Movement Alert|SHENZHOU INTL Declines 3.94% in Regular Trading, H1 Net Profit Drops 40% Year-over-Year

Market Focus
08/26

On August 26, SHENZHOU INTL fell 3.94% in regular trading, trading at HK$39.24/share, with turnover of HK$66.27 million. The decline follows the company's release of its interim results on August 25.

SHENZHOU INTL reported H1 revenue of RMB 14.18 billion, down 5.3% year-over-year, while net profit attributable to owners plunged 40% to RMB 1.905 billion. EPS declined to RMB 1.27 from RMB 2.11. Gross profit margin contracted sharply by 4.5 percentage points to 22.6%, reflecting higher raw material and labor costs, significant RMB appreciation against the USD, and lower sales volumes amid weak demand. The company declared an interim dividend of HK$0.88 per share payable September 24.

Multiple investment banks had previously cut target prices ahead of the results, with Citi lowering to HK$62, CLSA to HK$51, Bank of America to HK$50, and CICC to HK$52.76, though most maintained buy or outperform ratings. The company noted its Indonesia expansion is progressing, with new garment project land formally transferred in early August.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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