Investment Rating - The report maintains a "Buy-A" rating for the company [2][8] Core Views - In the first half of 2025, the company achieved a revenue of 14.966 billion, representing a year-on-year growth of 15.3%, while the net profit attributable to shareholders was 3.177 billion, up 8.4% year-on-year [2][3] - The company's revenue growth was primarily driven by an increase in sales volume, although the profit growth lagged behind revenue due to a decline in gross margin and an increase in effective tax rate [3][4] - The company has seen a steady growth in sportswear and a remarkable performance in casual wear, with casual wear revenue growing significantly due to demand from markets in Japan, Europe, and other regions [3][4] Revenue Breakdown - Domestic market revenue slightly declined by 2.1%, while overseas markets experienced rapid growth, with revenue from the EU, the US, Japan, and other regions growing by 19.9%, 35.8%, 18.1%, and 18.7% respectively [4] - The company's four core customers accounted for 82.1% of total revenue, with significant growth in revenue from Uniqlo, Nike, Adidas, and Puma [4] Profitability and Costs - The gross margin decreased by 1.9 percentage points to 27.1% due to increased employee costs, while the inventory turnover improved with a decrease in inventory turnover days by 12 days [5][7] - The net profit margin decreased by 1.4 percentage points to 21.2% due to various factors including increased effective tax rate and government subsidies [7] Future Outlook - The company is expected to continue benefiting from its diversified product strategy and enhanced customer service capabilities, with a projected earnings per share of 4.40, 4.92, and 5.45 for 2025, 2026, and 2027 respectively [8][10] - The report anticipates that the negative impact of employee costs on gross margin will diminish in the second half of the year, and the company's vertical integration in fabric and garment production remains a core competitive advantage [8]

Core Viewpoint - The report from CMB International indicates that Shenzhou International's revenue for the first half of the year increased by 15.3% year-on-year to 14.97 billion yuan, driven primarily by volume growth. The net profit attributable to shareholders rose by 8.4% year-on-year to 3.18 billion yuan, while the gross profit margin recorded a decline of 1.9 percentage points to 27.1%, impacted by ongoing employee salary increases [1] Financial Performance - Revenue for the first half of the year reached 14.97 billion yuan, reflecting a year-on-year growth of 15.3% [1] - Net profit attributable to shareholders increased to 3.18 billion yuan, marking an 8.4% year-on-year rise [1] - Gross profit margin decreased to 27.1%, down 1.9 percentage points year-on-year due to rising labor costs [1] Future Outlook - The company is expected to see a slight improvement in gross profit margin in the second half of the year, driven by category structure changes, although recovery will take time due to ongoing labor cost pressures and new factories still ramping up [1] - Full-year gross profit margin is projected to decline by 0.9 percentage points year-on-year [1] - Revenue forecasts for 2025-2026 have been slightly reduced by 3% to 4% [1] - Earnings forecasts for 2025 and 2026 have been lowered by 15.9% to 16.4% [1] Investment Rating - The target price for Shenzhou International has been adjusted down to 84 HKD, while maintaining a "Buy" rating [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company achieved a revenue growth of 15.3% year-on-year in H1 2025, driven by increased procurement from core clients and enhanced operational efficiency [7] - The company reported a gross profit of 4.058 billion RMB in H1 2025, with a gross margin of 27.1%, reflecting a slight decrease due to rising labor costs [7] - The company maintains a strong dividend payout ratio of approximately 60% [7] - The company has a clear long-term strategy focusing on market expansion, capacity optimization, and institutional improvement amidst external disruptions and intensified industry competition [7] - The company is positioned as a leading player in the sports apparel manufacturing sector, benefiting from strong client relationships and mature production technology [7] Financial Summary - Revenue projections for the company are as follows: 24,995.68 million RMB in 2023, 28,662.94 million RMB in 2024, 31,906.94 million RMB in 2025, 35,266.51 million RMB in 2026, and 38,918.06 million RMB in 2027, with respective growth rates of -10.14%, 14.67%, 11.32%, 10.53%, and 10.35% [6] - The net profit attributable to the parent company is projected to be 4,557.26 million RMB in 2023, 6,240.58 million RMB in 2024, 6,612.20 million RMB in 2025, 7,335.75 million RMB in 2026, and 8,108.96 million RMB in 2027, with growth rates of -0.12%, 36.94%, 5.95%, 10.94%, and 10.54% respectively [6] - The company’s earnings per share are expected to increase from 3.03 RMB in 2023 to 5.39 RMB in 2027 [6] - The return on equity (ROE) is projected to be 13.87% in 2023, increasing to 18.16% by 2027 [6]

