Resilience is fading

Research evidence excerpt

Resilience is fading

Idea

July 26, 2026 08:59 PM GMT

Morgan Stanley Asia Limited+MZhejiang Supor Co. Ltd. | Asia Pacific Hildy Ling

Equity Analyst

Resilience is fading Hildy.Ling@morganstanley.comLillian Lou +852 2239-7834

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

Zhejiang Supor Co. Ltd. (002032.SZ) From To

Rating Equal-weight Underweight

Price Target Rmb44.00 Rmb36.00

AlphaSignals Earnings Reaction

Zhejiang Supor Co. Ltd. (002032.SZ, 002032 CS)

Weakens our thesis Modest shortfall Modest revision lower China/Hong Kong Consumer | China

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Underweight

Industry View In-Line

Source: Company data, Morgan Stanley Research

Price target Rmb36.00

Up/downside to price target (%) (16)

The 2Q26 preliminary result disappointed. Weak export growth, Shr price, close (Jul 24, 2026) Rmb42.93

52-Week Range Rmb52.91-38.63

rising costs and a DPS-cut risk threaten de-rating. Downgrade to Sh out, dil, curr (mn) 800

UW. MktEV, currcap,(mn)curr (mn) Rmb34,337Rmb30,461

Avg daily trading value (mn) Rmb93

Key Takeaways Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

EPS (Rmb)** 2.63 2.54 2.77 3.02

2Q26 prelims disappointed; export weakness and cost pressure are likely to EPS (Rmb)§ 2.77 2.77 2.93 3.11

persist through 2H26. Revenue, net (Rmb mn) 22,772 23,251 24,218 25,366

EBITDA (Rmb mn) 2,401 2,333 2,562 2,795

We cut 2026-27 EPS by 7%/4%. We now project 3% EPS and 12% DPS declines in ModelWare net inc 2,097 2,035 2,219 2,412

(Rmb mn)

2026 (assuming 90% payout). Our 2026 EPS and DPS are 8% and 12% below P/E 16.9 16.9 15.5 14.2

consensus. P/BV 5.6 5.5 5.2 4.9

RNOA (%) 59.1 67.3 66.6 71.0