Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance expectation relative to the market [6]. Core Insights - The company reported a revenue of 24.98 billion yuan for 2025, reflecting a year-on-year growth of 4.1%, while the net profit attributable to shareholders was 3.21 billion yuan, down 16.5% year-on-year [4][6]. - The company experienced a significant increase in new customer orders, particularly from clients like Adidas, which helped offset declines in orders from existing customers [6]. - The company is actively expanding production capacity with new factories in Vietnam and Indonesia, which are expected to enhance profit margins as they ramp up operations [6]. Financial Data Summary - Revenue for 2025 is projected at 24.98 billion yuan, with a year-on-year growth rate of 4.1% [5]. - The net profit for 2025 is estimated at 3.21 billion yuan, reflecting a decline of 16.5% compared to the previous year [5]. - The earnings per share (EPS) for 2025 is projected to be 2.75 yuan, with a forecasted increase to 3.03 yuan in 2026 and 3.49 yuan in 2027 [5]. - The gross margin for 2025 is expected to be 22.1%, with a gradual increase to 22.9% by 2027 [5]. - The return on equity (ROE) is projected to be 17.9% for 2025, improving to 19.6% by 2027 [5].

Core Viewpoint - The report from Daiwa indicates increased confidence in the order status for Shenzhou International's sports apparel for next year, expecting changes in the product mix to drive average selling prices and gross margin expansion [1] Group 1: Order Performance - Following the implementation of equal tariffs in ASEAN in August, many OEM factories experienced weak order performance in the third quarter due to cautious ordering attitudes from downstream customers [1] - However, a noticeable recovery in orders was observed in November, suggesting a positive trend [1] Group 2: Future Outlook - The expectation of multiple sports events taking place next year is likely to sustain the recovery trend in orders [1] - Daiwa has reiterated a "Buy" rating for Shenzhou International, raising the target price from HKD 80 to HKD 84 [1] Group 3: Earnings Forecast - The earnings per share forecast for 2025 to 2027 has been adjusted downwards by 1% to 2% [1]

Core Viewpoint - Daiwa has increased confidence in the order status of Shenzhou International (02313) for sports apparel in the coming year, anticipating that changes in the product mix will drive average selling prices and gross margin expansion [1] Group 1: Order Performance - Following the implementation of equal tariffs by ASEAN in August, many OEM factories experienced weak order performance in the third quarter due to cautious ordering attitudes from downstream customers [1] - However, a noticeable recovery in orders was observed in November, indicating a potential turnaround in demand [1] Group 2: Future Outlook - The firm expects the recovery trend to continue, supported by multiple sports events scheduled for next year [1] - Daiwa has reiterated a "Buy" rating for Shenzhou International, raising the target price from HKD 80 to HKD 84 [1] Group 3: Earnings Forecast - Earnings per share forecasts for 2025 to 2027 have been adjusted downwards by 1% to 2% [1]