The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintains the “gain” rating of Shenzhou International (02313). The bank lowered Shenzhou International's 2027-2028 profit forecast by 14% to 16% to reflect macroeconomic uncertainties. The target price was reduced from HK$81 to HK$70 in December 2026, meaning a 12-month forward price-earnings ratio of 17 times.

The year-on-year decline in sales of Shenzhou International in the first half of 2026 was mainly dragged down by Puma and Nike, but was partially offset by strong momentum from Adidas, as well as local brands such as Anta Sports (02020) and Li Ning (02331). Affected by multiple headwinds such as tariff sharing, rising raw material prices in the second quarter of 2026, and exchange rate fluctuations, the bank expects gross margin to drop 2 to 3 percentage points year on year. Coupled with a decrease in non-operating income, profit for the first half of the year is expected to fall by about 30% year on year.

Looking ahead to the second half of the year, the bank expects orders to improve quarterly. It is believed that Shenzhou International will seek further share among core customers. Customer sentiment may improve. Coupled with a low base, sales and profit for the second half of the year are expected to increase by 10% and 13% respectively, improving from the first half of the year, which should drive stock revaluation.

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