Shenzhou International Group (2313.HK)

Consumer · HKEX · Hong Kong

HK$45.76+7.27% today

Fundamentals

Market capHK$65.67B

P/E ratio9.8

Dividend yield5.90%

Revenue growth (YoY)+2.2%

Profit margin18.8%

Return on equity15.9%

52-week rangeHK$38.66 to HK$73.00

Valuation and ratings

DCF fair valueHK$43.91

Upside to fair value-4.0%

Analyst target (mean)HK$64.68

Analyst rangeHK$47.92 to HK$96.85

Analysts covering22

Consensus viewstrong buy

Moat score55/100

Overall rating60/100, Buy

Shenzhou International Group trades at HK$45.76, close to the HK$43.91 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.

Our moat model scores it 55 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 9.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Shenzhou International Group

Shenzhou International Group Holdings Limited, an investment holding company, manufactures and sells knitwear products in Mainland China, the European Union, the United States, Japan, and internationally. The company offers knitted sportswear, casual wear, and lingerie wear. The company is engaged in trading activities, and property leasing services. Shenzhou International Group Holdings Limited was founded in 2000 and is based in Kowloon, Hong Kong.

Industry: Textile ManufacturingEmployees: 108,680HQ: Hong Kong

2313.HK passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Deep value, with a pulse

A very low earnings multiple is usually a warning. This screen demands a low multiple AND evidence the business still works.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Beaten down, but not broken

Good businesses whose share price has been punished. Sometimes the market is wrong. Sometimes it is early. The screen cannot tell you which.

Consumer staples

The companies that sell what people buy regardless of the economy. Dull, and dull is the entire point.

China and Hong Kong

Enormous growth, and a structure in which you may not legally own the company you think you bought. Both are true at once.

Dividend aristocrats

Companies with long, unbroken records of raising their dividend. The record is the point: it is evidence, not a promise.

Common questions

Is Shenzhou International Group (2313.HK) undervalued?

Against our discounted cash flow estimate of HK$43.91, 2313.HK at HK$45.76 is 4% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is 2313.HK's P/E ratio?

2313.HK trades at 9.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

The full research page for 2313.HK, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open 2313.HK in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.