Investment Rating - The report assigns a rating of "Outperform" for Shenzhou International, indicating an expected total return over the next 12-18 months that exceeds the return of its relevant broad market benchmark [19]. Core Insights - Order growth exceeded market expectations, with revenue for the first half of 2025 reaching RMB 14.966 billion, a year-on-year increase of 15.3%, primarily driven by volume growth [2][7]. - Gross profit was RMB 4.058 billion, up 7.9% year-on-year, but gross margin decreased by 1.9 percentage points to 27.1% due to rising labor costs, increased raw material and freight costs, and inefficiencies in newly commissioned factories [2][7]. - Net profit attributable to shareholders rose 8.4% year-on-year to RMB 3.177 billion, with a net margin of 21.2%, down 1.4 percentage points year-on-year [2][7]. - The interim dividend was HKD 1.38 per share, reflecting a 10.4% increase year-on-year, with a maintained payout ratio of 60% [2][7]. Customer Structure and Performance - The four core customers accounted for 82.1% of revenue, an increase of 2.6 percentage points year-on-year, with significant order growth from Uniqlo and Adidas at nearly 30% year-on-year [2][8]. - Nike's orders increased by mid-single digits, while Puma's orders grew by mid-teens year-on-year, indicating stable relationships with core clients [2][8]. - New clients such as Polo and Lacoste also showed strong order growth, demonstrating the company's capability in client development [2][8]. Regional and Product Performance - Sportswear revenue increased by 9.9% year-on-year to RMB 10.129 billion, while casual wear surged by 37.4% year-on-year to RMB 3.792 billion, driven by overseas demand recovery [3][9]. - The U.S. market saw the most significant growth, with revenue up 35.8% year-on-year to RMB 2.555 billion, while domestic sales in China fell by 2.1% year-on-year to RMB 3.646 billion due to weak demand for sports products [3][9]. Capacity Expansion and Future Outlook - The company is expanding capacity through multiple initiatives, including a new fabric plant in Vietnam and a garment plant in Cambodia, with a total capital expenditure of RMB 1.53 billion in the first half of 2025 [4][10]. - Management expects stable orders for the full year, with limited impact from tariffs, as the company focuses on high-value-added products to maintain leading gross margins [4][11].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][37] Core Insights - The company reported a revenue of 14.97 billion HKD for the first half of 2025, representing a year-on-year growth of 15.3%, while the net profit attributable to shareholders was 3.18 billion HKD, up 8.4% year-on-year [1][10] - The gross margin decreased by 1.9 percentage points to 27.1%, primarily due to increased labor costs from wage hikes for frontline workers and a significant rise in tax expenses [1][10] - The company maintained a high dividend payout, declaring an interim dividend of 1.38 HKD per share, a 10.4% increase from the previous year, with a payout ratio of approximately 59.6% [1][10] Revenue Performance - Revenue growth by product category showed that casual wear sales increased by 37.4%, while sportswear and underwear grew by 9.9% and 4.1%, respectively [2][22] - All four major clients experienced revenue growth, with Client A, B, C, and D increasing by 27.4%, 6.0%, 28.2%, and 14.7% respectively [2][24] - International markets showed strong demand, with sales in the US, Europe, and Japan growing by 35.8%, 19.9%, and 18.1% respectively, while domestic sales declined by 2.1% [2][28] Competitive Positioning - The company's growth outperformed that of its major clients, indicating an increase in market share, particularly as Nike is expected to recover in the coming year [3][32] - The company is the largest player in the industry and continues to enhance its competitive advantage, with significant capital expenditures aimed at expanding integrated production capabilities [3][35] - The new garment factory in Cambodia has commenced operations, and a second fabric factory in Vietnam is expected to start production by the end of the year, enhancing vertical integration and supply chain efficiency [3][35] Financial Forecast - The company forecasts net profits of 6.576 billion HKD, 7.461 billion HKD, and 8.403 billion HKD for 2025, 2026, and 2027, respectively, reflecting growth rates of 5.4%, 13.4%, and 12.6% [4][38] - The target price is set between 75 and 82 HKD, corresponding to a price-to-earnings ratio of 16-17.5x for 2025 [4][37]

Investment Rating - The report maintains a "Buy" rating for the company, Shenzhou International (2313 HK), with a target price adjusted to HKD 84.00, indicating a potential upside of 41.5% from the current price of HKD 59.35 [1][7][12]. Core Insights - The company has shown steady revenue growth in the first half of 2025, with a year-on-year increase of 15.3% to RMB 14.97 billion, primarily driven by volume growth, while the average selling price saw a slight increase of 0.8% [6][7]. - Net profit for the same period rose by 8.4% to RMB 3.18 billion, although the gross margin decreased to 27.1%, down 1.9 percentage points year-on-year, influenced by ongoing employee salary increases [6][7]. - The report highlights a significant growth in leisure products, which surged by 37.4%, while sports products grew by 9.9% in the European and American markets [6][7]. - The company is expanding its overseas production capacity, with a new fabric factory in Vietnam set to begin operations by the end of 2025 and a new garment factory in Cambodia already operational [6][7]. Financial Summary - Revenue projections for the company have been slightly reduced for 2025 and 2026 by 3-4%, with net profit forecasts adjusted down by 16% due to more conservative gross margin assumptions [6][7]. - The expected revenue for 2025 is RMB 32.17 billion, with a projected net profit of RMB 6.55 billion, reflecting a year-on-year growth of 4.9% [5][13]. - The report anticipates a gross margin of 27.2% for 2025, which is a decrease from previous estimates, and a net profit margin of 20.4% [8][14].

