J.P. Morgan Chase published a report stating that Shenzhou International's stock price has fallen by more than 20% since April 3. Motong believes this is mainly due to concerns about tariffs. Despite the escalation of the trade conflict between China and the US, Motong believes that the stock price is overreacting because: 1) Shenzhou has established mature overseas production capacity, which is sufficient to accept US orders; 2) additional US tariffs on Vietnam have been suspended for 90 days since April 10; 3) Vietnam and the US have agreed to start negotiations on a “mutual benefit” trade agreement. Motong lowered Shenzhou's profit forecast for the 2025 to 2027 fiscal year by 3% to 7% to reflect the impact of tariffs on global demand. The target price was lowered from HK$96 to HK$88, maintaining an “increase” rating. The bank is optimistic about Shenzhou. The first is the continuous expansion of overseas production capacity; the second is the opportunity to expand market share with core customers and establish steady relationships with emerging customers; the third is the continued focus on ESG and automation to drive sustainable growth; and the fourth is the localization of overseas production capacity.

J.P. Morgan Chase published a report stating that Shenzhou International's stock price has fallen by more than 20% since April 3. Motong believes this is mainly due to concerns about tariffs. Despite the escalation of the trade conflict between China and the US, Motong believes that the stock price is overreacting because: 1) Shenzhou has established mature overseas production capacity, which is sufficient to accept US orders; 2) additional US tariffs on Vietnam have been suspended for 90 days since April 10; 3) Vietnam and the US have agreed to start negotiations on a “mutual benefit” trade agreement. Motong lowered Shenzhou's profit forecast for the 2025 to 2027 fiscal year by 3% to 7% to reflect the impact of tariffs on global demand. The target price was lowered from HK$96 to HK$88, maintaining an “increase” rating. The bank is optimistic about Shenzhou. The first is the continuous expansion of overseas production capacity; the second is the opportunity to expand market share with core customers and establish steady relationships with emerging customers; the third is the continued focus on ESG and automation to drive sustainable growth; and the fourth is the localization of overseas production capacity.