Shenzhou International Group Holdings Limited is the largest knitwear manufacturer in China producing apparel for brands like Adidas, Puma, and Uniqlo. It has production facilities in China, Vietnam, and Cambodia and sells products primarily to China, the US, and Japan. Analysis by A. Stotz ranks Shenzhou as one of the top companies out of 1220 in terms of profitable growth, with world-class profitability driven by high profit margins and improving sales growth.

1. Presented by: Dr. Andrew Stotz, CFA
Shenzhou International
Group Holdings Limited

2. 215 September 2016
Background: Shenzhou International Group Holdings Limited is the
largest vertically integrated knitwear manufacturer in China,
producing high-end apparel for brands such as Adidas, Puma,
Uniqlo on an OEM basis. Its biggest customers are located in China,
Japan, and US. ShenInt has production sites in China, Vietnam and
Cambodia.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Sales breakdown by product 1H16 (Others 1%)
Stock information:
Name: Shenzhou International
Group Holdings Ltd.
Ticker: 2313 HK
Price (HKD): 51.3
Mcap: US$9,217m
3MADTO: US$19m
Beta: 0.6x
Sector: Consumer
Discretionary
Industry: Consumer Durables
& Apparel
Major shareholders:
60% Ma family
3% Matthews International
Capital Management LLC
37% Free float
Shenzhou International Group Holdings Limited (2313 HK)
 ShenInt is the largest vertically integrated knitwear manufacturer in China producing
sportswear, casual wear and underwear on an OEM basis. ShenInt sells its products mostly
to China, US and Japan and its biggest customers include Uniqlo, Adidas, Nike and Puma
 The group employs more than 67,000 staff and can produce more than 270m pieces of
knitwear per year, including jackets, vests, pants, trousers, tops, T-shirts, dresses and
lingerie. Its production facilities are located in Quzhou and Anqing in China as well as in
Cambodia and Vietnam
 ShenInt continues expanding the capacity of the production line in Vietnam with around
100 tonnes per day production capacity as of September 2016, planning to reach 200
tonnes by end-2017
 The group also manages its own 47 retail stores in cities of the Yangtze River Delta region
under the Maxwin chain. The company has disposed of 49% of the retail stores business (as
of September 2016) in order to focus on its core arm, which is knitwear production
Sales breakdown by location 1H16
70
120
170
220
20
30
40
50
60
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
2313 HK (LHS)
Price relative to local index
(HKD) (%)
Sports wear 65% Casual wear 25% Underwear 9%
China
24%
USA 23%
Japan
21%
Europe
10%
Others
22%

3. 315 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Background: Shenzhou International Group Holdings
Limited is the largest vertically integrated knitwear
manufacturer in China,
producing high-end apparel for brands such as Adidas,
Puma, Uniqlo on an OEM basis.
Its biggest customers are located in China, Japan, and US.
ShenInt has production sites in China, Vietnam and
Cambodia.
Shenzhou International Group Holdings Limited (2313 HK)

4. 415 September 2016
70
120
170
220
20
30
40
50
60
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
2313 HK (LHS)
Price relative to local index
(HKD) (%)
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Stock information:
Name: Shenzhou International
Group Holdings Ltd.
Ticker: 2313 HK
Price (HKD): 51.3
Mcap: US$9,217m
3MADTO: US$19m
Beta: 0.6x
Sector: Consumer Discretionary
Industry: Consumer Durables &
Apparel
Major shareholders:
60% Ma family
3% Matthews International Capital
Management LLC
37% Free float
Shenzhou International Group Holdings Limited (2313 HK)

