[ET Net News Agency, 20 April 2020] Citi Research raised its target price for Yue Yuen
Industrial (00551) to HK$17 from HK$10.8 and upgraded its rating to "buy" from "sell" as
the stock has dropped 46% from its year-to-date high of HK$24.3 in mid-January.
The research house said the share price weakness has discounted the earnings decline in
1H but earnings should subsequently improve in 2H since the US/EU plan to lift lockdowns
and stay-at-home orders caused by the virus pandemic.
Citi previously expected the worst for the manufacturing segment in 2Q/3Q but now
expects it should be 2Q only with a sequential uptick in 3Q. It noted that Yue Yuen has
re-opened 99% of 9,833 POS (in end-2019) in China now. Most of the stores have resumed
sales to 70% of the internal budget for 2020 (i.e., double-digit growth yoy) with good
momentum of consumption recovery. (KL)
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00551 YUE YUEN IND
Nominal 
12.360 +0.360 (+3.000%) Research Report
20/04/2020 17:35
{I-bank focus}Citi upgrades Yue Yuen Ind (00551) to HK$17
| Remark: | Real time quote last updated: 25/04/2024 13:46 |
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