Goldman Sachs: Lower SHENZHOU INTL (02313) target price to 57 Hong Kong dollars, maintain "buy" rating.

Goldman Sachs released a research report, stating that SHENZHOU INTL (02313) had a net profit in the second half of last year that was 11% lower than the bank's expectations. This was mainly due to gross profit margin and operating profit margin being lower than expected, as well as forex losses higher than expected impacting the results. Benefiting from the production of a new garment factory in Cambodia and efficiency improvements in existing facilities, the management expects mid-single-digit sales growth in 2026. The bank has lowered its profit forecast for SHENZHOU INTL for 2026 to 2027 by 7% to 8%, and lowered the target price from HK$67 to HK$57, equivalent to a forecasted P/E ratio of 13 times in 2026 (compared to a previous 14 times) to reflect slowing profit growth, maintaining a "buy" rating.