Core Insights - The 2025 9.9 Super Shopping Festival by Shopee has successfully ignited consumer enthusiasm in Southeast Asia and Latin America, showcasing impressive results with over 800 million views on Shopee Live and significant engagement in cross-border live streaming and short videos [1][3] Group 1: Sales Performance - In Brazil, cross-border e-commerce consumption potential has been fully unleashed, with sales of popular categories like home audio, waist bags, and fashion clothing increasing sevenfold compared to regular days [3] - ShopeeMall's sales during the event grew five times, with local brands gaining popularity due to high cost-performance ratios [3] - Specific brands like INTOYOU and ZANZEA saw remarkable sales increases of 22 times and 18 times, respectively, driven by localized fulfillment services and effective live streaming strategies [3][4] Group 2: Fulfillment and Support - Efficient fulfillment services and diverse welfare policies were crucial for achieving high growth during the shopping festival, with sales in various categories and official warehouses soaring five times [4] - The cross-border "X-Day Delivery" service significantly improved conversion rates by five times and overall sales by four times, alleviating consumer anxiety regarding delivery times [4] - Sellers benefited from multiple support policies, reducing operational costs by up to 52% and enhancing cash flow efficiency through Shopee's official wallet [4] Group 3: Brand Strategies - Brands leveraged Shopee's content ecosystem to achieve dual breakthroughs in sales and brand awareness, with 361 Degrees seeing a 12-fold increase in sales through content-driven marketing strategies [5] - XPPen utilized a "traffic linkage" strategy, achieving a sevenfold increase in sales through internal promotions and a sixfold increase via external advertising [5] - Other brands like Ulike and LOGESKI also experienced significant sales growth through live streaming, with increases of 10 times and 21 times, respectively [5] Group 4: Future Outlook - The 9.9 Super Shopping Festival not only provided a shopping feast for consumers but also highlighted the immense potential for cross-border sellers in Southeast Asia and Latin America [6] - As the platform ecosystem continues to optimize, Shopee aims to offer more efficient growth tools and comprehensive support for brands seeking long-term growth in overseas markets [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has shown strong growth in its main brand, with offline and children's clothing sales both increasing by approximately 10%, and e-commerce sales growing by about 20% year-on-year in Q3 2025 [7] - The rapid expansion of super stores has exceeded expectations, with 93 super stores opened by Q3 2025, including 80 large stores and 13 children's clothing stores, and an additional 20 large super stores expected to open in Q4 2025 [7] - The product matrix has been upgraded with new releases, including advanced running shoes and outdoor products, enhancing market competitiveness [7] - The outdoor brand ONEWAY has opened six new stores during the National Day holiday, indicating strong sales potential for the upcoming winter sports season [7] - The company maintains a low valuation with projected net profits of 1.3 billion, 1.46 billion, and 1.62 billion yuan for 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 8, 8, and 7 [7] Financial Summary - Total revenue is projected to grow from 8,423 million yuan in 2023 to 13,990 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 21.01% in 2023 and declining to 10.57% by 2027 [1] - Net profit attributable to the parent company is expected to increase from 961.43 million yuan in 2023 to 1,616.25 million yuan in 2027, reflecting a growth rate of 28.68% in 2023 and tapering to 10.89% by 2027 [1] - The latest diluted EPS is forecasted to rise from 0.46 yuan in 2023 to 0.78 yuan in 2027 [1] - The company’s P/E ratio is projected to decrease from 11.51 in 2023 to 6.85 in 2027, indicating a potentially attractive valuation [1]

Economic Performance and Comparison - In August 2025, major economic indicators in China showed signs of slowing down, with industrial production and investment facing pressures due to external tariff policies and internal "anti-involution" governance [11][14] - The industrial added value in Henan province grew by 8.2% year-on-year in August, outperforming the national average by 3.0 percentage points, with strong performance in upstream mining and processing industries [21][24] - Social retail sales in Henan reached 2264.55 billion yuan in August, with a year-on-year growth of 3.7%, slightly above the national average [22][24] Investment Trends - From January to August 2025, fixed asset investment in Henan increased by 4.7%, surpassing the national growth rate of 4.2%, with industrial investment showing a robust growth of 20.5% [23][28] - The real estate market in Henan continued to show weakness, with real estate development investment declining by 8.1% year-on-year [23][24] Policy Tracking - In September 2025, the financial regulatory authorities introduced a series of policies aimed at releasing consumption potential, optimizing resource allocation, and promoting digital transformation in industries [29][30] - The Henan provincial government launched several initiatives to support technological innovation and stabilize the real estate market, including a plan to enhance financial services for high-tech and green enterprises [36][38] Securities Market Performance - In September 2025, the Henan Index rose by 3.36%, outperforming both the Shanghai Composite Index and the CSI 300 Index, with a cumulative increase of 32.92% in the first nine months of the year [59][61] - The bond financing scale in Henan reached 370.72 billion yuan in September, marking an 8.18% increase from the previous month [42][47]

