Core Viewpoint - Shenzhou International is a leading vertically integrated knitwear manufacturer in China, maintaining strong partnerships with premium apparel brands like Nike, Adidas, PUMA, and Uniqlo, which positions the company favorably in the market [1] Group 1: Company Overview - Shenzhou International is recognized as an "invisible champion" in the domestic knitwear manufacturing sector, achieving a vertical integration strategy that enhances operational efficiency [1] - The company has experienced steady revenue growth over the years, with gross margins ranging from 25% to 30%, although recent challenges such as factory shutdowns and rising labor costs have impacted profitability [1] Group 2: Industry Dynamics - In the short term, the apparel industry is transitioning from inventory destocking to a potential replenishment phase as major brands like Nike are expected to see operational improvements, which may lead to increased order volumes for upstream manufacturers [1] - Long-term trends indicate stable growth in downstream apparel consumption, diversification of brands, and an increase in outsourcing by brand owners, which will likely benefit upstream suppliers [1] Group 3: Competitive Advantages - Shenzhou International has shifted its focus to higher-growth segments, particularly in sportswear, which has resulted in a higher concentration of clients and reduced revenue volatility [2] - The company has established a manufacturing system with R&D and high-end production in China and major production bases in Southeast Asia, leveraging labor and tax advantages while enhancing production efficiency through automation [2] Group 4: Investment Outlook - As of September 30, 2025, the company's price-to-earnings ratio (PE_TTM) is projected to decline to 13X, indicating a low valuation compared to historical levels [2] - The company is expected to achieve double-digit revenue growth this year, driven by increased contributions from existing clients like Adidas and Uniqlo, alongside a recovery in Nike's performance [3] - Forecasted net profits for 2025, 2026, and 2027 are estimated at 6.78 billion, 7.72 billion, and 8.76 billion yuan, respectively, with corresponding PE ratios of 14, 13, and 11X, suggesting potential for valuation recovery [3]
“织”道系列7-申洲国际(02313.HK)深度：格局增势 或跃在渊