Shenzhou International Group Holdings (2313) AI Stock Analysis

• Market Cap: HK$80.35B
• Dividend Yield: 4.37%
• Average Volume (3M): 5.69M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.89
• Revenue Growth: 12.76%
• EPS Growth: 34.50%
• Country: HK
• Employees: 102,690
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.50
• Shares Outstanding: 1,503,222,400
• 10 Day Avg. Volume: 4,872,814
• 30 Day Avg. Volume: 5,686,695
• PEG Ratio: 0.77
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.79
• 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: HK$77.62
• Price Target Upside: 42.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: HK$64.00 ▲(17.76%Upside)

Shenzhou International Group Holdings demonstrates strong financial performance, particularly in growth and profitability, which significantly supports the overall stock score. The technical analysis indicates a neutral market trend, while the valuation metrics suggest the stock may be undervalued, offering a potential opportunity for investors. Earnings call and corporate events data were unavailable, thus excluding their influence from the score.

Positive Factors

Capacity 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.

Market Share

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

Top-line Growth

2024 results are above market expectations on higher-than-expected top-line growth.

Negative Factors

Macroeconomic Risks

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

Trade Tariffs

A rise in trade tariffs and concerns over higher tariffs from trading partners are potential risks.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.66B	24.97B	27.78B	23.85B	23.03B
	Gross Profit
8.05B	6.06B	6.13B	5.79B	7.19B
	EBIT
5.99B	4.01B	3.97B	3.58B	5.41B
	EBITDA
9.06B	5.36B	5.28B	4.66B	6.39B
	Net Income Common Stockholders
6.24B	4.56B	4.56B	3.37B	5.11B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.04B	16.87B	13.73B	12.16B	13.64B
	Total Assets
53.11B	48.61B	43.49B	42.13B	36.85B
	Total Debt
12.93B	12.26B	9.31B	10.72B	6.72B
	Net Debt
2.06B	665.62M	1.94B	4.03B	-1.50B
	Total Liabilities
17.25B	15.74B	12.73B	14.35B	9.58B
	Stockholders Equity
35.85B	32.87B	30.75B	27.77B	27.28B
Cash Flow		Free Cash Flow
3.40B	4.14B	3.39B	1.41B	3.45B
	Operating Cash Flow
5.27B	5.23B	4.63B	3.59B	5.75B
	Investing Cash Flow
-3.47B	-1.38B	-371.33M	-6.41B	-2.56B
	Financing Cash Flow
-2.65B	333.22M	-3.91B	1.32B	33.59M

Shenzhou International Group Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2313, the sentiment is Negative. The current price of 54.35 is below the 20-day moving average (MA) of 55.60, above the 50-day MA of 53.86, and below the 200-day MA of 57.85, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	HK$80.35B	11.87	18.17%	4.37%	12.76%	34.50%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%
BSDGF		$6.41B	13.30	25.72%	5.97%	―	―
PTEXF		$226.97M	11.75	4.99%	6.97%	―	―
2232	71 Outperform	HK$14.24B	9.10	13.55%	5.37%	13.03%	22.23%
1982	68 Neutral	HK$1.89B	5.10	14.66%	16.02%	4.95%	94.03%
2368	63 Neutral	HK$2.18B	9.58	11.95%	7.92%	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.

Shenzhou International Reports Strong 2024 Financial Results with Significant Sales Growth

Shenzhou International Group Holdings Limited reported a robust financial performance for the year ended December 31, 2024, with sales reaching approximately RMB28.66 billion, marking a 14.8% increase from the previous year. The company experienced notable growth across its product segments, with sportswear sales rising by 9.8%, casual wear by 27.1%, and lingerie by 34.6%, driven by increased demand in key markets such as Mainland China, the United States, and Japan. The gross profit margin improved to 28.1%, and net profit after tax surged by 36.9% to approximately RMB6.24 billion. Additionally, the company proposed a total dividend of HKD2.53 per ordinary share for 2024, reflecting a 24.6% increase from 2023, with a dividend payout ratio of 55.8%.

Shenzhou International Declares Final Dividend for 2024

Shenzhou International Group Holdings Limited has announced a final ordinary cash dividend of HKD 1.28 per share for the financial year ending December 31, 2024. This decision reflects the company’s ongoing commitment to delivering value to its shareholders, with the dividend set to be paid on June 25, 2025, following shareholder approval in May. The announcement underscores Shenzhou’s stable financial performance and its strategic focus on shareholder returns, potentially enhancing its attractiveness to investors.