BUZZ-Shenzhou Int'l rises most in 5 weeks as key customer lifts forecast

Reuters07-12

** Shares of sportswear and knitwear maker Shenzhou International Group rise 4.1% to HK$75.6, on course for their biggest one-day pct gain since June 4 if trend holds

** Shenzhou stock hits the highest since July 4, extending gain to a third session, after key customer Fast Retailing

lifts forecast

** The Japanese operator of fashion giant Uniqlo on Thursday raised its full-year operating profit forecast to 475 bln yen ($2.94 bln) for what would be its third consecutive year of record profits, buoyed by strong sales at home and some overseas markets

** "With the upgraded guidance, we have more confidence in Uniqlo order growth in the teens to Shenzhou this year," wrote Citi, reiterating "buy" rating

** Nike , Uniqlo, Adidas and Puma are Shenzhou's top 4 customers; Adidas and Uniqlo have revised up revenue growth guidance this year, Puma unchanged and Nike downgraded; Shenzhou remains on track to post capacity growth of mid-teens - Citi

** The Hang Seng Commerce & Industry Index and the Hang Seng Index both rise 2%

** Shenzhou shares down 9.7% YTD

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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