Jingu Finance News | Huayuan Securities issued research reports indicating that Shenzhou International Group Holdings Limited Unsponsored ADR (02313), as a leading global manufacturer of sportswear, has deeply cultivated the industry for many years and possesses advantages such as high-quality customer resources, mature manufacturing technology, diverse production capacity distribution, and high employee efficiency, forming competitive barriers. With overseas inventory replenishment, the company's expansion of production capacity overseas, and cost advantages during the period, it has great potential for future growth.
The bank expects the company's net income attributable to the mother to be 5.785 billion yuan / 6.627 billion yuan / 7.488 billion yuan in 2024-2026, with year-on-year growth of 26.93% / 14.57% / 12.98% respectively. The bank selected Juyang Industry and Ruhong, companies in the same industry of sportswear manufacturing, as comparable companies. The average PE ratio in 2024 is 21.3 times, while Shenzhou International's corresponding PE ratio in 2024 is 15.7 times. Considering the company's superior profitability compared to comparable companies due to its scale and globalization, strong customer loyalty, and other advantages, an initial "buy" rating is given.
