Citigroup: Slightly lower SHENZHOU INTL (02313) target price to HK$94, maintaining "buy" rating.

Citibank's research report stated that the profit forecast for SHENZHOU INTL (02313) for the years 2025 to 2027 has been lowered by 2%, with the target price revised from HK$95 to HK$94. The "buy" rating is maintained, with the belief that the decline in stock price may reflect management's conservative sales outlook, providing a buying opportunity. The expected dividend yield for the 2026 financial year is 4.8%, and the future 3-year average annual earnings per share growth rate is expected to reach 12%. The bank has adjusted its sales growth forecast for the second half of this year for SHENZHOU INTL from high single digits to mid single digits, mainly due to sales growth in the third quarter almost flat, with the two major brands still needing to discuss tariff allocation with the group. However, the bank has observed accelerated delivery volumes in October and November, catching up with the pace lagging behind in the third quarter. In addition, the bank's guidance for expanding gross margin quarterly is unchanged, and the target for a gross margin exceeding 28% in the 2026 financial year is largely unchanged.