UBS: Yue Yuen Industrial's Q2 earnings beat expectations, raising target price to HKD 16

UBS released a research report stating that YUE YUEN IND's revenue and net profit in the second quarter increased by 1% and 13% year-on-year, respectively. Revenue met expectations, while net profit exceeded expectations by 19% due to a lower tax rate and gains from the fair value of financial instruments. The average selling price of products increased by 2.5% and 3.9% year-on-year in the first and second quarters, respectively. UBS predicts that the average selling price of products for the entire year will record a low single-digit increase, taking into account the impact of tariff policies. UBS raised YUE YUEN IND's target price from HKD 14 to HKD 16 to reflect higher order growth expectations for next year, with a rating of "Buy."