Citigroup: Reiterates "Buy" rating on YUE YUEN IND (00551) with target price raised to 20.3 Hong Kong dollars.

Citigroup released a research report stating that after YUE YUEN IND (00551) announced its third quarter performance, they have increased their profit forecast for 2024 to 2026 by 15 to 17%, and raised the target price by 16% from HK$ 17.5 to HK$ 20.3. They also reiterated their "buy" rating, expecting a dividend yield of approximately 8% for the year. Citigroup stated that YUE YUEN's performance for the first nine months showed that the expansion trend of its footwear manufacturing business (MFG) gross profit margin was better than expected. The group's manufacturing revenue in October increased by 21.3% year-on-year, although growth has slowed down compared to the previous month. However, the growth rate is still higher than the average level for the first ten months.