In today’s briefing:
- Shenzhou Intl (2313 HK): Nike Guidance Cut Presents An Opportunity
- Companies Keen to Reduce Administrative Costs, but Reluctant to Provide Convenience to Shareholders
Shenzhou Intl (2313 HK): Nike Guidance Cut Presents An Opportunity
- Nike (NKE US) reported 2QFY24 results last week with a guidance cut, as the company cut FY24 full-year sales guidance to around +1%, compared to +mid-single-digit in the previous guidance.
- Shenzhou Intl Group Holdings (2313 HK) saw its stock drop by 8% the following day, given that Nike is Shenzhou’s most important customer, making up 30% of Shenzhou’s sales.
- Nike’s inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24.
Companies Keen to Reduce Administrative Costs, but Reluctant to Provide Convenience to Shareholders
- Not much progress has been made in the early disclosure of convocation notices. The key to even earlier disclosure of convocation notices is the moving up of earnings announcement dates.
- Overseas investors require that all materials in the notice of convocation be provided translated in English, and only 27.3% of prime market listed companies have responded.
- Few companies file their annual securities reports prior to AGMs. This can be taken as companies’ intention to provide as little detailed information as possible to shareholders prior to AGMs.
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