Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock price over the next six months [10]. Core Insights - The company reported a 14.8% year-on-year increase in revenue to 28.66 billion, with a net profit growth of 36.9% to 6.24 billion for the year 2024. The second half of the year saw a revenue increase of 17% and a net profit increase of 36.2% [1][2]. - The company plans to distribute a final dividend of HKD 1.28 per share, totaling HKD 2.53 for the year, with a payout ratio of 55.8% [1]. Revenue Breakdown - Revenue from leisure and underwear segments grew significantly, with sports, leisure, and underwear revenues increasing by 9.8%, 27.1%, and 34.6% respectively, contributing to 69%, 25%, and 5% of total revenue [2]. - Geographically, revenue from mainland China, Europe, Japan, the United States, and other regions was 8.06 billion, 5.19 billion, 4.83 billion, 4.61 billion, and 5.97 billion respectively, with year-on-year growth rates of 13.2%, 3.2%, 31.5%, 18.9%, and 13.4% [2]. Profitability Improvement - The company's gross margin improved by 3.8 percentage points to 28.1% in 2024, with the second half showing a gross margin of 27.4% [3]. - The net profit margin increased by 3.5 percentage points to 21.8%, supported by a rise in asset disposal income [3]. Future Projections - The company is expected to achieve revenue growth of 12.4%, 10.2%, and 10% for the years 2025, 2026, and 2027, reaching 32.22 billion, 35.52 billion, and 39.06 billion respectively [3]. - Net profit is projected to grow by 6.8%, 12.1%, and 11.1% for the same years, reaching 6.67 billion, 7.48 billion, and 8.30 billion respectively [3].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is expected to achieve a revenue of 28.66 billion RMB and a net profit of 6.24 billion RMB in 2024, representing year-on-year growth of 15% and 37% respectively [1] - The company anticipates a revenue growth of 10% to 15% in 2025, driven by an increase in order share and improved production efficiency [5] Revenue and Profitability - In 2024, the company's revenue and net profit are projected to be 28.66 billion RMB and 6.24 billion RMB, with respective year-on-year growth rates of 15% and 37% [1] - The gross margin for 2024 is expected to increase by 3.8 percentage points to 28.1%, primarily due to the recovery of capacity utilization [2] - The net profit margin is projected to rise by 3.5 percentage points to 21.8% in 2024 [2] Orders and Client Base - The company has seen healthy growth in orders from major clients such as Uniqlo, Nike, Adidas, and PUMA, with sales to the top four clients reaching 79.9 billion RMB, 74.0 billion RMB, 50.0 billion RMB, and 27.6 billion RMB respectively in 2024 [3] - Sales in the sports, leisure, underwear, and other categories for 2024 are expected to be 198.0 billion RMB, 72.1 billion RMB, 14.4 billion RMB, and 2.2 billion RMB, with year-on-year growth rates of 10%, 27%, 35%, and 11% respectively [3] Capacity and Production - The company is actively increasing its workforce to meet growing customer demand, with a saturated capacity utilization rate in 2024 [4] - The company is expanding its overseas production capacity, with a new garment factory in Cambodia nearing completion and expected to start hiring in 2025 [4] Financial Projections - The company expects to achieve a net profit of 6.65 billion RMB in 2025, with a projected P/E ratio of 11.5 times based on the current price [5] - The estimated revenue for 2025 is 32.03 billion RMB, reflecting a year-on-year growth rate of 11.8% [6]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company is expected to achieve a revenue of 28.66 billion RMB and a net profit of 6.24 billion RMB in 2024, representing year-on-year growth of 15% and 37% respectively [1] - The company anticipates a revenue growth of 10% to 15% in 2025, driven by an increase in order share and improved production efficiency [5] Revenue and Profitability - In 2024, the company's revenue and net profit are projected to be 28.66 billion RMB and 6.24 billion RMB, with respective year-on-year growth rates of 15% and 37% [1] - The gross profit margin for 2024 is expected to increase by 3.8 percentage points to 28.1%, primarily due to the recovery of capacity utilization [2] - The net profit margin is projected to rise by 3.5 percentage points to 21.8% in 2024 [2] Orders and Client Base - The company has seen healthy growth in orders from major clients, with sales to its top four clients reaching 79.9 billion RMB, 74.0 billion RMB, 50.0 billion RMB, and 27.6 billion RMB, reflecting year-on-year changes of +33%, -4%, +35%, and +11% respectively [3] - Sales by