Analyst

Steve

Experience in both buy and sell-side in Asia.

Shenzhou Intl (2313 HK):  Higher Visibility Into Restocking Cycle

Shenzhou Intl (2313 HK):  Nike's Inventories Declined By 10% Yoy in 1Q24

Equity Bottom-Up

Shenzhou Intl Group Holdings / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nike-inc-cl-b" target="_blank" data-smartkarma-citation="entities:6658:1" rel="noopener">Nike (NKE US)</a> 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. </li>
<li>
<a href="https://www.smartkarma.com/entities/shenzhou-intl-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou Intl Group Holdings (2313 HK)</a> 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. </li>
<li>Nike's inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24. </li>
</ul>



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. 


Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity