Investment Rating - The report maintains a "Buy" rating for Shenzhou International (2313) [4] Core Views - The company's decision to raise salaries for domestic employees reflects strong order momentum and demonstrates a progressive management approach that shares profits with employees [3] - Short-term order recovery is expected to remain strong, while medium-to-long-term growth will be driven by overseas capacity expansion and new customer/category development [3] - The salary increase for frontline employees is expected to have a limited impact on costs, as it only affects H2 2024 and assumes no cost pass-through to customers [3] - Full-year 2024 revenue is projected to grow by 16%, with sales volume increasing by over 15% and USD ASP rising by 1%, reaching approximately RMB 29 billion [3] - Gross margin is expected to gradually recover to a normal level of 30% by year-end, supported by improved product mix and recruitment progress [3] Financial Projections - Net profit forecasts for 2024-2026 are maintained at RMB 5.65 billion, RMB 6.55 billion, and RMB 7.31 billion, respectively [3] - EPS for 2024-2026 is projected at RMB 3.76, RMB 4.36, and RMB 4.86, respectively [3] - Current PE ratios for 2024-2026 are 20x, 17x, and 15x, respectively [3] - Revenue growth is expected to be 16.2% in 2024, 13.1% in 2025, and 12.1% in 2026 [6] - Net profit growth is projected at 24.1% in 2024, 15.8% in 2025, and 11.7% in 2026 [6] Company Overview - Shenzhou International operates in the textile and apparel industry [4] - The company's current market capitalization is HKD 120.634 billion, with 1.503 billion shares outstanding [5] - The stock price range over the past 52 weeks is HKD 61.95 to HKD 86.15 [5]
申洲国际事件点评：国内提薪前线员工，彰显订单向好势头