# 360 Security Technology (601360.SHG)

Canonical: https://gigainvestors.com/s/601360.SHG

Analysis as of: 2026-10-16T07:36:08.663Z. Financial observations: FY2018–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 8.59 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 8 years

- Years with declining revenue: 6

- Years with a net loss: 3

- Operating margin variation: 2.36×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.32×

- FY2019: 0.56×

- FY2020: 0.29×

- FY2021: 0.11×

- FY2022: -0.20×

- FY2023: -0.05×

- FY2024: -0.12×

- FY2025: -0.08×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -0.4%

- ROIC, second-lowest year: -16.5%

- Typical minus recent gross margin: -2.1 pp

- Typical gross margin (annual median): 63.8%

- Recent gross margin (lower of latest and 3-year median): 65.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.0%

- ROIC including acquisitions, ten-year median: 5.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 43.8%

- FY2019: 73.9%

- FY2020: 27.2%

- FY2021: 7.0%

- FY2022: -23.3%

- FY2023: -8.5%

- FY2024: -16.5%

- FY2025: -7.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -3.1B

- Net income, five-year total: CNY -2.6B

- Return on incremental invested capital: -1702.9%

- Working capital / revenue, annual change: -1.4 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: CNY 808M

- FY2022: CNY -2.3B

- FY2023: CNY -638M

- FY2024: CNY -1.4B

- FY2025: CNY 454M

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 43.8% vs -8.5%

- Per-share earnings: 0.54 to -0.07 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -2.2%

- Market cap gain: CNY -59B

- Cumulative retained earnings: CNY 3.2B

- Diluted shares, 5-year annual growth: -2.2%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: CNY -0.61

- Per-share value, starting three-year median: CNY 0.54

- Per-share value, ending three-year median: CNY -0.07

- Buybacks concentrated in cheaper years (correlation): -0.80

- Average buyback yield: 1.7%

- Buyback history: 4 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 43.8%

- ROIC, last three-year median: -8.5%

Chart: Earnings per share; fiscal year observations.

- FY2018: CNY 0.54

- FY2019: CNY 0.90

- FY2020: CNY 0.40

- FY2021: CNY 0.14

- FY2022: CNY -0.31

- FY2023: CNY -0.07

- FY2024: CNY -0.16

- FY2025: CNY 0.04

### accounting: pass

- Sloan accruals: 0.3%

- Receivables to sales index (DSRI): 0.84×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.59×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.10×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -0.7%

- FY2019: 9.5%

- FY2020: 2.2%

- FY2021: 1.8%

- FY2022: -7.1%

- FY2023: -3.5%

- FY2024: -3.7%

- FY2025: 0.3%

## Holders

## Price story

Down 51% since Mar 2023 · sales +9.4%

Story as of 2026-10-16T10:00:06.941Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +9.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: CNY 13B 

- FY2019: CNY 13B 

- FY2020: CNY 12B 

- FY2021: CNY 11B 

- FY2022: CNY 9.5B 

- FY2023: CNY 9.1B 

- FY2024: CNY 7.9B 

- FY2025: CNY 8.7B 

### Gross margin · FY2025

gross margin 66.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: 69.4% 

- FY2019: 65.2% 

- FY2020: 62.4% 

- FY2021: 61.8% 

- FY2022: 57.7% 

- FY2023: 60.3% 

- FY2024: 65.9% 

- FY2025: 66.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are CNY 8.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2025: revenue 8692564000; grossProfit 5784438000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601360.SHG: 360 Security Technology Inc. operates as an Internet and security service provider in China. The company offers security products, such as 360 Security Guard, 360 Mobile Guard, and 360 Security Browser. Its products include computer security, safe internet, system emergency, system tools, lifestyle and leisure, mobile phone security, performance optimization, 360 mall, and digital security products. The company also provides SaaS services, including 360 enterprise security cloud, full stack security protection, and SaaS ecosystem store; security operations and services; and personal services comprising internet access essentials, daily life and travel, and repair services, as well as video live stream and fintech services. The company was founded in 1992 and is based in Beijing, China.

### Why customers stay

Margins ranged from 60.3% to 66.5% during 2023–25; it lost 0.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2023: grossProfit / revenue = 60.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2024: grossProfit / revenue = 65.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2025: grossProfit / revenue = 66.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); 8-year return on capital observations [[2018,0.4378851548322338],[2019,0.7393715845754518],[2020,0.27188522444792207],[2021,0.07036739173198985],[2022,-0.2331248818267734],[2023,-0.08504321143500806],[2024,-0.16501930785061106],[2025,-0.07775298649018578]]; median -0.003692797379097966. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 8 years; bought back CNY 2.9 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2018: growth capex 0; upkeep 499517000; owner earnings 3343419000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2019: growth capex 0; upkeep 664145000; owner earnings 5608191000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2020: growth capex 0; upkeep 557721000; owner earnings 2661941000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2021: growth capex 0; upkeep 384438000; owner earnings 808422200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2025: growth capex 0; upkeep 488908000; owner earnings 453500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); Dividend observations: [[2018,18263000],[2019,358495000],[2020,358495000],[2021,79712000],[2022,731431000],[2023,22042000],[2024,738761000],[2025,1424058000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); FY2025: cash repurchases 2913157843.75 CNY.

### Are managers owners

Insiders own 60.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601360.SHG SharesStats.PercentInsiders = 60.352 percentage points; cache date 2026-10-16.

