<div id="readability-page-1"><div>SHENZHOU INTL (02313.HK) +1.440 (+3.186%) Short selling $37.04M; Ratio 10.761% opened 0.88% higher today and once rose 4% to a peak of HKD47. It is now trading at HKD46.38, up 2.61%, with a turnover of 1.4688 million shares, involving HKD68.1483 million.Citi released a research report noting that although most footwear OEM/ODM manufacturers posted weak results in 1Q26, apparel ODMs generally performed better, with SHENZHOU INTL (02313.HK) +1.440 (+3.186%) Short selling $37.04M; Ratio 10.761% remaining its top pick. The report expects the companys orders this year to achieve mid-single-digit growth, in line with the guidance provided after its 2025 results. Adidas and Uniqlo will be the two strongest growth drivers among its clients, with growth potentially reaching double digits, sufficient to outpace most of its other customers.The broker believes gross margin expansion this year may be moderate as positive and negative factors offset each other. On the positive side, efficiency at its Cambodia plant is expected to improve this year after hiring about 7,000 new workers last year; product mix upgrades by Nike and Adidas toward more functional sportswear; full-year contribution from Adidas football jerseys and higher pricing. However, the RMB has appreciated by about 5% year to date, which will weigh on gross margins and largely offset the positive impact from the above factors.Regarding tariff impacts, Citi pointed out that apparel production tariffs in Vietnam, Cambodia and Indonesia are lower than those in China. SHENZHOU INTLs customers may obtain tariff rebates this year, though they may not share them with the company. Such rebates could help offset part of the pricing pressure from customers. In addition, SHENZHOU INTL locked in prices for about 70% of its full-year material usage before the oil price increase. However, prices of synthetic fiber yarn have risen by more than 10% recently due to higher oil prices, and management expects it will take one month to pass through the higher costs.In terms of stock preferences, Citi favors Chinese apparel OEM/ODM manufacturers (SHENZHOU INTL preferred over CRYSTAL INTL (02232.HK) +0.040 (+0.677%) Short selling $3.48M; Ratio 7.982% ) over footwear OEM/ODM manufacturers (HUALI GROUP (300979.SZ) +0.870 (+2.340%) preferred over YUE YUEN IND (0551.HK)). The broker maintained a Buy rating on SHENZHOU INTL with a TP of HKD75. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-20 16:25.) (A Shares quote is delayed for at least 15 mins.)</div></div>

SHZHY

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SHENZHOU INTLsaw a peak rise of 4% today, trading at HKD46.38, up 2.61%. Citi's report highlights SHENZHOU as a top pick among apparel ODMs, expecting mid-single-digit order growth this year, driven by clients like Adidas and Uniqlo. While gross margin expansion may be moderate due to various factors, Citi maintains a Buy rating with a target price of HKD75.

SHENZHOU INTL Once Up 4%; Citi Sees It as Top Pick Among Apparel ODMs