CICC: Maintains the Outperform rating for Yue Yuen Industrial Holdings Limited (00551) and lowers the target price to HKD 15.64.

According to the Zhitong Finance APP, CICC has released a research report stating that considering the ongoing pressure on manufacturing business orders and the fluctuations in gross profit margins, it has downgraded the profit forecast for (00551) for the fiscal years 2026/27 by 34%/31% to $202 million/$236 million. The current stock prices correspond to P/E ratios of 14x for 2026 and 12x for 2027. The rating of outperforming the industry is maintained, and given the company's inherent recovery resilience, the target price is only reduced by 13% to HKD 15.64, which corresponds to P/E ratios of 16x for 2026 and 14x for 2027, representing a 14% upside from the current level.