HK Stock Market Move | SHENZHOU INTL(02313) up more than 3%, Citigroup indicates that the performance of clothing ODMs in the first quarter is generally good, and expects the company's gross profit margin to moderately expand within the year.

SHENZHOU INTL (02313) rose more than 3%, rising by 4.73% at the time of publication to 1.55 Hong Kong dollars, with a trading volume of 2677.01 million Hong Kong dollars. Citi released a research report stating that although the first quarter performance of most shoe original design manufacturers (ODMs) was poor, clothing ODMs performed relatively well, with SHENZHOU INTL still being the industry's preferred choice. The report indicated that it is expected that Shenzhou's orders this year are still likely to achieve mid-single-digit growth, consistent with the guidance provided after the 2025 performance announcement. Adidas and Uniqlo are expected to be the two strongest clients in terms of growth, with the growth rate potentially reaching double digits, surpassing most other clients. Citi's analysis suggests that SHENZHOU INTL's gross margin expansion this year may be moderate, as positive and negative factors offset each other. Positive factors include an efficiency boost expected after recruiting around 7,000 new workers at the Cambodian factory last year, Nike and Adidas upgrading their product portfolios to include more functional sportswear, and Adidas soccer jerseys contributing throughout the year along with higher pricing.