HK Stock Market Move | SHENZHOU INTL (02313) rose more than 3%, institutions said the company's expansion into Indonesia this year will help alleviate tariff concerns.

SHENZHOU INTL (02313) rose more than 3%, rising by 3.07% to 58.8 Hong Kong dollars as of the time of writing, with a trading volume of 48.2365 million Hong Kong dollars. Citigroup released a report stating that it is expected that SHENZHOU INTL's revenue growth in the second half of last year will slightly exceed expectations, mainly due to efficiency improvements and strong orders for sports and leisure clothing products. However, the bank predicts that the company's gross margin in the second half of last year will be slightly lower than in the first half due to an increase in orders for leisure products (mainly Uniqlo), the longer-than-expected time needed for operating leverage following a 10% to 15% wage increase for workers in China, and a high base. Goldman Sachs believes that although there is uncertainty regarding the demand outlook for major clients and trade tensions, the bank believes that the group's manufacturing efficiency is strong and orders should be supported by wallet share growth, while expansion into Indonesia this year will also help alleviate tariff concerns.