360 (601360) Hot Analysis: AI + Security Strategy Drives Q3 Profit Inflection Point and Market Performance

360 has recently become a hot stock in the market, mainly due to the emergence of a profit inflection point in Q3 and significant progress in its AI business. The company achieved a net profit attributable to shareholders of RMB 160 million and a non-recurring net profit of RMB 159 million in Q3, successfully turning from loss to profit [1][6]. In terms of AI business, Nano AI Search has 150 million monthly active users, and AI subscription service revenue grew rapidly by 25.51% [1], marking the entry of AI commercialization into the harvest period.

The company’s share price hit the daily limit on November 3 and 17, 2025, with a large net inflow of main funds [3][7]. Market recognition of its dual-drive strategy of AI + Security, combined with the overall activity of the AI application concept sector [4][8], has driven the strong performance of the share price.

360 implements a dual-mainline strategy of AI + Security, launching the Nano AI Super Search Agent and 360 Zhinao Large Model [6]. At the same time, it maintains its leading position in the cybersecurity field, with PC Security Guard MAU reaching 430 million and a market share of approximately 95% [1]. The first three quarters revenue increased by 8.18% year-on-year, and the net cash flow from operating activities improved by 82% year-on-year [6].

Despite the improvement in profitability, the company still faces short-term cash flow pressure, with operating cash flow of -RMB 338 million in the first three quarters, mainly due to AI computing power investment [1]. In addition, attention should be paid to the progress of AI business scaling and market competition risks.