not vested
Shenzhou International 申洲國際 (2313 HK)
Shenzhou International (SZ) is one of the largest vertically integrated knitwear manufacturers in China, with renowned international brand clients, including Nike, Adidas, Uniqlo and Puma.
Nearly 35% of SZ total revenue in 2017 was sourced from Nike, given its Nike Flyknit sneakers’ outsole supply.
The second largest client was Adidas, with 29% of the total revenue.
Taking into account that Nike China sales grew 19% and 25% yoy in 3Q and 4Q18FY, SZ orders should propel.
In addition, RMB is expected to slide in 2H18 and the full year foreign currency effect should be positive to SZ.
Riding on consumption upgrade in China, we recommend BUY with a target price of HK$95.00.
http://www.shenzhouintl.com/en/index.asp
Source: UOBKH