CICC's report indicates that YUE YUEN IND's manufacturing business underperformed in the first quarter, with revenue and net profit declining significantly compared to the previous year. Despite this, the company is expected to improve its performance quarter-over-quarter. Due to ongoing order pressure and margin volatility, CICC has lowered its earnings forecasts for 2026 and 2027 but maintains an Outperform rating, reflecting confidence in the company's recovery potential. The target price has been reduced to HKD17.9.
