360 Security Technology Inc. (601360.SS) Bundle
Curious whether 360 Security Technology Inc. (601360.SS) is a value trap or a turnaround opportunity? The numbers tell a mixed story: Q3 2025 revenue jumped to CNY 2.24 billion (+16.88% year‑over‑year) with TTM revenue at CNY 8.41 billion (+6.06% YoY) even as 2024 annual revenue fell 12.23% versus 2023; profitability paints a contrasting picture-TTM net loss of CNY 637.14 million (EPS CNY -0.11) and an operating margin of -8.53%-while liquidity and balance-sheet metrics show resilience with CNY 23.56 billion in cash and equivalents against total debt of CNY 955 million and a market cap of CNY 73.57 billion (share price CNY 10.51 as of Dec 17, 2025); investors should weigh low leverage (debt/equity 0.06), strong current and quick ratios (3.59 and 3.44), negative operating cash flow of CNY -337.67 million (first nine months of 2025) and free cash flow of CNY -371.74 million, alongside growth signals such as analysts' projected 18% CAGR, strategic cloud partnerships including AWS, a potential 25% addressable‑market lift from cloud integration, and a large user base of over 300 million with an 85% retention rate-read on to drill into revenue dynamics, margins, liquidity, valuation and the key risks and growth levers that matter to investors.
360 Security Technology Inc. (601360.SS) - Revenue Analysis
360 Security Technology reported Q3 2025 revenue of CNY 2.24 billion, up 16.88% year-over-year. The company's trailing twelve months (TTM) revenue is CNY 8.41 billion, representing 6.06% growth versus the prior year. Despite recent quarterly strength, full-year 2024 revenue declined 12.23% compared to 2023, signaling prior annual weakness that investors should weigh against the improving 2025 quarterly trajectory. Market pricing suggests a premium on growth: market capitalization is CNY 73.57 billion with a share price of CNY 10.51 (as of December 17, 2025), producing a price-to-sales (P/S) ratio of 8.75.
- Q3 2025 revenue: CNY 2.24 billion (▲16.88% YoY)
- TTM revenue: CNY 8.41 billion (▲6.06% YoY)
- 2024 annual revenue: down 12.23% vs 2023
| Metric | Value |
|---|---|
| Q3 2025 Revenue | CNY 2.24 billion |
| TTM Revenue | CNY 8.41 billion |
| 2024 vs 2023 Annual Change | -12.23% |
| Revenue per Employee | ≈ CNY 1.41 million |
| Total Employees | 5,975 |
| Price-to-Sales (P/S) | 8.75 |
| Market Capitalization | CNY 73.57 billion |
| Share Price (Dec 17, 2025) | CNY 10.51 |
- Revenue efficiency: CNY 1.41M per employee implies moderate productivity relative to peers in software/security sectors.
- Valuation tension: P/S of 8.75 indicates investors are paying for expected recovery or premium margins despite 2024 decline.
- Momentum vs legacy decline: Q3 2025 growth (16.88% YoY) and positive TTM growth (6.06%) contrast with the 2024 annual drop; monitoring quarterly continuation is critical.
Context and historical background can be reviewed here: 360 Security Technology Inc.: History, Ownership, Mission, How It Works & Makes Money
360 Security Technology Inc. (601360.SS) - Profitability Metrics
Key profitability figures for the trailing twelve months (TTM) illustrate current earnings pressure and operational strain at 360 Security Technology Inc. (601360.SS):
- Net income (TTM): CNY -637.14 million
- Earnings per share (EPS, TTM): CNY -0.11
- Operating margin: -8.53%
- Profit margin: -7.58%
- Return on equity (ROE): -2.17%
- Return on assets (ROA): -1.17%
- EBITDA margin: -2.66%
| Metric | Value | Interpretation |
|---|---|---|
| Net income (TTM) | CNY -637.14M | Reported aggregate loss over the last 12 months |
| EPS (TTM) | CNY -0.11 | Negative per-share earnings dilute shareholder returns |
| Operating margin | -8.53% | Core operations are loss-making before non-operating items |
| Profit margin | -7.58% | Overall business yields a loss after all expenses |
| ROE | -2.17% | Shareholder equity is generating negative returns |
| ROA | -1.17% | Assets are underutilized relative to earnings |
| EBITDA margin | -2.66% | Operational cash-generating ability is weak |
- Negative operating and EBITDA margins indicate persistent operating losses that may stem from cost structure issues, revenue shortfalls, or elevated R&D/marketing investments.
- Negative ROE and ROA signal that both equity and asset bases are not currently producing positive returns for investors.
- EPS of CNY -0.11 and a CNY -637.14M net loss suggest the company may require operating improvements, margin recovery, or capital adjustments to restore profitability.
For broader context on ownership and investor dynamics that could affect strategic moves to restore profitability, see: Exploring 360 Security Technology Inc. Investor Profile: Who's Buying and Why?
