Core Viewpoint - Daiwa's report indicates that Yue Yuen Industrial Holdings Limited (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 - The company's capacity utilization rate improved to 95% in the second quarter, but gross margin declined by 0.2 percentage points to 17.8% due to uneven production scheduling and rising labor costs [1] - Daiwa maintains a "Buy" rating for Yue Yuen, slightly lowering the target price from HKD 17 to HKD 16.5, while expressing caution regarding order volume for the second half of the year [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 expectations [1] Group 2: Future Outlook - Management has a conservative outlook for third-quarter orders, citing cautious ordering behavior from downstream customers due to unclear tariffs and weak demand [1] - A high single-digit year-on-year decline in shipment volume is anticipated for the third quarter, along with a projected decrease in gross margin [1] - Despite short-term uncertainties, the company emphasizes its commitment to expanding production in multiple regions and maintaining stable dividend distributions due to a robust balance sheet [1]
大和：微降裕元集团目标至16.5港元 下半年订单量谨慎