Core Viewpoint - Zhongyin Securities reports that Shenzhou International (02313) achieved a 15.3% year-on-year revenue growth to 14.966 billion RMB in the first half of the year, exceeding market expectations, but the gross margin of 27.1% fell short of expectations, and net profit growth of 8% was relatively modest [1] Group 1: Financial Performance - Revenue for the first half of the year reached 14.966 billion RMB, reflecting a 15.3% increase year-on-year [1] - Gross margin was reported at 27.1%, which was below expectations [1] - Net profit increased by 8% year-on-year, indicating a slower growth rate [1] Group 2: Factors Affecting Performance - The key factor for the performance was the rise in labor costs, along with production efficiency not fully catching up after large-scale recruitment in 2023-2024 [1] - The company is focusing on improving production efficiency through training and automation measures, with expectations for gradual improvement [1] Group 3: Market Position and Future Outlook - The company continues to make steady progress with major clients such as Adidas and Uniqlo, with order growth outpacing client retail sales growth, indicating a continuous increase in market share [1] - Despite the challenges, the company is expected to achieve moderate growth by 2026 due to its strong order acquisition capabilities [1] Group 4: Target Price Adjustment - The target price for Shenzhou International has been adjusted from 90 HKD to 77 HKD, while maintaining a "Buy" rating [1]