Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research> Daiwa Lowers TP for SHENZHOU (02313.HK) to HKD73 as 2H25 Gross Margin Misses Expectations
Recommend 3 Positive 1 Negative 6 |
||||
|
||||
|
Daiwa published a research report indicating that SHENZHOU INTERNATIONAL (02313.HK) underperformed expectations in the second half of 2025. Revenue grew by 2.2% year-on-year, while the gross margin fell by 1.8 percentage points year-on-year to 25.6%, marking a two-year low. This performance was significantly below the market's expectation of a largely stable gross margin. The firm attributed the gross margin underperformance mainly to tariffs, RMB appreciation, rising labor costs, and inefficiencies. Looking ahead to 2026, the firm noted that order momentum remained weak in January and February, but showed improvement in March. The firm expects full-year sales volume to grow by a mid-single-digit percentage year-on-year, with the average selling price slightly declining year-on-year due to RMB appreciation and ongoing adjustments by Nike and Puma. Despite short-term headwinds, the firm reiterated its "Buy" rating based on the company's current reasonable valuation, lowering the target price from HKD79 to HKD73. (ss/da) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
URL: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
