HK Stock Market Move | Yue Yuen Industries (00551) rose more than 6% as Citigroup predicts that the company's last quarter gross profit will continue to improve to 21.8%.

YUE YUEN IND (00551) rose more than 6%, at the time of publication, it rose by 6.23% to HK$16.36, with a turnover of HK$449.89 million. On the news front, YUE YUEN IND recently announced that in December 2024, the company's comprehensive operating income net amount was $684 million, an increase of 6.9% year-on-year; and the cumulative comprehensive operating income net amount for the 12 months ending December 31, 2024 was $8.182 billion, an increase of 3.7% year-on-year. Among them, Yue Yuen's manufacturing revenue in December increased by 13.5% year-on-year. Citigroup believes that Yue Yuen's manufacturing revenue growth rate in December is lower than expected. In addition, the bank expects that the gross profit in the fourth quarter of last year will continue to improve quarterly to 21.8%. Shanxi's previous research report stated that industry orders have recovered in 2024, and it is expected that the total shoe shipment volume for the year will reach 250 million pairs, an increase of double digits compared to the previous year. After bottoming out at the end of 2023, the number of employees has been increasing for three consecutive quarters, and the shoe shipment volume is expected to achieve stable double-digit growth along with strong order demand and new production capacity coming online. With continuous improvement in production technology and optimization of production efficiency, compared to its peers, the company has further room to increase profit margins.