Bank of America Securities lowered the target price for Sinotrans to HKD 71.8, expecting only a slight improvement in gross margin in the second half of the year.
Jin10 reported on August 28 that Bank of America Securities published a research report indicating that Shenzhou International (02313.HK) had an unsatisfactory gross profit margin performance in the first half of the year. Consequently, they lowered their earnings per share forecast for this year and next year by 2% and 3%, respectively, and reduced the target price from HKD 73 to HKD 71.8. However, the firm also pointed out that Shenzhou's main customers had sales growth significantly exceeding the global industry performance in the first half of the year. They believe that the group relies on an excellent supply chain to support market share growth and maintains a buy rating. Bank of America Securities believes that Shenzhou's strong revenue performance in the first half is partly due to the favourable information from early orders. They expect that Nike's recovery in the future will be a key factor influencing Shenzhou's stock price performance, predicting only a slight improvement in gross profit margin in the second half compared to 27.1% in the first half, still below 28.1% in 2024 and above 30% pre-pandemic levels.
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Bank of America Securities lowered the target price for Sinotrans to HKD 71.8, expecting only a slight improvement in gross margin in the second half of the year.
Jin10 reported on August 28 that Bank of America Securities published a research report indicating that Shenzhou International (02313.HK) had an unsatisfactory gross profit margin performance in the first half of the year. Consequently, they lowered their earnings per share forecast for this year and next year by 2% and 3%, respectively, and reduced the target price from HKD 73 to HKD 71.8. However, the firm also pointed out that Shenzhou's main customers had sales growth significantly exceeding the global industry performance in the first half of the year. They believe that the group relies on an excellent supply chain to support market share growth and maintains a buy rating. Bank of America Securities believes that Shenzhou's strong revenue performance in the first half is partly due to the favourable information from early orders. They expect that Nike's recovery in the future will be a key factor influencing Shenzhou's stock price performance, predicting only a slight improvement in gross profit margin in the second half compared to 27.1% in the first half, still below 28.1% in 2024 and above 30% pre-pandemic levels.