[ET Net News Agency, 15 May 2020] CLSA lifted its target price for Yue Yuen Industrial
(Holdings) (00551) to HK$14.4 from HK$13.3 and maintained its "outperform" rating.
The research house said Yue Yuen's 1Q margins were lower than expected mainly dragged by
OEM business, which may deteriorate further given more adverse order patterns in the rest
of 2020.
Retail business was somewhat brighter with the potential to return to normal sales and
inventory levels in 3-4Q 2020 and progress again towards 6-7% OPM (operating profit
margin) medium-term. CLSA cut its 2020/21/22 earnings forecasts by 79%/19%/17%. (KL)