申洲国际(02313) 　　Value emerges. Shenzhou share price was down 14% from recent peak (vs HSI -4%) in part due to concerns over the US election, which we believe were overdone.In 1H16, only 10% of Shenzhou orders went to the US retail, the least of all within our HK/China manufacturing coverage. Second, with the Trans-Pacific Partnership becoming unlikely now, the production migration from China to Vietnam could slowdown. That could in turn benefit companies that already or planned to have a presence in Vietnam given the upward pressure on labour cost could alleviate. While we have limited visibility of future US policies implementation, we think any significant shift in production to the US could be difficult on wages concerns. 　　Market share gain to continue. Shenzhou has the strongest earnings growth profile in the next three years (at 20% FY16-18e CAGR) within our manufacturing coverage.Thanks to its vertically integrated business model, Shenzhou’s competitive advantage over costs, lead time and quality will enable it to gain further market share via existing and new clients. This is particularly true during a macro slowdown when brand operators start to control costs and rely on suppliers to control channel inventory. For example, given retail demand uncertainty, to avoid channel inventory build-up, retailers like Uniqlo have been moving to more rush orders to replenish popular items only. Onestop suppliers (and Shenzhou being the largest one) benefit from this transition as their lead time could be as short as 2-4 weeks versus others at 2-3 months. 　　New TP HKD56.9 (from HKD43), upgrade to Buy. We raise our earnings forecastsby 8-17% for FY16-18e on the back of a 6-16% increase in revenue. This is mainly to reflect the faster than expected market share gain as reflected in 1H16 results. We are largely 2-4% ahead of consensus on our forecasts. We move our valuation methodology to PE to align with other companies within the sporting goods value chain coverage. We also incorporate our FX team’s mid-2017e RMB/HKD forecast of 1.14. Our new TP of HKD56.9 is based on 21 x FY17e P/E (from HKD43.0 based on DCF), 1 sd above the average since 2011 as growth is accelerating to 20% CAGR in the coming three years (from 14% in the past 5 years). With 20.2% upside, we upgrade Shenzhou to Buy from Hold.