Edgen Stock·Apr 01 2026, 04:23Key Takeaways:
Shenzhou International (2313.HK) reported a 6.7% decline in full-year net profit to RMB5.83 billion for 2025, as rising costs and currency effects overshadowed revenue growth.
"Due to sharing tariff costs with US clients and rising employee costs, SHENZHOU INTL's full-year annual gross profit margin decreased," Nomura said in a research report reacting to the results.
The apparel manufacturer’s revenue grew 8.1% year-over-year to RMB30.99 billion, though growth slowed to just 2.2% in the second half. Gross margin contracted by 1.8 percentage points to 26.3%, while a stronger yuan and the high base from one-time gains in 2024 also weighed on the bottom line. The company did not disclose its earnings per share or dividend payout for the period.
In response to the mixed performance, Nomura trimmed its target price on the stock to HKD67.8 from HKD68.3, though it maintained a Buy rating.
The results highlight Shenzhou's challenge in managing costs amid slowing demand, particularly in the Chinese market where second-half sales fell 8.4%. Investors will watch for margin recovery and demand trends from its major international sportswear clients in the first half of 2026.
This article is for informational purposes only and does not constitute investment advice.
