Macquarie published a report stating thatlottomax, Yue Yuen's first-quarter profit exceeded expectations, and management expects steady growth in order volume in the first quarter (up 9.9% year-on-year)lottomax.1%), in the next one to two quarterslottomaxOrders will maintain good momentum. The company is focusing on hiring employees in Indonesia to ensure orders can be fulfilled. The company's confidence in orders mainly comes from more stable orders from brand customers. In the long run, as the company's operations gradually return to normal, the company has formulated plans to expand production capacity to resume annual shipments of more than 300 million pairs of footwear. The bank expects Yue Yuen to achieve a gross profit margin of more than 20% this year, and sales are expected to increase by 6%lottomax.5%。In addition, despite strong domestic passenger traffic during Labor Day, passenger traffic at Baosheng's physical stores remains weak, but the bank believes management is still focused on controlling retail discounts and inventory levels.
Considering Yue Yuen's production profits exceeded expectations, the bank raised its earnings per share forecast this year by 5% but lowered its forecast for next year by 2%, mainly reflecting a lower forecast for retail business profits. The bank raised its target price for Yue Yuen from HK$15.7 to HK$17.4, believing that profit margins are still the focus and maintaining its rating of "outperform the market."