Core Viewpoint - The company has demonstrated stable operational performance with approximately 10% growth in offline retail sales for both adult and children's segments in Q4 2025, alongside significant growth in e-commerce channels [1] Group 1: Operational Performance - In Q4 2025, the main brand's offline retail sales recorded about 10% positive growth, while the children's clothing brand also achieved approximately 10% growth [1] - The overall e-commerce platform saw high double-digit growth, maintaining a rapid growth trend across all channels despite external disruptions such as weather [1] Group 2: Product Innovation and Collaborations - The company has launched several new products featuring advanced technology, including the new racing shoes Fly Burn 5 series and the new cushioning trail running shoes Lingci 1 [1] - New collaborations announced include partnerships with Kanglun Aerospace for technology applications in running products, and a renewed agreement with the Asian Olympic Council to enhance brand exposure [1] Group 3: Store Expansion and Market Position - The company has opened 126 "super stores" in mainland China by the end of 2025, exceeding initial expectations, which includes 105 large super stores and 21 children's super stores [2] - The ONE WAY brand has gradually increased its store count to 6, with potential for further expansion in 2026 if the operational model proves successful [2] Group 4: Financial Forecast - The company is projected to achieve net profits of 1.315 billion yuan, 1.489 billion yuan, and 1.684 billion yuan for the years 2025 to 2027, reflecting year-on-year growth rates of 14.50%, 13.20%, and 13.13% respectively [2] - The company maintains a "buy" rating due to its strong brand image, product development capabilities, and marketing effectiveness in the sports apparel sector [2]

Group 1: Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 0.28%, the Hang Seng China Enterprises Index down by 0.52%, and the Hang Seng Tech Index decreasing by 1.35% [2] - The total market turnover was HKD 290.455 billion, with short selling amounting to HKD 35.078 billion, representing 13.62% of the total turnover [2] - Southbound capital saw a net outflow of HKD 1.515 billion, with Alibaba, Tencent, and SMIC being the most bought stocks, while China Mobile, Xiaomi, and CNOOC faced the most selling pressure [2] Group 2: Sector Performance - The AI healthcare and internet healthcare sectors faced adjustments, with notable declines in stocks such as Jingtai Holdings down 10.74% and Alibaba Health down 7.84% [2] - The OTA platform Trip.com Group saw a significant drop of 19.23% due to an investigation by the State Administration for Market Regulation for alleged monopolistic behavior [3] - The optical communication sector performed well, with stocks like Huiju Technology rising by 8.89% and Cambridge Technology increasing by 7.75% [3] Group 3: Monetary Policy and Economic Measures - The People's Bank of China announced a series of targeted monetary easing measures, including a structural interest rate cut of 0.25 percentage points, aimed at reducing financing costs in specific sectors [4] - A total of CNY 1 trillion was allocated to support private enterprises, with an additional CNY 500 billion specifically for small and medium-sized private companies [4] - The bank also increased the quota for technology innovation and technical transformation loans by CNY 400 billion, bringing the total to CNY 1.2 trillion [4] Group 4: Company Analysis - 361 Degrees - 361 Degrees reported better-than-expected performance with offline retail growth of approximately 10% for both its main brand and children's clothing [7] - The company continues to see strong growth in e-commerce, achieving high double-digit growth rates [7] - The launch of new products across various categories, including running, basketball, and outdoor gear, reflects the company's commitment to innovation and brand development [8] Group 5: Investment Outlook for 361 Degrees - The company is expected to benefit from the introduction of new store formats, which will contribute positively to its performance [9] - The forecast for EPS from 2025 to 2027 is projected at CNY 0.60, CNY 0.69, and CNY 0.76, respectively, with a target price of HKD 7.6 based on a 10x PE ratio for 2026 [9]

