Core Viewpoint - The company reported a healthy growth in retail sales for its main brand and children's clothing, with significant increases in both offline and online channels during Q3 2025 [1][2]. Group 1: Q3 2025 Performance - In Q3 2025, the main brand's offline retail sales increased by 10% year-on-year, while the children's clothing brand also saw a 10% increase in offline retail sales [1]. - The e-commerce platform experienced a 20% year-on-year growth in retail sales [1]. - The company anticipates steady growth in offline retail sales during the National Day and Mid-Autumn Festival holiday period [1]. Group 2: Product and Market Strategy - The running category is expected to continue leading sales growth, with the company increasing its focus on the marathon sector [1]. - The company debuted its "Feiran 5" and "Feiran 5 FUTURE" products at the 2025 Berlin Marathon and became a top partner for the 2025 Tangshan Marathon and an honorary sponsor for the 2025 Taishan Marathon [1]. Group 3: Operational Metrics - The average retail discount for new products in Q3 2025 was approximately 30%, with inventory turnover maintained at 4.5 to 5 months [2]. - The company announced partnerships with Meituan for rapid delivery services, achieving an average delivery time of 30 minutes [2]. - As of September 30, 2025, the company operated 93 super stores nationwide, with expectations to exceed 100 by year-end [2]. Group 4: Investment Outlook - The company is positioned well in the competitive domestic sportswear market, leveraging high-quality products and rapid expansion of super stores to achieve healthy growth in both offline and online retail sales [2]. - Earnings per share (EPS) forecasts for 2025-2027 are projected at 0.62, 0.69, and 0.76 yuan, with corresponding price-to-earnings (PE) ratios of approximately 8.7, 7.8, and 7.1 times based on the closing price on October 13 [2].

Investment Rating - The report maintains a "Buy-B" rating for the company 361 Degrees (01361.HK) [1][6] Core Insights - The company has demonstrated healthy growth in retail sales across both offline and online channels, with a notable 10% year-on-year increase in retail sales for its main brand and children's clothing in Q3 2025, and a 20% increase in e-commerce sales [3][4][6] - The company is expanding its premium store count, reaching 93 stores by the end of Q3 2025, and aims to exceed 100 stores by year-end [5][6] - The company is actively participating in the marathon sector, becoming a top partner for the 2025 Tangshan Marathon and a sponsor for the 2025 Taishan Marathon, which is expected to drive sales growth in the running category [4][6] Financial Performance - For the fiscal year 2025, the company is projected to achieve a revenue of 11,367 million HKD, reflecting a year-on-year growth of 12.8% [10][11] - The net profit for 2025 is estimated at 1,285 million HKD, with a year-on-year growth of 11.9% [10][11] - The company's EPS is forecasted to be 0.62 HKD for 2025, with corresponding P/E ratios of approximately 8.7, 7.8, and 7.1 for the years 2025, 2026, and 2027 respectively [6][10]