SHENZHOU INTL (02313) dropped over 4% again, declining 4.12% to HKD 64.05 by the time of writing, with a turnover of HKD 499 million.

Citigroup issued a research report, lowering SHENZHOU INTL's profit forecasts for 2025–2027 by 2% and reducing its target price from HKD 95 to HKD 94, while maintaining a "Buy" rating. The bank suggested that the stock decline may reflect management's conservative sales outlook but presents a buying opportunity, given an expected dividend yield of 4.8% in FY2026 and a 12% CAGR in EPS over the next three years.

Citigroup revised down its H2 2025 sales growth forecast for SHENZHOU INTL from high single-digit to mid single-digit, citing nearly flat Q3 sales growth as two major brands still need time to negotiate tariff-sharing arrangements with the company. However, the bank noted accelerated delivery volumes in October and November to compensate for the lag in Q3.

Guosheng Securities believes that despite past fluctuations in industry demand and customer orders, SHENZHOU INTL has consistently focused on long-term asset construction and steady capacity expansion. The firm anticipates that by 2026, with the recovery of core customer orders, the company will enter a phase of growth driven by capacity utilization, factory saturation, and improved profitability due to optimized order structures.

SHENZHOU INTL's workforce reached 103,000 by the end of 2024, up 12% YoY, and is expected to grow to 110,000 by H1 2025, a 9% YoY increase. Guosheng Securities predicts that the production capacity expansion and output growth resulting from garment factory hiring in recent years will continue to materialize in 2026.