On June 12, Shenzhou International rose 3.02% in regular trading, trading at HK$44.74/share, with turnover of HK$113 million. The stock rebounded from recent lows near HK$42.68, gaining momentum after multiple bullish broker signals.
Guosheng Securities recently maintained its Buy rating on Shenzhou International, noting the company is one of Asia's largest integrated knit apparel manufacturers with solid fundamentals. The brokerage expects that as core client order demand normalizes, the company is poised to enter a phase of capacity undersupply, healthy revenue growth, and improving earnings quality in the current year, with valuation upside potential. Revenue CAGR for 2025-2026 is projected to exceed 10%.
Additionally, Citi previously highlighted that Q1 apparel ODM performance was broadly positive, forecasting moderate gross margin expansion for the company this year. The stock currently trades at approximately 10x P/E with a 6% dividend yield, which investors view as attractive for an industry leader with over 110,000 employees and expanding overseas capacity in Vietnam and Cambodia.
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