CITIC Lyon: Maintaining Yuyuan Group's (00551) target price of HK$15 and “outperforming the market” rating

The Zhitong Finance App learned that CITIC Lyon released a research report stating that it maintains the Yuyuan Group (00551) target price of HK$15 and “outperforms the market” rating. Yuyuan Group announced its operating results for August. Sales of the Group, manufacturing business and retail business decreased by 2.1%, 1.6% and 9%, respectively, compared with July. Thanks to the lower base effect, the year-on-year decline in manufacturing sales narrowed sharply from July, although the growth rate compared to the two-year contract period still fluctuated. In addition, Pou Sheng International (03813) retail sales faced a high base. The year-on-year decline in August was still narrower than in July, showing signs of month-on-month improvement. The bank expects group, manufacturing and retail sales (in US dollars) to decrease by 4%, 4.8%, and 3.0%, respectively, in fiscal year 2026.