Shenzhou International Earnings: Weaker Cost Pass-Through Drives 16% Cut to Fair Value Estimate
Shenzhou's first-half operating margin landed below what its own profit warning implied, and second-half guidance points to only marginal relief.
Shenzhou International Group Holdings Ltd 02313
Bulls Say, Bears Say
Bulls
Lululemon orders could add a further boost, as the Taiwanese incumbents that once served the brand have largely exited China, leaving Shenzhou one of the few mainland suppliers able to fill the gap.
Bears
Athleisure has matured, and signs of saturation are emerging. A worldwide slowdown in sportswear sales would weigh on Shenzhou's top line.
Trading Information
- Previous Close Price
- HK$34.84
- Day Range
- HK$33.14–34.12
- 52-Week Range
- HK$33.14–73.00
- Bid/Ask
- HK$33.96 / HK$33.98
- Shares Outstanding
- 1.50B
- Market Cap
- HK$51.22B
- Volume/Avg
- 10M / 7M
Key Statistics
- Price/Earnings (Normalized)
- 10.29
- Price/Sales
- 1.55
- Dividend Yield (Trailing)
- 6.12%
- Dividend Yield (Forward)
- 5.18%
- Dividend Payment Schedule
- Jun, Sep
- Total Yield
- 6.12%
Company Profile
Shenzhou is the world's largest vertically integrated knitwear manufacturer. It makes sportswear, casual wear, and lingerie for major international brands like Nike, Adidas, Puma, and Uniqlo. Sportswear is by far its biggest business, at 68% of 2025 revenue, followed by casual wear at 27% and lingerie at 5%.Its largest market is mainland China, which made up 24% of sales in 2025, followed by Europe, the US, and Japan. To serve these customers, Shenzhou runs manufacturing plants in China, Cambodia, and Vietnam.
- Sector
- Consumer Cyclical
- Industry
- Textile Manufacturing
- Stock Style Box
- Large Value
- Total Number of Employees
- 108,680
- Website
- https://www.shenzhouintl.com
Competitors
Valuation
|
Metric
|
02313
|
GIL
|
ADDYY
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.29 | 10.56 | 16.31 |
Price/Book Value | 1.22 | 2.32 | 4.15 |
Price/Sales | 1.55 | 1.50 | 0.94 |
Price/Cash Flow | 10.18 | 12.19 | 8.69 |
Price/Earnings
02313
GIL
ADDYY
Financial Strength
|
Metric
|
02313
|
GIL
|
ADDYY
|
|---|---|---|---|
Quick Ratio | 1.85 | 0.57 | 0.60 |
Current Ratio | 2.26 | 1.93 | 1.39 |
Interest Coverage | 13.46 | 2.34 | 6.96 |
Quick Ratio
02313
GIL
ADDYY
Profitability
|
Metric
|
02313
|
GIL
|
ADDYY
|
|---|---|---|---|
Return on Assets (Normalized) | 8.11% | 7.94% | 7.62% |
Return on Equity (Normalized) | 12.30% | 23.45% | 27.00% |
Return on Invested Capital (Normalized) | 7.37% | 12.24% | 14.77% |
Return on Assets
02313
GIL
ADDYY
Textile Manufacturing Industry Comparables
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United States