# Shenzhou International Group Holdings (2313.HK)

Canonical: https://gigainvestors.com/s/2313.HK

Analysis as of: 2026-10-16T07:36:34.277Z. Financial observations: FY2004–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: HKD 37.42 per share; close as of 2026-10-15.

Estimated value: low HKD 84.55 per share, central HKD 113.51 per share, high HKD 129.67 per share. Buy at or below the central value HKD 113.51 per share. Valuation as of 2026-10-16T07:36:34.277Z; scenarios are not confidence intervals.

Expected annual return: 38.5% at the stated quote. About 38.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.23×

- FY2017: 0.22×

- FY2018: 0.21×

- FY2019: 0.22×

- FY2020: 0.23×

- FY2021: 0.15×

- FY2022: 0.14×

- FY2023: 0.16×

- FY2024: 0.21×

- FY2025: 0.19×

### moat: pass

- ROIC, median of available years: 20.6%

- ROIC, second-lowest year: 13.0%

- Typical minus recent gross margin: 2.9 pp

- Typical gross margin (annual median): 29.2%

- Recent gross margin (lower of latest and 3-year median): 26.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.4%

- ROIC including acquisitions, ten-year median: 19.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 19.8%

- FY2017: 20.3%

- FY2018: 23.7%

- FY2019: 20.9%

- FY2020: 24.5%

- FY2021: 12.0%

- FY2022: 13.1%

- FY2023: 13.0%

- FY2024: 22.0%

- FY2025: 20.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 24B

- Net income, five-year total: CNY 25B

- Return on incremental invested capital: 18.9%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 2.2 pp

- Working capital / revenue, final three-year average: 40.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.78×

- FY2022: 1.01×

- FY2023: 1.05×

- FY2024: 1.00×

- FY2025: 0.96×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 20.3% vs 20.9%

- Per-share earnings: 1.91 to 3.88 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: CNY 14B

- Cumulative retained earnings: CNY 21B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.2%

- Per-share value change: CNY 1.96

- Per-share value, starting three-year median: CNY 1.91

- Per-share value, ending three-year median: CNY 3.88

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 19M

- Cumulative net income, 10 years: CNY 46B

- ROIC, first three-year median: 20.3%

- ROIC, last three-year median: 20.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.91

- FY2017: CNY 2.46

- FY2018: CNY 3.02

- FY2019: CNY 3.39

- FY2020: CNY 3.40

- FY2021: CNY 2.24

- FY2022: CNY 3.04

- FY2023: CNY 3.03

- FY2024: CNY 4.15

- FY2025: CNY 3.88

### accounting: pass

- Sloan accruals: 0.5%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.95×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.5%

- FY2017: 0.3%

- FY2018: 1.5%

- FY2019: -1.6%

- FY2020: -1.8%

- FY2021: -0.5%

- FY2022: -0.2%

- FY2023: -1.4%

- FY2024: 1.8%

- FY2025: 0.5%

## Holders

## Price story

Down 78% since Oct 2021 · sales +8.1%

Story as of 2026-10-16T10:00:07.695Z; price observation 2026-10-15.

Price needs cash profits to shrink 13.6% a year for ten years

### Sales · FY2024–2025

sales +8.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 15B 

- FY2017: CNY 18B 

- FY2018: CNY 21B 

- FY2019: CNY 23B 

- FY2020: CNY 23B 

- FY2021: CNY 24B 

- FY2022: CNY 28B 

- FY2023: CNY 25B 

- FY2024: CNY 29B 

- FY2025: CNY 31B 

### Gross margin · FY2025

gross margin 26.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 32.5% 

- FY2017: 31.4% 

- FY2018: 31.6% 

- FY2019: 30.3% 

- FY2020: 31.2% 

- FY2021: 24.3% 

- FY2022: 22.1% 

- FY2023: 24.3% 

- FY2024: 28.1% 

- FY2025: 26.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in textile manufacturing; annual sales are CNY 31 billion.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2025-12-31 (filed 2026-10-16T07:36:34.277Z); FY2025: revenue 30993732000; grossProfit 8165360000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2313.HK: 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.

