Yue Yuen Group Rises Over 3% in Morning Session as CICC Initiates Coverage with "Outperform" Rating

Deep News01-07

Yue Yuen Group (00551) saw its share price climb 3.28% in the morning session, currently trading at HKD 16.39, with a turnover of HKD 27.9392 million.

CICC released a research report, initiating coverage on Yue Yuen Group with an "Outperform" rating and setting a target price of HKD 19.46. The bank stated that Yue Yuen operates in the expansive and concentrated athletic footwear industry, positioning itself as a leading manufacturer while also managing a sportswear retail business; its development capabilities enable it to secure partnerships with high-growth, quality clients. Furthermore, with overseas brand inventories at manageable levels and accelerated product innovation, the manufacturing segment's performance is expected to return to stable growth. CICC forecasts Yue Yuen's earnings per share for 2025 and 2026 to be 23 US cents and 24 US cents, respectively, with a compound annual growth rate of -0.4% from 2024 to 2026; it predicts a dividend yield of 8.2% for 2026, providing a margin of safety.

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