Goldman Trims SHENZHOU INTL Price Target to HK$57, Keeps 'Buy' Rating

Deep News
Mar 31

Goldman Sachs released a research report stating that SHENZHOU INTL's (02313) net profit for the second half of last year was 11% lower than the bank's expectations. This was primarily due to gross profit margin and operating profit margin falling short of forecasts, coupled with foreign exchange losses exceeding expectations. Benefiting from the commencement of operations at a new garment factory in Cambodia and efficiency improvements at existing facilities, management anticipates mid-single-digit percentage growth in sales volume by 2026. The bank has lowered its net profit forecast for SHENZHOU INTL for 2026 to 2027 by 7% to 8%. The target price has been reduced from HK$67 to HK$57, equivalent to a projected 2026 price-to-earnings ratio of 13 times, compared to the previous 14 times, to reflect the slowdown in profit growth. The "Buy" rating is maintained.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10