Shenzhou International Group Holdings (2313) AI Stock Analysis

• Market Cap: HK$83.80B
• Dividend Yield: 4.06%
• Average Volume (3M): 4.95M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.85
• Revenue Growth: 12.76%
• EPS Growth: 34.50%
• Country: HK
• Employees: 102,690
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.40
• Shares Outstanding: 1,503,222,400
• 10 Day Avg. Volume: 5,177,007
• 30 Day Avg. Volume: 4,948,135
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$67.82
• Price Target Upside: 21.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: HK$63.00 ▲(13.00% Upside)

Shenzhou International Group Holdings has a strong overall stock score driven by robust financial performance, evidenced by impressive growth and profitability metrics. The technical analysis indicates a neutral to slightly bullish trend, while the valuation is attractive with a reasonable P/E ratio and a solid dividend yield. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Capacity Expansion

The company's strategy is pivoting towards expanding its capacity in Southeast Asia, which will enable it to meet brand customers' requirements to diversify their sourcing needs.

Earnings

Earnings are poised for rebound with a forecasted 12% topline recovery, driven by sportswear and casual wear orders, and an expected GP margin expansion.

Market Share

Shenzhou International's diversified production bases and strong manufacturing capability should enable it to continue to gain market share, especially in the sportswear segment.

Negative Factors

Inventory Levels

Downstream inventory levels are still high but easing, with an expectation of gradual restocking from the sportswear and casual wear categories.

Macroeconomic Risks

Key risks include macroeconomic headwinds, high inventory levels amongst apparel brand owners, unfavorable currency fluctuation, raw materials cost fluctuation, and rise in trade tariffs between trading partners.

Trade Tariffs

Trim target price to HKD84 to factor in uncertainty with trade partners.

Shenzhou International Group Holdings Business Overview & Revenue Model

Company Description

Shenzhou International Group Holdings Limited, an investment holding company, engages in manufacturing, processing, and selling knitwear products. It produces and sells sportswear, casual wear, and lingerie wear. The company is also involved in the import and export of commodities; quality check of garments; print and sale of knitwear products; trading and retail businesses; aircraft leasing; and property management and leasing activities. It has operations in Mainland China, European Union, the United States, Japan, and internationally. The company was incorporated in 2005 and is based in Kowloon, Hong Kong.

How the Company Makes Money

Shenzhou International Group Holdings generates revenue through its comprehensive garment manufacturing services, catering primarily to prominent international brands. The company's revenue model is built on large-scale production contracts with these global clients, which include renowned sports and casual wear brands. By leveraging its vertically integrated operations, Shenzhou controls costs and quality throughout the manufacturing process, from raw material procurement to finished product delivery. This integration allows the company to offer competitive pricing and high-quality products, thereby securing long-term partnerships and steady revenue streams. Additionally, the company benefits from its strategic location in China, which provides access to skilled labor and proximity to key markets, further enhancing its competitive advantage.

Shenzhou International Group Holdings Financial Statement Overview

Summary

Shenzhou International Group Holdings exhibits strong financial performance with impressive growth and profitability. The income statement shows a robust revenue increase and improved margins. The balance sheet reflects solid financial stability with manageable leverage, and the cash flow statement highlights strong cash generation.

Income Statement

The company shows a strong revenue growth trajectory with a 14.8% increase in 2024 compared to 2023. Gross profit margin improved to 28.1% in 2024, indicating effective cost management. The net profit margin rose to 21.8%, suggesting enhanced profitability. EBIT and EBITDA margins also reflect efficient operations. Overall, the income statement demonstrates robust growth and profitability.

Balance Sheet

The balance sheet indicates a healthy equity base with an equity ratio of 67.5% in 2024, showcasing strong financial stability. The debt-to-equity ratio is reasonable at 0.36, reflecting manageable leverage. Return on equity improved to 17.4%, highlighting efficient use of shareholder funds. While the debt levels are under control, the company should continue to monitor its leverage to maintain financial health.

Cash Flow

Operating cash flow is strong, supporting a high free cash flow to net income ratio of 0.54 in 2024. Although free cash flow decreased, the company maintained positive operating cash flow, underscoring its cash-generating capability. The operating cash flow to net income ratio of 0.84 further emphasizes operational efficiency. Continued focus on cash flow management will be crucial for sustaining growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.66B	24.97B	27.78B	23.85B	23.03B
Gross Profit	8.05B	6.06B	6.13B	5.79B	7.19B
EBITDA	9.06B	5.36B	5.28B	4.66B	6.39B
Net Income	6.24B	4.56B	4.56B	3.37B	5.11B
Balance Sheet
Total Assets	53.11B	48.61B	43.49B	42.13B	36.85B
Cash, Cash Equivalents and Short-Term Investments	25.04B	16.87B	13.73B	12.16B	13.64B
Total Debt	12.93B	12.26B	9.31B	10.72B	6.72B
Total Liabilities	17.25B	15.74B	12.73B	14.35B	9.58B
Stockholders Equity	35.85B	32.87B	30.75B	27.77B	27.28B
Cash Flow
Free Cash Flow	3.40B	4.14B	3.39B	1.41B	3.45B
Operating Cash Flow	5.27B	5.23B	4.63B	3.59B	5.75B
Investing Cash Flow	-3.47B	-1.38B	-371.33M	-6.41B	-2.56B
Financing Cash Flow	-2.65B	333.22M	-3.91B	1.32B	33.59M

Shenzhou International Group Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2313, the sentiment is Negative. The current price of 55.75 is below the 20-day moving average (MA) of 57.64, below the 50-day MA of 55.85, and below the 200-day MA of 56.80, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 6.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2313.

Shenzhou International Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2313	73 Outperform	HK$83.80B	12.45	18.17%	4.06%	12.76%	34.50%
Sector *	63 Neutral	£1.76B	11.16	4.65%	3.21%	0.46%	-42.18%
BSDGF	―	$6.52B	13.35	22.98%	6.02%	―	―
PTEXF	―	$257.06M	10.45	5.75%	―	―	―
2232	81 Outperform	HK$16.80B	10.49	13.55%	4.50%	13.03%	22.23%
1982	68 Neutral	HK$1.80B	5.26	14.40%	14.13%	4.95%	94.03%
2368	63 Neutral	HK$2.27B	10.27	13.04%	7.58%	12.67%	-25.28%

Shenzhou International Group Holdings Corporate Events

Shenzhou International Schedules Board Meeting for Interim Results

Shenzhou International Group Holdings Limited has announced a board meeting scheduled for August 27, 2025, to approve the interim results for the first half of the year and consider an interim dividend. This meeting is significant as it could impact the company’s financial strategy and shareholder returns, potentially influencing its market position and stakeholder interests.

The most recent analyst rating on (HK:2313) stock is a Buy with a HK$90.00 price target. To see the full list of analyst forecasts on Shenzhou International Group Holdings stock, see the HK:2313 Stock Forecast page.

Shenzhou International Reports Successful AGM Outcomes

Shenzhou International Group Holdings Limited announced the results of its Annual General Meeting held on May 27, 2025. All proposed resolutions, including the approval of financial statements, re-election of directors, and the declaration of a final dividend for the year ended December 31, 2024, were passed. The meeting also saw the reappointment of Ernst & Young as auditors and the granting of mandates for share issuance and repurchase. These outcomes reflect strong shareholder support and are expected to positively impact the company’s governance and financial strategies.

The most recent analyst rating on (HK:2313) stock is a Buy with a HK$105.00 price target. To see the full list of analyst forecasts on Shenzhou International Group Holdings stock, see the HK:2313 Stock Forecast page.