[ET Net News Agency, 21 May 2020] Credit Suisse lowered its target price for Shenzhou
International (02313) to HK$100 from HK$106 and downgraded its rating to "neutral" from
"outperform" as the current valuations are stretched.
The research house said the OEM industry has started to see order cuts and capacity
reductions. It believes that Shenzhou will not be immune from order cuts and it estimated
a 20-30% cut in 2H, a smaller magnitude versus peers, taking into account its large scale
and close relationship to brands.
Credit Suisse estimated utilisation levels, as a result of order cuts, to drop by
10-15pp, similar to what is seen by peers and it lowered its EBIT margin assumptions by
20bp to 24.3%.
Credit Suisse cut its earnings forecasts by 12% for FY2020/21. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02313 SHENZHOU INTL
Nominal 
73.350 0.000 (0.000%) Others
21/05/2020 15:45
{I-bank focus}CS downgrads Shenzhou Int'l (02313) to HK$100
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