Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported Q3 2024 retail operational data, showing approximately 10% year-on-year growth in offline large-scale sales and children's clothing sales, with e-commerce sales growing over 20%, aligning with expectations [5][6]. - The company experienced steady sales growth with stable discount inventory levels, expecting a discount rate of around 71% and a stock-to-sales ratio of 4.5 to 5 months [5]. - Continuous product iteration and channel structure upgrades were noted, with new outdoor running shoes and professional racing shoes launched between July and September [5]. - The company anticipates strong performance in the upcoming seasonal order meeting, with replenishment orders indicating sustained consumer recognition of products [5]. - The company is projected to achieve net profits of 1.09 billion, 1.23 billion, and 1.37 billion yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios significantly lower than other sports goods companies [5][8]. Summary by Sections Retail Performance - Q3 2024 offline large-scale sales and children's clothing sales both grew by approximately 10% year-on-year, while e-commerce sales increased by over 20% [5]. - The overall inventory discount level is stable, with an expected discount rate of around 71% [5]. Product Development - New products launched include outdoor running shoes and professional racing shoes, enhancing consumer perception [5]. - The number of large-scale and children's clothing stores is expected to slightly increase, with improvements in store area [5]. Financial Projections - Projected total revenue for 2024 is 10.018 billion yuan, with a year-on-year growth of 19% [8]. - Expected net profits for 2024, 2025, and 2026 are 1.09 billion, 1.23 billion, and 1.37 billion yuan respectively, with P/E ratios of 7.16, 6.33, and 5.72 [8].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported steady and rapid growth in revenue for Q3 2024, with a strong product matrix [3] - Online sales continue to outperform offline sales, with e-commerce revenue growing over 20% year-on-year [3] - The company has successfully expanded its offline store count and area, contributing to improved store efficiency [3] - New product launches have enhanced brand competitiveness, with several innovative products introduced in recent months [3] - The company is expected to achieve net profits of 1.13 billion, 1.33 billion, and 1.55 billion RMB for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 7, 6, and 5 [3] Revenue and Profit Forecast - Total revenue is projected to grow from 8.52 billion RMB in 2023 to 10.03 billion RMB in 2024, reflecting a year-on-year growth of 17.72% [2] - Net profit is expected to increase from 961.43 million RMB in 2023 to 1,131.34 million RMB in 2024, with a growth rate of 17.67% [2] - The latest diluted EPS is forecasted to rise from 0.46 RMB in 2023 to 0.55 RMB in 2024 [2] Market Performance - The company's stock closed at 4.12 HKD, with a market capitalization of approximately 8.52 billion HKD [6] - The price-to-book ratio stands at 0.91, indicating potential undervaluation [6] Financial Ratios - The company maintains a healthy debt-to-asset ratio of 27.10% [7] - The return on equity (ROE) is projected to improve from 10.59% in 2023 to 11.82% in 2026 [12]