5. 515 September 2016
Background: Shenzhou International Group Holdings Limited is the
largest vertically integrated knitwear manufacturer in China,
producing high-end apparel for brands such as Adidas, Puma,
Uniqlo on an OEM basis. Its biggest customers are located in China,
Japan, and US. ShenInt has production sites in China, Vietnam and
Cambodia.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Sales breakdown by product 1H16 (Others 1%)
Stock information:
Name: Shenzhou International
Group Holdings Ltd.
Ticker: 2313 HK
Price (HKD): 51.3
Mcap: US$9,217m
3MADTO: US$19m
Beta: 0.6x
Sector: Consumer
Discretionary
Industry: Consumer Durables
& Apparel
Major shareholders:
60% Ma family
3% Matthews International
Capital Management LLC
37% Free float
Shenzhou International Group Holdings Limited (2313 HK)
 ShenInt is the largest vertically integrated knitwear manufacturer in China producing
sportswear, casual wear and underwear on an OEM basis. ShenInt sells its products mostly
to China, US and Japan and its biggest customers include Uniqlo, Adidas, Nike and Puma
 The group employs more than 67,000 staff and can produce more than 270m pieces of
knitwear per year, including jackets, vests, pants, trousers, tops, T-shirts, dresses and
lingerie. Its production facilities are located in Quzhou and Anqing in China as well as in
Cambodia and Vietnam
 ShenInt continues expanding the capacity of the production line in Vietnam with around
100 tonnes per day production capacity as of September 2016, planning to reach 200
tonnes by end-2017
 The group also manages its own 47 retail stores in cities of the Yangtze River Delta region
under the Maxwin chain. The company has disposed of 49% of the retail stores business (as
of September 2016) in order to focus on its core arm, which is knitwear production
Sales breakdown by location 1H16
70
120
170
220
20
30
40
50
60
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
2313 HK (LHS)
Price relative to local index
(HKD) (%)
Sports wear 65% Casual wear 25% Underwear 9%
China
24%
USA 23%
Japan
21%
Europe
10%
Others
22%

6. 615 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 ShenInt is the largest vertically integrated
knitwear manufacturer in China producing
sportswear, casual wear and underwear on an
OEM basis
 ShenInt sells its products mostly to China, US and
Japan and its biggest customers include Uniqlo,
Adidas, Nike and Puma
Shenzhou International Group Holdings Limited (2313 HK)

7. 715 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 The group employs more than 67,000 staff and
can produce more than 270m pieces of knitwear
per year,
 including jackets, vests, pants, trousers, tops, T-
shirts, dresses and lingerie
 Its production facilities are located in Quzhou
and Anqing in China as well as in Cambodia and
Vietnam
Shenzhou International Group Holdings Limited (2313 HK)

8. 815 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 ShenInt continues expanding the capacity of the
production line in Vietnam
 with around 100 tons per day production
capacity as of September 2016, planning to reach
200 tons by end-2017
Shenzhou International Group Holdings Limited (2313 HK)

9. 915 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
 The group also manages its own 47 retail stores
in cities of the Yangtze River Delta region under
the Maxwin chain
 The company has disposed of 49% of the retail
stores business (as of September 2016) in order
to focus on its core arm, which is knitwear
production
Shenzhou International Group Holdings Limited (2313 HK)

