Core Viewpoint - CICC has downgraded the EPS forecast for Shenzhou International (02313) for 2026 by 15% to HKD 4.09, while introducing a forecast for 2027 at HKD 4.38, maintaining an outperform rating with a target price of HKD 62.48, reflecting a 30% upside potential [1] Group 1: Financial Performance - The company's revenue for 2025 is expected to increase by 8% to HKD 31 billion, while the net profit attributable to shareholders is projected to decline by 7% to HKD 5.8 billion, primarily due to rising labor costs, tariff burdens, and the appreciation of the RMB affecting gross margins [2] - In the second half of 2025, revenue growth is expected to slow to 2% due to weak demand and customer order cycles, with Adidas showing a positive revenue growth of 29%, while Uniqlo and Nike are expected to grow by 4% and decline by 1% respectively [3] - The gross margin is projected to decrease by 1.8 percentage points in the second half of 2025, attributed to rising employee wages, tariff sharing, and the impact of RMB appreciation [4] Group 2: Cost and Supply Chain Management - Approximately 50% of the company's raw materials are cotton, and 40% are synthetic fibers, with the company maintaining some inventory and signing agreements with suppliers to mitigate short-term raw material cost fluctuations [5] - The company has the capability to pass on cost changes to customers, which is expected to limit the impact of short-term raw material price volatility [5]
中金：维持申洲国际(02313)跑赢行业评级 下调目标价至62.48港元