Huayuan Securities: Maintains a "Buy" rating on 361 DEGREES (01361) with better-than-expected expansion of superstores.

Huayuan Securities released a research report stating that as a leading domestic sportswear company, 361 DEGREES (01361) has continuously improved its brand strength with channel upgrades and ongoing research and development investment to drive product iteration. The company's brand power continues to increase, and the company continuously improves brand promotion and operational efficiency through the sports resources and supply chain resources accumulated over many years of industry cultivation. There is potential for further market share growth. The rating of "buy" is maintained. Key points from Huayuan Securities include: The company's operating performance is stable, with adult and children's offline retail sales in 25Q4 recording approximately 10% growth. 361 DEGREES released the operating overview for Q4 2025. By channel, in 25Q4, the company's main brand offline channel retail sales recorded approximately 10% positive growth, children's brand offline channel retail sales recorded approximately 10% positive growth, and the overall turnover of the e-commerce platform recorded high double-digit growth. Despite external factors such as weather disturbances in the fourth quarter, the company maintained its rapid growth trend across all channels by leveraging its product quality-price advantage, continuing the good performance of 25Q3. Multiple new products and collaborations released to continuously enhance brand influence through research and development innovation. Regarding new products, according to the company's announcement, the company has recently released several products featuring new technologies, such as the new racing shoes series Flyburn 5, the new shock-absorbing off-road running shoes Lingci 1, Joker 2, Wing-screen windbreakers, women's fitness products, and children's outdoor products. In terms of new collaborations, according to the Sports Big Business WeChat official account, 361 DEGREES announced multiple new collaborations at the end of 2025 Brand Day, including: 1) cooperating with Kang Lun Aerospace to develop ice cooling, Xun Gan, Ling Shu, and other technologies for use in running products; 2) collaborating with Tianjin Sports Institute to integrate the "education-research-industry" full chain ecological system; 3) renewing the contract with the Olympic Council of Asia to continue the brand's international exposure. The company enhances its brand image through product technology innovation, international event cooperation, and new products incorporating new technologies are expected to further strengthen the brand's value for money. The pace of opening "Super Stores" is better than expected, and ONEWAY may initiate new store expansion. According to Wind and CFW Fashion, in China, by the end of 2025, the company had opened 126 "Super Stores", including 105 large-sized Super Stores and 21 children's Super Stores, exceeding the expected number of store openings for this new store format. As for ONEWAY, since the re-launch of the Finnish outdoor brand ONEWAY under the company, the number of stores gradually reached 6 by the end of 2025. The bank believes that this type of store model is still in the operational verification stage, and after successful model verification, new store expansion may gradually begin in 2026, enriching the company's brand matrix and customer coverage. Profit forecast and rating: The bank predicts that the company's net profit attributable to shareholders will be 13.15 billion yuan, 14.89 billion yuan, and 16.84 billion yuan in 2025-2027, with year-on-year growth of 14.50%, 13.20%, and 13.13% respectively. Considering the company's brand image, product development capabilities, and marketing capabilities in the sportswear industry are excellent, the rating of "buy" is maintained. Risk warning: Risks include retail environment repair progress falling below expectations, store expansion progress falling below expectations, and some category product development progress falling below expectations.