Investment Rating - The report maintains a rating of "Buy" for the company 361 Degrees [4][12]. Core Views - The Q3 revenue aligns with expectations, showing strong growth during the National Day holiday, and the company maintains its annual growth forecast. The performance of the 2025 spring and summer ordering sessions is promising [3][4]. Summary by Sections Financial Performance - The company is a leading player in the domestic sports footwear and apparel market targeting lower-tier cities. Revenue growth in 2024 is expected to be industry-leading and in line with forecasts, with a high cost-performance ratio that matches current sales trends. The net profit forecasts for 2024-2026 are set at 1.09 billion, 1.27 billion, and 1.46 billion RMB, respectively, corresponding to PE ratios of 7, 6, and 6 times [4][7]. - In Q3, offline sales of adult and children's apparel grew approximately 10% year-on-year, while online sales increased by 20-25%, indicating steady growth. The discount rate remained stable at 71%, and the inventory turnover ratio was maintained at a healthy level of 4.5-5 months [4][7]. Product Development and Market Response - The company launched new products in Q3, including the FUTURAS outdoor running shoes and the Feibiao 2, which sold out quickly due to high-quality materials and innovative technology. The NBA China tour featuring player Pope enhanced brand visibility and international influence [4]. - The feedback from the 2025 summer ordering session has been positive, with new series products, such as the tennis series, receiving favorable market responses due to their excellent quality-price ratio [4]. Market Outlook - The company expects double-digit revenue growth for the year, supported by strong sales during the National Day holiday, with online sales growing over 30% year-on-year and offline sales increasing by over 20% [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][4]. Core Views - The company reported a resilient performance in Q3 2024, with adult and children's offline sales both growing approximately 10%, and e-commerce sales increasing by over 20%. The Golden Week saw online sales growth exceeding 30% and offline sales up by over 20%. The trend is expected to continue into Q4 due to the e-commerce peak season. The profit forecast for 2024-2026 is estimated at 1.14 billion, 1.35 billion, and 1.58 billion yuan respectively, with current PE ratios of 6.8, 5.7, and 4.9 times [2][4][6]. Summary by Sections Financial Performance - In Q3 2024, the company maintained a healthy inventory-to-sales ratio of 4.5-5, with discounts averaging around 71%. The new product sell-through rate was 75%. The offline sales benefited from outlet store formats and store expansions, with children's store area increasing by 2 square meters to 110 square meters and adult store area increasing by 4 square meters to 147 square meters [6][7]. Product and Marketing Strategy - The company continues to enhance its professional product offerings in the running category, launching new outdoor running shoes with prices ranging from 499 to 999 yuan. Marketing efforts include leveraging celebrity endorsements to boost brand exposure, with partnerships for major events like the 2026 Nagoya Asian Games and the 2024 Fuzhou Marathon to enhance global brand recognition [7][8]. Revenue and Profit Projections - The projected revenue for the company is expected to grow from 8.423 billion yuan in 2023 to 10.09 billion yuan in 2024, reflecting a year-on-year growth of 19.8%. Net profit is projected to increase from 961 million yuan in 2023 to 1.137 billion yuan in 2024, with a net profit margin of approximately 11.3% [8].

Investment Rating - The report maintains a "Buy" rating for 361 Degrees, indicating a positive outlook for the company's performance in the market [4]. Core Insights - 361 Degrees reported third-quarter operational data for 2024, showing that retail performance met expectations, with both adult and children's apparel achieving a 10% year-on-year growth in offline retail sales. E-commerce channels saw a growth of 20-25%, demonstrating resilience in a challenging retail environment [4][5]. - The company maintains a healthy inventory level with a stable discount rate, achieving a 75% sell-through rate within 180 days. The inventory turnover ratio remains between 4.5-5 times, and discount rates for adult and children's apparel are stable at 7.1 [4]. - Online sales channels are performing strongly, with a growth rate of 20-25% in Q3 2024. The company continues to launch new products weekly, enhancing consumer engagement. Offline store upgrades are also progressing, with an increase in average store size for both adult and children's apparel [4][5]. - The company has become the official partner of the 2026 Aichi-Nagoya Asian Games, enhancing its brand's international influence. The company is leveraging sports resources for brand marketing, which is expected to further boost market presence [5]. - The company has been in the sports industry for over 20 years and is focusing on product, brand, and channel enhancements. It is expected to achieve growth rates faster than the industry average, supported by effective operations and market strategies [4][5]. Financial Summary - The projected financials for 2024-2026 indicate a steady increase in revenue and net profit, with expected revenues of 97.8 billion RMB in 2024, 111.3 billion RMB in 2025, and 125.0 billion RMB in 2026. Corresponding net profits are projected at 10.9 billion RMB, 12.5 billion RMB, and 14.2 billion RMB respectively [6][11]. - The company’s gross margin is expected to remain stable around 40.8% to 40.7% over the next few years, with a PE ratio decreasing from 10 in 2023 to 5 in 2026, indicating a potentially attractive valuation [6][11].

