---
title: "JPM Cuts SHENZHOU INTL TP to HKD70 in Face of Headwinds in 1H"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295053167.md"
description: "JPMorgan cut its target price for Shenzhou International to HKD70 from HKD81, maintaining an Overweight rating. The downgrade reflects expected headwinds in H1 2026, including tariff sharing, rising raw material costs, and FX fluctuations, which are projected to reduce gross margins by 2-3 percentage points and net profit by approximately 30% year-on-year. Sales growth is anticipated to be dampened by Puma and Nike, partially offset by Adidas and domestic brands."
datetime: "2026-08-06T04:21:59.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295053167.md)
  - [en](https://longbridge.com/en/news/295053167.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295053167.md)
generator: "portal-rs"
---

# JPM Cuts SHENZHOU INTL TP to HKD70 in Face of Headwinds in 1H

JPMorgan expected SHENZHOU INTL (02313.HK) -0.180 (-0.419%) Short selling $21.68M; Ratio 11.066% 's sales in 1H26 to decline by a low- to mid-single-digit percentage YoY, dampened by Puma and Nike, though partly offset by strong momentum from Adidas and domestic brands such as ANTA SPORTS (02020.HK) -1.100 (-1.456%) Short selling $54.94M; Ratio 10.383% and LI NING (02331.HK) -0.220 (-1.482%) Short selling $30.40M; Ratio 10.142% .

In face of headwinds including tariff sharing, rising raw material prices in 2Q26 and FX fluctuations, the broker expected gross margin to decline by 2-3 ppts YoY. Coupled with lower non-operating income, net profit in 1H26 was forecast to sink by about 30% YoY. The broker maintained its Overweight rating.

The broker lowered its 2027-28 earnings forecasts by 14-16% to reflect macro uncertainties. The Dec 2026's TP was cut from HKD81 to HKD70, implying a 12-month forward P/E ratio of 17x.  
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-05 16:25.)

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**