Mainland Garment Manufacturing Leader Shenzhou International Made 3 Billion 800 Million Strong Profits Last Year.

Shen Zhou International Headquarters, 2313.HK, a leading manufacturer of knitting industry in Ningbo, Zhejiang, made a net profit of 3 billion 762 million 700 thousand yuan last year (2 billion 947 million 700 thousand yuan), which rose 27.7% compared with the 2 billion 947 million 700 thousand ports in 2016. The Group intends to send HK $0.75 interest at the end of the year, together with the medium-term share interest rate of HK $0.70.

In 2017, Shenzhou International revenue increased by 19.8% from 15 billion 99 million 100 thousand yuan to 18 billion 85 million 200 thousand Hong Kong dollars. During the period, the top three customers contributed 5 billion 256 million 100 thousand yuan, 3 billion 697 million 100 thousand yuan and 3 billion 609 million 400 thousand yuan respectively.

The Ningbo company said that the group's expansion in overseas capacity, the upgrading of its domestic base facilities and the continuous improvement of its total production efficiency all contributed to the development of the group. Vietnam made a successful profit in the first year, and realized a net profit of over 200 million yuan because of the preferential policy of zero tax rate.

At present, Vietnam's capacity accounts for more than 10% of Shenzhou International, while the Kampuchea plant will be put into operation this year, and the total capacity will exceed 30%.

Europe at present market The group is the largest market in addition to the local market. Last year, its revenue exceeded 4 billion yuan to 4 billion 31 million 100 thousand yuan, an annual increase of 20.1%, while China's income soared 31.3% to 4 billion 844 million 600 thousand yuan, indicating the ability to concentrate on scale and the rule of greater prosperity.

For the recent Sino US trade war, Shenzhou International said at its performance meeting that the group could avoid risks through overseas capacity, while the US market now has a market share of 12.9% as the third largest single market of the group. Vietnam's capacity can be supplied to the United States, and the Kampuchea plant which will soon be put into operation will supply Europe, and domestic factories will be self-sufficient.

During the period, Shenzhou International's largest income category is still a popular sport business this year. In 2017, the category earned 12 billion 48 million 900 thousand yuan, an annual increase of 2 billion 233 million 400 thousand yuan or 22.8%, mainly from the demand growth of international sports brands in Europe and the United States, and the movement. Fabric Product demand is enhanced.

Adidas AG (ADS.DE), one of the main customers of the group, has been extremely strong in the past two years. In addition to the German group, Nike, Nike, Uniqlo, UNIQLO, Puma Puma and other international brands are Shenzhou International customers, while domestic Faucet Brand ANTA Anta is also one of its customers.

In the 2017 fiscal year, Shenzhou International gross margin was subject to the adverse exchange rate and labor costs. Material Science The impact of cost rise recorded a drop of 110 basis points to 32.5%, which failed to offset the contribution of productivity improvement, and realized gross profit of 5 billion 671 million 300 thousand yuan during the period and an annual increase of 15.5%.

At the press conference, Shenzhou International Investment Bank Morgan Stanley raised the target price from HK $86 to HK $92, while Dassault also maintained the Shenzhou International "overweight" rating. The bank indicated that Shenzhou International Management was optimistic about the prospects, sales volume improved from Nike, Puma and other key customers, and new customers Ralph Lauren, New Balance Balance contributed more, R & D and management capabilities were strengthened, which helped Shenzhou International to obtain orders. Although RMB appreciation, this year's revenue is expected to grow by 16%, mainly stimulated by sports business growth. Big Mo also said that with the transfer of production capacity, its gross profit margin is expected to be improved, increasing by 40 basis points to 31.8% annually.

As of Tuesday, Shenzhou international market value exceeded HK $120 billion.