Knitwear maker Shenzhou drops most in 4 weeks on downbeat earnings; brokers cut TP

Shenzhou International group

31/03/2022 05:44

** Shares of knitwear products maker Shenzhou International
Group Holdings Ltd  2313.HK  drop as much as 7.5% to HK$104.60,
their biggest intraday percentage decline since March 3
    ** Stock on track to snap two sessions of gains; biggest
percentage decliner in Hang Seng Index  .HSI  and Hang Seng
Commerce & Industry Index  .HSNC , and third biggest in Hang
Seng China Enterprises Index  .HSCE  
    ** Co says net profit plunged 33.7% year-on-year to 3.37 bln
yuan ($530.81 mln) while sales were up 3.5% at 23.85 bln yuan.
It declares a final dividend of HK$0.57 per share, as compared
with HK$1.10 in 2020  urn:newsml:reuters.com:*:nFWN2VW125
    ** Daiwa reiterates "outperform" rating, but cuts TP to
HK$130 from HK$160, on lowering 2022-23E earnings after
factoring in the impact of COVID-19 disruptions and heightened
raw material costs while 1H22 likely to remain weak due to macro
pressure  
    ** Citi maintains "buy" but trims TP to HK$150, on reducing
earnings forecast for 2022E as gross margin recovery in 1H22E
seems to be slower than expected on COVID-led impact for
capacity expansion
    ** Hang Seng Commerce & Industry Index  .HSNC  falls 1.7%,  
the Hang Seng China Enterprises Index  .HSCE  eases 0.7%, and
the benchmark Hang Seng Index  .HSI  slips 0.8%

    ($1 = 6.3488 Chinese yuan)

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