Founder: Maintaining the "strongly recommended" rating for 361 DEGREES (01361), with the long-term outlook expected to maintain steady growth superior to the industry.

Founder released a research report stating that they maintain a "strongly recommended" rating for 361 DEGREES (01361), with an expected net profit attributable to shareholders of 1.08 and 1.25 billion yuan for the 24th to 25th years. In the short term, the company's offline distribution model is the main focus, with growth in 25th year believed to be certain. Additionally, there is a continuous demand for some high-end products, and the online self-operated business is leading to rapid growth; the company's revenue growth is highly certain for the whole year. In the medium to long term, the company is expected to benefit from changes in consumer trends and the vast sports market in lower-tier cities, maintaining steady growth better than the industry. Key points from the Founder: - In the 24th quarter, revenue growth remained steady despite a high base period. - In the 24th quarter, the company's offline sales of adult clothing increased by about 10%, and children's clothing increased by about 10-15%, achieving steady growth despite a high base period. Online sales grew faster than offline, with a year-on-year growth of 30-35% in the 24th quarter. Taking advantage of the online competition during the Double Eleven event, through online differentiated explosive products and the placement of influencers on multiple platforms, the company achieved significant growth better than the industry, with growth momentum increasing on a month-to-month basis. While October and November benefited from the National Day holiday and the Double Eleven promotion, December saw a slight slowdown in growth due to colder weather than expected. Overall, the company's performance in Q4 met expectations, with additional low unit number orders contributing to incremental growth each month. - All operating indicators remained steady. - In the 24th quarter, the company's discount level was 70-73%, with a slight improvement compared to the previous period; the terminal inventory-sales ratio was about 4.5-5 times, and the sales rate of new products within six months was about 80%. - Focusing on long-termism in the running and basketball categories, continuous brand investments are being made: - In the 4th quarter, the company increased its technological investment in winter down jackets, launching multiple functional down jacket products. At the same time, the first signature shoe of Jokic, Joker1, was globally released, expected to accelerate the company's global expansion. In addition, by continuously sponsoring domestic marathons to enhance its influence in the running community, and with the upcoming 9th Asian Winter Games in Harbin, the company, as an official partner, is expected to enhance its brand influence and promote its outdoor-related products. - Outlook for the 25th year is overall optimistic, with channel renewal and continuous advancement in overseas markets: - In the New Year of 25th, the company achieved a low single-digit growth in revenue, achieving a good start with only one holiday background. Looking at the whole year, in the first three quarters of the 25th year, ordering meetings maintained steady growth, mainly driven by volume growth, with price growth of about low single-digits; the bank expects steady growth for the whole year. In terms of channels, the company has launched the tenth generation store for adult clothing and the fifth generation store for children's clothing domestically; meanwhile, a new super store format has been introduced to test new business models, with an area of over a thousand square meters and a more diverse product range. Currently, three stores have been opened in Chengdu, Shijiazhuang, and Huizhou. If the single-store model is successful, there is significant room for expansion in the future. The company is increasing investment in the Asian and Southeast Asian markets, recently opening its first direct store in Malaysia and planning to open a few more in other Southeast Asian countries, providing a model for local distributors.