市況評論

作者

譚思聰先生 (Gary Tam)
經理

現任輝立証券分行經理, 樂意為客戶提供投資股票策略及期權分析,對提高投資組合回報有豐富經驗, 歡迎各位來電交流心得。
電話:
3651 7381, 9378 2167

Shenzhou International (Stock code: 2313)

2020年9月29日 星期二 觀看次數292

Business Summary:

 

Shenzhou International is the largest vertically integrated high-end knitwear manufacturer on OEM (original equipment manufacturing) basis in China. The group offers customers the following services across the knitwear supply chain: (a) customized fabrics, (b) dyeing and finishing services. (c) printing and embroidery services, (d) cutting and sewing, and (e) packaging and logistics.

The headquarters manufacturing location is located at Ningbo Economic and Technical Development Zone, Ningbo City at Zhejiang Province; with representative office in Shanghai and Hong Kong. Garment factory also located at two other Chinese cities (衢州市及安慶市) and Cambodia. Sales representative offices are located at Shanghai, Hong Kong and Osaka. The group chiefly manufactures knitwear casual clothing; with more focusing on sportswear in recent years. Main reputation international customers includes NIKE, ADIDAS and PUMPA. Product market extends gradually from Japan to other Asia Pacific district and Europe/US market.

The scale of overseas production capacities will be kept expanding amid pandemic.  The first phase of construction of the new Cambodian factory was completed and scheduled to commence operations in third quarter of 2020. Broker investment firm reiterated at buy on bullish view for long-term higher market share as some small peer small firms have left the market or halted production during pandemic. In particular, Nike reported a first quarter net income and revenue beat, helped by a double-digit growth in China under digital channel recovery. Overall, consumer demand would only be temporarily affected by pandemic and the market would eventually see a rebound.

 

Financial Summary:

 

As of the interim results for the year ended 30 June 2020, sales revenue decreased 0.4% to RMB 10.23 billion when compared with the corresponding period of 2019. Gross profit amounted to RMB 3.16 billion; a decrease of 0.5%. Gross profit margin was 30.9% which remained the same. Net profit rose 4.0% yearly to RMB 2.51 billion. Earning per share equaled RMB 1.67, representing an increase of 3.7% from RMB 1.61 for the corresponding period last year. An interim dividend of HK$0.9 per share was issued, which remained the same.

Percentage of sports wear products, casual wear products, and lingerie wear products to total sales was approximately 73.4%, 18.7% and 6.1% respectively. Revenue sales of sportswear product and lingerie wear products increased by 2.0% and 35.7% respectively whereas those of causal wear products decreased by 19.2%; when compared with the corresponding period of the previous year.

Since the year of 2018, China (28.0% sales) has become the largest customer for the group by region, followed by Japan (19.0%), Europe (18.7%) and United States of America (14.1%).

As of 31 December 2019, the cash and cash equivalent valued RMB 5.98B, and the enterprise equity amounted to RMB 26.40.  Bank loan remaining amount valued RMB 3.21B, and the ratio of debt to equity was 25.6%.

 

Business risk include:

 (a) different level of imported tax levied

 (b) increasing labour cost, raw material cost & air transportation cost;

(c) increasing standard requirements of environmental aspects;

(d) rate of RMB currency increases

 

Technical Analysis:

It is suggested that buying price is $124. The target price will be $136, and cut loss level is set at $117.

 

References

Company Interim Report 2020

www.aastocks..com.hk

www.etnet.com.hk

www.afe-solutions.com

I, Gary Tam, am a licensed person under the Securities and Futures Commission. Until the date this commentary was published, neither I and/or my affiliates are the beneficiary of the securities mentioned herein or are entitled to any financial interests in relation thereto.

研究報告由輝立証券集團旗下於香港證監會持牌的輝立証券(香港)有限公司及/ 或輝立商品有限公司(“輝立”)所發報。本文所包含的資料均為輝立從相信為準確的來源搜集。輝立對有關報告所引致之任何損失或虧損概不負責。本報告所載的資料只供参考用途,並沒有法律約束力,亦不構成投資建議、邀約、購入、出售任何產品。
投資涉及風險,有可能損失投資本金。你應諮詢專業人士,就本身的投資經驗、財務狀況、個人目標及風險取向,以提供投資意見。各類產品的風險,請參閱本公司網頁 http://www.phillip.com.hk《風險披露聲明》。
輝立(或其僱員) 可能持有本文所述有關的投資產品。此外,輝立(或任何附屬公司)隨時可能替向報告內容所述及的公司提供服務、招攬或業務往來。
以上資料為輝立擁有並受版權及知識產權法保護。除非事先得到輝立明確書面批准,否則不應複製、散播或發佈。
返回頁首
聯絡我們
請即聯絡你的客戶主任或致電我們。
研究部
電話 : (852) 2277 6846
傳真 : (852) 2277 6565
電郵 : businessenquiry@phillip.com.hk

查詢及支援
分行資料
投訴程序
查數網
登入
黃師傅每日講股
研究部快訊
免費訂閱
聯絡我們