SHENZHOU INTL (02313) rose more than 4%, gaining 4.6% to HK$65.9 by the time of writing, with a trading volume of HK$200 million. Recently, market reports indicated that a major footwear materials supplier projected positive revenue and profit growth for the period before 2025, citing a recovery in orders from international brands like Nike in the second half of the year and the gradual contribution of new products. Citigroup previously noted that Nike's guidance for a low single-digit decline in revenue for the third quarter of fiscal year 2026 aligns with market expectations of a 1% drop. In Nike's second-quarter results, the North American market showed a strong recovery, with revenue rising 9%, primarily driven by a 24% increase in wholesale business. However, this growth was largely offset by a 16% decline in revenue from the Greater China region. The bank suggested that any pullback in SHENZHOU INTL's share price due to Nike's cautious outlook would present a buying opportunity. It further pointed out that SHENZHOU INTL's management has recently provided a conservative forecast, expecting sales volume growth to slow to mid-single digits in the second half of 2025, lower than the bank's previous expectation of high single-digit growth. Citigroup believes that the management's forecast has largely reflected the impact of Nike's cautious outlook. Nevertheless, the bank expects Nike's sales orders for SHENZHOU INTL in 2026 to remain flat rather than decline. Based on order visibility from its four major clients, SHENZHOU INTL is still positioned to achieve high single-digit sales volume growth in 2026.