Shenzhou International Group Holdings (2313) AI Stock Analysis

• Market Cap: $83.88B
• Dividend Yield: 9.03%
• Average Volume (3M): 4.26M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.86
• Revenue Growth: 12.76%
• EPS Growth: 34.50%
• Country: HK
• Employees: 102,690
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.41
• Shares Outstanding: 1,503,222,400
• 10 Day Avg. Volume: 4,163,572
• 30 Day Avg. Volume: 4,263,147
• PEG Ratio: 0.38
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $68.29
• Price Target Upside: 20.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: HK$61.00 ▲(7.49%Upside)

Shenzhou International Group Holdings displays a strong financial performance, which is the most significant factor in its overall score. The valuation is also favorable, with a high dividend yield and reasonable P/E ratio. However, technical analysis indicates a cautious market sentiment, which tempers the overall score.

Positive Factors

Financial Performance

Earnings are poised for rebound with a forecasted 12% topline recovery, driven by sportswear and casual wear orders, and an expected GP margin expansion.

Market Position

Shenzhou International's diversified production bases and strong manufacturing capability should enable it to continue to gain market share, especially in the sportswear segment.

Strategic Expansion

The company's strategy is pivoting towards expanding its capacity in Southeast Asia, which will enable it to meet brand customers' requirements to diversify their sourcing needs.

Negative Factors

Inventory Challenges

Downstream inventory levels are still high but easing sequentially, with expectations of gradual restocking from the sportswear and casual wear categories.

Macroeconomic Risks

Key risks include macroeconomic headwinds, high inventory levels amongst apparel brand owners, unfavorable currency fluctuations, raw materials cost fluctuation, and rise in trade tariffs between trading partners.

Trade Uncertainty

Trim target price to HKD84 to factor in uncertainty with trade partners.

Shenzhou International Group Holdings Business Overview & Revenue Model

Company Description

Shenzhou International Group Holdings Limited, an investment holding company, engages in manufacturing, processing, and selling knitwear products. It produces and sells sportswear, casual wear, and lingerie wear. The company is also involved in the import and export of commodities; quality check of garments; print and sale of knitwear products; trading and retail businesses; aircraft leasing; and property management and leasing activities. It has operations in Mainland China, European Union, the United States, Japan, and internationally. The company was incorporated in 2005 and is based in Kowloon, Hong Kong.

How the Company Makes Money

Shenzhou International Group Holdings makes money through its vertically integrated manufacturing process, which enables the company to control the entire production chain from fabric production to finished garments. Its key revenue streams include the sale of knitwear, casual wear, and sportswear to a diverse global clientele, including major international brands such as Nike, Adidas, and Uniqlo. The company benefits from economies of scale and efficiency gains through its large-scale operations and advanced manufacturing techniques. Additionally, strategic partnerships with leading global apparel brands enhance its market reach and contribute significantly to its earnings.

Shenzhou International Group Holdings Financial Statement Overview

Summary

Shenzhou International Group Holdings exhibits strong financial performance across all key metrics. The income statement shows impressive growth and profitability, while the balance sheet reflects solid financial stability with manageable leverage. The cash flow statement highlights robust cash generation. The company is well-positioned within the Apparel Manufacturing industry, but should remain vigilant in leveraging and cash flow management to sustain its positive trajectory.

Income Statement

The company shows a strong revenue growth trajectory with a 14.8% increase in 2024 compared to 2023. Gross profit margin improved to 28.1% in 2024, indicating effective cost management. The net profit margin rose to 21.8%, suggesting enhanced profitability. EBIT and EBITDA margins also reflect efficient operations. Overall, the income statement demonstrates robust growth and profitability.

Balance Sheet

The balance sheet indicates a healthy equity base with an equity ratio of 67.5% in 2024, showcasing strong financial stability. The debt-to-equity ratio is reasonable at 0.36, reflecting manageable leverage. Return on equity improved to 17.4%, highlighting efficient use of shareholder funds. While the debt levels are under control, the company should continue to monitor its leverage to maintain financial health.

