Core Viewpoint - Daiwa's report indicates that Yuanyuan Group (00551) experienced a 6.5% year-on-year growth in OEM revenue, driven by a 2% increase in average selling price and a 4.7% rise in shipment volume [1] Group 1: Financial Performance - OEM revenue increased by 6.5% year-on-year, supported by a 2% rise in average selling price and a 4.7% increase in shipment volume [1] - Gross margin decreased by 0.2 percentage points to 17.8% due to uneven production scheduling across factories and rising labor costs, despite capacity utilization reaching 95% in the second quarter [1] Group 2: Future Outlook - The management of Yuanyuan Group maintains a cautious outlook for third-quarter orders, primarily due to unclear tariffs and weak demand from downstream customers [1] - Shipment volume is expected to decline by a high single-digit percentage year-on-year in the third quarter, with gross margin also anticipated to decrease year-on-year [1] Group 3: Investment Rating - Daiwa reaffirms a "Buy" rating for Yuanyuan Group, slightly lowering the target price from HKD 17 to HKD 16.5 [1] - Earnings per share forecasts for 2025 to 2027 have been reduced by 3% to 7%, based on adjustments to shipment volume and gross margin predictions [1] Group 4: Strategic Initiatives - Despite short-term uncertainties, the group emphasizes its commitment to expanding production in multiple regions and maintaining stable dividend distributions due to a robust balance sheet [1]
大和：微降裕元集团(00551)目标至16.5港元 下半年订单量谨慎