Soochow: 361 DEGREES (01361) Accelerates Store Opening for its flagship store, maintaining a "buy" rating.

Soochow released a research report stating that the offline/main brand line of 361 DEGREES (01361) in 2025Q3, children's clothing offline, and e-commerce revenue increased by approximately 10%/10%/20% respectively year-on-year, continuing the performance of Q2. The discount is close to 30% off, relatively stable. The forecast is maintained with a net profit attributable to the parent company of 13.0/14.6/16.2 billion yuan in 2025-2027, corresponding to a PE ratio of 8/8/7X, with a low valuation, and maintaining a "buy" rating. The report states that as of 2025Q3, there are 93 ONEWAY stores (80 adults clothing + 13 childrens clothing), an increase of 44 compared to Q2, with faster than expected progress in openings. The company expects to further open 20 ONEWAY stores in Q4. The areas and locations of the ONEWAY stores are superior to the traditional store types, effectively driving overall store efficiency. In the online channel, new business like Meituan Flash Delivery and Meituan Group Buying were added in 2025Q3, providing consumers with 30-minute express delivery services. In terms of products, in 2025Q3, new versions of the "Rain Screen 9th Generation" running shoe, professional marathon racing shoe "Flyburn 4.5", basketball shoe "DVD4", running shoe "Mad Rush 2PRO" were launched, as well as new outdoor product series "Light Wilderness", women's fitness series "New Muscle PRO" and "New Movement", continuously expanding market competitiveness through product technological innovation. In terms of branding, In 2025Q3, the company collaborated with NBA stars Jokic and Aaron Gordon on their China and Asia tours, interacting closely with fans, consolidating the brand's professional image and driving category sales. During the National Day, the outdoor brand ONEWAY opened six stores, and the sales performance during the peak season of autumn and winter skiing is worth looking forward to. In 2013, the company acquired the operating rights of the Finnish outdoor brand ONEWAY in the Greater China region. After nearly 10 years of development, there have been adjustments and contractions during the epidemic. With the increasing popularity of outdoor consumption, the brand underwent a renewal and upgrade in 2024. During the 2025 National Day holiday, ONEWAY brand added 6 new stores in the Chinese market (located in six northern cities including Zhengzhou, Jinan, Xi'an, Beijing, Daqing, and Lhasa), with store areas ranging from 100 to 120 square meters, approximately 120 SKUs, including the NUUKSIO, SISU, and LUXE product lines, covering professional skiing, professional outdoor, and urban outdoor styling, primarily in clothing, with a hopeful outlook for expanding the product line in the future.