SEHK:2313Luxury
Shenzhou International (SEHK:2313) Stock Faces Profit Reset After Margin Erosion
Shenzhou International Group Holdings closed at HK$37.94, with the stock under pressure over the past three months, down about 18%. The short-term verdict from the market is clear. The question now is whether the latest earnings justify that caution.
The headline this half is margin strain, not top line drama. Net profit margin over the past year has slipped from 21.2% to 15.1%, and dividend payments sit on a relatively weak free cash flow cushion. For a textile manufacturing heavyweight that...