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]
大行评级｜交银国际：下调申洲国际目标价至84港元 下调今明两年收入及盈利预测