Bank of America Securities: Lower SHENZHOU INTL (02313) target price to 64.6 Hong Kong dollars, last year's performance fell short of expectations.

Bank of America Securities released a research report stating that due to SHENZHOU INTL's (02313) performance in 2025 falling below expectations, they have taken a more cautious approach to the gross margin forecast, leading to a downward revision of 9% and 6% in earnings per share forecasts for the fiscal years 2026 and 2027 respectively. The forecast for earnings per share growth in 2026 is expected to slow down, with a year-on-year decline in the first half of 2026. The target price has been lowered by 10% to 64.6 Hong Kong dollars from 71.8 Hong Kong dollars, but they have reiterated a "buy" rating based on significant intrinsic value and a high dividend yield. Since 2025, the stock has underperformed the Hang Seng Index by 42%, with a current P/E ratio of 10.8 times, at a ten-year low, and offering a dividend yield of approximately 5.5%, supported by a stable cash flow and net cash of over 13 billion RMB.