CLSA: Maintains YUE YUEN IND (00551) target price at HK$15 and "Outperform" rating.

CLSA released a research report maintaining the target price of YUE YUEN IND (00551) at HK$15 and an "Outperform" rating. YUE YUEN IND announced its August operating results, with sales for the group, manufacturing business, and retail business declining 2.1%, 1.6%, and 9% year-on-year respectively, a significant improvement compared to July. Thanks to the lower base effect, the year-on-year decline in manufacturing business sales narrowed substantially compared to July, although its two-year compound year-on-year growth rate remains volatile. In addition, POU SHENG INT'L (03813)'s retail business sales faced a higher base, yet its August year-on-year decline still narrowed compared to July, showing signs of sequential improvement. The bank expects that in FY2026, sales (in USD terms) for the group, manufacturing business, and retail business will decline 4%, 4.8%, and 3.0% year-on-year respectively.