Core Viewpoint - UBS reports that Yue Yuen Industrial Holdings Limited (00551) experienced a 1% year-on-year increase in revenue and a 13% increase in net profit for the second quarter, with revenue meeting expectations and net profit exceeding expectations by 19% due to a lower tax rate and gains from financial instruments [1] Financial Performance - Revenue for the second quarter grew by 1% year-on-year, aligning with market expectations [1] - Net profit increased by 13% year-on-year, surpassing expectations by 19% due to favorable tax rates and financial instrument gains [1] Product Pricing - Average selling prices rose by 2.5% in the first quarter and 3.9% in the second quarter year-on-year [1] - UBS forecasts a low single-digit percentage increase in average selling prices for the entire year, accounting for the impact of tariff policies [1] Target Price Adjustment - UBS raised the target price for Yue Yuen from HKD 14 to HKD 16, reflecting higher order growth expectations for the next year [1] - The rating for Yue Yuen is maintained at "Buy" [1]

Core Insights - The article highlights the mixed performance of Yue Yuen Industrial Holdings Limited, with manufacturing business showing resilience while retail business faces significant challenges [1][4]. Group 1: Manufacturing Business Performance - The manufacturing segment recorded a revenue increase of 1.1% year-on-year, reaching $4.06 billion, despite a 7.2% decline in shareholder profit to $171 million [1]. - Footwear shipment volume rose by 5.0% to 126.7 million pairs, with average selling price increasing by 3.2% to $20.61 per pair [3]. - Manufacturing revenue from footwear activities increased by 8.3% to $2.611 billion, with sports and outdoor footwear accounting for 83.4% of this revenue [3]. - However, the cost structure worsened, with direct labor costs and manufacturing expenses rising to $1.307 billion from $1.207 billion year-on-year, and material costs increasing from $925 million to $995 million [3]. - The manufacturing gross margin declined by 1.4 percentage points to 17.7% due to uneven capacity utilization and increased labor costs [3]. Group 2: Retail Business Challenges - The retail subsidiary, Pou Sheng, faced severe challenges, with revenue declining by 8.3% year-on-year to RMB 9.159 billion and profit attributable to shareholders dropping by 44.1% to RMB 187.6 million [4]. - The decline in consumer confidence in the Chinese sports goods market led to weak foot traffic and intense price competition, significantly impacting sales performance [4]. - Pou Sheng closed 40 stores in Greater China, reducing the total to 3,408 stores compared to the end of 2024 [4]. - Despite these challenges, Pou Sheng achieved a 16% year-on-year growth in omni-channel sales, with live-streaming sales more than doubling [4]. Group 3: Financial Performance and Future Outlook - Overall gross profit decreased by 5.8% to $919 million, with gross margin declining by 1.7 percentage points to 22.6% [6]. - Basic earnings per share fell to 10.67 cents from 11.44 cents year-on-year [6]. - Cash and cash equivalents decreased to $832 million from $881 million reported in 2024 [6]. - The company anticipates ongoing challenges from tariff-related issues, inflation, macroeconomic uncertainties, and regional conflicts affecting logistics stability [6]. - Yue Yuen plans to diversify manufacturing capacity in Indonesia and India and implement a comprehensive plan focused on rapid response to enhance production efficiency [6].

Core Viewpoint - Citigroup has downgraded its earnings forecast for Yue Yuen Industrial Holdings for 2025 to 2027 by 9% to 10% due to a contraction in retail profits and slower-than-expected gross margin expansion in manufacturing [1] Group 1: Earnings Forecast - The earnings forecast for Yue Yuen Industrial Holdings has been reduced by 9% to 10% for the years 2025 to 2027 [1] - The target price for Yue Yuen has been slightly decreased from HKD 16.5 to HKD 16.3, based on a projected price-to-earnings ratio of 8 times for the next year [1] Group 2: Investment Preference - Citigroup prefers Nine Dragons Paper Holdings among mid-cap yield stocks in mainland China, followed by Crystal International Group, Yue Yuen, and finally VTech Holdings [1]

