Looking ahead to this year, due to the efforts of brand customers to remove inventory, Shenzhou's sales volume is expected to increase by 10% this year, and the average sales price will increase by 1%.
The Zhitong Finance App learned that Macquarie released a research report stating that the “outperforming the market” rating for Shenzhou International (02313) will generally keep this year's earnings estimate unchanged. Next year's earnings forecast will drop 4.5% to reflect a reduction in revenue forecasts and a higher operating expenses ratio forecast. The target price will drop 2% from HK$91 to HK$89.
The bank said that the company's capacity utilization rate in mainland China and overseas has now recovered to 100%. As of the end of last year, it was 95% and 100%, respectively. Looking ahead to this year, due to the efforts of brand customers to remove inventory, Shenzhou's sales volume is expected to increase by 10% this year, and the average sales price will increase by 1%.
According to the report, Shenzhou increased its share through category expansion. As production capacity utilization improved, gross margin rose 4.3 percentage points year-on-year to 25.8% in the second half of last year. With increased production efficiency in the mainland and overseas, gross margin is expected to return further to about 30% of the pre-epidemic level.