UBS: YUE YUEN IND (00551) rated as "Buy", target price raised to HKD 22.65.

UBS released a research report stating that YUE YUEN IND (00551) has a "buy" rating, with earnings per share forecast for the fiscal years 2024 to 2026 increased by 7% to 8%. They remain optimistic about the recovery of OEM orders and efficiency improvements. The dividend yield is estimated to be around 7%, with the target price raised from HK$20.9 to HK$22.65. YUE YUEN IND's revenue in the first nine months of this year increased by 1% year-on-year to US$6.075 billion; net profit attributable to shareholders increased by 141% year-on-year to US$332 million, in line with the earlier forecast of a 140% to 145% increase in net profit. This indicates strong performance in the third quarter, with revenue and net profit increasing by 12% and 172% respectively, to US$2.06 billion and US$147 million. The bank stated that considering the high proportion of online sales during major promotions, they expect YUE YUEN IND to face greater discount risks in the fourth quarter, with management clearing inventory in preparation for the launch of new products in the following year. However, their order outlook is positive.