Core Insights - The company reported a strong performance in Q3 2025, with a 10% year-on-year increase in retail sales for both the main brand and children's clothing in offline channels, and a 20% increase in overall e-commerce platform revenue [1] Group 1: Retail Performance - The offline retail sales for the main brand and children's clothing both increased by 10% year-on-year in Q3 2025 [1] - The overall revenue from the e-commerce platform grew by 20% year-on-year [1] Group 2: Operational Strategies - The company is focusing on enhancing operational performance through product iteration, brand building, and channel development [1] - Product upgrades have been made across running, basketball, outdoor, women's fitness, and children's categories [1] - The company is actively promoting its brand as the official partner of the 20th Asian Games, providing professional gear for torchbearers, runners, and over 32,000 volunteers, thereby expanding its global brand influence [1] - The company is implementing an online and offline collaborative strategy, partnering with Meituan for new sports consumption experiences [1] Group 3: Store Expansion - As of September 30, 2025, the company has reached 93 super brand stores nationwide [1] Group 4: Financial Projections - The company is expected to achieve revenues of 11.34 billion, 12.66 billion, and 14.08 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 12.5%, 11.7%, and 11.2% [2] - The projected net profit for the same years is 1.29 billion, 1.47 billion, and 1.66 billion yuan, with year-on-year growth rates of 12.5%, 13.4%, and 13.0% [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4][9] Core Views - The company reported a retail performance for Q3 2025 with approximately 10% growth in both the main brand's offline retail and children's clothing, and around 20% growth in e-commerce [3][4] - The company continues to innovate products to meet diverse consumer needs and has expanded its super stores to 93 locations, maintaining stable inventory levels and slightly increasing discounts [4][6][9] - The company is expected to maintain its profit forecasts, with projected net profits of 1.25 billion, 1.35 billion, and 1.48 billion yuan for 2025-2027, reflecting year-on-year growth of 8.5%, 8.7%, and 9.4% respectively [4][10][11] Summary by Sections Retail Performance - In Q3 2025, the adult apparel offline sales grew by approximately 10%, children's apparel also grew by about 10%, and e-commerce sales increased by around 20%, with growth rates remaining stable compared to previous quarters [4][5][6] Product Innovation - The company has launched new products across various categories, including running shoes with enhanced waterproof technology, basketball shoes with advanced design features, and children's shoes tailored for young athletes [6][7] Channel Expansion - The company has expanded its super stores to 93, with 44 new stores opened in Q3. These stores offer a comprehensive range of products and a one-stop shopping experience [6][7] Financial Projections - The company forecasts revenue growth of 21% in 2023, 19.6% in 2024, and 11% in 2025, with net profit growth of 28.7% in 2023 and 19.5% in 2024 [10][14]

Summary of the Conference Call for 361 Degrees Company Overview - **Company**: 361 Degrees - **Industry**: Sportswear and Outdoor Equipment Key Points and Arguments Expansion and Store Performance - As of September 30, 2025, 361 Degrees has rapidly expanded its super stores to 93, with expectations to exceed 100 by year-end, primarily located in shopping malls and outlet stores, accounting for approximately 80% of the total, while street shops make up 20% [2][5] - The main brand and children's clothing segments have maintained a growth rate of around 10%, reflecting strong product value [3][18] - The discount rate is close to 70%, with inventory turnover ratio stable between 4.5 to 5 times [3][18] - The company plans to continue expanding in northern, western, and eastern regions, with 46% of stores located in the northern area [3] Online and Offline Sales - Online sales have seen a growth rate of approximately 20%, with new products accounting for over 80% of sales [2][3] - During the National Day holiday, offline sales increased by about 3%, indicating robust performance in a challenging market environment [2][11] Product Development and New Launches - New product launches include various iterations in running, basketball, and outdoor categories, with a focus on high-performance and functional products [7][19] - The company has introduced new colorways and products during the National Day holiday, which were well-received by consumers [11] Strategic Partnerships and Innovations - A strategic partnership with Stand Robot Company was established to enhance smart technology integration [10] - Collaboration with Meituan for flash sales and group purchases aims to create a seamless online-to-offline experience [10][22] - Exploration of stablecoin payment solutions to cater to cross-border e-commerce clients [10] Marketing and Sponsorship - 361 Degrees has become a top partner for the 2025 Tangshan Marathon and is also sponsoring the Taishan Marathon [8] - Participation in the Berlin Marathon Expo showcased new racing products, enhancing international brand visibility [9] Future Outlook and Growth Drivers - Anticipated growth in 2026 will be driven by the running category, outdoor activities, and basketball, supported by NBA star endorsements [19] - The company aims to maintain advertising expenses at 10%-13% of revenue, focusing on major events and sports stars [4][21] Brand Development - The Wanwei brand, a Finnish outdoor sports brand, opened 6 new stores during the National Day holiday, with plans to expand its product line, particularly for women's products [6][20] - The brand's pricing strategy is competitive, with jackets priced between 1,800 to 3,700 RMB, appealing to a broad consumer base [6][20] Inventory Management - The inventory structure is maintained at 4.5 to 5 times, with a sell-through rate of 80%-85% for summer products, indicating effective inventory management [23] Additional Important Insights - The company is optimistic about the upcoming Double Eleven shopping festival, with preparations in place to leverage high product value and a unified pricing strategy to prevent price discrepancies [12][14] - The overall market remains competitive, but 361 Degrees has managed to maintain strong sales performance through effective product structuring and pricing strategies [18]

