Guotai Junan Securities has released a research report stating that, taking into account the gross margin pressure on Shenzhou International (02313) in 2026H1 and short-term foreign exchange disturbances, the firm forecasts the company's net profit attributable to shareholders for 2026-2028 at RMB 4.30 billion / RMB 5.18 billion / RMB 6.00 billion, assigns a 2027 PE of 13X, and, using an exchange rate of HK$1 = RMB 0.86, derives a target price of HK$52, maintaining its "Accumulate" rating.

Performance came under pressure in 26H1, and the market is waiting for stabilization and recovery in 26H2; production capacity continues to shift overseas, and overseas capacity efficiency is expected to gradually improve in 2027.

26H1 revenue reached RMB 14.179 billion, down 5.3% year on year, or about 1.8% lower in USD terms; gross margin was 22.6%, down 4.5 percentage points year on year; net profit attributable to shareholders was RMB 1.91 billion, down 40% year on year.

The decline in profit was significantly larger than the decline in revenue, mainly due to gross margin pressure and foreign exchange losses arising from the revaluation of USD-denominated net current assets. Excluding non-operating fluctuations such as foreign exchange, operating net profit is estimated to have fallen about 22% year on year. The interim dividend was HK$0.88 per share.