Daiwa: Lower the target price of Shenzhou International to 50 Hong Kong dollars, and lower the profit forecast for 2026 to 2028.

Morgan Stanley's research report pointed out that the order fluctuations in the first half of 2026 will affect revenue and profit margins of Shenzhou International, but the stock price has underperformed the market this year, reflecting the weakness. However, the bank expects that as the impact of the Middle East conflict diminishes and customer sentiment improves, coupled with a low base effect, shipments and revenue in the second half of the year will grow by 9% year-on-year, and net profit is expected to increase by 19% year-on-year. In response to macroeconomic uncertainties, the bank has lowered profit forecasts for 2026 to 2028 by 3%, 5%, and 8% respectively, reduced the target price-earnings ratio from 14 times to 12 times, lowered the target price from 58 Hong Kong dollars to 50 Hong Kong dollars, reiterated its "hold" rating, and believes that the stock currently offers a dividend yield of over 6%, making it attractive.