On September 1, SHENZHOU INTL rose 3.36% in regular trading, trading at HK$36.32/share, with turnover of HK$321 million. The stock had previously declined to a 52-week low of HK$35.0 following a steep earnings-driven selloff.

The rebound comes as markets appear to have largely digested the company's weaker-than-expected first-half results. The clothing manufacturer reported H1 attributable profit of RMB 1.905 billion, down approximately 40% year-over-year, while revenue fell 5.3% to RMB 14.179 billion. Gross margin contracted 4.5 percentage points to 22.6%, pressured by higher raw material and labor costs, significant RMB appreciation against the USD, and lower sales volumes amid weak demand. The interim dividend was set at HK$0.88 per share.

Following the results, Nomura, CICC, Bank of America, and Citi all maintained buy or outperform ratings, with target prices ranging from HK$50 to HK$63.80. Analysts noted that the current valuation of approximately 10x PE with a dividend yield exceeding 7% already reflects the negatives, while second-half orders are expected to improve sequentially on a lower base.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)