[ET Net News Agency, 17 June 2020] Morgan Stanley raised its target price for Shenzhou
International Group Holdings (02313) to HK$118 from HK$115 and maintained its "overweight"
rating.
Same as OEMs that have large exposure to sports brands customers, the research house
expects Shenzhou to have firm order flows up to April/May in 2020 and start to see order
adjustments from key branded customers such as Nike and Adidas but again Morgan believes
this is order pattern adjustment rather than a structural issue.
Depending on customers' sell-through at end-markets, Morgan expects Shenzhou to see
orders resuming better strength from late August to September. It now expects Shenzhou's
top-line growth to be 3% in 1H and flattish in 2H.
Given lower utilization rate, Morgan expects 2020 GPM to be 30.0% (down from 2019's
30.3%) but certain expense controls should help keep 2020 OPM flattish. All in, it expects
2020 earnings to be flattish. It slightly lifted its 2021 earnings estimate by 1%. (KL)
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02313 SHENZHOU INTL
Nominal 
76.000 -0.700 (-0.913%) Research Report
17/06/2020 10:12
{I-bank focus}Morgan raises Shenzhou Int'l (02313) to HK$118
| Remark: | Real time quote last updated: 25/04/2024 14:28 |
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