Huachuang sets HKD 52.41 target for Shenzhou stock

Published on 10/13/2026 at 07:28 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half profit fell 40.00 percent to RMB 1.905 billion. For Shenzhou stock, margin fell to 22.60 percent from 27.10 percent.

Key points in brief

Huachuang Securities assigned a HKD 52.41 target and maintained a Strong Buy rating on September 21, 2026.
Shenzhou reported first-half 2026 revenue of RMB 14.179 billion, down 5.30 percent year over year.
First-half profit attributable to shareholders fell 40.00 percent to RMB 1.905 billion, while gross margin declined to 22.60 percent.
Shenzhou stock was last quoted at EUR 3.99 at Lang & Schwarz on October 12, 2026.

Shenzhou, KYG8087W1015, Illustration mit AI erstellt.

Shenzhou International stock was last quoted at EUR 3.99 at Lang & Schwarz on October 12, 2026 at 10:57 p.m. CEST. Huachuang Securities assigned a HKD 52.41 target and maintained a Strong Buy rating on September 21, 2026, according to Futubull. The target followed a sharp decline in first-half profitability and revised earnings forecasts.

Three dated earnings markers

On September 21, 2026, Huachuang Securities projected net profit attributable to shareholders of RMB 4.41 billion for 2026, below its previous RMB 5.98 billion forecast, and set the HKD 52.41 target, according to Futubull.

On September 28, 2026, Shenzhou reported unaudited results for the six months ended June 30, 2026. Sales reached RMB 14.179 billion, down 5.30 percent year over year, while profit attributable to equity holders fell 40.00 percent to RMB 1.905 billion, according to Futubull.

On October 1, 2026, Simply Wall St reported that 23 analysts forecast 2026 revenue of CNY 30.4 billion and statutory earnings per share of CNY 3.01, compared with a previous earnings-per-share estimate of CNY 3.04. The consensus price target stood at HKD 53.72, according to Moomoo.

What the earnings decline means

The pressure was concentrated in profitability rather than one isolated sales line. Gross profit fell 21.20 percent to RMB 3.197 billion, and gross margin declined to 22.60 percent from 27.10 percent in the first half of 2026.

Shenzhou said currency effects, cautious end-user demand, higher labor costs and more expensive synthetic-fiber raw materials weighed on the period. Sportswear sales fell 10.70 percent to RMB 9.042 billion, while casual-wear sales rose 4.50 percent to RMB 3.963 billion, according to Moomoo. That mix shows why the margin trend matters: growth in smaller categories did not offset the weakness in sportswear.

Capacity remains the counterweight

Shenzhou also declared an interim dividend of HKD 0.88 per share for the first half of 2026. The company said its second fabric factory in Vietnam was ramping up, while an Indonesian garment project was expected to begin phased production in the fourth quarter of 2027, according to Futubull.

The latest HKEX quote was HKD 35.62 at 1:12 p.m. HKT on October 13, 2026, while market capitalization stood at HKD 53.5 billion. Shenzhou stock was last quoted at EUR 3.99 at Lang & Schwarz on October 12, 2026 at 10:57 p.m. CEST, giving investors a dated German-market reference while earnings recovery depends on demand and overseas capacity utilization. The further course of trading is shown by the continuously updated real-time quote of Shenzhou stock.