CITIC Lyon: Cut the target price of Shen Zhou International (02313.HK) to HKD 51 and lower profit forecast for this year and next year.

According to the Zhituo Finance APP, Citic Securities has released a report indicating that Shin Kong International (02313.HK) issued a profit warning last Friday. The target price for Shin Kong International has been lowered from HKD 52 by 1.9% to HKD 51, while maintaining an "outperform the market" investment rating. Shin Kong International expects its profits in the first half of 2026 to decrease by 38-43% year-on-year (approximately RMB 1.81-1.97 billion). This is mainly due to factors such as the appreciation of the RMB against the USD, rising costs of labor, pensions, and raw materials caused by the tense situation in the Middle East, increased production capacity in Southeast Asian factories, and fluctuations in demand.