SHENZHOU INTL (02313) saw an increase of over 3% in its share price before noon. At the time of writing, the stock was up 3.32%, trading at HK$46.70 with a turnover of HK$112 million.

Citi released a research report stating that while most footwear original design manufacturers (ODMs) reported weak first-quarter performance, apparel ODMs generally performed better, with SHENZHOU INTL remaining the preferred choice in the industry. The report noted that SHENZHOU INTL's orders are still expected to achieve mid-single-digit growth this year, consistent with guidance issued after the 2025 results. Adidas and Uniqlo are projected to be the two strongest growth clients, potentially achieving double-digit growth rates, sufficient to offset weaker performance from most other clients.

Citi's analysis suggests that SHENZHOU INTL's gross margin expansion this year may be moderate, as positive and negative factors offset each other. Positive factors include efficiency improvements expected this year following the recruitment of approximately 7,000 new workers at its Cambodia plant last year; the upgrade of Nike and Adidas product portfolios towards more functional sportswear; and the full-year contribution and higher pricing of Adidas football jerseys.