Goldman Sachs released a report pointing out that after seeing the steady improvement of its peers, and coupled with the fact that the OEM manufacturers covered by the bank also generally showed sales improvement even exceeded expectations. Inventory is also healthy. The bank is more optimistic about the order prospects and profit margin recovery of Shenzhou (02313.HK).

The bank expects that Shenzhou's sales volume will increase by 20% year-on-year this year (previously expected to be 13%), mainly due to better-than-expected demand from its main customers, but the forecast for the average unit price of products denominated in US dollars has been adjusted from a year-on-year decline of 1.5% to a decline of 4%, due to drag from the product mix (increased sales of leisure products). Furthermore, the bank expects the company's gross margin to reach 29% this year (previously expected to be 27.5%), and maintains its forecast for the operating expense ratio.

In addition, the bank raised its profit forecast for Shenzhou from 2024 to 2026 by 7%, with a target price raised from 98 yuan to 105 yuan, and reiterated its "buy" rating.