Hong Kong Stock Volatility | Shenzhou International (02313) rose over 4%. Recently, management provided conservative sales forecasts, but Citigroup remains optimistic about the company's order growth in 2026.

ESG Financial APP reports that Shenzhou International (02313) is up over 4%, currently up 4.6% at HKD 65.9, with a trading volume of HKD 200 million.

On the news front, recent reports from market media indicate that, at the year-end earnings call in 2025, major footwear material manufacturer Risheng Chemical pointed out that with the rebound of international footwear material orders from major companies like Nike in the second half of the year, coupled with the gradual release of new products this year, both revenue and profits are expected to be positive. Citigroup previously stated that Nike’s guidance for the third quarter of fiscal 2026 indicates a low single-digit percentage decline in revenue, which aligns with market expectations of a 1% decrease. In the second fiscal quarter, North American markets showed a strong recovery, with revenue increasing by 9%, mainly driven by a 24% growth in wholesale business, but this growth was largely offset by a 16% decline in revenue from Greater China. The bank believes that if Shenzhou International’s stock price pulls back due to Nike’s cautious outlook, it could present a better buying opportunity.

The bank further notes that Shenzhou International’s management has recently provided conservative guidance, expecting sales growth to slow to mid-single digits in the second half of 2025, below the bank’s previous expectation of high single digits. The bank believes that management’s forecast largely reflects the impact of Nike’s cautious outlook. However, the bank expects Nike’s sales orders for Shenzhou International in 2026 to remain flat rather than decline. Based on order visibility from the four major clients, Shenzhou International is still expected to achieve high single-digit sales growth in 2026.