Changes in Hong Kong stocks | Shenzhou International (02313) fell more than 3%, and many factors affected the company's gross margin contraction orders in the first half of the year and will improve quarterly

The Zhitong Finance App learned that Shenzhou International (02313) fell by more than 3%. As of press release, it was down 2.95% to HK$42.1, with a turnover of HK$176 million.

According to the news, the Komo Research Report pointed out that Shenzhou International issued a profit warning last Friday. The profit for the first half of the year is expected to fall 38% to 43% year-on-year, which is worse than the bank's original forecast of 30%. Although the direction and drivers of the decline in earnings were in line with expectations, the magnitude was more serious than expected. Komo believes that the large decline in profits may be more severe than expected due to tariff sharing, rising raw material and labor costs, and the impact on exchange.

According to customer classification, Xiaomo expects brands such as Puma to be a major drag, but strong growth in mainland Chinese brands such as Adidas, Anta, and Li Ning can partially offset the impact. The bank expects orders to improve on a quarterly basis in the second half of the year as Shenzhou further expands its market share among core customers, as well as a possible improvement in customer confidence and a lower base.