### Why customers stay

Margins ranged from 24.3% to 28.1% during 2023–25; it earns 20.6% on its capital.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2023-12-31 (filed 2026-10-16T07:36:34.277Z); FY2023: grossProfit / revenue = 24.3%.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2024-12-31 (filed 2026-10-16T07:36:34.277Z); FY2024: grossProfit / revenue = 28.1%.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2025-12-31 (filed 2026-10-16T07:36:34.277Z); FY2025: grossProfit / revenue = 26.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:34.277Z); 10-year return on capital observations [[2016,0.19767725425014623],[2017,0.20298685208462985],[2018,0.23662336367891898],[2019,0.20947314392627736],[2020,0.2447084196499641],[2021,0.11989368345419883],[2022,0.13063981961136367],[2023,0.12960379108287787],[2024,0.219847919839893],[2025,0.2090910513042482]]; median 0.20603895169443903. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 20.5% of cash earnings; earns 18.9% on new investment.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2016-12-31 (filed 2026-10-16T07:36:34.277Z); FY2016: growth capex 1013770196.2948468; upkeep 1076314803.7051532; owner earnings 2546777196.2948465. Growth capex / owner earnings = 0.39806002573359.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2017-12-31 (filed 2026-10-16T07:36:34.277Z); FY2017: growth capex 388356000; upkeep 783691000; owner earnings 3762721000. Growth capex / owner earnings = 0.10321147913969704.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2018-12-31 (filed 2026-10-16T07:36:34.277Z); FY2018: growth capex 766593000; upkeep 881231000; owner earnings 4540487000. Growth capex / owner earnings = 0.1688349729885803.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2019-12-31 (filed 2026-10-16T07:36:34.277Z); FY2019: growth capex 744335298.6865618; upkeep 1797635701.3134382; owner earnings 4298272098.686562. Growth capex / owner earnings = 0.1731708187841368.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2020-12-31 (filed 2026-10-16T07:36:34.277Z); FY2020: growth capex 163775852.04310083; upkeep 2143756147.9568992; owner earnings 3920844252.043101. Growth capex / owner earnings = 0.041770557950053584.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2021-12-31 (filed 2026-10-16T07:36:34.277Z); FY2021: growth capex 376154415.41456175; upkeep 1804787584.5854383; owner earnings 2620595615.4145617. Growth capex / owner earnings = 0.14353775653213724.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2022-12-31 (filed 2026-10-16T07:36:34.277Z); FY2022: growth capex 0; upkeep 1240470000; cash acquisitions 0; owner earnings 4613900600. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2023-12-31 (filed 2026-10-16T07:36:34.277Z); FY2023: growth capex 0; upkeep 1090607000; cash acquisitions 0; owner earnings 4784753600. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2024-12-31 (filed 2026-10-16T07:36:34.277Z); FY2024: growth capex 354136000; upkeep 1522000000; cash acquisitions 0; owner earnings 6217770400. Growth capex plus acquisitions / owner earnings = 0.05695546429311703.

- Source: https://eodhd.com/api/fundamentals/2313.HK.json#2025-12-31 (filed 2026-10-16T07:36:34.277Z); FY2025: growth capex 1132663720.520242; upkeep 1606318279.479758; cash acquisitions 7380000; owner earnings 5571884920.520242. Growth capex plus acquisitions / owner earnings = 0.20460647281527078.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:34.277Z); Incremental return on capital 0.18900471881015624, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:34.277Z); Dividend observations: [[2016,1254128000],[2017,2483827000],[2018,2057491000],[2019,2402751000],[2020,2582326000],[2021,2717504000],[2022,2063239000],[2023,2458076000],[2024,3186187000],[2025,3673635000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 48.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2313.HK SharesStats.PercentInsiders = 48.783 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0423/2026042300646.pdf (filed ); e wholly-owned subsidiary of the Group. Excluding the impact of this one-off gain, profit attributable to owners of
the parent decreased by approximately 1.4% compared with the same period last year. During the year, the Group
further increased its workforce at overseas production bases, with production capacity gradually being released. This
provided the necessary production capacity to support sustained growth in sales revenue. However, rising labour
costs and the absorption of certain import tariffs on behalf of customers in the US market, and

