HK Stock Market Move | SHENZHOU INTL (02313) falls more than 3%, major customer Nike's net profit in the second quarter declined by 32% year-on-year.

SHENZHOU INTL (02313) fell more than 3%, dropping by 3.02% to HK$61.05 as of the time of posting, with a trading volume of 1.23 billion Hong Kong dollars. On the news front, SHENZHOU INTL's main customer Nike released its second-quarter earnings report for the 2026 fiscal year after Thursday's market close, causing its stock price to plummet by over 10%. The report indicated that although revenue and profits exceeded market expectations, the net profit declined year-on-year due to the impact of declining profit margins and continued pressure on direct sales business. The company's net profit for the period decreased by 32% year-on-year from 11.6 billion US dollars in the same period last year to 7.92 billion US dollars. In addition, its revenue in the Greater China region decreased by 17% year-on-year to 1.7 billion US dollars, while EBIT margin shrank by 49%. A recent Citigroup research report stated that it has lowered SHENZHOU INTL's profit forecast for the years 2025 to 2027 by 2%, reducing the target price from HK$95 to HK$94, while maintaining a "buy" rating. The report suggested that the recent stock price decline may reflect a more conservative outlook by management on sales volume, providing a buying opportunity. The expected dividend yield for the 2026 fiscal year is 4.8%, with a future 3-year compound annual earnings growth rate of 12%.