Tianfeng Securities released a research report stating that it maintains a 'buy' rating for 361 degrees (01361), with estimated revenues of 10.09 billion RMB, 11.69 billion RMB, and 13.45 billion RMB for the years 2024 to 2026; net profit attributable to shareholders is expected to be 1.11 billion RMB, 1.29 billion RMB, and 1.53 billion RMB, respectively; corresponding EPS are 0.54 RMB/share, 0.62 RMB/share, and 0.74 RMB/share.

Tianfeng Securities' main points are as follows:

361 degrees performed well in the retail sector in Q3 2024.

In 2024 Q3, offline sales of 361 degrees' main brand increased by about 10%, children's wear retail sales increased by about 10%; online sales on the 361° e-commerce platform increased by more than 20%.

In Q3 2024, the company adhered to the principle of using technology to empower professional sports, launching products such as 'FUTURAS Outdoor Running Shoes,' 'Feisuo 2,' and 'Rain Screen 8th generation,' providing runners with a comfortable and practical running experience through high-quality materials, new processes, and in-house R&D technology. Among them, 'Rain Screen 8th generation' uses self-developed waterproof and breathable membrane technology FLY-TEX to provide runners with a lightweight and comfortable wearing experience even in heavy rain.

In terms of events, the Zhengzhou Marathon started during the period, where 361° professional elite marathon speed running shoes 'Feisuo 2' activated runners' performance on the demanding track. At the end of September, the 361° Dream Track Speed Family Matrix made an appearance at the Berlin International Marathon Expo, showcasing the latest speed racing shoes that add technology and reduce weight, experiencing the speed charm together with international runners and brand ambassadors Li Zicheng, Guan Yousheng, and Li Bo. 'Feisuo 2' assists Derseh, KINDIEKASSIE, and Sisay Meseret.

Regarding events, the Zhengzhou Marathon started during the period, where the 361° professional elite marathon speed running shoe 'Feisuo 2' activated runners' performance on the demanding track. At the end of September, the 361° Dream Track Speed Family Matrix made its appearance at the Berlin International Marathon Expo, enhancing technology and reducing weight with the latest speed racing shoes, exploring the speed charm together with international runners and brand ambassadors Li Zicheng, Guan Yousheng, and Li Bo. 'Feisuo 2' assists Derseh, KINDIEKASSIE, and Sisay Meseret.

KINDIEKASSIE and Sisay Meseret

GOLA respectively broke the best record of 361 degrees racing shoes and the best record of 361 degrees major events in women, with the 361 degrees brand entering the top 10 of major events for the first time. In addition, 'Falcon 2' and 'Blaze 4' successfully helped elite runners Wang Jiahao and Wang Lianzheng achieve their personal best PB.

Held a Ping Technology new product launch event to attract consumers with technology and strength.

On October 11th, the well-known domestic sports brand 361 degrees held a Ping Technology new product launch event in Qingdao with the theme of "Breakthrough Rain, Breathe Freely". Based on their years of professional sports DNA, they innovatively upgraded their product technology and launched the Ping Technology family of sports equipment focusing on 'Imperial Ping 2.0 Assault Jacket' and 'Rain Ping 8th Generation Running Shoes'. With the brand strategy guidance of 'Technology as the foundation, brand as the priority', 361 degrees is using more sports technology and stronger product capabilities to attract consumer recognition and attention.

Imperial Ping 2.0 Assault Jacket, all-round protection for outdoor sports enthusiasts with six screens in one.

361 degrees Yu Ping 2.0 assault jacket, relying on the Ping Technology platform to achieve a waterproof rating of 8000mm.

With H?O and an outstanding indicator of 8000G/㎡/24H moisture permeability, it is not afraid of outdoor weather changes; in addition, there are multiple overlay technologies such as windproof, stain-resistant, and wear-resistant under the Ping Technology platform. With the support of Ping Technology, the Yu Ping 2.0 assault jacket truly achieves 6-in-1 protection, becoming a 'hexagonal warrior' among assault jackets.

Rain Ping 8th Generation Running Shoes, the assault jacket of the running shoe world.

On the basis of inheriting the excellent performance of previous generation products, the Rain Ping 8th Generation Running Shoes have undergone comprehensive upgrades and optimizations. The FLY-TEX waterproof and breathable membrane technology it carries is inspired by the outstanding hydrophobic and breathable properties of birds' feathers, cleverly integrating the FLY-TEX waterproof and breathable membrane into the inner layer of the fabric to effectively block external moisture intrusion, ensuring the long-term stability of waterproof performance. It also rapidly vents the heat and moisture generated by the body to the outside, maintaining a dry and comfortable internal environment with dual effects.

Risk Warning: Lower-than-expected terminal retail sales, forex risks, intensifying market competition, etc.