CLSA: Maintains "Outperform" rating on SHENZHOU INTL (02313), target price HK$48

CLSA released a research report maintaining its "Outperform" rating on SHENZHOU INTL (02313) with a target price of HK$48. The company's management tone was broadly consistent with the interim results briefing for the first half of this year, with investor focus centering on order visibility, trends among major brand customers, Nike's China restructuring, second-half order momentum, and the gross margin recovery trajectory. The bank noted that management views the third quarter as a seasonal trough between the summer and Christmas periods, and holds some caution regarding the US midterm elections. A sequential improvement is expected in the second half, with Adidas and Uniqlo remaining the main drivers, while year-on-year declines from Nike and Puma are expected to narrow compared with the first half. The bank expects second-half sales volume to be roughly flat year-on-year, with upside potential for USD average selling prices benefiting from product mix, though RMB average selling prices will still depend on exchange rates. Gross margin is expected to improve compared with the first half, driven by easing tariff and foreign exchange pressures, though wage costs and raw material price volatility remain factors.