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].
361度：三季度零售符合预期，运营质量保持稳健