Citibank: It is expected that Shenzhou International (02313)'s sales volume will still increase by a high number of units next year, with a target price of HK$94 for the “buy” rating

The Zhitong Finance App learned that Citibank released a research report saying that Nike (NKE.US) indicates that revenue for the third quarter of the 2026 fiscal year will drop by a low number of units, a 1% drop in line with market expectations. In the second fiscal quarter results, the North American market showed a strong recovery. Revenue rose 9%, mainly driven by a 24% increase in wholesale business, but the increase was largely offset by a 16% drop in revenue in Greater China. The bank believes that if the stock price of Shenzhou International (02313) were to correct due to Nike's cautious outlook, it would be a better buying opportunity; it currently has a target price of HK$94 and a “buy” rating.

The management of Shenzhou International has recently given conservative expectations. It is expected that sales growth will slow to medium units in the second half of 2025, which is lower than the high number of units previously anticipated by the bank. The bank believes that its predictions have broadly reflected the impact of Nike's cautious outlook. However, the bank expects Nike's sales orders to Shenzhou International in 2026 to remain flat rather than fall. Based on the visibility of orders from the four major customers, Shenzhou International is still expected to achieve high unit sales growth in 2026.