product category in 2024 are expected to be 198.0 billion RMB for sportswear, 72.1 billion RMB for leisurewear, 14.4 billion RMB for underwear, and 2.2 billion RMB for other categories, with respective year-on-year growth rates of +10%, +27%, +35%, and +11% [3] Capacity and Production - The company is actively increasing its workforce to meet growing customer demand, with a saturated capacity utilization rate in 2024 [4] - The company is expanding its overseas production capacity, with a new garment factory in Cambodia nearing completion and expected to start hiring in 2025 [4] Financial Projections - The company expects to achieve net profits of 6.65 billion RMB, 7.40 billion RMB, and 8.26 billion RMB for the years 2025, 2026, and 2027 respectively [5] - The projected P/E ratio for 2025 is 11.5 times, indicating a favorable valuation compared to historical performance [5]

Investment Rating - The investment rating for the company is "Buy" [1][5] Core Views - The company exceeded revenue expectations in 2024, with a projected continuation of steady growth into 2025 [2][5] - The increase in profit is attributed to disposal gains, which significantly enhanced overall profitability [5] Financial Summary - Revenue for 2024 is projected at 28,663 million RMB, representing a year-on-year increase of 14.8% [4] - Net profit for 2024 is expected to be 6,241 million RMB, reflecting a year-on-year growth of 36.9% [4] - The gross profit margin for 2024 is anticipated to be 28.1%, an increase of 3.8 percentage points compared to the previous year [5] - The company plans to maintain a high dividend payout ratio of 56% for 2024 [5] Growth Drivers - The revenue growth in 2024 is primarily driven by volume increases, particularly due to higher-than-expected orders from Uniqlo [5] - The company expects a low double-digit capacity growth in 2025, with stable average selling prices (ASP) and gross margins [5] - Positive sales guidance from key clients such as Adidas and Uniqlo indicates strong growth potential for 2025 [5]

Core Viewpoint - CICC maintains a "outperform" rating for Shenzhou International (02313) while lowering the target price by 14.5% to HKD 69.89, reflecting a decrease in overall industry valuation [1] Group 1: 2024 Performance - The company reported a 15% increase in revenue to RMB 28.7 billion and a 37% increase in net profit to RMB 6.2 billion, exceeding CICC's expectations due to higher-than-expected revenue growth and a one-time gain from asset sales of RMB 337 million [2] - The company declared a final dividend of HKD 1.28 per share, totaling HKD 2.53 per share for the year, with a payout ratio of 55.8% [2] - CICC expects a 17% revenue growth in 2H24 driven by a 20% year-on-year increase in order volume, maintaining high growth trends despite rising bases [2] Group 2: Sales Performance by Brand and Region - Revenue growth for major brands in 2H24 is projected as follows: Uniqlo +32%, Nike -2%, Adidas +48%, Puma +23%, indicating Shenzhou's increasing market share among key clients [2] - Revenue growth by region for 2024 is expected to be: China +13%, Europe +3%, Japan +32%, USA +19% [2] - A slight decline of approximately 3% in RMB unit price is anticipated in 2H24 due to product mix and raw material price decreases, although this is an improvement from a 7% decline in 1H24 [2] Group 3: Profitability and Cost Control - Gross margin is expected to increase by 3.8 percentage points year-on-year to 28.1% for 2024, with 2H24 gross margin at 27.4%, benefiting from improved capacity utilization [3] - A slight decrease in gross margin quarter-on-quarter is attributed to increased employee numbers and wages, but the company believes there is significant room for future margin improvement [3] - Despite a reduction in government subsidies and foreign exchange gains totaling RMB 145 million, net profit still achieved a 37% growth due to favorable factors including a gain from asset disposal [3] Group 4: Future Capacity and Order Growth - The company plans to increase its workforce by 10,000 to 102,700 employees in 2024, with new factory recruitment in Cambodia starting in March 2025 for about 6,000 positions [4] - Order volume is expected to maintain double-digit growth in 2025, despite pressures from major client Nike, supported by healthy growth from other clients [4] - As employee efficiency improves, the management anticipates a stable increase in gross margin for 2025 [4]

