Core Viewpoint - CICC initiates coverage on Yue Yuen Industrial Holdings Limited (00551) with an "outperform" rating and a target price of HKD 19.46, corresponding to a 10.5x P/E ratio for 2026, highlighting the company's position as a global leader in athletic shoe manufacturing and its expansion in the Greater China retail market [1] Group 1: Market Overview - According to Euromonitor, the global athletic footwear market is projected to reach USD 167.7 billion in 2024, with a forecasted mid-single-digit growth over the next five years [1] - The market share among global athletic footwear brands is concentrated, with the top 10 brands expected to account for 57% of the market by 2025 [1] Group 2: Company Performance - Yue Yuen is the largest athletic shoe manufacturer globally, with an estimated shipment volume share exceeding 10% [1] - The company's subsidiary, Pou Chen Corporation, is a leading athletic footwear and apparel retailer in Greater China [1] Group 3: Future Outlook - The report anticipates that tariff disruptions may weaken by 2026, and major brand clients' inventory levels are under control, which bodes well for revenue stability [1] - The acceleration of product innovation by brands like Nike, along with the growth of several premium brands, is expected to contribute to stable growth in manufacturing revenue by 2026 [1] - Improvements in previously established production capacity and load balancing issues are expected to enhance manufacturing performance [1] Group 4: Financial Projections - The company is expected to achieve a dividend yield of 8.2% by 2026, providing a margin of safety for investors [2] - Earnings per share are projected to be USD 0.23 and USD 0.24 for 2025 and 2026, respectively, with a CAGR of -0.4% from 2024 to 2026 [2]
中金：首次覆盖裕元集团(00551)予“跑赢行业”评级 目标价19.46港元