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.
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