JP Morgan lowers the target price for SHENZHOU INTL to 81 yuan, expects recovery in 2026, maintains "Overweight" rating

AASTOCKS
2026.04.01 03:28

JP Morgan released a report indicating that SHENZHOU INTL (02313.HK) experienced a year-on-year revenue growth of 8% and a profit decline of 7% last year, which was 3% and 11% lower than market expectations, respectively. The performance fell short of expectations mainly due to a sales growth of only 2% in the second half of the year, significantly impacted by weak domestic market demand (with sales dropping 14% in the second half).

The bank stated that in response to weak demand, it has lowered its earnings forecasts for SHENZHOU by 20% and 17% for 2026 and 2027, respectively, and has reduced its target price from HKD 94 to HKD 81, which corresponds to a projected 12-month price-to-earnings ratio of 16 times for 2026, maintaining an "Overweight" rating.

JP Morgan expects SHENZHOU's sales and profits to grow by 6% and 4% respectively in 2026, with a net profit margin of 18.3%, a decrease of 0.5 percentage points compared to the same period last year

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