HK Stock Market Move | SHENZHOU INTL (02313) rose more than 3%, the company is mainly benefiting from international brand restocking in the second half of the year, and its revenue is expected to achieve stable growth next year.

SHENZHOU INTL (02313) rose more than 3%, as of the time of publication, it rose 3.55% to HK $62.75, with a trading volume of HK $2.31 billion. On the news front, China International Capital Corporation Limited (CICC) stated that Shenzhou is expected to be the main beneficiary of international brand replenishment in the second half of the year, with an estimated 8% revenue growth. This is mainly due to the recovery of orders from Puma, as well as double-digit order growth from Adidas, Lululemon, and domestic sports brands. The company expects Shenzhou's average selling price decline to improve from approximately 6% in the first half of 2024 to 2%-3% in the second half of the year due to product mix improvements. In addition, the company also estimates that the gross profit margin will expand by 2.9 percentage points to 28.7% year-on-year in the second half, remaining basically flat compared to the first half. Guosheng Securities recent research report pointed out that looking ahead, based on downstream brand business conditions, the company's sales to Adidas, Uniqlo, domestic brands, etc. are expected to achieve steady and rapid growth in the second half of 2024 and 2025, while sales to Nike are expected to remain stable. Overall, it is estimated that the company's revenue is expected to grow steadily by 10%+ in 2025.