Citi released a research report stating that Yue Yuen Ind (00551) raised its earnings forecast for 2024 to 2026 by 15 to 17% after announcing third-quarter performance, and increased the target price by 16% from HK$ 17.5 to HK$ 20.3, while reiterating a 'buy' rating, with an expected dividend yield of around 8% this year.
Citi stated that Yue Yuen's performance in the first nine months showed a better-than-expected expansion trend in the gross margin of its footwear manufacturing business (MFG). The group's manufacturing turnover in October increased by 21.3% year-on-year, although it slowed down compared to the previous month, but the growth rate still exceeds the average level of the first ten months.
However, Citi indicated that the growth rate of Yue Yuen in October slowed down slightly by 21.3% compared to the previous month. Nevertheless, the growth rate remains higher than the average level of the first ten months.
