Xiaoma believes that Shenzhou International (02313)'s focus on ESG and automation will help sustainable development.
The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintains Shenzhou International's (02313) “plus” rating, with a dividend payout rate of 60%. It is expected to maintain the same level in the future, and the target price will be raised from HK$91 to HK$94.
According to the report, the company's sales fell 10% last year, lower than the forecast, based on a 15% drop in production; gross margin was better than the forecast, rising 2.2 percentage points to 24.3%. The bank raised the company's 2024-25 profit forecast by 4 to 5%. It also believes that Shenzhou International's overseas production capacity will continue to expand, there will be opportunities to expand the market share of core customers, and maintain stable relationships with new customers. We also believe that the Group's focus on ESG and automation will help sustainable development.