UBS Adopts Cautious Stance on YUE YUEN IND (00551) Through 2026, Trims Target Price to HK$20

Stock News03-16 15:43

UBS has released a research report indicating a slight reduction in the target price for YUE YUEN IND (00551) to HK$20 from HK$20.3, based on a sum-of-the-parts (SOTP) valuation. This adjustment follows a 5% to 6% cut in profit forecasts for 2026 to 2028, driven by lowered expectations for sales volume and gross margin, partially offset by rolling the valuation base year forward. The bank maintains a "Buy" rating on the stock.

UBS estimates that YUE YUEN IND's net profit for the fourth quarter of last year increased by 68% year-on-year to USD 102 million, surpassing the bank's expectations by 8%. This outperformance was primarily attributed to an income tax rebate received following a favorable ruling in a tax dispute. However, both gross margin and operating margin for the quarter fell short of UBS's forecasts, due to uneven production capacity, shared tariff costs with U.S. customers, increased staffing in the OEM business, and operational deleveraging at its retail subsidiary, Pou Sheng International (03813).

Management has provided a conservative outlook for the current year, with a target of achieving slight sales growth by 2026.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1174806831?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-03-16 15:43","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1174806831","market":"fut","top_or_hot":-1,"title":"UBS Adopts Cautious Stance on YUE YUEN IND (00551) Through 2026, Trims Target Price to HK$20","media":"Stock News","content":"<p>UBS has released a research report indicating a slight reduction in the target price for YUE YUEN IND (00551) to HK$20 from HK$20.3, based on a sum-of-the-parts (SOTP) valuation. This adjustment follows a 5% to 6% cut in profit forecasts for 2026 to 2028, driven by lowered expectations for sales volume and gross margin, partially offset by rolling the valuation base year forward. The bank maintains a \"Buy\" rating on the stock.</p>\n<p>UBS estimates that YUE YUEN IND's net profit for the fourth quarter of last year increased by 68% year-on-year to USD 102 million, surpassing the bank's expectations by 8%. This outperformance was primarily attributed to an income tax rebate received following a favorable ruling in a tax dispute. However, both gross margin and operating margin for the quarter fell short of UBS's forecasts, due to uneven production capacity, shared tariff costs with U.S. customers, increased staffing in the OEM business, and operational deleveraging at its retail subsidiary, Pou Sheng International (03813).</p>\n<p>Management has provided a conservative outlook for the current year, with a target of achieving slight sales growth by 2026.</p>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>UBS Adopts Cautious Stance on YUE YUEN IND (00551) Through 2026, Trims Target Price to HK$20</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUBS Adopts Cautious Stance on YUE YUEN IND (00551) Through 2026, Trims Target Price to HK$20\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036600163\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Stock News </p>\n<p class=\"h-time\">2026-03-16 15:43</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>UBS has released a research report indicating a slight reduction in the target price for YUE YUEN IND (00551) to HK$20 from HK$20.3, based on a sum-of-the-parts (SOTP) valuation. This adjustment follows a 5% to 6% cut in profit forecasts for 2026 to 2028, driven by lowered expectations for sales volume and gross margin, partially offset by rolling the valuation base year forward. The bank maintains a \"Buy\" rating on the stock.</p>\n<p>UBS estimates that YUE YUEN IND's net profit for the fourth quarter of last year increased by 68% year-on-year to USD 102 million, surpassing the bank's expectations by 8%. This outperformance was primarily attributed to an income tax rebate received following a favorable ruling in a tax dispute. However, both gross margin and operating margin for the quarter fell short of UBS's forecasts, due to uneven production capacity, shared tariff costs with U.S. customers, increased staffing in the OEM business, and operational deleveraging at its retail subsidiary, Pou Sheng International (03813).</p>\n<p>Management has provided a conservative outlook for the current year, with a target of achieving slight sales growth by 2026.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"00551","symbol_name":"裕元集团","start_time":0,"source_url":"","article_id":"1174806831","we_media_id":"1036600163","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1174806831","pubTimestamp":1773647032,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Stock News","introduction":"Global Stock News First-Time Broadcast","home_visible":1,"id":"1036600163","head_image":"https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a"},"summary":"UBS has released a research report indicating a slight reduction in the target price for YUE YUEN IND (00551) to HK$20 from HK$20.3, based on a sum-of-the-parts (SOTP) valuation. This adjustment...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"00551":"裕元集团","BK1168":"鞋类"},"translate_title":"瑞银对裕元实业(00551)持谨慎立场至2026年目标价下调至20港元","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00551":1},"content_text":"UBS has released a research report indicating a slight reduction in the target price for YUE YUEN IND (00551) to HK$20 from HK$20.3, based on a sum-of-the-parts (SOTP) valuation. This adjustment follows a 5% to 6% cut in profit forecasts for 2026 to 2028, driven by lowered expectations for sales volume and gross margin, partially offset by rolling the valuation base year forward. The bank maintains a \"Buy\" rating on the stock.\nUBS estimates that YUE YUEN IND's net profit for the fourth quarter of last year increased by 68% year-on-year to USD 102 million, surpassing the bank's expectations by 8%. This outperformance was primarily attributed to an income tax rebate received following a favorable ruling in a tax dispute. However, both gross margin and operating margin for the quarter fell short of UBS's forecasts, due to uneven production capacity, shared tariff costs with U.S. customers, increased staffing in the OEM business, and operational deleveraging at its retail subsidiary, Pou Sheng International (03813).\nManagement has provided a conservative outlook for the current year, with a target of achieving slight sales growth by 2026.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1174806831","isCrawlerRequest":true}