Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported a 10% year-on-year growth in retail sales for its main brand and children's clothing in Q3 2025, with e-commerce sales increasing by approximately 20% [2][6]. - The company has accelerated the expansion of its super stores, with 93 super stores established by September 30, 2025, nearly doubling from Q2, which is expected to positively impact retail growth [9]. - The company anticipates strong performance in the 2026 ordering session, with a high certainty of revenue growth for 2025 and 2026. The product matrix is improving, and the exploration of new business formats like super stores is expected to contribute to a second growth driver [9]. Summary by Sections Retail Performance - The company achieved a robust 10% year-on-year growth in offline retail for Q3 2025, with expectations of stable discounts and inventory levels [9]. Store Expansion - The rapid expansion of super stores is a key focus, with the number of stores significantly increasing, which is expected to enhance customer spending and complement traditional store formats [9]. Financial Projections - The company is projected to achieve net profits of 1.26 billion, 1.37 billion, and 1.50 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 9, 8, and 8 times [9][11].

Core Viewpoint - Citic Securities reports that 361 Degrees (01361) has shown a positive performance in Q3 2025, with main brand offline sales, children's clothing offline sales, and e-commerce channel revenue increasing by 10%, 10%, and 20% year-on-year respectively, aligning with market expectations, indicating the company's strong product cost-performance benefiting from the current consumption environment [1] Group 1 - The company is expected to maintain double-digit revenue growth momentum in 2025, which will gradually improve operating cash flow [1] - Long-term prospects include potential growth from the outdoor brand One Way and exploration of overseas offline wholesale and cross-border e-commerce businesses, which may provide new incremental revenue [1] - The company is likely to drive valuation re-rating through continuous performance delivery and increased dividends [1]

Investment Rating - The report maintains a "Recommended" investment rating for 361 Degrees (1361.HK) [3][11]. Core Insights - The company reported a strong operational performance in Q3 2025, with a 10% year-on-year increase in retail sales for both the main brand and children's clothing, and a 20% increase in overall e-commerce platform revenue [3][6]. - The company is actively enhancing its operational performance through product upgrades, brand building, and channel development, including collaborations with Meituan for online sales [6]. - The company is positioned to benefit from the growth in both adult and children's apparel segments, alongside the sports and outdoor activity market, indicating strong resilience in both short and long-term growth [6]. Financial Summary - Revenue projections for 2025-2027 are estimated at 113.4 billion, 126.6 billion, and 140.8 billion CNY, representing year-on-year growth of 12.5%, 11.7%, and 11.2% respectively [6][9]. - Net profit forecasts for the same period are 12.9 billion, 14.7 billion, and 16.6 billion CNY, with growth rates of 12.5%, 13.4%, and 13.0% [6][9]. - The company maintains a gross margin of approximately 41% and a net margin of around 11.4% [9]. Key Financial Ratios - The projected P/E ratios for 2025-2027 are 8.7, 7.7, and 6.8, indicating a potentially attractive valuation [9]. - The projected ROE for 2025-2027 is around 14.7% to 14.6%, suggesting stable profitability [9]. - The asset-liability ratio is expected to be around 28.4% in 2025, indicating a healthy balance sheet [9]. Operational Highlights - As of September 30, 2025, the company has expanded its national store count to 93, reflecting ongoing channel development [6]. - The company is the official partner of the 20th Asian Games, enhancing its brand visibility and market presence [6].

Company Summary - 361 Degrees (1361.HK) saw its stock price rise by 7.5% to 6.45 HKD, reaching a historical high and a market capitalization exceeding 13.3 billion HKD, with a year-to-date increase of over 55%, outperforming the Hang Seng Index which rose over 25% during the same period [1] - The stock price has more than doubled from 3.095 HKD on July 30 of the previous year, reflecting an increase of over 108% in one year [1] - The company will hold a board meeting on August 12 to consider and approve mid-term results and potential interim dividends [1] - In mid-July, the company issued a positive earnings forecast, indicating a retail sales growth of approximately 10% year-on-year for its main brand and children's clothing brand, and a 20% year-on-year growth for its e-commerce platform [1] - Guosen Securities reported that despite a challenging consumption environment in the first half of the year, the company maintained double-digit growth in revenue, maintaining an "outperform" rating [1] - Zhongtai International expects the company's revenue for the first half of the year to continue showing double-digit year-on-year growth, in line with expectations [1] - As of June 30, the number of 361 Degrees super stores increased to 49, with a faster-than-expected opening pace, indicating strong market penetration and consumer acceptance, maintaining a "buy" rating [1] Industry Summary - The National Development and Reform Commission indicated plans to promote the development of sports and cultural tourism industries, focusing on expanding fitness spaces, accelerating high-quality outdoor sports development, and innovating the integration of sports with cultural tourism [2] - Continuous favorable policies are being introduced, with Guangdong Province emphasizing the construction of a high-level sports province, aiming to deepen competitive sports reform and cultivate well-known brands and leading enterprises in sports equipment and products [2] - The Hunan Provincial Sports Bureau issued a notice regarding the "2025 Hunan Football League Competition Regulations," set to take place from September to December 2025, aimed at nurturing local youth football talent and promoting the integration of sports education and tourism [2]

