Core Viewpoint - The report from Credit Lyonnais indicates that the stock price of Yue Yuen Industrial Holdings has rebounded by 33% since the end of April, but challenges are anticipated in the upcoming quarters [1] Group 1: Financial Performance - The company is expected to see a 1% year-on-year increase in sales for Q2, while net profit is projected to decline by 10% due to pressures on gross margins from order fluctuations, a weak offline retail environment, and adverse foreign exchange factors [1] - The forecast for sales from 2025 to 2027 has been reduced by 4%, and net profit forecasts have been cut by 19% to 23% to reflect the gross margin pressures from manufacturing and retail operations this year [1] Group 2: Market Outlook - The market is believed to have recognized the challenges that will arise in Q3, with a focus on the order outlook, utilization trends, and retail profitability for Q4 as key indicators for the stock [1] - The target price for Yue Yuen has been lowered from HKD 19 to HKD 16, while maintaining an "outperform" rating, with a projected dividend yield of 10% for 2026 [1]
大行评级｜里昂：下调裕元集团目标价至16港元 维持“跑赢大市”评级