Core Viewpoint - Yuanyuan Group's stock rose over 6% following the release of its financial results, indicating positive market sentiment despite a decline in profit [1] Financial Performance - For the six months ending June 30, 2025, Yuanyuan Group reported a revenue of $4.06 billion, a year-on-year increase of 1.1% [1] - The profit attributable to shareholders was $171 million, reflecting a decrease of 7.2% compared to the previous year [1] - Basic earnings per share were 10.67 cents, with an interim dividend proposed at 0.4 Hong Kong dollars per share [1] Business Segments - Revenue from footwear activities, including sports/outdoor shoes, casual shoes, and sports sandals, increased by 8.3% to $2.611 billion [1] - The volume of footwear shipped rose by 5.0% to 127 million pairs [1] - The average selling price per pair increased by 3.2% to $20.61 [1] Market Outlook - The company exports 29% of its products to the U.S., with production distribution in Indonesia (53%), Vietnam (32%), and China (10%) [1] - The impact of tariffs is expected to affect end-consumer demand, but the company aims to expand market share through overseas production capacity [1] - Short-term order pressure is anticipated due to tariffs and inflation, while medium-term growth is expected to resume due to capacity expansion and price increases driven by brands like Adidas and ASICS [1]

Core Viewpoint - Yuanyuan Group's stock rose over 6% following the release of its financial results, indicating positive market sentiment despite a decline in profit [1] Financial Performance - For the six months ending June 30, 2025, the company reported revenue of $4.06 billion, a year-on-year increase of 1.1% [1] - The profit attributable to shareholders was $171 million, reflecting a year-on-year decrease of 7.2% [1] - Basic earnings per share were 10.67 cents, with an interim dividend proposed at 0.4 HKD per share [1] Business Segments - Revenue from footwear activities, including sports/outdoor shoes, casual shoes, and sports sandals, increased by 8.3% to $2.611 billion compared to the same period last year [1] - Footwear shipment volume rose by 5.0% to 127 million pairs [1] - The average selling price per pair increased by 3.2% to $20.61 [1] Market and Production Insights - Exports to the U.S. account for 29% of the company's revenue, with production in Indonesia, Vietnam, and China making up 53%, 32%, and 10% respectively [1] - The company is expected to leverage its overseas production capacity to expand market share despite potential impacts from tariffs and inflation on orders in the short term [1] - In the medium term, the company anticipates a recovery in orders driven by capacity expansion, price growth, and demand from brands like Adidas and ASICS [1]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown a slight increase in revenue for the first half of 2025, with a year-on-year growth of 1.1%, while net profit attributable to the parent company decreased by 7.2% [2] - The company plans to invest approximately 23 billion Indian Rupees (around 27.6 million USD) to establish a production base in an economic zone in India, with preliminary construction already underway [2][3] - The company has a strong market position as a leading global sports shoe manufacturer, benefiting from vertical integration and a significant share of the global sports brand market [5] Summary by Sections Financial Performance - For the first half of 2025, the company's revenue and net profit attributable to the parent company were 406 million USD and 171 million USD, respectively, with a year-on-year growth of 1.1% and a decline of 7.2% [2] - The second quarter of 2025 saw revenue and net profit of 203.1 million USD and 95 million USD, with a year-on-year decline of 0.35% in revenue but a 13.02% increase in net profit [2] - The company plans to distribute a dividend of 0.4 HKD per share, resulting in a payout ratio of 47.77% and an annualized dividend yield of 6.4% [2] Manufacturing Insights - The manufacturing segment's revenue and net profit for the first half of 2025 were 279.8 million USD and 155 million USD, reflecting a year-on-year growth of 6.2% and a slight decline of 0.3% in net profit [3] - The manufacturing gross margin and net margin were 17.7% and 5.5%, respectively, with a year-on-year decrease of 1.4 and 0.4 percentage points [3] - The company has increased its workforce to 292,300 employees, a 5.5% year-on-year increase, with manufacturing staff growing by 6.6% [3] Retail Business Performance - The retail segment experienced a decline in revenue and net profit for the first half of 2025, with figures of 915.9 million CNY and 188 million CNY, representing a year-on-year decrease of 8.26% and 44% [4] - The number of direct-operated stores decreased by 1.16% year-on-year to 3,408, with a closure of 40 stores since the end of 2024 [4] - Despite challenges, the company reported a robust growth of 16% in omni-channel revenue, with live streaming sales increasing by over 100% [4] Investment Recommendations - The company is expected to face short-term order pressures due to tariffs and inflation, but medium-term growth is anticipated as production capacity is expanded and orders recover [5] - Revenue forecasts for 2025-2027 have been adjusted downwards to 8.218 billion USD, 8.546 billion USD, and 8.822 billion USD, respectively, with net profit forecasts revised to 373.67 million USD, 414.02 million USD, and 450.05 million USD [5][7] - The company maintains a favorable valuation with a projected PE ratio of 7, 6, and 6 for 2025-2027, supporting the "Buy" rating [5][7]