Core Viewpoint - Northeast Securities maintains a "Buy" rating for 361 Degrees (01361), projecting revenue growth of 13.8%/11.1%/10.1% from 2025 to 2027, reaching 11.47 billion/12.74 billion/14.03 billion yuan, and net profit growth of 11.6%/15%/10.3% to 1.28 billion/1.47 billion/1.62 billion yuan [1] Group 1: Sales Performance - The main brand and children's clothing brand of 361 Degrees saw offline retail sales grow approximately 10% year-on-year in Q3, maintaining the same growth rate as Q2 [1] - E-commerce channel revenue outpaced offline growth, with a year-on-year increase of about 20% in Q3, demonstrating strong performance in a fluctuating consumer environment [1] Group 2: Product Innovation - The company has upgraded its product matrix, introducing new models such as the "Flying Burn 4.5" marathon racing shoes and the lightweight "Frenzy 2PRO" basketball shoes, while also expanding outdoor product offerings [2] - Collaboration with Stand Robot Company is underway to enhance the company's involvement in the smart technology sector [2] Group 3: Brand Development - The company showcased its racing family at the Berlin Marathon Expo, debuting the "Flying Burn 5" and "Flying Burn 5 FUTURE" [3] - Continued sponsorship of domestic marathons, including partnerships for the 2025 Tangshan Marathon and 2025 Taishan Marathon, along with hosting its own event, the "2025 No. 3 Track 10KM Racing Series" [3] - The launch of the "JOKER1GT" China colorway and "Teacher Joker China Tour Set" coincided with the first visit of player Jokic to China, aiding in business conversion [3] Group 4: Channel Expansion - The company has partnered with Meituan for rapid delivery services, enabling product delivery within 30 minutes, which enhances offline retail through online traffic [4] - As of the report's end, the total number of stores reached 93, with successful expansion efforts [4] - The first women's sports concept store was opened in Shijiazhuang, enriching the brand's channel image [4]

Core Viewpoint - Citic Securities reports that 361 Degrees (01361) has shown a positive performance in Q3 2025, with main brand offline sales, children's clothing offline sales, and e-commerce channel revenue increasing by 10%, 10%, and 20% year-on-year respectively, aligning with market expectations, indicating the company's strong product cost-performance benefiting from the current consumption environment [1] Group 1 - The company is expected to maintain double-digit revenue growth momentum in 2025, which will gradually improve operating cash flow [1] - Long-term prospects include potential growth from the outdoor brand One Way and exploration of overseas offline wholesale and cross-border e-commerce businesses, which may provide new incremental revenue [1] - The company is likely to drive valuation re-rating through continuous performance delivery and increased dividends [1]

Core Viewpoint - CITIC Securities reports that 361 Degrees (01361) has shown strong performance in Q3 2025, with offline main brand, children's wear offline, and e-commerce channels experiencing year-on-year growth of +10%, +10%, and +20% respectively, indicating the company's competitive product value continues to benefit from the current consumer environment [1] Group 1 - The company is expected to maintain double-digit revenue growth momentum in 2025, which will gradually improve operating cash flow [1] - Long-term prospects include potential growth from the outdoor brand One Way and exploration of overseas offline wholesale and cross-border e-commerce businesses [1] - The company is likely to drive valuation re-rating through consistent performance delivery and dividend increases [1]

Group 1 - The company achieved approximately 10% year-on-year growth in offline sales for its main brand and children's clothing in Q3 2025, with e-commerce sales growing around 20%, demonstrating strong operational resilience amid a weakening retail environment [1] - The inventory level remained healthy, with a channel sales ratio stabilizing at 4.5-5 times, and the terminal discount rate maintained at around 30%, indicating effective inventory and discount management [1] - The company has rapidly expanded its core channel innovation "super stores," opening 23 new locations in September alone, totaling 93 stores by the end of Q3, with a strong likelihood of reaching a target of at least 100 stores by year-end [2] Group 2 - The product matrix has been continuously refreshed, with new iterations launched across core categories, including advanced running shoes and basketball footwear, showcasing the company's innovation capabilities [2] - The One Way brand is re-entering the offline market with a focus on the mid-to-high-end outdoor segment, opening 6 new stores during the National Day holiday, which is expected to create a second growth curve for the company [3] - The company has been deepening its capabilities in product, brand, and channel over the past two decades, with a focus on high cost-performance and strong functionality, positioning itself for continued growth and market share increase [4]