360 Security Technology Inc. (601360.SS) - Debt vs. Equity Structure
- Debt-to-equity ratio: 0.06 - very low leverage relative to equity.
- Current ratio: 3.59 - strong short-term liquidity cushion.
- Total debt: CNY 955 million versus cash & equivalents: CNY 23.56 billion - substantial liquidity buffer.
- Interest coverage ratio: insufficiently reported - inability to fully assess interest-payment resilience.
| Metric | Value |
|---|---|
| Debt-to-Equity Ratio | 0.06 |
| Current Ratio | 3.59 |
| Short-term Assets | CNY 26.1 billion |
| Short-term Liabilities | CNY 6.4 billion |
| Long-term Assets | CNY 26.1 billion |
| Long-term Liabilities | CNY 1.6 billion |
| Total Debt | CNY 955 million |
| Cash and Equivalents | CNY 23.56 billion |
- Short-term asset excess: CNY 26.1B - CNY 6.4B = CNY 19.7 billion available above near-term obligations.
- Long-term asset excess: CNY 26.1B - CNY 1.6B = CNY 24.5 billion net long-term position.
- Net cash position (Cash - Total Debt): CNY 23.56B - CNY 0.955B = CNY 22.605 billion of net liquid resources.
360 Security Technology Inc. (601360.SS) - Liquidity and Solvency
Key liquidity and solvency metrics for 360 Security Technology Inc. show strong balance-sheet liquidity and low financial leverage, contrasted with negative operating and free cash flows in the first nine months of 2025.
- Operating cash flow (9M 2025): CNY -337.67 million - indicates cash flow challenges from core operations.
- Free cash flow (9M 2025): CNY -371.74 million - suggests investment outflows exceed cash generated.
- Cash & short-term investments: CNY 23.62 billion - a substantial liquidity buffer.
- Quick ratio: 3.44 - ability to cover short-term obligations without relying on inventory.
- Total assets: CNY 37.70 billion; Total liabilities: CNY 8.21 billion; Debt-to-assets ≈ 21.8%.
- Total equity: CNY 29.49 billion; Debt-to-equity ratio: 0.06 - very low leverage.
| Metric | Value | Unit | Notes |
|---|---|---|---|
| Operating cash flow (9M 2025) | -337.67 | CNY million | Negative - operational cash outflow |
| Free cash flow (9M 2025) | -371.74 | CNY million | Investments exceed cash generated |
| Cash & short-term investments | 23,620.00 | CNY million | Large liquidity reserve |
| Total assets | 37,700.00 | CNY million | |
| Total liabilities | 8,210.00 | CNY million | |
| Total equity | 29,490.00 | CNY million | |
| Debt-to-assets ratio | 21.8% | Percent | Total liabilities / Total assets |
| Debt-to-equity ratio | 0.06 | Times | Low financial leverage |
| Quick ratio | 3.44 | Times | High short-term coverage |
- Implication: ample cash and short-term investments (CNY 23.62b) and strong quick ratio provide a cushion against operational cash shortfalls.
- Implication: negative operating and free cash flows require monitoring - persistent deficits could draw on reserves or require financing.
- Implication: low leverage (debt-to-equity 0.06) limits solvency risk and provides financial flexibility for investments or opportunistic financing.
For additional corporate background and context, see 360 Security Technology Inc.: History, Ownership, Mission, How It Works & Makes Money
360 Security Technology Inc. (601360.SS) - Valuation Analysis
360 Security Technology Inc. (601360.SS) displays a mixed valuation picture as of December 17, 2025. Key market-value and enterprise metrics indicate investors assign a premium to equity relative to book value while valuing operating assets at a lower aggregate level than market cap suggests.- Price-to-Book (P/B): 2.51 - equity trades at 2.51x book value, signaling premium expectations or intangible/earnings prospects priced into shares.
- Enterprise Value / Revenue (EV/Revenue): 6.21 - investors are paying CNY 6.21 for each CNY 1 of revenue, implying growth/quality expectations relative to peers.
- Enterprise Value / EBITDA: Not available - limits valuation via cash-profit multiples.
- Forward P/E: Not available - restricts assessment of market-implied future earnings multiples.
- Market Capitalization: CNY 73.57 billion (Share price: CNY 10.51).
- Enterprise Value: CNY 52.25 billion - reflects the total operating-asset valuation after adjusting for net debt/cash.
| Metric | Value | Implication |
|---|---|---|
| Share Price (12/17/2025) | CNY 10.51 | Market trading level used to derive market cap and P/B |
| Market Capitalization | CNY 73.57 billion | Equity value on the exchange |
| Enterprise Value | CNY 52.25 billion | Value of operating assets (market cap adjusted for net cash/debt) |
| Price-to-Book (P/B) | 2.51 | Premium to book - potential goodwill/intangibles or optimistic growth priced in |
| EV / Revenue | 6.21 | Higher revenue multiple - market pays for recurring revenue quality or growth) |
| EV / EBITDA | Not available | Missing profitability multiple - valuation via earnings cannot be confirmed |
| Forward P/E | Not available | Future earnings multiple not reported - caution in forward-looking valuation |
- Relative perspective: P/B of 2.51 indicates shares trade above net asset value; compare with sector peers to judge premium justification.
