Huachuang assigns HKD 52.41 target to Shenzhou International stock

Published on 10/07/2026 at 07:24 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half net profit fell 40.0 percent to RMB 1.905 billion. Twenty analysts rate Shenzhou International stock Buy at a HKD 53.71 average target.

Shenzhou, KYG8087W1015, Illustration mit AI erstellt.

Huachuang Securities assigned a HKD 52.41 target to Shenzhou International stock on September 21, 2026, while maintaining a Strong Buy rating, according to Futubull. The target is 54.06 percent above the HKD 34.02 HKEX quote on October 7, 2026.

Profit falls on cost pressure

Shenzhou International reported first-half 2026 sales of RMB 14.179 billion, down 5.3 percent year over year, in the interim report dated September 28, 2026. Profit attributable to equity holders fell 40.0 percent to RMB 1.905 billion, while gross profit declined 21.2 percent to RMB 3.197 billion, according to Moomoo.

The gross margin narrowed to 22.6 percent from 27.1 percent in the first half of 2025. The report attributed the pressure to renminbi appreciation, higher labor costs in China and Vietnam, and increased synthetic-fiber costs linked to oil prices.

Capacity carries the recovery case

The operating mix was uneven in the first half of 2026. Sportswear sales fell 10.7 percent to RMB 9.042 billion, while casual wear rose 4.5 percent to RMB 3.963 billion and underwear increased 6.1 percent to RMB 998 million, according to Moomoo.

Huachuang Securities said cautious customer orders, currency effects, and labor and raw-material costs weighed on earnings. Its forecast puts attributable profit at RMB 4.41 billion in 2026, RMB 5.21 billion in 2027, and RMB 5.71 billion in 2028, compared with prior estimates of RMB 5.98 billion, RMB 6.49 billion, and RMB 7.03 billion, respectively.

HKEX valuation stays divided

Shenzhou International traded at HKD 34.02 on HKEX on October 7, 2026 at 1:07 p.m. HKT. Its 52-week range was HKD 33.14 to HKD 73.00, and its market capitalization was HKD 51.1 billion on the same date. The price sits 53.40 percent below the 52-week high.

The company declared an interim dividend of HKD 0.88 per share for the first half of 2026. A second fabric factory in Vietnam was ramping up, while the company expected phased production at an Indonesia garment project to begin in the fourth quarter of 2027, according to Moomoo.

Stock stays near its yearly low

Shenzhou International traded at HKD 34.02 on HKEX on October 7, 2026, against a previous close of HKD 33.78. The further course of trading is shown by the continuously updated real-time quote of Shenzhou International stock.