Shenzhou International Group Holdings Ltd 02313

Morningstar Rating
HK$36.88 +0.48 (1.32%)
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Company Report

Shenzhou's Vertical Integration Underpins Durable Growth and Margin Leadership

Shenzhou International is the supplier of choice for the world's largest athleticwear and casual wear brands, and it earns some of the strongest growth and margins in its peer group. The edge comes from vertical integration. Shenzhou owns the entire production chain from fabric to finished garment, making it a rare one-stop shop for the apparel giants. That structure compresses lead times, and shorter lead times mean brands get product to shelf faster, selling more at full price. This flows directly to a brand's bottom line, so brands are willing to pay up for it. Shenzhou's fabric-development arm adds a second, more cyclical profit lever that expands when brand innovation cycles accelerate and demand shifts toward novel, higher-value fabrics.

Price vs Fair Value

02313 is trading at a LOCK|BDh premium.
Price
HK$36.40
Fair Value
<l%
Uncertainty
LOCK|zlQ
1-Star Price
FRK
5-Star Price
z?g
Economic Moat
LOCK|W<N^d
Capital Allocation
LOCK|^%%DX#@

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$36.40
Day Range
HK$36.46–37.04
52-Week Range
HK$33.14–73.00
Bid/Ask
HK$36.86 / HK$36.88
Shares Outstanding
1.50B
Market Cap
HK$55.42B
Volume/Avg
3M / 7M

Key Statistics

Price/Earnings (Normalized)
10.75
Price/Sales
1.62
Dividend Yield (Trailing)
5.71%
Dividend Yield (Forward)
4.84%
Dividend Payment Schedule
Jun, Sep
Total Yield
5.71%

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

Competitors

Valuation

Metric
02313
GIL
ADDYY
Price/Earnings (Normalized)
10.7510.5317.38
Price/Book Value
1.272.324.42
Price/Sales
1.621.501.00
Price/Cash Flow
10.6412.159.26
Price/Earnings
02313
GIL
ADDYY

Financial Strength

Metric
02313
GIL
ADDYY
Quick Ratio
1.850.570.60
Current Ratio
2.261.931.39
Interest Coverage
13.462.346.96
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

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