The Zhitong Finance App learned that Zhishang Securities released a research report saying that maintaining the 361 degree (01361) “buy” rating, the company's 26/27/28 revenue is expected to be +8%/7%/7% to 120/129/13.8 billion yuan, and net profit to the mother +9%/9% to 14.3/15.6/170 billion yuan, corresponding to PE 6.4/5.8/5.3X. As the leading mass sports growth rate with high quality and price ratio, it is worth looking forward to the subsequent expansion and internationalization of supermarket stores. It is worth looking forward to the subsequent expansion and internationalization of supermarket stores. The company is expected to maintain a dividend rate of 45% in 26, corresponding to the dividend rate, combined with a dividend rate of 45%, corresponding to the dividend rate. Growth, valuation level, and dividend appeal.
The main views of Zheshang Securities are as follows:
Q3 turnover increased to medium to high orders, and discounts and inventory remained healthy
The company released an update on the 26Q3 business situation. In 26Q3, retail sales of large offline goods increased year-on-year, while offline retail sales of children's clothing also achieved medium unit growth, e-commerce retail sales achieved medium to high unit growth, and achieved resilient growth in the face of changing weather and a weak retail environment. By category, the 26Q3 running category maintained a good growth rate, and the basketball category continued to grow in the face of increased competition. Furthermore, the new tennis shoes launched in Q3 had a good response. 26Q3 offline discounts are around 70% off, e-commerce footwear discounts remain stable, the inventory ratio remains stable at 4.5-5X, and discounts and inventory remain healthy.
The supermarket progressed smoothly and achieved the annual net opening target ahead of schedule
21 new supermarket stores were added in 26Q3, bringing the total number of domestic supermarket stores to 208, and 2 overseas. A total of 83 stores have been opened since 2026, and the target for net opening of supermarket stores for the full year of 26 has been achieved ahead of schedule. The overall performance of supermarket stores was excellent, with outstanding results in reducing operating costs, improving store efficiency, and accepting new members. The new membership rate increased to 75%, a significant improvement over the previous 65%.
Overseas business turnover continues to grow at a high rate, and the medium- to long-term share target is clear
Overseas sales continued to grow rapidly in 26Q3. The company sponsored 5 consecutive Asian Games, helped the brand's exposure in Japan during the 26th Nagoya Asian Games. Wang Jiahao, the 361 degree brand running spokesperson, drastically refreshed the PB at the Berlin Marathon on September 27, and landed at 361 degrees in Berlin for 4 consecutive years starting in 2023, increasing the brand's international popularity. It is expected that overseas revenue will account for 4% to 5% for the full year of '26, and the overall overseas business will remain profitable. The company actively seeks incremental opportunities to promote the continuous expansion of overseas business. It is expected that the share of overseas revenue will increase dramatically in the next 3-5 years.
Risk warning: the risk of changes in consumer trends, overseas business expansion falls short of expectations, supermarket progress falls short of expectations