港股公司报告 | 公司点评 24Q3 线上增长领跑 361 度 24Q3 零售表现良好 2024Q3，361 度线下主品牌零售同增约 10%，童装零售同增约 10%；361° 电商平台流水同增 20%+。 24Q3 公司坚持科技赋能专业运动的宗旨，推出「FUTURA S 户外跑鞋」、「飞 飚 2」及「雨屏 8 代」等产品，以高质量材质、全新工艺及自家研发科技 为跑者营造舒适、实用的跑步体验。其中，「雨屏 8 代」采用自主研发的防 水透气膜科技 FLY -TEX，为跑者带来暴雨级防水的轻盈舒适穿着体验。 举办屏科技新品发布会，以科技和实力，吸引消费者 10 月 11 日，国内知名运动品牌 361°在青岛举办了以"冲锋破雨自由呼 吸"为主题的屏科技新品发布会。立足自身多年的专业运动基因，创新升 级产品科技，重磅推出以"御屏 2.0 冲锋衣"和"雨屏 8 代跑鞋"为主的 屏科技家族运动装备。在"科技为本，品牌为先"的品牌策略指引下，361° 正在用更多的运动科技和更强大的产品实力，吸引消费者的认可和关注。 御屏 2.0 冲锋衣，六屏合一，全面保护户外运动者 361°御屏 2.0 冲锋衣，依托屏科技平台技术达到防水 ...

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][9] Core Views - The company reported a steady growth in retail performance for Q3 2024, with a 10% increase in offline retail sales for both the main brand and children's clothing, and a 20% increase in e-commerce sales [3][4] - The company is expected to maintain its leading growth rate in the industry, driven by the launch of competitive new running shoe products and a brand revitalization plan that has shown initial positive results [4][7] Summary by Relevant Sections Retail Performance - In Q3 2024, the adult apparel offline sales grew by 10%, children's apparel offline sales also grew by 10%, and e-commerce sales increased by 20% [4][5] - Monthly performance showed improvement from July to September, with further acceleration during the National Day holiday, where online sales growth exceeded 30% and offline sales growth surpassed 20% [5] Product Development - The company continues to launch new professional running products, including the "FUTURA S Outdoor Running Shoes," "Feibiao 2," and "Rain Shield 8th Generation," which utilize high-quality materials and proprietary technology to enhance the running experience [5][6] Inventory and Discount Rates - The inventory-to-sales ratio is stable at 4.5-5, with retail discounts around 71%, maintaining stability compared to the previous quarter and showing improvement year-on-year [5][6] Financial Forecasts - The company maintains its profit forecasts, expecting net profits of 1.14 billion, 1.32 billion, and 1.53 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 18.1%, 16.5%, and 15.6% [4][8] - The target price is maintained at 4.5-5.1 HKD, corresponding to a PE ratio of 7.5-8.5x for 2024 [4][8]

Investment Rating - The report maintains a "Buy" rating for the company 361 Degrees (01361.HK) [4] Core Views - The company has shown robust growth in offline business and exceptional performance in e-commerce, with a 10% increase in adult and children's apparel sales in offline channels and over 20% growth in e-commerce sales year-on-year [1][2] - The company is expected to achieve a revenue growth of 19% and a net profit growth of 20% in 2024, driven by product and channel optimization [2] Summary by Sections Business Performance - In Q3 2024, the adult apparel segment saw a 10% year-on-year increase in offline sales, maintaining the same growth rate as Q2. The number of adult apparel stores increased by 98 to 5,740, with an average store area growth of 8.3% to 143 square meters [1] - The children's apparel segment also experienced a 10% year-on-year increase in offline sales, with a net increase of 102 stores to 2,550 and a 12.5% increase in average store area to 108 square meters [1] - E-commerce sales grew by over 20% year-on-year, with the company leveraging platforms like Hupu, Douyin, Bilibili, and Xiaohongshu to enhance user engagement and promote products [1] Financial Forecast - The company is projected to achieve a revenue of 10,017 million yuan in 2024, with a year-on-year growth rate of 18.9%. The net profit is expected to reach 1,158 million yuan, reflecting a growth rate of 20.4% [3][12] - The earnings per share (EPS) is forecasted to be 0.56 yuan in 2024, with a price-to-earnings (P/E) ratio of 6.9 times [3][12] Valuation - The current market price corresponds to a P/E ratio of 7 times for 2024, indicating a favorable valuation for potential investors [2][4]

