ShenzhouIntl申洲国际（2313HK）.PDFVIP

Hong Kong Equity | China Consumer Goods Company update Shenzhou Int’l 申洲国际(2313 HK) ACCUMULATE Set to reach a new height Share Price Target Price In 2017, a leading consumer OEM player, Shenzhou has continued to deliver HK$82.85 HK$92.40 decent operating results, which marked the best performance since listing. Its top and bottom-line have grown 19.8%/27.7% to RMB 18.1Bn/RMB 3.8Bn respectively, higher than our expectation. 1) Significant growth in orders from China / Consumer Goods/ Apparel four top -tier customers, UNIQLO, NIKE, Adidas and PUMA; 2) effective cost control; 3) expansion and operation in Vietnam smoothly operated drove Shenzhou to 20 April 2018 success. We are positive on its outlook and lift our target price to HK$92.4 based on higher EPS and 2018E PE of 24.0x. Revise to ACCUMULATE. Cyrus Tai (SFC CE: BKJ685)  Strong growth momentum of order demands. In 2017, the order demands of top-tier (852) 3519 1292 customers kept ideal growth and accounted for more than 80% of total revenue. Top Cyrus.tai@.hk three customers, UNIQLO, NIKE and Adidas contributed RMB5.3Bn (36% YoY), RMB3.7Bn (10% YoY) and RMB3.6Bn (5% YoY) in revenue respectively.