Citi Research: Maintains a "outperform" rating on YUE YUEN IND(00551) with a target price of 22 Hong Kong dollars.

Citi Research released a research report stating that YUE YUEN IND (00551) is expected to see a year-on-year increase of 55%-60% in net profit attributable to shareholders in 2024, with the upper limit exceeding the bank's expectations. In regards to the tax dispute of the group's subsidiary in Indonesia, if the dispute is confirmed as additional income tax expenses, it will have a negative impact of 5%-10% on its net profit, and the tax dispute may have a one-time negative impact on its stock price. The target price for the next 12 months is HKD 22, and the rating of "outperform the market" is maintained. The bank stated that it still believes that the positive production capacity expansion plan and the improvement in momentum of several core customer orders will make the company's footwear manufacturing business (MFG) a growth point in 2025. The company also announced that the operating income of MFG and retail business in January 2025 increased by 1.1% and 24.2% year-on-year, roughly in line with the bank's expectations.