to FY2027 are as follows: 84.23 billion RMB, 100.7 billion RMB, 111.8 billion RMB, 121.4 billion RMB, and 130.8 billion RMB, respectively, with corresponding growth rates of 21%, 20%, 11%, 9%, and 8% [7][19]. - Net profit forecasts for the same period are 9.6 billion RMB, 11.5 billion RMB, 12.6 billion RMB, 13.9 billion RMB, and 15.1 billion RMB, with growth rates of 29%, 20%, 10%, 10%, and 9% [7][19]. - The company's gross margin is projected to improve slightly from 41.1% in FY2023 to 41.9% in FY2027, indicating efficient cost management [7][19].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has demonstrated strong growth momentum with double-digit revenue growth, particularly in the fourth quarter of 2025, where both adult and children's apparel retail sales increased by approximately 10% year-on-year [7] - The expansion of super stores has exceeded expectations, with a total of 126 super stores opened by the end of 2025, including 21 children's clothing stores, contributing significantly to offline growth [7] - The company maintains a healthy inventory level with a stable discount rate, indicating robust operational performance [7] - Product innovation and enhanced marketing strategies are driving brand strength, with new product launches in running and basketball categories [7] - The company is also expanding its outdoor brand "One Way," which is expected to capitalize on the growing outdoor trend [7] - The financial forecasts indicate a steady increase in revenue and net profit, with projected net profits of 12.6 billion, 13.9 billion, and 15.1 billion RMB for FY2025, FY2026, and FY2027 respectively [6][18] Financial Data and Profit Forecast - Revenue projections are as follows: - FY2023: 84.23 billion RMB - FY2024: 100.7 billion RMB - FY2025E: 111.8 billion RMB - FY2026E: 121.4 billion RMB - FY2027E: 130.8 billion RMB - Net profit projections are as follows: - FY2023: 9.6 billion RMB - FY2024: 11.5 billion RMB - FY2025E: 12.6 billion RMB - FY2026E: 13.9 billion RMB - FY2027E: 15.1 billion RMB - The company’s gross margin is expected to improve slightly from 41.1% in FY2023 to 41.9% in FY2027 [6][18]

Investment Rating - The report maintains a "Buy-B" rating for the company 361 Degrees (01361.HK) [1][6] Core Insights - The company reported a healthy growth in retail sales, with a 10% year-on-year increase in offline retail sales for both the main brand and children's clothing in Q4 2025. The e-commerce platform saw a high double-digit growth in retail sales [2][4] - The company has successfully expanded its premium store count to 126 by the end of 2025, with the first overseas premium store opening in Cambodia, indicating a significant step in international market expansion [5][6] - The average retail discount for new products in Q4 2025 was approximately 7-7.1 folds, and the inventory turnover ratio remained stable at 4.5-5 months [5] Financial Performance and Projections - The company’s revenue for 2025 is projected to be 11,367 million, with a year-on-year growth of 12.8%. The net profit is expected to reach 1,285 million, reflecting a growth of 11.9% [8][12] - Earnings per share (EPS) for 2025-2027 are forecasted at 0.62, 0.69, and 0.76 respectively, with corresponding price-to-earnings (P/E) ratios of approximately 8.4, 7.5, and 6.9 [6][12] - The gross margin is expected to remain stable at around 41.5% for the forecasted years [12]

Investment Rating - The report maintains a "Buy" rating for the company 361 Degrees [6] Core Insights - The company reported strong growth in Q4 2025, with adult apparel and children's apparel offline channel revenue both increasing by approximately 10%. E-commerce revenue recorded high double-digit growth, aligning with expectations [1] - The company is expected to achieve a revenue growth of 11.4% in 2025 and a net profit growth of 9.5%. The growth trend is anticipated to continue into 2026 [4] - The company has launched several flagship technology products across various sports categories, enhancing its market presence and meeting diverse consumer needs [2] Product Summary - In the running category, the company introduced the "Flying Burn 5" and "Flying Burn 5 FUTURE" shoes, along with upgraded models "Speed Float 3" and "Speed CQT 3". The basketball segment saw the launch of the second signature shoe for Jokic, "JOKER2", and Gordon's sixth signature shoe, "AG6" [2] - The company is also focusing on outdoor, women's fitness, and cross-training segments to cater to a wider audience [2] Brand Summary - The company has strengthened its brand influence by partnering with the Olympic Council of Asia and becoming the official supplier for the 2025 WTCC World Tennis Continental Championship [2] - The brand's ambassador, Li Zicheng, won championships at the Fuzhou and Tangshan marathons, showcasing the competitive edge of its professional racing gear [2] Channel Summary - The company has rapidly expanded its super stores, reaching a total of 126 in mainland China by December 31, 2025, contributing significantly to its growth [3] - The first overseas super store opened in Cambodia, marking a substantial step in the company's international retail strategy [3] - E-commerce revenue showed high double-digit growth, with a thousand stores joining Taobao Flash Sale, enhancing the integration of online and offline sales [3] Financial Projections - The company is projected to achieve a net profit of 1.258 billion yuan in 2025, with estimates of 1.397 billion yuan in 2026 and 1.571 billion yuan in 2027 [4] - The price-to-earnings (P/E) ratio for 2026 is expected to be 8 times, indicating a favorable valuation [4]

Investment Rating - The report maintains a "Buy" rating for the company 361 Degrees [5] Core Insights - The company demonstrated strong growth resilience with a year-on-year increase of approximately 10% in offline retail sales for both the main brand and children's clothing in Q4 2025, maintaining the same growth rate as Q3 2025 [2] - E-commerce sales continued to outperform offline channels, with high double-digit year-on-year growth in Q4 [2] - The company is focused on brand building and has announced a new strategic partnership with the Olympic Council of Asia, showcasing its commitment to innovation and sustainability through product launches [3] - The company has accelerated its layout in instant retail, with over 1,000 stores joining Taobao Flash Purchase, and has opened its first overseas store in Cambodia [3] - Revenue projections for 2025-2027 indicate a growth of 13.8%, 11.1%, and 10.1%, reaching 11.47 billion, 12.74 billion, and 14.03 billion yuan respectively, with net profit expected to grow by 11.6%, 15%, and 10.3% [3] Financial Summary - For 2023, the company reported a revenue of 8,423.26 million yuan, with a year-on-year growth of 21.01%. Projections for 2024 and 2025 are 10,073.51 million yuan and 11,466.19 million yuan respectively, with growth rates of 19.59% and 13.83% [4] - The net profit attributable to the parent company for 2023 was 961.43 million yuan, with expected growth to 1,148.62 million yuan in 2024 and 1,281.74 million yuan in 2025, reflecting growth rates of 28.68% and 11.59% [4] - The earnings per share (EPS) is projected to increase from 0.47 yuan in 2023 to 0.56 yuan in 2024 and 0.62 yuan in 2025 [4]