Cash Flow

Operating cash flow is strong, supporting a high free cash flow to net income ratio of 0.54 in 2024. Although free cash flow decreased, the company maintained positive operating cash flow, underscoring its cash-generating capability. The operating cash flow to net income ratio of 0.84 further emphasizes operational efficiency. Continued focus on cash flow management will be crucial for sustaining growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.64B	28.66B	24.97B	27.78B	23.85B	23.03B
Gross Profit	3.85B	8.05B	6.06B	6.13B	5.79B	7.19B
EBITDA	3.11B	9.06B	5.36B	5.28B	4.66B	6.39B
Net Income	2.35B	6.24B	4.56B	4.56B	3.37B	5.11B
Balance Sheet
Total Assets	48.61B	53.11B	48.61B	43.49B	42.13B	36.85B
Cash, Cash Equivalents and Short-Term Investments	16.87B	25.04B	16.87B	13.73B	12.16B	13.64B
Total Debt	12.26B	12.93B	12.26B	9.31B	10.72B	6.72B
Total Liabilities	15.74B	17.25B	15.74B	12.73B	14.35B	9.58B
Stockholders Equity	32.87B	35.85B	32.87B	30.75B	27.77B	27.28B
Cash Flow
Free Cash Flow	399.19M	3.40B	4.14B	3.39B	1.41B	3.45B
Operating Cash Flow	2.26B	5.27B	5.23B	4.63B	3.59B	5.75B
Investing Cash Flow	-1.39B	-3.47B	-1.38B	-371.33M	-6.41B	-2.56B
Financing Cash Flow	-509.16M	-2.65B	333.22M	-3.91B	1.32B	33.59M

Shenzhou International Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2313, the sentiment is Positive. The current price of 56.75 is above the 20-day moving average (MA) of 53.99, above the 50-day MA of 54.33, and below the 200-day MA of 57.28, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 68.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2313.

Shenzhou International Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2313	74 Outperform	$83.88B	12.40	18.17%	9.03%	12.76%	34.50%
Sector *	61 Neutral	C$5.24B	10.94	18.94%	3.79%	5.08%	6.52%
BSDGF		$6.77B	13.59	22.98%	5.20%	―	―
PTEXF		$226.92M	10.45	5.75%	21.88%	―	―
2232	73 Outperform	HK$13.21B	8.44	13.55%	11.92%	13.03%	22.23%
1982	68 Neutral	HK$1.82B	5.33	14.40%	24.50%	4.95%	94.03%
2368	63 Neutral	HK$2.08B	9.39	13.04%	24.31%	12.67%	-25.28%

Shenzhou International Group Holdings Corporate Events

Shenzhou International Reports Successful AGM Outcomes

Shenzhou International Group Holdings Limited announced the results of its Annual General Meeting held on May 27, 2025. All proposed resolutions, including the approval of financial statements, re-election of directors, and the declaration of a final dividend for the year ended December 31, 2024, were passed. The meeting also saw the reappointment of Ernst & Young as auditors and the granting of mandates for share issuance and repurchase. These outcomes reflect strong shareholder support and are expected to positively impact the company’s governance and financial strategies.

The most recent analyst rating on (HK:2313) stock is a Buy with a HK$105.00 price target. To see the full list of analyst forecasts on Shenzhou International Group Holdings stock, see the HK:2313 Stock Forecast page.

Shenzhou International Announces 2025 AGM and Key Resolutions

Shenzhou International Group Holdings Limited has announced its upcoming Annual General Meeting scheduled for May 27, 2025, in Ningbo City, China. Key agenda items include the approval of the company’s financial statements for 2024, the declaration of a final dividend of HK$1.28 per share, and the re-election of several directors. Additionally, the company seeks authorization to allot and issue shares, reflecting its strategic focus on capital management and shareholder value enhancement.