（於百慕達註冊成立之有限公司） 執行董事 獨立非執行董事 YUE YUEN INDUSTRIAL (HOLDINGS) LIMITED 裕 元 工 業（ 集 團 ）有 限 公 司 * （股份代號：00551） 董事名單與其角色和職能 董事會 裕元工業（集團）有限公司之董事會（「董事會」）成員載列如下： 盧金柱 （主席） 王克勤 蔡佩君 （董事總經理） 周維德 林學淵 林振鈿 楊茹惠 劉鴻志 鄒志明( 首席財務官 ) 何麗康 董事委員會 董事會轄下有三個委員會。下表提供董事會成員在這些委員會中所擔任的職位。 | | 委員會 | 審核及風險 | 薪酬委員會 | 提名委員會 | | --- | --- | --- | --- | --- | | 董事 | | 管理委員會 | | | | 蔡佩君 | | | | M | | 王克勤 | | C | C | | | 何麗康 | | M | M | C | | 林學淵 | | M | M | M | | 楊茹惠 | | M | M | | 附註： C ：有關委員會的主席 M：有關委員會的成員 * 僅供識別 香港，二零二五年八月十一日 ...

Group 1 - The company, Yue Yuen Industrial Holdings Limited (00551), announced a mid-term dividend of HKD 0.4 per share for the six months ending June 30, 2025, to be distributed on October 9, 2025 [1]

Core Insights - Yuanyuan Group (00551) reported a revenue of $4.06 billion for the six months ending June 30, 2025, representing a year-on-year increase of 1.1% [1] - The profit attributable to shareholders was $171 million, a decrease of 7.2% compared to the previous year [1] - Basic earnings per share were 10.67 cents, with an interim dividend proposed at 0.4 Hong Kong dollars per share [1] Revenue Breakdown - Revenue from footwear activities, including sports/outdoor shoes, casual shoes, and sports sandals, increased by 8.3% to $2.611 billion compared to the same period last year [1] - Footwear shipment volume rose by 5.0% to 127 million pairs [1] - The average selling price increased by 3.2% to $20.61 per pair, benefiting from a favorable order mix [1] Product Category Contribution - Sports/outdoor shoes accounted for 83.4% of the footwear manufacturing revenue [1] - Casual shoes and sports sandals contributed 16.6% to the footwear manufacturing revenue [1] - In terms of total revenue, sports/outdoor shoes represented 53.6%, while casual shoes and sports sandals accounted for 10.7% [1]

（於百慕達註冊成立之有限公司） （股份代號：00551） 執行董事、 首席財務官及授權代表之變更 董事會謹此宣佈以下變更，自二零二五年八月十一日舉行之董事會會議結束時生效： 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 執行董事、首席財務官及授權代表之辭任 施志宏先生（「施先生」）因工作調動，已遞交辭任本公司之執行董事（「執行董事」）、 首席財務官（「首席財務官」）、根據香港聯合交易所有限公司證券上市規則（「上市 規則」）第 3.05 條所規定的授權代表及根據上市規則和香港法例第 622 章公司條例在 香港接受法律程序文件及通知（統稱 「授權代表」）之辭呈。施先生已確認彼與董事 會並無意見分歧，亦無有關其退任的其他事項須敦請本公司股東（「股東」）垂注。 董事會謹向施先生於其出任期間為本集團所作出之竭誠服務及寶貴貢獻致以衷心 感謝。 *僅 供 識 別 1 執行董事、首席財務官及授權代表之委任 鄒志明先生（「鄒先生」）已獲委任為執行董事、首席財務官及授 ...