10. 1015 September 2016
Background: Shenzhou International Group Holdings Limited is the
largest vertically integrated knitwear manufacturer in China,
producing high-end apparel for brands such as Adidas, Puma,
Uniqlo on an OEM basis. Its biggest customers are located in China,
Japan, and US. ShenInt has production sites in China, Vietnam and
Cambodia.
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Sales breakdown by product 1H16 (Others 1%)
Stock information:
Name: Shenzhou International
Group Holdings Ltd.
Ticker: 2313 HK
Price (HKD): 51.3
Mcap: US$9,217m
3MADTO: US$19m
Beta: 0.6x
Sector: Consumer
Discretionary
Industry: Consumer Durables
& Apparel
Major shareholders:
60% Ma family
3% Matthews International
Capital Management LLC
37% Free float
Shenzhou International Group Holdings Limited (2313 HK)
 ShenInt is the largest vertically integrated knitwear manufacturer in China producing
sportswear, casual wear and underwear on an OEM basis. ShenInt sells its products mostly
to China, US and Japan and its biggest customers include Uniqlo, Adidas, Nike and Puma
 The group employs more than 67,000 staff and can produce more than 270m pieces of
knitwear per year, including jackets, vests, pants, trousers, tops, T-shirts, dresses and
lingerie. Its production facilities are located in Quzhou and Anqing in China as well as in
Cambodia and Vietnam
 ShenInt continues expanding the capacity of the production line in Vietnam with around
100 tonnes per day production capacity as of September 2016, planning to reach 200
tonnes by end-2017
 The group also manages its own 47 retail stores in cities of the Yangtze River Delta region
under the Maxwin chain. The company has disposed of 49% of the retail stores business (as
of September 2016) in order to focus on its core arm, which is knitwear production
Sales breakdown by location 1H16
70
120
170
220
20
30
40
50
60
Sep-13 Jun-14 Mar-15 Dec-15 Sep-16
2313 HK (LHS)
Price relative to local index
(HKD) (%)
Sports wear 65% Casual wear 25% Underwear 9%
China
24%
USA 23%
Japan
21%
Europe
10%
Others
22%

11. 1115 September 2016
Sources: A. Stotz Investment Research, Bloomberg, company data, FactSet, Thomson Reuters
Sales breakdown by product 1H16 (Others 1%)
Sales breakdown by location 1H16Sports wear 65%
Casual wear 25%
Underwear 9%
China
24%
US
23%Japan
21%
Europe
10%
Others
22%

13. 1315 September 2016
ShenInt: Leadership
Sources: A. Stotz Investment Research, company data, FactSet
Chairman
General
Manager
2012 2013 2014 2015 Past 12 months
Jianrong Ma
Apr 2005 – Present
Guanlin Huang
Apr 2005 – Present

14. 1415 September 2016
'12 '13 '14 '15 PTM
1 1 1 1 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
1 1 1 1 1 7 6 5 5 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
7 7 8 8 8 1 1 1 1 1 8 4 3 3 1 7 7 4 5 8
Benchmarked against 1,220 large Cons. Disc. companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
GM, 2005 – Present
Guanlin Huang
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth is the
best in the world
Ranks among the best
122 of 1,220 large Cons.
Disc. companies
ShenInt: A. Stotz Profitable Growth

15. 1515 September 2016
'12 '13 '14 '15 PTM
1 1 1 1 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
1 1 1 1 1 7 6 5 5 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
7 7 8 8 8 1 1 1 1 1 8 4 3 3 1 7 7 4 5 8
Benchmarked against 1,220 large Cons. Disc. companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth is the
best in the world
Ranks among the best
122 of 1,220 large Cons.
Disc. companies
Profitability is World
Class, Growth has
improved to above average
ShenInt: A. Stotz Profitable Growth
GM, 2005 – Present
Guanlin Huang

16. 1615 September 2016
'12 '13 '14 '15 PTM
1 1 1 1 1
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
1 1 1 1 1 7 6 5 5 4
'12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM '12 '13 '14 '15 PTM
7 7 8 8 8 1 1 1 1 1 8 4 3 3 1 7 7 4 5 8
Benchmarked against 1,220 large Cons. Disc. companies worldwide.
Profitable Growth
Asset utilization Profit margin Sales growth Margin change
Profitability Growth
Source: A. Stotz Investment Research. Notes: 1 = top ranking and 10 = worst. Most recent year’s data is based on the past 12 months (PTM) of published data.
Profitable Growth is the
best in the world
Ranks among the best
122 of 1,220 large Cons.
Disc. companies
Profitability is World
Class, Growth has
improved to above average
Profit margin drives the
profitability
Sales growth drove the
improvement in Growth
ShenInt: A. Stotz Profitable Growth
GM, 2005 – Present
Guanlin Huang

17. 1715 September 2016
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