Lyon: Downgrade SHENZHOU INTL (02313) target price to HKD 52 and maintain "outperform" rating.

Lyon released a research report stating that SHENZHOU INTL (02313) had sales of 16.027 billion RMB in the second half of last year, a year-on-year increase of 2%, which was lower than the market's expectation of 4%. The gross profit margin was 25.6%, lower than the market's forecast by 1.8 percentage points. The sales forecast for Shenzhou for the years 2026-2027 was reduced by 10% to 14%, and the net profit forecast was reduced by 21% to 22%, reflecting the underperformance of last year's performance and pressure on gross profit margins. The target price was significantly reduced from 81 HKD to 52 HKD, while maintaining a "outperform the market" rating. The bank expects that Shenzhou's sales in 2026 will increase by 4% year-on-year, with sales volume increasing at a mid-single-digit level, while the average selling price is expected to remain stable. The gross profit margin forecast is expected to decline by 1.5 percentage points to 24.8% year-on-year, and the net profit forecast is expected to decline by 3% to 5.669 billion RMB.