[ET Net News Agency, 19 March 2018] CLSA lifted its target price for Yue Yuen
Industrial (Holdings)(00551) to HK$39.7 from HK$39, and reiterated its "buy" rating.
The research house said Yue Yuen's dividend yield is a key feature of CLSA's investment
thesis in 2018. The potential privatisation of its retail arm, Pou Sheng (03813), would
remove near-term uncertainty while enabling the payment of a special dividend.
Meanwhile, improving operating metrics by its OEM business should see the company
generate more free cashflow. Management's ambitions to increase return on equity is
another positive catalyst. (KL)