Core Viewpoint - 361 Degrees (01361) has shown a positive market response with a 5% increase in stock price, reflecting strong retail growth projections for its main and children's clothing brands in 2025 [1] Financial Performance - The main brand's retail revenue for Q2 2025 is expected to grow by approximately 10% compared to the same period in 2024 [1] - The children's clothing brand is also projected to see a similar 10% growth in retail revenue for Q2 2025 compared to Q2 2024 [1] - The e-commerce platform is anticipated to achieve a 20% increase in overall sales for Q2 2025 compared to Q2 2024 [1] Market Outlook - Changjiang Securities indicates that the company is maintaining a steady growth trajectory, with a strong performance expected in the 2025 ordering session, leading to a high certainty of revenue growth for the year [1] - The company is expected to continue enhancing its product matrix and product strength, while optimizing its channel structure [1] - New business models, such as super stores, are anticipated to contribute to a second growth phase for the company [1] Investment Sentiment - Huaxin Securities supports the company's profitability driven by quality-price ratio and channel innovation, initiating coverage with a "Buy" rating [1]

Core Viewpoint - 361 Degrees (01361) shows a positive growth outlook for its main brand and children's clothing products, with expected retail revenue increases of approximately 10% year-on-year for Q2 2025, and a 20% increase for its e-commerce platform [1] Group 1: Financial Performance - The main brand's retail revenue is projected to grow by about 10% in Q2 2025 compared to the same period in 2024 [1] - The children's clothing brand is also expected to see a similar 10% growth in retail revenue for Q2 2025 compared to Q2 2024 [1] - The overall revenue from the e-commerce platform is anticipated to increase by approximately 20% in Q2 2025 compared to Q2 2024 [1] Group 2: Market Analysis - Changjiang Securities highlights the company's steady revenue growth performance, indicating a strong certainty of revenue growth for the entire year [1] - The company is expected to perform well in the 2025 ordering session, contributing to its revenue growth [1] - Huaxin Securities notes that the company's quality-price ratio and channel innovation are dual drivers supporting profitability, initiating coverage with a "buy" rating [1] Group 3: Strategic Initiatives - The company continues to enhance its product matrix and product strength, with ongoing optimization of its channel structure [1] - The exploration of new business formats, such as super premium stores, is expected to contribute to a second growth driver for the company [1]

Core Viewpoint - 361 Degrees (01361) has shown a positive market response with a 5% increase in stock price, reflecting strong retail growth projections for its main brand and children's clothing lines in 2025 [1] Group 1: Financial Performance - The main brand's retail sales are projected to grow approximately 10% in the second quarter of 2025 compared to the same period in 2024 [1] - The children's clothing brand is also expected to see a similar retail sales growth of around 10% in the same timeframe [1] - The e-commerce platform is anticipated to achieve a 20% increase in overall sales in the second quarter of 2025 compared to the second quarter of 2024 [1] Group 2: Market Outlook - Changjiang Securities indicates that the company is maintaining a steady growth trajectory, with a strong performance expected in the 2025 ordering season, leading to a high certainty of revenue growth for the year [1] - The company is enhancing its product matrix and improving product capabilities, while also optimizing its channel structure [1] - New business models, such as super premium stores, are expected to contribute to a second growth phase for the company [1] Group 3: Investment Ratings - Huaxin Securities supports the company's profitability through a combination of quality-price ratio and channel innovation, initiating coverage with a "Buy" rating [1]