Shenzhou International Group Holdings (2313) AI Stock Analysis

• Market Cap: HK$94.93B
• Dividend Yield: 4.31%
• Average Volume (3M): 6.28M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.89
• Revenue Growth: 15.93%
• EPS Growth: 20.70%
• Country: HK
• Employees: 102,690
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.36
• Shares Outstanding: 1,503,222,400
• 10 Day Avg. Volume: 5,298,385
• 30 Day Avg. Volume: 6,279,985
• PEG Ratio: 0.38
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 3.05
• 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: HK$88.03
• Price Target Upside: 37.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$76.00 ▲(18.38% Upside)

Shenzhou International Group Holdings demonstrates strong financial performance, with robust growth and profitability. Technical indicators support a bullish outlook, with the stock trading above key moving averages and positive momentum indicators. The valuation is reasonable, offering a good dividend yield. Overall, the company is well-positioned in the Apparel Manufacturing industry, though continued attention to leverage and cash flow management is advised.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a solid market position and effective demand capture, suggesting sustained business expansion.

Margin Sustainability

Improved margins reflect efficient operations and cost control, which are crucial for long-term profitability and competitive pricing.

Cash Generation Ability

Robust cash generation supports financial flexibility and investment capacity, essential for sustaining growth and weathering economic cycles.

Negative Factors

Leverage Concerns

Though current leverage is manageable, vigilance is needed to prevent potential financial strain, ensuring long-term stability.

Free Cash Flow Decrease

A decrease in free cash flow could limit reinvestment opportunities and affect future growth, necessitating improved cash management.

Attention to Cash Flow Management

Effective cash flow management is essential to support ongoing operations and strategic investments, impacting long-term growth potential.

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 generates revenue primarily through the manufacturing and sale of clothing and textile products to various international clients, including well-known fashion brands. The company's revenue model is based on bulk production orders, where it benefits from economies of scale and streamlined operations. Key revenue streams include direct sales of finished garments and textiles, contract manufacturing services, and value-added services such as design and development support. Significant partnerships with global retailers and brands enhance its market reach and create stable demand for its products, further supporting its earnings. Additionally, Shenzhou's extensive production facilities and operational efficiency allow it to maintain competitive pricing, which is crucial for its profitability.

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	30.65B	28.66B	24.97B	27.78B	23.85B	23.03B
Gross Profit	8.35B	8.05B	6.06B	6.13B	5.79B	7.19B
EBITDA	9.20B	9.06B	5.36B	5.28B	4.66B	6.39B
Net Income	6.49B	6.24B	4.56B	4.56B	3.37B	5.11B
Balance Sheet
Total Assets	56.18B	53.11B	48.61B	43.49B	42.13B	36.85B
Cash, Cash Equivalents and Short-Term Investments	27.45B	25.04B	16.87B	13.73B	12.16B	13.64B
Total Debt	14.80B	12.93B	12.26B	9.31B	10.72B	6.72B
Total Liabilities	19.22B	17.25B	15.74B	12.73B	14.35B	9.58B
Stockholders Equity	36.96B	35.85B	32.87B	30.75B	27.77B	27.28B
Cash Flow
Free Cash Flow	3.33B	3.40B	4.14B	3.39B	1.41B	3.45B
Operating Cash Flow	5.66B	5.27B	5.23B	4.63B	3.59B	5.75B
Investing Cash Flow	-5.67B	-3.47B	-1.38B	-371.33M	-6.41B	-2.56B
Financing Cash Flow	225.56M	-2.65B	333.22M	-3.91B	1.32B	33.59M

Shenzhou International Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 64.2 is above the 20-day moving average (MA) of 61.98, below the 50-day MA of 65.09, and above the 200-day MA of 58.75, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 41.42 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	78 Outperform	HK$94.93B	13.56	18.24%	4.31%	15.93%	20.70%
3998	78 Outperform	HK$50.97B	12.92	23.92%	6.15%	5.51%	3.90%
2232	76 Outperform	HK$19.14B	11.44	14.24%	5.87%	14.76%	23.04%
1982	64 Neutral	HK$2.39B	6.29	14.74%	12.14%	-0.95%	2.58%
2368	63 Neutral	HK$2.01B	8.43	12.21%	7.98%	13.52%	4.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1382	59 Neutral	HK$1.76B	12.62	4.73%	8.06%	-2.44%	-5.98%

Shenzhou International Group Holdings Corporate Events

Shenzhou International Announces New Lease Agreement with Shenzhou Properties

Shenzhou International Group Holdings Limited has announced a new lease agreement between its subsidiary, Shenzhou Knitting, and Shenzhou Properties. This three-year lease, starting January 1, 2026, and ending December 31, 2028, involves Shenzhou Properties leasing properties to Shenzhou Knitting. The transaction is classified as a connected transaction under the Hong Kong Listing Rules, requiring the company to recognize the value of the right-of-use asset. While the transaction is subject to reporting and announcement requirements, it is exempt from the need for a circular and independent shareholders’ approval due to the applicable percentage ratios.

The most recent analyst rating on (HK:2313) stock is a Buy with a HK$76.00 price target. To see the full list of analyst forecasts on Shenzhou International Group Holdings stock, see the HK:2313 Stock Forecast page.