展望2025年，该行预计公司营收增长11.4%，归母净利润增长9.8%。2025Q1~Q3公司产品力以及渠道运 营效率不断提升的背景下，公司实现了稳健的销售表现，综合考虑此前公司召开的订货会情况后，该行 预计公司2025年营收增长11.4%，归母净利润增长9.8%。 报告中称，361度披露2025Q3经营情况公告，全渠道流水增速优异。根据公司披露，2025Q3361度成人 装线下渠道流水增长10%左右，童装线下流水增长10%左右，电商流水同比增长20%左右，整体表现优 异，同时营运状况稳健，该行预计线下渠道库销比在4.5-5之间，同2025Q2末保持一致。 国盛证券发布研报称，361度(01361)作为运动鞋服头部公司之一，业绩增速优异，预计公司2025-2027年 归母净利润为12.61/14.20/15.88亿元，现价对应2025年PE为10倍，维持"买入"评级。 ...

展望2025年，该行预计公司营收增长11.4%，归母净利润增长9.8%。2025Q1~Q3公司产品力以及渠道运 营效率不断提升的背景下，公司实现了稳健的销售表现，综合考虑此前公司召开的订货会情况后，该行 预计公司2025年营收增长11.4%，归母净利润增长9.8%。 报告中称，361度披露2025Q3经营情况公告，全渠道流水增速优异。根据公司披露，2025Q3361度成人 装线下渠道流水增长10%左右，童装线下流水增长10%左右，电商流水同比增长20%左右，整体表现优 异，同时营运状况稳健，该行预计线下渠道库销比在4.5-5之间，同2025Q2末保持一致。 智通财经APP获悉，国盛证券发布研报称，361度(01361)作为运动鞋服头部公司之一，业绩增速优异， 预计公司2025-2027年归母净利润为12.61/14.20/15.88亿元，现价对应2025年PE为10倍，维持"买入"评 级。 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [2][4][9] Core Insights - The company reported a retail performance for Q3 2025 with approximately 10% growth in both the main brand's offline retail and children's clothing, and around 20% growth in e-commerce [3][4] - The company continues to innovate products to meet diverse consumer needs and has expanded its super stores to 93 locations, maintaining stable inventory levels and slightly increasing discounts [4][6][9] - The company is expected to maintain a resilient growth trajectory, with projected net profits of 1.25 billion, 1.35 billion, and 1.48 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 8.5%, 8.7%, and 9.4% [4][10][11] Summary by Sections Retail Performance - In Q3 2025, the adult apparel segment saw approximately 10% growth, the children's apparel segment also grew by about 10%, and e-commerce experienced around 20% growth, with growth rates remaining stable compared to previous quarters [4][5][6] Product Innovation - The company has launched new products across various categories, including running shoes with enhanced waterproof technology, basketball shoes with advanced design features, and children's shoes tailored for young athletes [6][7] Channel Expansion - The number of super stores has increased to 93, with 44 new stores opened in Q3. These stores focus on a comprehensive product range and a self-service shopping model [6][7][9] Financial Projections - The company forecasts revenue growth of 21% in 2023, 19.6% in 2024, and 11% in 2025, with net profit growth of 28.7% in 2023 and 19.5% in 2024 [10][14]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the coming months [8]. Core Insights - The company has demonstrated strong resilience in the retail environment, achieving approximately 10% year-on-year growth in both its main brand and children's clothing lines, with e-commerce sales growing around 20% [8]. - The company is expanding its offline presence through innovative channel strategies, including the rapid rollout of "super stores," which have shown significant growth potential [8]. - The product matrix continues to evolve with new iterations in core categories, showcasing technological advancements and innovation [8]. - The One Way brand is being revitalized with a focus on the mid-to-high-end outdoor market, with new store openings and a refreshed product line [8]. - The company is expected to maintain a strong growth trajectory, with projected net profits of 12.6 billion, 13.9 billion, and 15.1 billion RMB for FY2025E, FY2026E, and FY2027E respectively, corresponding to price-to-earnings ratios of 9, 8, and 7 [8]. Financial Data and Earnings 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 - Year-on-year growth rates for revenue are projected at 21% for FY2023, 20% for FY2024, and gradually decreasing to 8% by FY2027 [7][18]. - The net profit forecast is 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 gross margin is expected to improve slightly from 41.1% in FY2023 to 41.9% in FY2027 [7][18].