Core Viewpoint - 361 Degrees (01361) is positioned as a leading domestic sports apparel company, benefiting from channel upgrades and continuous R&D investments that enhance product iteration and brand strength, with potential for further market share growth. The rating is maintained at "Buy" [1]. Group 1: Financial Performance - The company's operating performance remains robust, with approximately 10% growth in offline retail sales for both adult and children's lines in Q4 2025. The main brand's offline channel recorded about 10% positive growth, while the e-commerce platform achieved high double-digit growth despite external weather disruptions [2]. Group 2: Product Innovation and Collaborations - The company has launched several new products featuring advanced technologies, including the new racing shoes Flyburn 5 series and various other athletic and outdoor products. Collaborations with partners such as Kanglun Aerospace and Tianjin Sports Institute aim to enhance brand influence and integrate education, research, and industry [3]. Group 3: Store Expansion and Future Outlook - The company has exceeded expectations in opening "super stores," with a total of 126 stores established by the end of 2025, including 105 large super stores and 21 children's super stores. The ONEWAY brand has also expanded to 6 stores, with potential for further expansion in 2026 pending successful operational validation [4]. - Profit forecasts for 2025-2027 indicate net profits of 1.315 billion, 1.489 billion, and 1.684 billion yuan, reflecting year-on-year growth of 14.50%, 13.20%, and 13.13% respectively, supporting the "Buy" rating based on the company's strong brand image and marketing capabilities [4].

Core Viewpoint - 361 Degrees (01361) is positioned as a leading sports apparel company in China, benefiting from channel upgrades and ongoing R&D investments that enhance product iteration and brand strength, with potential for increased market share [1] Group 1: Financial Performance - The company reported a stable operating performance, with approximately 10% growth in offline retail sales for both adult and children's lines in Q4 2025 [2] - E-commerce platforms experienced high double-digit growth in overall sales, maintaining a rapid growth trend across all channels despite external weather disruptions [2] Group 2: Product Innovation and Collaborations - The company has launched several new products featuring advanced technologies, including the new racing shoes Flyburn 5 series and various other apparel items [3] - New collaborations include partnerships with Kanglun Aerospace for technology development in running products and with Tianjin Sports Institute to integrate education, research, and industry [3] Group 3: Store Expansion and Future Outlook - The company has exceeded expectations in opening "super stores," with a total of 126 stores planned by the end of 2025, including 105 large super stores and 21 children's super stores [4] - The ONEWAY brand has gradually increased its store count to 6, with potential for further expansion in 2026 if the operational model proves successful [4] Group 4: Profit Forecast - The company is projected to achieve net profits of 1.315 billion, 1.489 billion, and 1.684 billion yuan for 2025-2027, reflecting year-on-year growth rates of 14.50%, 13.20%, and 13.13% respectively [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Insights - The company has demonstrated a robust performance with a 10% growth in offline retail sales for both adult and children's segments in Q4 2025. The e-commerce platform also recorded high double-digit growth despite external disruptions [7] - The company has launched multiple new products and collaborations, enhancing its brand influence through technological innovations and partnerships [7] - The expansion of "super stores" has exceeded expectations, with 126 stores opened by the end of 2025, including 105 large-format stores and 21 children's stores [7] - The company is expected to see a steady increase in net profit, with projections of RMB 1.315 billion, RMB 1.489 billion, and RMB 1.684 billion for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 14.50%, 13.20%, and 13.13% [6][7] Financial Summary - Revenue projections for the company are as follows: RMB 10,073.51 million in 2024, RMB 11,540.03 million in 2025, RMB 13,113.23 million in 2026, and RMB 14,773.90 million in 2027, with corresponding growth rates of 19.59%, 14.56%, 13.63%, and 12.66% [6][8] - The company's return on equity (ROE) is projected to be 12.25% in 2024, 12.75% in 2025, 12.60% in 2026, and 12.47% in 2027 [6][8] - The price-to-earnings (P/E) ratio is expected to decrease from 11.54 in 2023 to 6.59 in 2027, indicating an attractive valuation over time [6]