Company Performance - The company reported a 10% year-on-year growth in both offline sales of the 361-degree main brand and children's clothing for Q3 2025, continuing a positive trend from earlier in the year [1] - E-commerce platform sales saw a 20% year-on-year increase during the same period, with a focus on high-demand products and content dissemination, achieving over 80% of sales from exclusive online products [1] Retail Environment - The retail environment showed some volatility in September, impacting sales performance, although the company managed to maintain a sales ratio of 4.5-5 times inventory [1] - During the National Day holiday, offline sales increased by approximately 3% year-on-year, demonstrating resilience despite a challenging retail environment [1] Strategic Initiatives - The company is actively expanding its retail presence in new formats, with 93 super stores established by the end of September [1] - Collaborations with Meituan for instant retail services are underway to enhance online traffic and support offline sales [1] Product Development - The main brand is aligning with the outdoor apparel trend, launching new product lines such as the "Light Wild" series jackets and "Hiking" outdoor shoes [2] - The Finnish outdoor brand ONEWAY has opened 6 new stores in various cities since September, with plans for further brand rejuvenation [2] Financial Outlook - The company maintains its EPS forecasts for 2025 and 2026 at 0.61 and 0.72 CNY respectively, with current stock price corresponding to 8.9 and 7.5 times the projected earnings [2] - The target price remains at 6.98 HKD, indicating an 18% upside potential based on a 9 times earnings multiple for 2026 [2]

Core Viewpoint - The company reported a healthy growth in retail sales for its main brand and children's clothing, with significant increases in both offline and online channels during Q3 2025 [1][2]. Group 1: Q3 2025 Performance - In Q3 2025, the main brand's offline retail sales increased by 10% year-on-year, while the children's clothing brand also saw a 10% increase in offline retail sales [1]. - The e-commerce platform experienced a 20% year-on-year growth in retail sales [1]. - The company anticipates steady growth in offline retail sales during the National Day and Mid-Autumn Festival holiday period [1]. Group 2: Product and Market Strategy - The running category is expected to continue leading sales growth, with the company increasing its focus on the marathon sector [1]. - The company debuted its "Feiran 5" and "Feiran 5 FUTURE" products at the 2025 Berlin Marathon and became a top partner for the 2025 Tangshan Marathon and an honorary sponsor for the 2025 Taishan Marathon [1]. Group 3: Operational Metrics - The average retail discount for new products in Q3 2025 was approximately 30%, with inventory turnover maintained at 4.5 to 5 months [2]. - The company announced partnerships with Meituan for rapid delivery services, achieving an average delivery time of 30 minutes [2]. - As of September 30, 2025, the company operated 93 super stores nationwide, with expectations to exceed 100 by year-end [2]. Group 4: Investment Outlook - The company is positioned well in the competitive domestic sportswear market, leveraging high-quality products and rapid expansion of super stores to achieve healthy growth in both offline and online retail sales [2]. - Earnings per share (EPS) forecasts for 2025-2027 are projected at 0.62, 0.69, and 0.76 yuan, with corresponding price-to-earnings (PE) ratios of approximately 8.7, 7.8, and 7.1 times based on the closing price on October 13 [2].

Core Viewpoint - The company reported a positive retail performance for Q3 2025, with a 10% growth in offline retail for the main brand and children's clothing, and a 20% growth in e-commerce [1][2][3] Retail Performance - In Q3 2025, adult apparel offline sales grew approximately 10%, children's apparel offline sales also grew about 10%, and e-commerce sales increased by around 20%, with growth rates remaining stable compared to the previous quarter [1][2] - Monthly performance showed August as the best month, while September faced more pressure [2] Product Innovation - The company continues to innovate products to meet diverse consumer needs, including: - Running shoes with enhanced waterproof and breathability features [2] - Basketball shoes incorporating supercar design elements and lightweight features [2] - Cycling apparel designed for long-distance rides [2] - New children's footwear products catering to youth sports needs [2] Channel Expansion - The company expanded its super premium stores to 93 locations, with 44 new stores opened in Q3 [2] - Online channels have been enhanced through partnerships with Meituan for quick delivery services [2] - The introduction of ONEWAY stores and a women's sports concept store aims to diversify the sales channels [2] Inventory and Discount Management - The inventory-to-sales ratio remains stable at 4.5-5.0, with retail discounts around 70% in Q3, showing a slight increase compared to previous periods [3] Investment Outlook - The company maintains a positive growth outlook, projecting net profits of 1.25 billion, 1.35 billion, and 1.48 billion yuan for 2025-2027, with year-on-year growth rates of 8.5%, 8.7%, and 9.4% respectively [1][3]