Investment Rating - The report maintains a "Buy-B" rating for the company 361 Degrees (01361.HK) [1][6] Core Insights - The company has demonstrated healthy growth in retail sales across both offline and online channels, with a notable 10% year-on-year increase in retail sales for its main brand and children's clothing in Q3 2025, and a 20% increase in e-commerce sales [3][4][6] - The company is expanding its premium store count, reaching 93 stores by the end of Q3 2025, and aims to exceed 100 stores by year-end [5][6] - The company is actively participating in the marathon sector, becoming a top partner for the 2025 Tangshan Marathon and a sponsor for the 2025 Taishan Marathon, which is expected to drive sales growth in the running category [4][6] Financial Performance - For the fiscal year 2025, the company is projected to achieve a revenue of 11,367 million HKD, reflecting a year-on-year growth of 12.8% [10][11] - The net profit for 2025 is estimated at 1,285 million HKD, with a year-on-year growth of 11.9% [10][11] - The company's EPS is forecasted to be 0.62 HKD for 2025, with corresponding P/E ratios of approximately 8.7, 7.8, and 7.1 for the years 2025, 2026, and 2027 respectively [6][10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company has demonstrated strong resilience in the retail environment, achieving approximately 10% year-on-year growth in both its main brand and children's clothing lines in Q3 2025, with e-commerce sales growing around 20% [8] - The company maintains a healthy inventory level with a stable discount rate, achieving a channel inventory turnover ratio of 4.5-5 times and a terminal discount rate close to 30% [8] - The company is innovating its channels significantly, with rapid expansion of its "super brand stores," opening 23 new stores in September alone, and plans to open at least 100 stores by the end of the year [8] - The product matrix continues to refresh, showcasing technological advancements in core categories, including new iterations of running shoes and basketball shoes [8] - The One Way brand is re-entering the offline market, focusing on the mid-to-high-end outdoor market, with new store openings and a product line adjustment to align with current outdoor trends [8] - The company has been deepening its operational capabilities in product, brand, and channel over the past two decades, positioning itself for sustained growth above industry averages [8] Financial Data and Profit Forecast - Revenue projections for FY2023 to FY2027 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 for the same period are: - 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 maintains a stable gross margin, projected to increase slightly from 41.1% in FY2023 to 41.9% in FY2027 [6][17]

Investment Rating - The report maintains a "Recommended" investment rating for 361 Degrees (1361.HK) [3][11]. Core Insights - The company reported a strong operational performance in Q3 2025, with a 10% year-on-year increase in retail sales for both the main brand and children's clothing, and a 20% increase in overall e-commerce platform revenue [3][6]. - The company is actively enhancing its operational performance through product upgrades, brand building, and channel development, including collaborations with Meituan for online sales [6]. - The company is positioned to benefit from the growth in both adult and children's apparel segments, alongside the sports and outdoor activity market, indicating strong resilience in both short and long-term growth [6]. Financial Summary - Revenue projections for 2025-2027 are estimated at 113.4 billion, 126.6 billion, and 140.8 billion CNY, representing year-on-year growth of 12.5%, 11.7%, and 11.2% respectively [6][9]. - Net profit forecasts for the same period are 12.9 billion, 14.7 billion, and 16.6 billion CNY, with growth rates of 12.5%, 13.4%, and 13.0% [6][9]. - The company maintains a gross margin of approximately 41% and a net margin of around 11.4% [9]. Key Financial Ratios - The projected P/E ratios for 2025-2027 are 8.7, 7.7, and 6.8, indicating a potentially attractive valuation [9]. - The projected ROE for 2025-2027 is around 14.7% to 14.6%, suggesting stable profitability [9]. - The asset-liability ratio is expected to be around 28.4% in 2025, indicating a healthy balance sheet [9]. Operational Highlights - As of September 30, 2025, the company has expanded its national store count to 93, reflecting ongoing channel development [6]. - The company is the official partner of the 20th Asian Games, enhancing its brand visibility and market presence [6].