According to the app Zhitong Finance, GTJA issued a research report stating to maintain a 'shareholding' rating for 361 degrees (01361), with a forecast of the net profit attributable to the mother for 2024-2026 unchanged at 1.09/1.27/1.46 billion yuan. The company is a leading sportswear brand targeting the sinking market in China, with industry-leading revenue growth since 2024 and meeting expectations. Its high cost-performance positioning aligns with current sales trends, with higher enthusiasm for the 2025 spring and summer orders. Q3 revenue met expectations, with strong growth during the National Day holiday, maintaining the growth outlook for the whole year. The performance at the 2025 spring and summer ordering event was good.

GTJA's main opinions include:

Q3 revenue met expectations, with continued healthy operational indicators.

In Q3, the company's offline sales of adult and children's clothing grew by approximately 10% year-on-year, while online sales increased by 20-25%, maintaining steady growth. The discount rate remained stable at 71%, inventory turnover maintained a healthy level of 4.5-5 months, with an associated rate of about 2.2, and the sell-out rate of goods within 180 days was about 75%. The area of large and children's clothing stores saw some growth compared to the previous quarter, mainly due to the company's continuous implementation of the 'small store to large store' strategy. Additionally, in Q3, the company experienced different levels of reorder every month, reflecting the high recognition by end consumers of 361 degrees products and strong brand loyalty.

In Q3, the strong sales of new products were launched, and the NBA China tour boosted the brand's presence.

In Q3, the company introduced products like FUTURAS outdoor running shoes, FLYFEW 2, and RAINSCREEN 8, using high-quality materials, new technology, and in-house R&D to provide runners with a comfortable and practical running experience. The FLYFEW 2 quickly sold out upon its release. In August, American basketball player Pope made his first eight-day visit to China, enhancing the brand's visibility and international influence while increasing the buzz around sports events.

Maintain the profit forecast for 2024, with positive feedback from the 2025 summer ordering meeting.

Considering that the average growth rate of the company's ordering meeting in 2024 is in the double digits, the company operates purely offline distribution model. The growth rate of the ordering meeting basically determines the income growth rate. In addition, the Q3 revenue meets expectations, and during the National Day holiday, the company's growth momentum continues to be strong (online year-on-year growth of over 30%, offline year-on-year growth of over 20%). The bank maintains the expectation of double-digit revenue growth for the whole year. In mid-September, the company held the 2025 summer ordering meeting, where the new series of products (such as the tennis series) received positive market feedback due to their excellent quality-price ratio advantage, and are expected to show good growth.

Risk warning: Terminal consumption below expectations, industry competition exceeding expectations, etc.