Tama: Target price of HK$95 for Shenzhou International (02313) “gain” rating

The Zhitong Finance App learned that Damo released a research report saying that although Uniqlo and Adidas sales increased by 34% and 23% during the period, they were still offset by a 6% year-on-year decline in Nike's sales and flat performance by Puma. Currently, they are paying more attention to management's guidance on order performance in the second half of this year and future gross margin trends, with a target price of HK$95.

According to the report, the company's net profit increased 38% year on year in the first half of the year, 11% and 9% higher than the general expectations of Damo and the market, respectively. It was mainly driven by higher gross margin, lower operating expenses, higher non-operating income, and lower tax rates. The company's mid-term revenue increased 12% year over year, which was 9% and 4% lower than Damo and market expectations.