Shenzhou International 2313.HK
Shenzhou International is the world's largest contract knitwear manufacturer, producing sportswear and casual clothing for global brands such as Nike, Adidas, and Uniqlo, with a business model based on vertical integration and cost efficiency. Shenzhou International trades at a P/E of 7.62 and EV/EBITDA of 4.95, reflecting an attractive valuation, but the business is clearly contracting with a 40% drop in profits and 5.3% decline in revenue, which justifies the low growth score (1.33) and limits the stock's appeal despite its strong financial position (net cash, debt/EBITDA of -2.06).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Shenzhou International is the world's largest contract knitwear manufacturer, producing sportswear and casual clothing for global brands such as Nike, Adidas, and Uniqlo, with a business model based on vertical integration and cost efficiency. Shenzhou International trades at a P/E of 7.62 and EV/EBITDA of 4.95, reflecting an attractive valuation, but the business is clearly contracting with a 40% drop in profits and 5.3% decline in revenue, which justifies the low growth score (1.33) and limits the stock's appeal despite its strong financial position (net cash, debt/EBITDA of -2.06).
Score by category
| Category | Score |
|---|---|
| Financial health | 8.0 |
| Quality / Moat | 4.1 |
| Valuation | 8.1 |
| Growth | 0.8 |
| Dividend | 8.3 |
| Momentum | 0.8 |
| Risk & Context | 4.9 |
OVERALL SCORE: 5.2/10
Context and risks
No material exposure to the geopolitical or regulatory factors mentioned in the macro context. The company is a textile manufacturer based in Hong Kong, but its production is diversified across China, Vietnam, and Cambodia, and its clients are global brands; there is no specific geopolitical risk affecting its business model beyond the general sector risk.
News considered in the analysis
- A Look At Shenzhou International Group Holdings (SEHK:2313) Valuation After Buyback And Dividend Announcement — Artículo de análisis genérico sobre valoración tras recompra y dividendo; sin información nueva o cuantificable sobre el negocio.
Verdict: Hold; the cheap valuation does not offset the structural decline in revenue and profits, although the healthy balance sheet and 5.1% dividend yield offer some support.
Main risk: The main risk is the sustained business contraction (revenue -5.3%, profits -40%), which could persist if demand from its clients (Nike, Adidas) does not recover, further eroding profitability and cash generation.
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