SHENZHOU INTL (02313) rose more than 3%, gaining 4.73% to HK$1.55 by the time of writing, with a trading volume of HK$26.77 million.

A research report from Citigroup noted that while most footwear original design manufacturers (ODMs) reported disappointing first-quarter results, apparel ODMs generally performed well, with SHENZHOU INTL remaining the preferred pick in the sector. The report indicated that orders for SHENZHOU INTL this year are still expected to achieve mid-single-digit growth, consistent with the guidance provided post the 2025 results. Adidas and Uniqlo are projected to be the two strongest growth clients, potentially achieving double-digit growth rates, sufficient to offset slower growth from most other customers.

Citigroup'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 factory last year; an upgraded product mix for Nike and Adidas towards more functional sportswear; and the full-year contribution and higher pricing of Adidas football jerseys.