Northeast: Maintain a "buy" rating on 361 DEGREES (01361), brand influence continued to strengthen.

Northeast released a research report stating that it maintains a "buy" rating for 361 DEGREES (01361), expecting the company to achieve a year-on-year revenue growth of 13.8%/11.1%/10.1% to RMB 11.47/12.74/14.03 billion from 2025 to 2027; and a net profit attributable to shareholders to grow by 11.6%/15%/10.3% to RMB 1.28/1.47/1.62 billion. The company released its operating performance for the third quarter of 2025, with the offline retail sales of the 361 DEGREES main brand growing by around 10% year-on-year, the offline retail sales of children's wear brands growing by around 10% year-on-year, and the overall turnover of the 361 DEGREES e-commerce platform products growing by around 20% year-on-year. As a leading domestic sports brand, 361 DEGREES focuses on positioning the mass market to improve product quality-price ratio and continues to enhance its brand influence. Key points from Northeast include: Terminal continues to maintain a stable growth trend The offline retail sales of the 361 DEGREES main brand and children's wear brand grew by around 10% year-on-year in Q3, with a similar growth rate to Q2 (both main brand and children's wear brand offline retail sales increased by 10% year-on-year in Q2). The e-commerce channel turnover continues to outperform offline growth, with a 20% year-on-year growth in Q3, maintaining a leading growth rate in the fluctuating terminal consumption environment. Technology empowers product innovation and upgrade, product matrix continues to diversify During the reporting period, in the field of running shoes, the professional marathon racing shoes have been iterated to "FlyFire 4.5", and the "RainScreen 9" running shoes have strengthened waterproof functionality; in the basketball shoe field, the brand's lightest product "Madness 2 PRO" was launched; in the outdoor field, a variety of products such as assault jackets and outdoor shoes have been continuously introduced to enrich the product matrix. In addition, the company has reached a cooperation with Standa Siasun Robot & Automation company, actively participating in the intelligence process. Continuous investment in brand building During the reporting period, the company's racing family was exhibited at the Berlin Marathon Expo, with the debut of "FlyFire 5" and "FlyFire 5FUTURE". In terms of domestic marathon sponsorship, the company continued to be the 2025 Tangshan Marathon partner and the sponsor of the 2025 Taishan Marathon. The 361 DEGREES' own event "2025 Track 3 10KM Racing Series" was successfully held. In addition, the first China trip of Jokic was launched during the reporting period, with the company releasing the "JOKER1 GT" China trip color matching and the "Jokic China trip set", helping to boost business conversion. Exploring new online channels, empowering offline stores During the reporting period, the company reached business cooperation with Meituan Flash Purchase and Meituan Buy, which can deliver products to consumers within 30 minutes. Online traffic further empowers offline store retail. In terms of flagship stores, as of the end of the reporting period, the total number of stores nationwide reached 93, with smooth store expansion. In addition, the first women's sports concept store of 361 DEGREES landed in Shijiazhuang, enriching the channel image and helping brand building. Risk warning: New product development falls short of expectations, store expansion falls short of expectations, market competition intensifies, and profit forecasts and valuations fall short of expectations.