HK Stock Market Move | SHENZHOU INTL(02313) rises nearly 5%, company's overall production capacity utilization improves, institutions maintain confidence in its profitability.

SHENZHOU INTL (02313) rose nearly 5%, as of the time of publication, it rose 4.88%, reported at 62.35 Hong Kong dollars, with a turnover of 4.08 billion Hong Kong dollars. On the news front, China International Capital Corporation (CICC) pointed out that since Nike lowered its profit guidance in June, the severity of Nike's issues is more serious than expected. On one hand, it is believed that the demand for the brand in the West and China will face challenges, which will require one to two years to readjust. On the other hand, this will bring uncertainty to the orders of the company's suppliers. The bank expects downstream issues to be more severe, particularly in China. Meanwhile, considering the resilience of the upstream leaders in adjusting orders, the bank maintains a positive view on these companies. Therefore, it remains confident in SHENZHOU INTL's profits. SHENZHOU INTL's first half-year revenue was 12.976 billion RMB, a year-on-year increase of 12.2%; net profit was 2.931 billion RMB, a year-on-year increase of 37.8%. Ping An Securities pointed out that the company's gross profit for the first half of the year was 3.76 billion RMB, a year-on-year increase of 45.0%; gross profit margin was 29.0%, a year-on-year increase of 6.6 percentage points; mainly due to the overall increase in production capacity utilization rate of the company, as well as the improvement in production efficiency of overseas new factories.