### What the price says

The price is 6.5 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:08.663Z); Closing price 8.59 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 1.3219976198895111; price multiple 6.497742409489306. FY2025 cash earnings/share 0.0689699748681624. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 12.79 per share

- 2016-11: CNY 12.83 per share

- 2016-12: CNY 11.82 per share

- 2017-01: CNY 11.49 per share

- 2017-02: CNY 11.78 per share

- 2017-03: CNY 11.13 per share

- 2017-04: CNY 9.94 per share

- 2017-05: CNY 8.51 per share

- 2017-06: CNY 8.79 per share

- 2017-07: CNY 8.79 per share

- 2017-08: CNY 8.79 per share

- 2017-09: CNY 8.79 per share

- 2017-10: CNY 8.79 per share

- 2017-11: CNY 44.45 per share

- 2017-12: CNY 45.97 per share

- 2018-01: CNY 51.26 per share

- 2018-02: CNY 56.92 per share

- 2018-03: CNY 42.33 per share

- 2018-04: CNY 36.76 per share

- 2018-05: CNY 34.21 per share

- 2018-06: CNY 28.90 per share

- 2018-07: CNY 26.71 per share

- 2018-08: CNY 24.35 per share

- 2018-09: CNY 26.44 per share

- 2018-10: CNY 21.70 per share

- 2018-11: CNY 22.35 per share

- 2018-12: CNY 20.37 per share

- 2019-01: CNY 19.65 per share

- 2019-02: CNY 26.12 per share

- 2019-03: CNY 25.82 per share

- 2019-04: CNY 22.85 per share

- 2019-05: CNY 21.26 per share

- 2019-06: CNY 21.38 per share

- 2019-07: CNY 20.08 per share

- 2019-08: CNY 22.17 per share

- 2019-09: CNY 23.48 per share

- 2019-10: CNY 22.61 per share

- 2019-11: CNY 20.74 per share

- 2019-12: CNY 23.51 per share

- 2020-01: CNY 24.57 per share

- 2020-02: CNY 22.35 per share

- 2020-03: CNY 18.93 per share

- 2020-04: CNY 18.66 per share

- 2020-05: CNY 17.80 per share

- 2020-06: CNY 18.31 per share

- 2020-07: CNY 19.42 per share

- 2020-08: CNY 18.68 per share

- 2020-09: CNY 16.55 per share

- 2020-10: CNY 15.81 per share

- 2020-11: CNY 16.60 per share

- 2020-12: CNY 15.71 per share

- 2021-01: CNY 16.27 per share

- 2021-02: CNY 16.10 per share

- 2021-03: CNY 13.92 per share

- 2021-04: CNY 12.61 per share

- 2021-05: CNY 12.25 per share

- 2021-06: CNY 12.21 per share

- 2021-07: CNY 11.94 per share

- 2021-08: CNY 11.90 per share

- 2021-09: CNY 11.88 per share

- 2021-10: CNY 12.04 per share

- 2021-11: CNY 11.96 per share

- 2021-12: CNY 12.72 per share

- 2022-01: CNY 10.44 per share

- 2022-02: CNY 10.46 per share

- 2022-03: CNY 9.98 per share

- 2022-04: CNY 8.19 per share

- 2022-05: CNY 8.28 per share

- 2022-06: CNY 8.52 per share

- 2022-07: CNY 7.39 per share

- 2022-08: CNY 7.32 per share

- 2022-09: CNY 6.50 per share

- 2022-10: CNY 7.08 per share

- 2022-11: CNY 6.89 per share

- 2022-12: CNY 6.54 per share

- 2023-01: CNY 7.00 per share

- 2023-02: CNY 10.79 per share

- 2023-03: CNY 17.45 per share

- 2023-04: CNY 15.97 per share

- 2023-05: CNY 13.95 per share

- 2023-06: CNY 12.54 per share

- 2023-07: CNY 11.87 per share

- 2023-08: CNY 11.18 per share

- 2023-09: CNY 9.83 per share

- 2023-10: CNY 8.98 per share

- 2023-11: CNY 8.68 per share

- 2023-12: CNY 9.01 per share

- 2024-01: CNY 6.83 per share

- 2024-02: CNY 8.77 per share

- 2024-03: CNY 8.72 per share

- 2024-04: CNY 8.53 per share

- 2024-05: CNY 8.23 per share

- 2024-06: CNY 7.68 per share

- 2024-07: CNY 7.48 per share

- 2024-08: CNY 7.00 per share

- 2024-09: CNY 8.81 per share

- 2024-10: CNY 9.67 per share

- 2024-11: CNY 13.40 per share

- 2024-12: CNY 10.35 per share

- 2025-01: CNY 11.10 per share

- 2025-02: CNY 11.10 per share

- 2025-03: CNY 10.38 per share

- 2025-04: CNY 10.23 per share

- 2025-05: CNY 10.00 per share

- 2025-06: CNY 10.20 per share

- 2025-07: CNY 11.30 per share

- 2025-08: CNY 11.60 per share

- 2025-09: CNY 11.31 per share

- 2025-10: CNY 11.97 per share

- 2025-11: CNY 13.62 per share

- 2025-12: CNY 11.17 per share

- 2026-01: CNY 12.14 per share

- 2026-02: CNY 12.40 per share

- 2026-03: CNY 10.70 per share

- 2026-04: CNY 11.17 per share

- 2026-05: CNY 10.10 per share

- 2026-06: CNY 8.69 per share

- 2026-07: CNY 9.33 per share

- 2026-08: CNY 9.22 per share

- 2026-09: CNY 8.95 per share

- 2026-10: CNY 8.92 per share

## Annual estimated value (CNY per share)

- FY2022: low CNY 6.60 per share, central CNY 7.07 per share, high CNY 7.68 per share

- FY2023: low CNY 4.83 per share, central CNY 4.98 per share, high CNY 5.17 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations