Shenzhou International Group Holdings (2313) AI Stock Analysis

• Market Cap: $99.36B
• Dividend Yield: 4.1%
• Average Volume (3M): 5.43M
• Price to Earnings (P/E): 14.2
• 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): 2.30
• Shares Outstanding: 1,503,222,400
• 10 Day Avg. Volume: 5,840,116
• 30 Day Avg. Volume: 5,425,105
• 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: 0.70
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 8.32
• Enterprise Value/Ebitda: 7.55
• 1Y Price Target: $78.57
• Price Target Upside: 21.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$76.00 ▲(17.19% 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 is a leading vertically integrated garment manufacturer based in China. The company specializes in producing high-quality knitwear and is involved in the entire manufacturing process, from fabric knitting and dyeing to garment production and distribution. It primarily serves leading global sportswear and casual wear brands, providing a wide range of products including t-shirts, polo shirts, and jackets.

How the Company Makes Money

Shenzhou International Group Holdings generates revenue through its comprehensive garment manufacturing services, catering primarily to prominent international brands. The company's revenue model is built on large-scale production contracts with these global clients, which include renowned sports and casual wear brands. By leveraging its vertically integrated operations, Shenzhou controls costs and quality throughout the manufacturing process, from raw material procurement to finished product delivery. This integration allows the company to offer competitive pricing and high-quality products, thereby securing long-term partnerships and steady revenue streams. Additionally, the company benefits from its strategic location in China, which provides access to skilled labor and proximity to key markets, further enhancing its competitive advantage.

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: 64.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 64.85 is below the 20-day moving average (MA) of 65.94, above the 50-day MA of 62.81, and above the 200-day MA of 56.73, indicating a neutral trend. The MACD of 1.09 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 10.63 is Positive, 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	$99.36B	14.19	18.24%	4.10%	15.93%	20.70%
3998	78 Outperform	$55.62B	14.14	22.98%	5.78%	10.50%	10.34%
1982	72 Outperform	HK$2.03B	5.93	14.40%	12.70%	-0.61%	-5.36%
2232	71 Outperform	HK$19.88B	11.89	14.24%	5.97%	14.76%	23.04%
1382	63 Neutral	HK$1.97B	11.82	5.75%	8.51%	8.41%	0.84%
2368	63 Neutral	HK$2.08B	9.41	13.04%	7.22%	17.99%	-20.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Shenzhou International Group Holdings Corporate Events

Shenzhou International Reports Strong H1 2025 Results

Shenzhou International Group Holdings Limited, a leading manufacturer in the knitwear industry, has reported its interim results for the first half of 2025, showcasing a robust financial performance despite global economic uncertainties. The company achieved a notable 15.3% increase in sales, reaching approximately RMB14.97 billion, driven by strong demand in international markets, particularly for sportswear and casual wear. Gross profit rose by 7.9% to RMB4.06 billion, although the gross profit margin slightly decreased due to rising labor costs. Net profit attributable to owners of the parent increased by 8.4% to RMB3.18 billion, reflecting the company’s strategic expansion and operational efficiency. Looking ahead, Shenzhou International remains focused on enhancing its production capabilities and internal controls, positioning itself for continued growth in the global apparel market.

Shenzhou International Reports Strong H1 2025 Results with Increased Sales and Profits

Shenzhou International Group Holdings Limited reported a 15.3% increase in sales for the first half of 2025, totaling approximately RMB14.97 billion. The company’s sportswear segment, which constitutes 67.7% of total sales, saw a 9.9% revenue increase, while casual wear sales surged by 37.4%. Despite a decrease in gross profit margin to 27.1%, net profit rose by 8.4% to approximately RMB3.18 billion. The company declared an interim dividend of HK$1.38 per share, marking a 10.4% increase from the previous year.

The most recent analyst rating on (HK:2313) stock is a Buy with a HK$64.00 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 Declares Interim Dividend for 2025

Shenzhou International Group Holdings Limited has declared an interim cash dividend of HKD 1.38 per share for the six-month period ending June 30, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may positively influence investor sentiment, reinforcing its stable financial standing in the textile industry.

The most recent analyst rating on (HK:2313) stock is a Buy with a HK$64.00 price target. To see the full list of analyst forecasts on Shenzhou International Group Holdings stock, see the HK:2313 Stock Forecast page.