Core Viewpoint - Bank of America Securities has downgraded the earnings forecast for Shenzhou International (02313.HK) by 2% and 3% for the next two years due to unsatisfactory gross margin performance in the first half of the year, while also lowering the target price from HKD 73 to HKD 71.8. However, the bank noted that Shenzhou's main clients experienced significant sales growth, outperforming global peers, and believes the company will enhance market share through its excellent supply chain [1][2]. Group 1 - Shenzhou International's stock closed at HKD 58.0, down 2.27%, with a trading volume of 10.45 million shares and a turnover of HKD 608 million as of August 28, 2025 [1]. - The stock is primarily rated as "Buy" by investment banks, with four banks issuing buy ratings in the last 90 days, and the average target price in this period is HKD 73.72 [1]. - Guosheng Securities has also issued a "Buy" rating for Shenzhou International in its latest report [1]. Group 2 - Shenzhou International has a market capitalization of HKD 89.216 billion, ranking second in the apparel and home textile industry [2]. - Key performance indicators for Shenzhou International compared to the industry average are as follows: - ROE: 18.05% vs. -4.82% (Industry Average) - Market Capitalization: HKD 89.216 billion vs. HKD 8.843 billion (Industry Average) - Revenue: HKD 30.653 billion vs. HKD 3.919 billion (Industry Average) - Net Profit Margin: 21.23% vs. -13.02% (Industry Average) - Gross Margin: 27.11% vs. 37.1% (Industry Average) - Debt Ratio: 34.21% vs. 50.91% (Industry Average) [2].

交银国际发布研报称，申洲国际(02313)上半年收入同比增长15.3%至149.7亿元人民币，主要由量的增长 带动归母净利润同比增长8.4%至31.8亿元人民币。上半年毛利率录得27.1%，同比降1.9个百分点，受员 工加薪持续影响。该行将公司在2025-26年收入预测小幅下调3%至4%，料全年毛利率仍会同比下滑0.9 个百分点，同时下调2025年至2026年盈利预测15.9%至16.4%。该行将其目标价下调至84港元，评级"买 入"。 该行认为，下半年毛利率有望在品类结构的推动下按半年略微改善，但考虑到人工成本持续影响、新工 厂仍在爬坡期，毛利率恢复需时，全年同比仍可能小幅下滑。 ...

Core Viewpoint - The report from CMB International indicates that Shenzhou International (02313) experienced a 15.3% year-on-year revenue growth in the first half of the year, reaching 14.97 billion RMB, driven primarily by volume growth. The net profit attributable to shareholders increased by 8.4% to 3.18 billion RMB [1]. Financial Performance - Revenue for the first half of the year was 14.97 billion RMB, reflecting a 15.3% increase year-on-year [1]. - Net profit attributable to shareholders rose to 3.18 billion RMB, marking an 8.4% year-on-year growth [1]. - Gross margin recorded at 27.1%, down 1.9 percentage points year-on-year, primarily due to ongoing employee salary increases [1]. Forecast Adjustments - The company’s revenue forecast for 2025-2026 has been slightly reduced by 3% to 4% [1]. - The gross margin is expected to decline by 0.9 percentage points year-on-year for the full year [1]. - Earnings forecasts for 2025 and 2026 have been lowered by 15.9% to 16.4% [1]. Target Price and Rating - The target price for Shenzhou International has been adjusted down to 84 HKD, maintaining a "Buy" rating [1]. Future Outlook - There is potential for a slight improvement in gross margin in the second half of the year, driven by product mix changes [1]. - However, ongoing impacts from labor costs and the ramp-up period of new factories suggest that recovery in gross margin will take time, with a slight year-on-year decline still anticipated for the full year [1].

Core Viewpoint - Bank of America Securities has downgraded the earnings per share forecast for Shenzhou International (02313) by 2% and 3% for the next two years, while also lowering the target price from HKD 73 to HKD 71.8, despite maintaining a "Buy" rating due to strong sales growth from major clients [1] Group 1: Financial Performance - Shenzhou International's gross margin performance in the first half of the year was below expectations, with a reported gross margin of 27.1% [1] - The company experienced strong revenue performance, partly due to favorable order timing [1] - The forecast for the second half of the year indicates only a slight improvement in gross margin, remaining below the 28.1% expected for 2024 and the pre-pandemic level of over 30% [1] Group 2: Market Position and Client Performance - Major clients of Shenzhou International showed significant sales growth that outperformed global industry peers in the first half of the year [1] - The recovery of Nike is anticipated to be a key factor influencing Shenzhou's stock performance moving forward [1]