Bank of China International: The profit visibility of the target price of Shenzhou International (02313) to HK$40 is low

The Zhitong Finance App learned that Bank of China International released a research report stating that it will lower the target price of Shenzhou International (02313) from HK$48 to HK$40. The bank said it is still too early to judge whether Shenzhou International can achieve a significant recovery in the second half of 2026 and maintain a “hold” rating. Although investors may have expected Shenzhou International's net profit for the first half of 2026 to drop 40% year-on-year, in line with the profit warning issued by the company on August 7, the bank believes that investors may become more cautious after the announcement of actual results and future prospects.

In addition to exchange rate fluctuations, the bank believes that the market mainly focuses on two aspects: one is the demand of core customers, especially Nike and Puma; the other is Shenzhou's ability to cope with multiple cost pressures. The bank expects some month-on-month improvement in exchange rates and order conditions in the second half of 2026, but profit visibility is still low, and downside risks such as rising costs and tariffs are likely to continue in 2027.