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]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 8.00 [1][9]. Core Insights - The company has demonstrated robust growth in retail sales, with both the main brand and children's clothing achieving approximately 10% year-on-year growth in 4Q25, continuing a steady growth trend despite high base effects [1][11]. - E-commerce sales recorded a high double-digit growth in 4Q25, indicating strong performance in online channels [7][11]. - The company is enhancing its brand power through innovative products and marketing strategies, including the introduction of "super stores" to upgrade channel efficiency and expand international presence [5][11]. Summary by Sections Operational Performance - In 4Q25, the main brand and children's clothing retail sales both achieved approximately 10% year-on-year growth, maintaining a steady growth trend [1][11]. - The e-commerce platform saw overall sales achieve high double-digit year-on-year growth, continuing a solid performance [7][11]. Product and Marketing Strategy - The company launched new products in various categories, including running, basketball, and outdoor gear, which have received significant market attention [6]. - The introduction of "super stores" is expected to enhance customer acquisition and sales efficiency, with a notable increase in new customer ratios [6]. Financial Projections - Revenue is projected to grow from RMB 10,074 million in 2024 to RMB 14,019 million by 2027, with a compound annual growth rate (CAGR) of approximately 10.30% [4]. - Net profit is expected to increase from RMB 1,149 million in 2024 to RMB 1,655 million by 2027, reflecting a steady growth trajectory [4]. Valuation Metrics - The company is assigned a target PE of 10.1x for 2026, with a target price of HKD 8.00, reflecting a discount compared to comparable companies due to its current brand scale and market share [9][13].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1] Core Views - The company reported approximately 10% growth in offline retail for both its main brand and children's clothing in Q4 2025, with e-commerce showing high double-digit growth. The growth rates for the main brand and children's clothing remained stable quarter-on-quarter, while e-commerce growth showed a slight deceleration [2][3] - The company continues to innovate its product offerings to meet diverse consumer needs, with a total of 126 super stores established domestically, including 33 new openings in Q4. The first overseas store opened in Cambodia, marking a significant step in international market expansion [3][5][6] - The company maintains a stable inventory-to-sales ratio of 4.5-5.0 and retail discounts around 7.0-7.1, indicating effective inventory management amidst competitive pricing pressures [6][8] Summary by Sections Retail Performance - In Q4 2025, the adult apparel segment saw approximately 10% growth, while children's apparel also grew by about 10%. E-commerce experienced high double-digit growth, with the main brand and children's clothing growth rates remaining consistent [3][5] Product Innovation - The company has launched several new products across various categories, including running shoes, basketball shoes, outdoor gear, and fitness apparel, catering to a wide range of consumer preferences [5][6] Channel Expansion - The domestic super store count increased to 126, with 33 new stores opened in Q4. The company also entered the instant retail market by partnering with Taobao Flash Purchase, enhancing its online presence [6][8] Financial Forecast - The company expects to achieve 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% [8][9]

Core Insights - 361° reported approximately 10% positive growth in retail sales for both its main brand and children's clothing in Q4 2025 compared to the same period in 2024 [1] - The company's e-commerce platform experienced high double-digit growth in overall sales during Q4 2025 compared to Q4 2024 [1] - 361° actively engaged in corporate social responsibility by donating HKD 15 million in cash and supplies to support local rescue and settlement efforts following a fire in Tai Po, Hong Kong [1] Product Development - The company launched new products in the running category, including the "Feiran 5" and "Feiran 5 FUTURE," along with upgrades to the "Speed" family of shoes featuring advanced cushioning and rebound technologies [2] - In basketball, the second signature shoe of Nikola Jokic, "JOKER2," and the sixth signature shoe of Aaron Gordon, "AG6," were introduced, catering to various consumer needs [2] - New outdoor and women's fitness products were launched, including jackets and shoes designed for cold weather and outdoor exploration [2] Brand Building - 361° announced a strategic partnership with the Asian Olympic Council and deepened collaborations with Tianjin Sports Institute and other organizations to promote sports development [3] - The company showcased its commitment to sustainability by launching the second-generation Mass Balance low-carbon running shoes at the China International Import Expo [3] - 361° provided full support for the Tianjin and Inner Mongolia teams during the 15th National Games, highlighting its role in equipping athletes [3] Event Sponsorship - The company was designated as the official supplier for the 2025 WTCC World Tennis Intercontinental Challenge, leveraging its extensive sponsorship experience [4] - 361° continued its role as a top strategic partner for the Fuzhou Marathon, where its brand ambassador won the men's full marathon championship [4] - The company also participated as a top partner for the Tangshan Marathon, with its ambassadors achieving significant victories [4] Channel Development - 361° accelerated its e-commerce strategy by entering over a thousand stores into Taobao Flash Sale, marking a new instant retail strategy [5] - As of December 31, 2025, the number of 361° super stores in mainland China reached 126, with the first overseas super store opening in Cambodia [5] - The brand's international market presence and local operational capabilities are continuously improving [5]