Chinese knitwear maker Shenzhou drops most in 10 years on 'unoptimistic' outlook

Shenzhou International group

26/08/2022 03:06

** Shares of Chinese knitwear maker Shenzhou International
Group Holdings Ltd  2313.HK  fall as much as 9.2% to HK$78.10 - 
set for biggest daily pct drop since April 2012 if losses hold 
    ** Stock hits the lowest since Aug. 10; biggest pct decliner
in the benchmark Hang Seng Index  .HSI , Hang Seng Commerce &
Industry Index  .HSNC  and Hang Seng Composite Index  .HSCI  
    ** Zhejiang-based co says H1 net profit up 6.3% from a year
ago to 2.37 bln yuan ($346.10 mln), with sales rising 19.6% to
13.59 bln yuan  urn:newsml:reuters.com:*:nFWN30035Q
    ** Co says "unoptimistic" about exports while inventory
pressure experienced by brand owners due to lower-than-expected
sales still exists, leading to more prudent procurement plans
    ** Daiwa reiterates "outperform" rating but lowers TP to
HK$96 from HK$105 to factor in weaker global demand and slower
margin recovery 
    ** Sees risks from worse-than-expected capacity utilisation
rates in China bases
    ** The Hang Seng Commerce & Industry Index rises 1.3%, the
Hang Seng Composite Index and the Hang Seng Index both gain 0.9%
    ** As of last close, the stock had fallen 42.6% this year

($1 = 6.8477 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))