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Macquarie predicts Shenzhou International will accelerate growth
With the increase in replenishment demand from brand customers, Shenzhou International expects its production capacity to increase significantly in the first half of this year. In view of last year's low base, the company's recruitment activities in China and Vietnam are in full swing, with the goal of returning the total number of employees to 9.9% by the end of the year.jokerpokerdeuceswild.90,000 people. New customers lululemon and Polo contribute approximately 5% of revenue, and the diversification of existing customer product lines has also brought benefits to the company.jokerpokerdeuceswildIt provides long-term growth drivers.
The company's recovery plan is implemented in phases and is currently focusing on improving capacity utilization. As production bottlenecks approach, the group expects to optimize its product mix, which while this may lead to more stable revenue growth, has a positive impact on profit margins. In order to ensure the stability of the employee team after orders are resumed, the salary of Ningbo front-line employees will be increased by 10-15%.
Macquarie Bank is optimistic about Shenzhou International's prospects, so it raised its profit forecast for the 2024 - 2025 fiscal year by 2%. The target share price has been raised to HK$91 from the previous HK$89, and the rating remains "outperform the market".