First Read Yue Yuen Industrial H126 profit warning with net income missing expectations

研报英文原文证据摘录

First Read Yue Yuen Industrial H126 profit warning with net income missing expectations

Global Research

24 July 2026ab

First Read

EquitiesYue Yuen Industrial

H126 profit warning with net income missing Hong Kong

expectations Footwear

12-month rating Neutral

12m price target HK$14.50

How did the result compare vs expectations?

Yue Yuen announced a profit warning with H126 net profit down 55-60% YoY (US$68-

77mn). Implied Q226 earnings were down 56-65% YoY to US$33-42mn, which missed Price (24 Jul 2026) HK$13.69

Visible Alpha consensus of US$74mn. It was mainly attributed to declining RIC: 0551.HK BBG: 551 HK

manufacturing revenue and GPM under multiple headwinds: 1) Weak demand and

Trading data and key metrics

reciprocal tariffs: Manufacturing business revenue fell 4.7% YoY (implied Q2 dropped

4% YoY), which led to operating de-leverage. Short-term order fluctuation was due to 52-wk range HK$19.00-12.25

customers staying cautious on placing orders amid macro uncertainties, tariff policy, and Market cap. HK$22.0b/US$2.80b

inflationary risks. Tariff sharing also weighed on profits. 2) Rising labour and Shares o/s 1,605m (ORD)

manufacturing costs: Employee headcount in the manufacturing business increased Free float 46%

due to ramping up of new factories to achieve long-term production capacity layout. Avg. daily volume ('000) 3,432

This growth, combined with rising wages across various regions and cost-saving Avg. daily value (m) HK$48

progress missing the target, has driven up labour and manufacturing costs. 3) Uneven Common s/h equity (12/26E) US$4.71b

capacity load reduced production efficiency: In addition to overlapped holidays in P/BV (12/26E) 0.6x

major manufacturing bases in Q1, monthly orders for each base became increasingly Net debt to EBITDA (12/26E) 0.2x