Shenzhou International Mid Term Earn 21% More Sales Growth, Mainly Driven By Sino US Orders.

China's knitting giant Shenzhou International Group Holdings Limited (2313.HK) announced that the mid term sale of Hong Kong stock market in Hong Kong stock market was not as good as expected by the market, but it was up to 8.7% after the afternoon opening. However, as the investment bank made positive comments on its performance, the country could basically recover its decline in the late afternoon.

In the first half of June 30th, we have Nike, Nike, Uniqlo UNIQLO, Adidas, Adidas and other customers.

The sales volume of 9 billion 159 million 900 thousand yuan (RMB, the same below) increased by 10.8% compared with 8 billion 263 million 600 thousand yuan in the same period last year. During the period, the appreciation of the RMB against the US dollar was partly offset by a partial increase.

Net profit also increased by 21.1% to 2 billion 178 million 900 thousand yuan per year.

The board recommended an interim dividend of HK $0.85 per share, an increase of 21.4% over the same period last year of HK $0.70.

Management points out that sales revenue and business performance have reached a new high.

During the period, China's textile and garment exports benefited from

The demand for a steady and rising trend increased by 3.2% to 127 billion 520 million US dollars compared with the same period last year. Textile exports increased by 10.3% over the same period last year as a result of a good technological foundation and industrial matching. The increase in clothing exports was attributed to the increase in labour costs, which led to an export competitiveness of 2%.

As the third largest exporter of clothing in the world,

Vietnam has maintained a relatively high export growth rate in the second main producing areas, and textile and garment exports rose 15.7% to 13 billion 640 million US dollars in the first half of this year.

Shenzhou International nearly 60% of the illiquid assets remain in the mainland of China, and Vietnam accounts for 38.4%. The group said that the expansion of the overseas base capacity of the local and Kampuchea had better met the needs of the main customers during the period, and also ensured the steady growth of the business. The increase of the scale of production capacity further pushed down the fixed expenditure of the single products; the scale of the integrated production tended to mature, which not only saved the customers' purchasing cost, but also shortened the delivery time.

Management said in its earnings report that it will take the capability of improving customer service, continuously improve environmental protection, product innovation and equipment upgrading, and attach importance to customers.

Orders, and further expansion of overseas production and other multiple means to cope with the unstable trade environment.

Shenzhou International mid-term sales by market

Domestic

The factory continued to upgrade its equipment in the first half of the year, thus promoting automation and information technology, reducing the cost of labor costs.

The total number of employed personnel in the domestic base has declined compared with the same period last year, but the output increased year by year, while the size of the staff in Vietnam has been close to expectations and production efficiency has been greatly improved.

As of June 30th, the group employed 84130 employees, a 2550 increase over the same period last year, but the cost of staff decreased from 30.2% in the same period last year to 28.2%.

The overall gross profit margin in the medium term increased by 60 basis points to 32.3%, 100 basis points higher than the Goldman Sachs Group Inc. Goldman Sachs forecast, and also better than Morgan Stanley Morgan Stanley's expectations.

The sales volume of sports products sold by Shenzhou International 67.9% is 6 billion 215 million 600 thousand yuan, an increase of 12.6% over the same period last year. The demand of international brands for sportswear in China and the United States in the recovery of the economy has increased, but Europe has declined.

Sales of second categories of leisure products increased by 5% to 2 billion 164 million 400 thousand yuan. Growth was mainly driven by the mainland market and Japanese orders were reduced.

Underwear also has 15.1% rapid growth, sales increased to 714 million 400 thousand yuan, domestic and Japanese demand has risen.

During the period, the demand for main customer orders maintained a relatively good growth. The revenue from the largest customers increased by 13.5% to 2 billion 715 million 700 thousand yuan, and the orders of second to four large customers also recorded 8.8%, 3.7% and 1.9% increase respectively.

Shenzhou International (2313.HK) closed at HK $95.45 on Monday, narrowing its daily decline to 0.47%, making the cumulative increase to 24.3% in 2018.

Goldman Sachs maintained its position of "sure buy" list after the middle of the report. Its target price is HK $115, and it is expected that the depreciation of RMB and improvement of production efficiency will stimulate Shenzhou International's second half profit to continue to achieve strong growth.

Morgan Stanley also maintained a target price of HK $115 and a "overweight" rating.