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Shenzhou International Group Holdings Ltd 02313

Morningstar Rating
HK$66.65 −1.05 (1.55%)
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Company Report

Shenzhou Is Well-Positioned to Benefit From Entrenched Relationships With Global Sportswear Giants

We have a strong conviction in Shenzhou’s ability to continue serving as the dominant supplier for global apparel giants. The firm is well-positioned for growth, thanks to the combination of its strong R&D capabilities and entrenched relationships with leading brands. Shenzhou’s business expansion will be driven by: 1) growing demand for sportswear globally; and 2) brands' efforts in further consolidating their supplier bases. Efficiency improvements at existing plants and capacity expansions at new plants will enable the company to accept more orders, especially those from fast-growing brands like Lululemon.

Price vs Fair Value

02313 is trading within a range we consider fairly valued.
Price
HK$67.70
Fair Value
HK$675.00
Uncertainty
High
1-Star Price
HK$262.20
5-Star Price
HK$87.20
Economic Moat
Spmbjv
Capital Allocation
Fbkzyvdxnv

Bulls Say, Bears Say

Bulls

Large-scale apparel manufacturers compete on the basis of specialization and the provision of additional apparel-related services; with integrated Shenzhou atop of its peers in these areas.

Bears

Athleisure has come a long way, and signs of saturation are emerging. A slowdown in sportswear sales worldwide will damage Shenzhou’s top line.

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News

Trading Information

Previous Close Price
HK$67.70
Day Range
HK$66.2067.70
52-Week Range
HK$62.0587.25
Bid/Ask
HK$66.65 / HK$66.70
Market Cap
HK$100.34 Bil
Volume/Avg
4.0 Mil / 4.4 Mil

Key Statistics

Price/Earnings (Normalized)
20.88
Price/Sales
3.68
Dividend Yield (Trailing)
3.00%
Dividend Yield (Forward)
3.19%
Total Yield
3.00%

Company Profile

Shenzhou is the largest vertically integrated knitwear manufacturer in the world. The group mainly produces sportswear (75% of 2022 revenue), casual wear (21% of revenue), and lingerie (3% of revenue) for international clients such as Nike, Adidas, Puma, and Uniqlo. Mainland China is its largest market, accounting for 26% of sales in 2022. This is followed by Europe, the US and Japan. Shenzhou currently operates manufacturing plants in China, Cambodia, and Vietnam.
Sector
Consumer Cyclical
Industry
Textile Manufacturing
Stock Style Box
Large Core
Total Number of Employees
92,030

Competitors

Valuation

Metric
02313
02020
NKE
Price/Earnings (Normalized)
20.8817.3319.69
Price/Book Value
2.813.467.44
Price/Sales
3.682.912.12
Price/Cash Flow
18.5110.1516.47
Price/Earnings
02313
02020
NKE

Financial Strength

Metric
02313
02020
NKE
Quick Ratio
1.652.741.67
Current Ratio
2.133.302.74
Interest Coverage
13.1926.44
Quick Ratio
02313
02020
NKE

Profitability

Metric
02313
02020
NKE
Return on Assets (Normalized)
9.87%13.91%15.59%
Return on Equity (Normalized)
14.27%25.28%41.17%
Return on Invested Capital (Normalized)
9.73%15.43%21.67%
Return on Assets
02313
02020
NKE
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