Soft 1H26 in the Price; Growth to Resume in 2H26

Research evidence excerpt

Soft 1H26 in the Price; Growth to Resume in 2H26

Idea

June 25, 2026 09:47 PM GMT

Morgan Stanley Taiwan Limited+MShenzhou International Group Holdings | Asia Terence Cheng

Pacific Equity Analyst

Terence.Cheng@morganstanley.com +886 2 2730-2873

Jenny Ting

Research AssociateSoft 1H26 in the Price; Growth Jenny.Ting@morganstanley.com +886 2 2730-2995

Morgan Stanley Asia Limited+

to Resume in 2H26 Lillian Lou

Equity Analyst

What’s Changed Lillian.Lou@morganstanley.com +852 2848-6502

Shenzhou International Group Holdings (2313.HK) From To

Price Target HK$58.00 HK$50.00

Order volatility in 1H26 should affect revenue and margins, but

we think YTD share price underperformance (-32% vs. HSI's -

Shenzhou International Group Holdings (2313.HK, 2313

10%) has baked in such weakness. We expect a resumption in

HK)

earnings growth in 2H26 to drive stock re-rating. China/Hong Kong Consumer | China

1H26 seen dragged by shipment volatility: 1Q26's shipments were affected by soft Stock Rating Overweight

Industry View In-Line

Chinese market demand despite shipments picking up in 2Q26; therefore, we expect Price target HK$50.00

Up/downside to price target (%) 25

1H26 shipments to dip slightly, by 2% YoY (hinging on shipments for the last several Shr price, close (Jun 25, 2026) HK$40.16

days of June, but the general trend should be intact). Given RMB appreciation YoY, 52-Week Range HK$73.00-39.44

Sh out, dil, curr (mn) 1,503

we expect 1H26 ASP in RMB terms to be flat YoY (albeit up in USD terms thanks to Mkt cap, curr (mn) HK$60,369

a better mix for more complicated products). All told, we forecast 1H26 revenue will EV, curr (mn) HK$54,740

Avg daily trading value (mn) HK$369

dip 2% YoY. We see Adidas and Uniqlo continuing to drive revenue growth, aided