Core Viewpoint - Morgan Stanley's report indicates that Yue Yuen Industrial Holdings Limited (00551) maintains a cautious outlook for the second half of the year due to macroeconomic uncertainties, but believes that its commitment to shareholder returns will provide downside support for the stock price. The target price has been raised from HKD 12.5 to HKD 13.5, while maintaining a "Market Perform" rating [1]. Group 1: Company Performance - The management of Yue Yuen stated during an analyst briefing that footwear manufacturing clients are cautious in their order arrangements, waiting for clearer visibility on the impact of tariffs on the end market. Four clients, accounting for approximately 50% of manufacturing sales, have requested to share the tariff burden [1]. - The company expects a year-on-year decline in manufacturing orders in the third quarter due to a high base effect, with gross margins also anticipated to decline year-on-year. However, a quarter-on-quarter increase in shipment volume is expected in the fourth quarter, which will be the highest level for the year [1]. Group 2: Sales and Pricing - For the second half of the year, the report cites management's comments that due to an improved product mix, the average selling price of the manufacturing business is still expected to increase year-on-year, with an overall average selling price projected to grow in the low single digits year-on-year [1]. - The retail business continues to face discount pressure due to weak consumer demand in China, with sales performance in July and August being sluggish [1].
大摩：升裕元集团目标价至13.5港元 维持“与大市同步”评级