Core Viewpoint - 361 Degrees reported a solid operational performance in Q4 2025, with both the main brand and children's clothing achieving approximately 10% year-on-year growth in offline retail sales, continuing a steady growth trend despite high comparatives from the previous year [1] Offline Performance - In Q4 2025, the main brand and children's clothing achieved approximately 10% year-on-year growth in offline retail sales, maintaining growth rates similar to Q3 2025 [1] - New product launches in running, basketball, and outdoor categories have driven sales, with notable products including the "Flying Burn 5" running shoes and signature shoes from Nikola Jokic and Aaron Gordon [1] - The company expects low-tier cities to remain a significant growth driver, with over 75% of sales in adult apparel and over 65% in children's clothing coming from these areas [1] - The introduction of "super stores" is expected to enhance customer acquisition and sales performance, with 126 super stores established in mainland China by Q4 2025, including 21 for children's clothing [1] E-commerce Performance - In Q4 2025, the e-commerce platform recorded high double-digit growth in overall sales, continuing a strong performance from the previous year [2] - The company accelerated its instant retail strategy, with 1,000 stores joining Taobao Flash Sale, enhancing retail efficiency and consumer experience [1] Inventory and Financial Outlook - The terminal discount rate is expected to remain stable at 7.0-7.1, with a healthy inventory turnover ratio of 4.5-5.0 times [2] - The company anticipates improved cash flow performance year-on-year due to ongoing efforts in accounts receivable recovery and inventory management [2] - For 2026, the company expects steady growth in order volume and further improvement in retail discounts, leading to enhanced operational quality [2] Profit Forecast and Valuation - The company maintains net profit forecasts of 1.31 billion, 1.49 billion, and 1.66 billion yuan for 2025-2027 [2] - A target price of 8.0 HKD is set based on a target PE of 10.1x for 2026, reflecting a discount due to the brand's current scale and market share compared to peers [2]
361度(1361.HK)：逆势下流水延续靓丽增长