Summary of 361 Degrees Third Quarter 2024 Earnings Call Company Overview - The call is regarding 361 Degrees, a company operating in the sportswear industry, specifically focusing on athletic footwear and apparel [1]. Key Points and Arguments - The call was hosted by the Investor Relations representative, Nina, and included key executives such as the Chairman, Chen Yonglin, and CFO, Richard Kwong [1]. Additional Important Content - The meeting commenced with all participants in a muted state, indicating a formal setting for the discussion [1].

Investment Rating - The report initiates coverage on 361 Degrees with a "Buy" rating and a target price of HKD 5.32 [2] Core Views - 361 Degrees is the fourth-largest domestic sportswear brand in China, focusing on "professionalism, youthfulness, and internationalization" [2] - The company is expected to achieve net profits of RMB 1.11 billion, RMB 1.28 billion, and RMB 1.48 billion for 2024E, 2025E, and 2026E, respectively, with EPS of RMB 0.53, RMB 0.62, and RMB 0.72 [2] - The company's valuation is attractive, with a 2024E PE of 7.42x and PB of 0.78x [2] Key Highlights Highlight 1: Leveraging Cost-Effective Consumption Trends - 75.9% of 361 Degrees' domestic stores are located in third-tier and below markets, differentiating its positioning from competitors [3] - The brand's core price range on Tmall is below RMB 200, compared to RMB 200-400 for competitors, emphasizing cost-effectiveness [3] - The company focuses on technology-driven product innovation, particularly in running, basketball, and sports lifestyle categories [3] Highlight 2: E-commerce Driving High Growth - E-commerce revenue CAGR from 2020 to 2023 was 43.2%, contributing significantly to growth [4] - Online revenue accounted for 24.3% of total revenue in 1H24, with room for further growth through platforms like Douyin and Kuaishou [4] - 87.3% of online products are exclusive to e-commerce, helping maintain price stability and create hit products [4] Highlight 3: Children's Wear as a Second Growth Curve - The children's wear market is growing, with sports-related children's wear penetration increasing [5] - 361 Degrees' children's business accounted for 23.2% of revenue in 2023, with a 5-year CAGR of 19.1%, significantly higher than the company's overall growth rate [5] - The company has room to expand its store count and improve store efficiency in the children's wear segment [5] Financial Forecasts and Valuation - Revenue is expected to grow from RMB 8.42 billion in 2023 to RMB 12.94 billion in 2026E, with a CAGR of 15.4% [6] - Net profit is projected to increase from RMB 961 million in 2023 to RMB 1.48 billion in 2026E, with a CAGR of 15.5% [6] - ROE is expected to rise from 10.05% in 2023 to 12.32% in 2026E, reflecting improving profitability [6] Industry Trends - The sportswear industry is benefiting from increasing health consciousness and the trend of casual and sporty attire [19] - Domestic brands are gaining market share, with 361 Degrees' market share increasing by 0.7 percentage points to 3.4% from 2020 to 2023 [29] - The children's wear market is expanding, with sports-related children's wear penetration expected to continue rising [5] Company Strategy - 361 Degrees focuses on low-tier markets and cost-effective products, with 75.9% of stores located in third-tier and below cities [3] - The company is enhancing its e-commerce capabilities, with online revenue expected to grow further through new platforms [4] - The children's wear segment is a key growth driver, with plans to expand store count and improve store efficiency [5]