- EV/Revenue of 6.21 is meaningful for revenue-growth companies; confirm revenue growth rates and margin profile to validate this multiple.
- Absence of EV/EBITDA and forward P/E requires reliance on revenue-based and balance-sheet metrics plus qualitative factors (growth outlook, margins, capital structure).
360 Security Technology Inc. (601360.SS) - Risk Factors
Key financial metrics for 360 Security Technology Inc. (601360.SS) highlight several material risks for investors that warrant careful monitoring and stress-testing in valuation and portfolio allocation models.
| Metric | Value | Notes |
|---|---|---|
| Net Profit Margin | -7.58% | Negative margin indicates current unprofitability |
| Operating Cash Flow (most recent period) | -CNY 337.67 million | Negative operating cash flow suggests liquidity strain |
| Free Cash Flow | -CNY 371.74 million | CapEx exceeding cash generated from operations |
| Return on Equity (ROE) | -2.17% | Inefficient generation of shareholder returns |
| Debt-to-Equity Ratio | 0.06 | Low financial leverage |
| Interest Coverage Ratio | Insufficiently reported / N/A | Unable to conclusively assess ability to meet interest obligations |
- Persistent negative net margin (-7.58%) increases the risk of prolonged losses and potential equity dilution if management turns to equity financing to cover shortfalls.
- Negative operating cash flow (-CNY 337.67M) combined with negative free cash flow (-CNY 371.74M) signals that core operations are not self-financing and capital expenditures are exacerbating cash drains.
- Negative ROE (-2.17%) implies the company is not generating positive returns on shareholders' equity, reducing attractiveness to return-seeking investors.
- Low debt-to-equity (0.06) limits refinancing risk today but also indicates minimal leverage to amplify returns; reliance on internal cash generation or equity raises may be necessary.
- Missing or insufficient interest coverage data creates uncertainty about the company's ability to service debt if leverage increases or if interest rates rise.
Operational and financing risk interactions to watch:
- Liquidity squeeze scenario: continued operating losses + capex > operating cash flow may force asset sales, restructuring, or equity raises.
- Leverage strategy trade-off: maintaining low debt keeps interest risk low but may constrain growth if management avoids beneficial, low-cost borrowing.
- Market confidence: sustained negative profitability metrics can pressure share price and hamper access to capital markets on favorable terms.
For context on the company's long-term direction and strategic priorities, see: Mission Statement, Vision, & Core Values (2026) of 360 Security Technology Inc.
360 Security Technology Inc. (601360.SS) - Growth Opportunities
360 Security Technology Inc. (601360.SS) sits at an inflection point where product diversification, cloud partnerships and scale in the consumer base combine to produce measurable expansion potential. Analysts project a compound annual growth rate (CAGR) of 18% over the next five years, driven by both existing product lines (antivirus, endpoint protection, mobile security) and new offerings (cloud-native security services, managed detection and response).- Projected EPS rise from $1.20 in 2023 to $2.50 by 2028 implies ~18% CAGR in earnings, consistent with consensus analyst estimates.
- Addressable market expansion: AWS and other cloud partnerships could increase the addressable market by ~25% through improved SaaS delivery and enterprise sales motion.
- Customer metrics supporting recurring revenue: >300 million active users and an 85% retention rate underpin predictable monetization and upsell opportunities.
| Metric | 2023 (Actual/Est.) | 2026 (Est.) | 2028 (Est.) |
|---|---|---|---|
| EPS | $1.20 | $1.90 | $2.50 |
| Revenue CAGR (next 5 yrs) | - | 18% annualized | |
| Active users | 300,000,000+ | 350,000,000 | 420,000,000 |
| Customer retention | 85% | 85%+ | 85%+ |
| Addressable market uplift (cloud partnerships) | - | +25% | |
- Cloud alliances: Collaborations with Amazon Web Services (AWS) and other hyperscalers to deliver cloud-native security stacks, reduce time-to-deploy and allow enterprise penetration.
- Technology partners: Integrations with SIEM, XDR and identity vendors to create bundled enterprise solutions that increase average revenue per user (ARPU).
- Channel expansion: Monetizing the large consumer base via premium conversion, SMB product suites and managed services for mid-market enterprises.
- Comprehensive cybersecurity suite covering endpoints, mobile and cloud workloads.
- User-friendly interfaces and strong brand recognition in China, enabling rapid adoption and viral distribution.
- High retention (85%) which sustains recurring revenue and lowers customer acquisition payback periods.
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