Investment Rating - The investment rating for the company is "Buy" [6] Core Insights - The company's 2024 annual profit exceeded expectations, with a revenue of 28.66 billion yuan (up 14.8% year-on-year) and a net profit of 6.24 billion yuan (up 36.9 year-on-year), alongside a proposed dividend of 1.28 HKD per share [1][5] - The growth in revenue is driven by a recovery in customer demand and an increase in market share, leading to improved production efficiency and gross margin recovery [1][3] Revenue Breakdown - Revenue from different product categories in 2024: sportswear 19.80 billion yuan (up 9.8%), leisurewear 7.21 billion yuan (up 27.1%), underwear 1.44 billion yuan (up 34.6%), and other knitted products 0.22 billion yuan (up 10.9%) [2] - Revenue by region in 2024: Mainland China 8.06 billion yuan (up 13.2%), Europe 5.19 billion yuan (up 3.2%), Japan 4.83 billion yuan (up 31.5%), the United States 4.61 billion yuan (up 18.9%), and other regions 5.97 billion yuan (up 13.4%) [2] Profitability and Efficiency - The gross margin for 2024 is 28.1% (up 3.8 percentage points year-on-year), with a net profit margin of 21.8% (up 3.5 percentage points year-on-year) [3] - The company has improved its operational efficiency, leading to a significant recovery in gross margin, although the second half of the year saw a slight decline compared to the first half due to increased hiring and wage adjustments [3] Capacity and Expansion - The company has increased its workforce to 103,000 by the end of 2024, up from 92,000 at the end of 2023, and has acquired a new factory in Vietnam to enhance fabric production capacity [4] - The new garment factory in Cambodia is expected to start hiring in March 2025, further expanding production capabilities [4] Financial Forecast and Valuation - Revenue projections for 2025-2027 are 32.14 billion yuan, 35.52 billion yuan, and 39.14 billion yuan, respectively, with corresponding net profits of 6.59 billion yuan, 7.39 billion yuan, and 8.22 billion yuan [5][10] - The company is expected to maintain a low price-to-earnings ratio of 12, 10, and 9 times for the years 2025-2027, indicating potential for growth [5][10]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SHENZHOU INTERNATIONAL GROUP HOLDINGS LIMITED ） （股份代號：2313） 截至二零二四年十二月三十一日止年度之初步年度業績公告 摘 要 * 僅供識別 – 1 – • 截至二零二四年十二月三十一日止年度銷售額約達人民幣28,662,938,000 元，比二零二三年度上升約14.8%。 • 截至二零二四年十二月三十一日止年度，運動類產品銷售額佔總銷售額 的百分比約為69.1%。運動類產品銷售額比二零二三年度上升約9.8%。上 升主要原因為中國大陸市場和美國市場運動類產品需求增加所致。 • 截至二零二四年十二月三十一日止年度，休閒類產品銷售額佔總銷售額的 百分比約為25.1%。休閒類產品銷售額比二零二三年度明顯上升約27.1%。 上升主要原因為日本及其他市場休閒類產品需求明顯增加所致。 （ 申洲國際集團控股有限公 司 * – 2 – • 截至二零二四年十二月三十一 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 75.2 HKD, indicating a potential upside of 32.4% from the current price of 56.8 HKD [4][7][21]. Core Insights - The company benefits from a strong order flow due to the recovery in market demand, particularly in sportswear and leisure apparel, which is expected to continue into 2025 [4][5][18]. - The textile manufacturing industry is experiencing a recovery, with stable performance from downstream brands, which supports the company's growth prospects [5][18]. - The company's internationalization strategy is progressing well, with an increasing proportion of overseas production capacity, which is expected to enhance operational efficiency and profitability [6][19]. Financial Performance - For the first half of 2024, the company reported a revenue of 129.75 billion RMB, a year-on-year increase of 12.2%, with a gross profit of 37.61 billion RMB, reflecting a 45.0% increase [10][18]. - The gross margin for the first half of 2024 was 29.0%, up 6.6 percentage points year-on-year, while the net profit margin was 22.6%, an increase of 4.2 percentage points [10][18]. - Revenue by business type showed double-digit growth in leisure and underwear segments, while sportswear recorded a high single-digit growth [11]. Market Dynamics - The company is positioned to benefit from the ongoing demand for sports health and the trend of brands increasing their procurement from key suppliers due to supply chain risks [4][18]. - The recovery in the textile manufacturing sector is reflected in the performance of peer companies, indicating a positive industry trend [5][16]. - The company has a strong customer base, with major clients contributing significantly to its revenue, and it is expected to continue securing orders from high-growth brands [20]. Future Projections - The company is projected to achieve revenues of 276.1 billion RMB, 307.1 billion RMB, and 335.3 billion RMB for FY24E, FY25E, and FY26E, respectively, with year-on-year growth rates of 10.6%, 11.2%, and 9.2% [7][21]. - Net profits are expected to reach 57.6 billion RMB, 65.1 billion RMB, and 73.5 billion RMB for the same periods, with growth rates of 26.3%, 13.1%, and 12.8% [7][21].