[Noncontiguous filing excerpt]

p
further increased its workforce at overseas production bases, with production capacity gradually being released. This
provided the necessary production capacity to support sustained growth in sales revenue. However, rising labour
costs and the absorption of certain import tariffs on behalf of customers in the US market, and the appreciation of
the Renminbi against the US dollar mitigated the recovery in profitability. Consequently, the gross profit margin for
the year decreased by 1.8 percentage points to 26.3 per cent compared with the previous year. Looking back on the
year’s work, the Group has simultaneously advanced new capacity expansions at overseas bases and technological
upgrades at domestic facilities, effectively driving increases in production scale and operational efficiency. Guided
by customer requirements, the Group has intensified new product development efforts, enhancing market
competitiveness while effectively fostering sustained business growth. Furthermore, the Group has continuously
optimised organisational structures and operational processes, deepened cross-departmental business integration,
accelerated the introduction of advanced technologies, and ensured the efficient implementation of management
decisions.
The Group’s new fabric factory project in Tây Ninh Province, Vietnam (the “Second Vietnam Fabric Factory”)
encompasses weaving, dyeing and finis

[Noncontiguous filing excerpt]

ly being released. This
provided the necessary production capacity to support sustained growth in sales revenue. However, rising labour
costs and the absorption of certain import tariffs on behalf of customers in the US market, and the appreciation of
the Renminbi against the US dollar mitigated the recovery in profitability. Consequently, the gross profit margin for
the year decreased by 1.8 percentage points to 26.3 per cent compared with the previous year. Looking back on the
year’s work, the Group has simultaneously advanced new capacity expansions at overseas bases and technological
upgrades at domestic facilities, effectively driving increases in production scale and operational efficiency. Guided
by customer requirements, the Group has intensified new product dev

### What the price says

The price assumes cash profits shrink 13.6% yearly over ten years; actual growth was 13.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:34.277Z); Ten-year compound average after fade. Initial solved rate -0.2894678825282425. Price 37.42; FX 1.1727222788982186; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.016514581203803 → FY2025 3.7066271309156402. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 51.45 per share

