Group 1 - The core viewpoint of the report indicates that 361 Degrees (01361) has shown consistent growth in its main brand, children's clothing, and e-commerce channels, with year-on-year increases of approximately 10%, 10%, and 20% respectively for Q3 2025, maintaining the performance seen in Q2 [1] - The company maintains a forecast for net profit attributable to shareholders of 1.3 billion, 1.46 billion, and 1.62 billion yuan for the years 2025 to 2027, corresponding to a low valuation with PE ratios of 8, 8, and 7 times [1] - As of Q3 2025, the number of super stores reached 93, with 44 new stores opened compared to Q2, and the company plans to open an additional 20 large super stores in Q4 [1] - The online channel has expanded with the addition of Meituan's express delivery and group buying services, offering consumers a 30-minute rapid delivery option [1] - The product lineup has been refreshed with new iterations of running shoes and outdoor products, enhancing market competitiveness through technological innovation [1] - The brand has engaged in promotional activities with NBA stars to strengthen its professional image and boost category sales [1] Group 2 - ONEWAY, an outdoor brand, opened six new stores during the National Day holiday, anticipating strong sales performance for the autumn and winter skiing season [2] - The brand has undergone a renewal and upgrade in 2024, following adjustments during the pandemic, and has expanded its presence in the Chinese market with six new stores located in northern cities [2] - Each new store has an area of 100-120 square meters and offers around 120 SKUs, covering professional skiing, outdoor activities, and urban outdoor styles, primarily focusing on apparel [2]

Group 1: 361 Degrees (01361) - The main brand's offline sales, children's clothing offline sales, and e-commerce sales for Q3 2025 grew approximately 10%, 10%, and 20% year-on-year, respectively, continuing the performance from Q2 [1] - The discount rate is close to 70%, remaining relatively stable [1] - The forecast for net profit attributable to shareholders for 2025-2027 is 1.3 billion, 1.46 billion, and 1.62 billion yuan, corresponding to PE ratios of 8, 8, and 7 times, indicating a low valuation and maintaining a "buy" rating [1] - As of Q3 2025, the number of super stores reached 93, with 44 new stores added compared to Q2, and the company plans to open an additional 20 large super stores in Q4 [1] - The super stores have better store area and location compared to traditional store types, effectively enhancing overall store efficiency [1] - New online channels include Meituan Flash Delivery and Meituan Group Purchase, providing consumers with a 30-minute rapid delivery service [1] - Product innovations in Q3 2025 include the launch of "Rain Shield 9th Generation" running shoes, professional marathon racing shoes "Fei Ran 4.5", basketball shoes "DVD4", and outdoor product series "Light Wild" [1] - Brand collaborations with NBA stars Jokic and Gordon during their China and Asia tours, respectively, enhance brand image and drive category sales [1] Group 2: ONEWAY - During the National Day holiday, ONEWAY opened six new stores, anticipating strong sales performance for the autumn and winter skiing season [2] - The company acquired the operational rights for the Finnish outdoor brand ONEWAY in Greater China in 2013 and has undergone adjustments during the pandemic [2] - In 2024, the brand underwent a renewal and opened six new stores in northern cities during the 2025 National Day holiday, with store sizes ranging from 100 to 120 square meters and approximately 120 SKUs [2] - The new stores cover three product lines: NUUKSIO, SISU, and LUXE, focusing on professional skiing, outdoor activities, and urban outdoor styles, primarily featuring clothing [2] - There are plans to enrich the product line in the future [2]

Company Overview - The major shareholder, Everbright, announced an increase in its stake in Li Ning Company by acquiring 18.09 million shares for a total of HKD 275 million at an average price of HKD 15.20 per share [1] Business Performance - Li Ning's basketball business is under pressure, with retail sales expected to decline by 21% in 2024, accounting for 21% of the company's overall sales [1] - Despite the challenges, Li Ning continues to sponsor various basketball leagues and is focused on launching new products and technologies to maintain brand positioning [1] - The company signed a player who was selected 16th in the 2025 NBA Draft, marking the third Chinese player to be a first-round pick, which is expected to enhance brand visibility in the basketball sector [1] Strategic Initiatives - In the second quarter of 2025, Li Ning's brand is still facing pressure from a volatile market environment and intense competition, particularly in retail and discounting [2] - The company aims to innovate in core categories like running and basketball while increasing exposure and investment in sports like badminton and table tennis [2] - A contract with the Chinese Olympic Committee was completed at the end of April, which is anticipated to lead to more marketing events in the second half of 2025 [2] Shareholder Confidence - The major shareholder's increase in stake from January to June 2025 reflects confidence in Li Ning's "single brand, multiple categories, and multi-channel" core strategy [2] Financial Forecast - The earnings per share (EPS) forecast for 2025 and 2026 remains unchanged at CNY 0.92 and CNY 1.07, respectively, with the current stock price corresponding to 16 and 14 times the projected earnings for those years [2] - The target price is maintained at HKD 20.82, indicating a potential upside of 28% from the current stock price [2]