Core Viewpoint - Macquarie's latest research report indicates that Uniqlo and adidas are expected to be the main drivers of order growth for Shenzhou International, with gross margins likely to improve further [1] Group 1: Company Performance - Shenzhou International's net profit forecasts for the fiscal years 2024 and 2025 have been downgraded due to a decline in gross margins [1] - The target price for Shenzhou International has been reduced from HKD 97.4 to HKD 92.6, while maintaining an "outperform" rating [1] Group 2: Industry Trends - Nike's revenue is expected to achieve positive growth in the second half of the year, with an increase in product average prices [1]

Investment Rating - The report gives a "Recommend" rating to Shenzhou International (2313 HK) [189] Core Views - Shenzhou International is a global leader in knitted manufacturing with strong innovation R&D vertical integration and early globalization positioning it as a stable leader with upward growth potential [189] - The company is expected to achieve net profits of 5 701 6 530 and 7 410 billion yuan in 2024-2026 with year-on-year growth rates of 25 1% 14 5% and 13 5% respectively [189] - The PE ratios for 2024-2026 are 15x 13x and 12x respectively indicating a valuation advantage compared to peers [189] Financial Performance - In 2023 Shenzhou International achieved revenue of 24 970 million yuan a year-on-year decrease of 10 1% and net profit of 4 557 million yuan a year-on-year decrease of 0 1% [94] - The company's revenue is expected to grow to 27 980 31 172 and 34 399 million yuan in 2024-2026 with year-on-year growth rates of 12 1% 11 4% and 10 4% respectively [94] - The gross margin is expected to gradually increase to 28 4% 28 7% and 29 1% in 2024-2026 driven by improved capacity utilization and overseas expansion [186] Product and Market Analysis - Sportswear is the main driver of revenue growth with sales expected to reach 19 530 21 896 and 24 300 million yuan in 2024-2026 [16] - The European market showed growth with revenue increasing from 3 890 million yuan in 2019 to 5 027 million yuan in 2023 accounting for 20 13% of total revenue [96] - The company has diversified its customer base with major clients including Nike Uniqlo Adidas and Puma [30] Industry Trends - The global sportswear market is expected to grow from 1 92 trillion USD in 2024 to 2 35 trillion USD in 2028 with a CAGR of 4 20% [106] - The top five global sportswear brands (Nike Adidas Puma Skechers and Lululemon) accounted for 31 2% of the market in 2023 with Nike leading at 15 8% [105] - The global sportswear manufacturing market grew from 85 53 billion USD in 2009 to 158 26 billion USD in 2023 with a CAGR of 4 2% [171] Competitive Advantages - Shenzhou International has a strong R&D capability with 767 patent applications and 505 authorized patents by the end of 2022 [18] - The company has a vertical integration model that shortens production and delivery cycles making it highly favored by brand customers [19] - Shenzhou International has established dedicated factories for major clients like Nike Puma Adidas and Uniqlo ensuring independence and confidentiality in production [137] Future Outlook - The company is expected to benefit from the increasing concentration of suppliers to leading brands with Adidas and Nike reducing their number of manufacturing partners [146] - Shenzhou International has expanded its cooperation with new brands like FILA Lululemon and Lacoste which are expected to drive future growth [183] - The company is actively promoting automation and digitalization in its production processes to improve efficiency and reduce costs [166]