Shenzhou Int‘l (2313.HK): Read-through from Nike 4QFV26 Results and Outlook

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Shenzhou Int‘l (2313.HK): Read-through from Nike 4QFV26 Results and Outlook

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01 Jul 2026 08:25:37 ET │ 14 pages

Shenzhou Int'l (2313.HK)

Read-through from Nike 4QFY26 Results and Outlook

CITI’S TAKE

Nike (covered by Paul Lejuez) – Shenzhou’s second-largest customer –

Buy posted better-than-expected 4QFY26 results but guidance was softer-

Price (30 Jun 26 16:10) HK$39.36 than-expected per VA consensus. Nike shares fell 2-3% in after-market

trading. On its results call, Nike guided for 1QFY27 revenue to decline by Target price HK$75.00

LSD-to-MSD on a constant currency basis compared to VA consensus - Expected share price return 90.5%

1.8%. Gross margin (GM) was guided to expand yoy vs consensus -49bp. Expected dividend yield 6.9%

Nike recognized ~900bp from IEEPA tariff recovery ($986m) which we Expected total return 97.4%

believe should alleviate material cost inflation for Nike to partly share it Market Cap HK$59,152M

with its Asia-based suppliers like Shenzhou. This enhances our

US$7,544M confidence in Shenzhou delivering modest GM expansion to 26.6% in

2026E from 26.3% in 2025. Shenzhou’s share price has declined ~38%

since end-Feb which looks overdone to us. We find current valuation of 9x

PE and ~7% dividend yield as attractive. Reiterate Buy on the company’s Eric LauAC

balanced customer portfolio (Fig 3 & 4) which should drive earnings +852-2501-2726

growth. eric.h.lau@citi.com

Alice Cai

Nike recent sales trend and guidance on 4QFY26 to 2QFY27 – Retail sales grew over +852-2501-2704

the first 6 weeks of 4QFY26 but Nike saw a deceleration in late-April particularly in alice.cai@citi.com

Sportswear and Jordan Streetwear. Mgmt. had previously guided for LSD sales

decline in 4QFY26 to 2QFY27 with GM inflection to positive in 2Q and earnings to be Andy Li