361 Degrees International (1361) AI Stock Analysis

• Market Cap: HK$10.86B
• Dividend Yield: 5.22%
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): 2.7
• Beta (1Y): 0.81
• Revenue Growth: 14.63%
• EPS Growth: 15.55%
• Country: HK
• Employees: 7,934
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.47
• Shares Outstanding: 2,067,682,000
• 10 Day Avg. Volume: 2,921,715
• 30 Day Avg. Volume: 3,166,472
• PEG Ratio: 0.33
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -41.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$7.35
• Price Target Upside: 25.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.68
• Revenue Forecast (FY): HK$12.40B

• Rating: 81 Outperform
• Price Target: HK$6.50 ▲(11.11% Upside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

361 Degrees International scores well due to its strong financial performance and attractive valuation. The company's robust balance sheet and revenue growth are significant strengths. Technical analysis supports a positive outlook with bullish indicators. However, cash flow management needs improvement to sustain long-term growth.

Positive Factors

Consistent Revenue Growth

Sustained top-line expansion (nearly doubling over four years) indicates durable demand, improving scale economics and stronger negotiating leverage with suppliers and distributors. This growth provides a broader revenue base to absorb shocks and fund strategic investments over 2–6 months and beyond.

Strong Balance Sheet / Low Leverage

Very low reliance on debt and a high equity ratio give the company financial flexibility to invest in stores, e‑commerce and marketing without acute refinancing risk. This stability supports capital allocation and resilience during cyclical downturns over the medium term.

Improving Profit Margins

Rising gross and net margins reflect better cost control, sourcing efficiency and favorable product mix. Improved margin structure enhances free cash generation potential and return on invested capital, underpinning sustainable profitability as the company scales retail and wholesale channels.

Negative Factors

Fluctuating Free Cash Flow

Variable free cash flow and a recent decline point to capex timing or working capital inefficiencies. Over the medium term this can constrain funding for store expansion, digital initiatives or inventory build, forcing either higher borrowing or slower growth execution.

Room to Improve EBIT/EBITDA Margins

While gross and net margins improved, suboptimal EBIT/EBITDA suggests persistent operating cost pressure (retail/store costs, SG&A). If not addressed, weaker operating leverage could limit cash flow conversion and capex capacity, reducing long-term margin durability versus peers.

Wholesale Channel Concentration

Significant dependence on wholesale/distributor channels limits direct control over pricing, inventory and brand experience. Channel concentration can compress margins, amplify inventory risk and slow DTC transition, posing medium‑term risks to margin sustainability and customer loyalty.

361 Degrees International Business Overview & Revenue Model

Company Description

361 Degrees International Limited, an investment holding company, manufactures and trades in sporting goods in the People's Republic of China. The company operates in two segments, Adults and Kids. It offers adult and children footwear, apparels, and accessories for sports and casual life under the 361º core and 361º Kids brands. The company also manufactures and trades in shoes soles; trades in children sporting goods; and operates a gas station. As of December 31, 2021, it operated a network of 5,270 stores under the 361º core brand name. The company also sells products through its 361sport.com Website; other e-commerce platforms, including Tmall, Taobao, and JD; and authorized retailers and distributors. 361 Degrees International Limited was founded in 2003 and is headquartered in Xiamen, the People's Republic of China.

How the Company Makes Money

361 Degrees International generates revenue through multiple streams including direct sales of their products via retail outlets, e-commerce platforms, and wholesale distribution to other retailers. The company has established a significant presence in the Chinese market and leverages partnerships with various sporting events and athletes to enhance brand visibility and credibility. Additionally, they invest in marketing initiatives and sponsorships that drive consumer engagement and sales growth. The increase in online shopping trends has also contributed to their earnings, with a growing focus on digital sales channels.

361 Degrees International Financial Statement Overview

Summary

361 Degrees International demonstrates strong financial performance with significant revenue growth and improved profit margins. The balance sheet is robust with low leverage and high equity, indicating financial stability. However, cash flow management needs improvement due to fluctuating free cash flow and challenges in capital expenditure management.

Income Statement

361 Degrees International has shown strong revenue growth over the past few years, increasing from 5.12 billion in 2020 to 10.07 billion in 2024. Gross profit margin improved significantly, reflecting efficient cost management. Net profit margin has also improved, indicating better profitability. However, there is room for improvement in EBIT and EBITDA margins to enhance operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a strong equity base and low leverage. The debt-to-equity ratio is exceptionally low, reflecting minimal reliance on debt financing. High equity ratio indicates financial stability and capacity for future investment. Return on Equity (ROE) is robust, showcasing efficient use of shareholder capital.

