China's Shenzhou International H1 sales fall 5.3%

Shenzhou International group

25/08/2026 13:51

Overview
China textile and garment maker's H1 sales fell 5.3% yr/yr
Net profit attributable to owners dropped about 40% from previous year
Company declared interim dividend down 36% from prior year period

Outlook
Company did not provide specific financial outlook

Result Drivers
SPORTSWEAR WEAKNESS - Revenue from sportswear products fell 10.7% yr/yr, weighing on overall sales
GROSS MARGIN DECLINE - Gross profit margin fell 4.5 percentage points to 22.6%, contributing to a 21.2% drop in gross profit
CASUAL AND LINGERIE SALES - Modest increases in casual wear and lingerie product sales partially offset sportswear decline

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Sales
 
RMB 14.18 bln
 
H1 Net Income Attributable
 
RMB 1.90 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Shenzhou International Group Holdings Limited is HK$60.00, about 45.8% above its August 25 closing price of HK$41.14
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 25 - Sportswear maker Xtep International H1 revenue dips 0.6% as core brand weakens
Aug 24 - Elastic fabric maker Best Pacific's H1 revenue rises on sportswear demand
Aug 25 - Zara clothing supplier Pearl Global evaluates Africa expansion as Europe demand grows

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)