- 2016-11: HKD 47.70 per share

- 2016-12: HKD 49.05 per share

- 2017-01: HKD 48.05 per share

- 2017-02: HKD 46.40 per share

- 2017-03: HKD 49.05 per share

- 2017-04: HKD 51.20 per share

- 2017-05: HKD 53.35 per share

- 2017-06: HKD 51.30 per share

- 2017-07: HKD 52.25 per share

- 2017-08: HKD 62.70 per share

- 2017-09: HKD 61.20 per share

- 2017-10: HKD 66.60 per share

- 2017-11: HKD 70.50 per share

- 2017-12: HKD 74.40 per share

- 2018-01: HKD 80.75 per share

- 2018-02: HKD 77.50 per share

- 2018-03: HKD 82.65 per share

- 2018-04: HKD 86.20 per share

- 2018-05: HKD 91.80 per share

- 2018-06: HKD 96.85 per share

- 2018-07: HKD 96.25 per share

- 2018-08: HKD 103.00 per share

- 2018-09: HKD 100.40 per share

- 2018-10: HKD 86.60 per share

- 2018-11: HKD 95.00 per share

- 2018-12: HKD 88.75 per share

- 2019-01: HKD 92.35 per share

- 2019-02: HKD 98.00 per share

- 2019-03: HKD 105.20 per share

- 2019-04: HKD 105.30 per share

- 2019-05: HKD 92.45 per share

- 2019-06: HKD 107.40 per share

- 2019-07: HKD 108.70 per share

- 2019-08: HKD 106.50 per share

- 2019-09: HKD 102.40 per share

- 2019-10: HKD 108.60 per share

- 2019-11: HKD 103.20 per share

- 2019-12: HKD 113.90 per share

- 2020-01: HKD 103.80 per share

- 2020-02: HKD 95.75 per share

- 2020-03: HKD 82.40 per share

- 2020-04: HKD 90.35 per share

- 2020-05: HKD 92.15 per share

- 2020-06: HKD 93.40 per share

- 2020-07: HKD 92.50 per share

- 2020-08: HKD 125.00 per share

- 2020-09: HKD 130.50 per share

- 2020-10: HKD 133.90 per share

- 2020-11: HKD 131.20 per share

- 2020-12: HKD 152.00 per share

- 2021-01: HKD 152.10 per share

- 2021-02: HKD 161.10 per share

- 2021-03: HKD 161.10 per share

- 2021-04: HKD 170.80 per share

- 2021-05: HKD 200.40 per share

- 2021-06: HKD 196.10 per share

- 2021-07: HKD 171.60 per share

- 2021-08: HKD 169.60 per share

- 2021-09: HKD 165.80 per share

- 2021-10: HKD 167.80 per share

- 2021-11: HKD 147.00 per share

- 2021-12: HKD 149.90 per share

- 2022-01: HKD 143.10 per share

- 2022-02: HKD 131.30 per share

- 2022-03: HKD 104.80 per share

- 2022-04: HKD 108.90 per share

- 2022-05: HKD 108.50 per share

- 2022-06: HKD 95.05 per share

- 2022-07: HKD 82.55 per share

- 2022-08: HKD 82.35 per share

- 2022-09: HKD 61.35 per share

- 2022-10: HKD 54.40 per share

- 2022-11: HKD 69.65 per share

- 2022-12: HKD 87.80 per share

- 2023-01: HKD 98.25 per share

- 2023-02: HKD 85.70 per share

- 2023-03: HKD 82.40 per share

- 2023-04: HKD 74.85 per share

- 2023-05: HKD 63.40 per share

- 2023-06: HKD 74.75 per share

- 2023-07: HKD 82.05 per share

- 2023-08: HKD 80.50 per share

- 2023-09: HKD 75.00 per share

- 2023-10: HKD 76.75 per share

- 2023-11: HKD 78.40 per share

- 2023-12: HKD 80.40 per share

- 2024-01: HKD 69.75 per share

- 2024-02: HKD 64.55 per share

- 2024-03: HKD 74.10 per share

- 2024-04: HKD 78.20 per share

- 2024-05: HKD 78.20 per share

- 2024-06: HKD 76.45 per share

- 2024-07: HKD 66.35 per share

- 2024-08: HKD 64.40 per share

- 2024-09: HKD 70.55 per share

- 2024-10: HKD 60.00 per share

- 2024-11: HKD 59.50 per share

- 2024-12: HKD 62.00 per share

- 2025-01: HKD 58.65 per share

- 2025-02: HKD 56.80 per share

- 2025-03: HKD 58.40 per share

- 2025-04: HKD 53.80 per share

- 2025-05: HKD 57.15 per share

- 2025-06: HKD 55.80 per share

- 2025-07: HKD 56.85 per share

- 2025-08: HKD 61.45 per share

- 2025-09: HKD 61.65 per share

- 2025-10: HKD 67.10 per share

- 2025-11: HKD 69.25 per share

- 2025-12: HKD 61.20 per share

- 2026-01: HKD 62.30 per share

- 2026-02: HKD 63.35 per share

- 2026-03: HKD 46.78 per share

- 2026-04: HKD 46.80 per share

- 2026-05: HKD 46.42 per share

- 2026-06: HKD 39.36 per share

- 2026-07: HKD 44.58 per share

- 2026-08: HKD 35.10 per share

- 2026-09: HKD 34.84 per share

- 2026-10: HKD 37.42 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 30.33 per share, central HKD 41.57 per share, high HKD 48.12 per share

- FY2017: low HKD 36.90 per share, central HKD 50.51 per share, high HKD 58.43 per share

- FY2018: low HKD 43.55 per share, central HKD 59.61 per share, high HKD 68.96 per share

- FY2019: low HKD 53.83 per share, central HKD 73.37 per share, high HKD 84.75 per share

- FY2020: low HKD 57.16 per share, central HKD 75.11 per share, high HKD 86.32 per share

- FY2021: low HKD 50.88 per share, central HKD 60.79 per share, high HKD 69.39 per share

- FY2022: low HKD 57.32 per share, central HKD 73.17 per share, high HKD 83.93 per share

- FY2023: low HKD 55.53 per share, central HKD 70.60 per share, high HKD 80.53 per share

- FY2024: low HKD 70.85 per share, central HKD 93.02 per share, high HKD 105.94 per share

- FY2025: low HKD 84.53 per share, central HKD 113.48 per share, high HKD 129.63 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.