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 [1] Group 1: Financial Outlook - The target price for Yue Yuen has been raised from HKD 12.5 to HKD 13.5, while maintaining a "Market Perform" rating [1] - Management expects a high single-digit year-on-year decline in manufacturing orders for Q3 due to a high base effect, with gross margins also expected to decline year-on-year for the same reason [1] - For Q4, an increase in shipment volume is anticipated, which is expected to be the highest level for the year [1] Group 2: Customer and Market Dynamics - Shoe manufacturing clients are cautious in their order arrangements, waiting for clearer visibility on the impact of tariffs on end markets [1] - Four clients, accounting for approximately 50% of manufacturing sales, have requested to share the burden of tariffs [1] Group 3: Sales Performance - The average selling price of the manufacturing business is expected to increase year-on-year due to product mix improvements, with an overall expected low single-digit year-on-year growth in average selling price for the year [1] - Retail business continues to face discount pressure due to weak consumer demand in China, with sales performance in July and August being weak [1]
大摩：升裕元集团(00551)目标价至13.5港元 维持“与大市同步”评级