Cash Flow

Cash flow analysis reveals fluctuating free cash flow, with a recent decline despite strong operating cash flow. The operating cash flow to net income ratio is positive, but free cash flow to net income has seen a downturn. This suggests some challenges in capital expenditure management and cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.64B	10.07B	8.42B	6.96B	5.93B	5.13B
Gross Profit	4.42B	4.18B	3.46B	2.82B	2.47B	1.94B
EBITDA	1.73B	1.65B	1.46B	1.14B	1.13B	792.45M
Net Income	1.22B	1.15B	961.43M	747.12M	601.70M	415.06M
Balance Sheet
Total Assets	14.13B	13.41B	13.07B	12.44B	11.24B	11.62B
Cash, Cash Equivalents and Short-Term Investments	4.60B	4.26B	5.20B	5.86B	5.34B	6.45B
Total Debt	317.26M	264.51M	295.31M	292.85M	208.87M	1.94B
Total Liabilities	3.61B	3.58B	3.34B	3.02B	2.68B	4.06B
Stockholders Equity	10.05B	9.38B	9.08B	7.94B	7.12B	6.61B
Cash Flow
Free Cash Flow	246.01M	-198.86M	343.83M	349.38M	362.35M	13.25M
Operating Cash Flow	433.48M	69.81M	407.81M	380.34M	371.95M	20.66M
Investing Cash Flow	1.43B	1.37B	416.77M	85.09M	1.08B	255.20M
Financing Cash Flow	-684.65M	-776.91M	-1.08B	59.43M	-1.56B	-242.63M

361 Degrees International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1361, the sentiment is Negative. The current price of 5.85 is above the 20-day moving average (MA) of 5.51, above the 50-day MA of 5.64, and above the 200-day MA of 5.59, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 31.77 is Neutral, neither overbought nor oversold. The STOCH value of 13.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1361.

361 Degrees International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1836	82 Outperform	HK$11.98B	9.93	14.55%	10.16%	-0.14%	-14.24%
1361	81 Outperform	HK$10.86B	2.74	12.53%	5.22%	14.63%	15.55%
1910	79 Outperform	HK$22.33B	9.45	20.51%	4.23%	-3.50%	-15.16%
0551	74 Outperform	HK$26.26B	8.62	9.61%	7.69%	5.75%	0.93%
0210	70 Outperform	HK$761.76M	2.92	16.16%	4.60%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1028	55 Neutral	HK$1.57B	-0.82	-13.27%	―	-11.17%	-621.38%

361 Degrees International Corporate Events

361 Degrees Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend

361 Degrees International Limited has scheduled a board meeting for 24 March 2026 to review and approve the audited financial results of the company and its subsidiaries for the year ended 31 December 2025, and to consider a possible final dividend. The timing of the meeting signals the forthcoming release of key financial information that will inform shareholders and the market about the group’s performance in 2025 and any proposed cash return to investors, which may influence market sentiment and the company’s positioning among listed sportswear peers.

The most recent analyst rating on (HK:1361) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on 361 Degrees International stock, see the HK:1361 Stock Forecast page.

361 Degrees Posts Solid Q4 Sales Growth and Steps Up Tech-Driven Brand Expansion

361 Degrees International reported about 10% year-on-year growth in offline retail sales for both its core brand and 361° Kids products in the fourth quarter of 2025, while its e-commerce business achieved high double-digit growth, underscoring robust consumer demand across channels. During the period, the group accelerated its “technology-driven, brand-first” strategy by launching a broad slate of performance products in running, basketball, outdoor, women’s fitness, cross-training and kids’ categories, deepened brand-building through renewed partnership with the Olympic Council of Asia and new strategic collaborations with Cleancool, Tianjin University of Sport and Evonik, and enhanced its social responsibility profile with a HKD15 million donation for Hong Kong fire relief and support for athletes at China’s National Games, moves that collectively strengthen its innovation credentials, international exposure and brand equity in the competitive sportswear market.

The most recent analyst rating on (HK:1361) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on 361 Degrees International stock, see the HK:1361 Stock Forecast page.