Bank of America Securities: Lower Yuexiu Property Group (00551.HK) target price to 13.7 Hong Kong dollars, maintain "neutral" rating.

According to the Wisdom Financial APP, Bank of America Securities released a research report stating that Yuexin Group (00551.HK) saw a 1.5% year-on-year increase in first-quarter revenue, in line with the bank's expectations. The gross profit margin decreased by 2.2 percentage points to 22.9% year-on-year, which was 1 percentage point lower than the bank's expectations, mainly due to rising labor costs and uneven distribution of manufacturing business capacity. The first-quarter operating profit margin decreased by 1.9 percentage points to 5.4% year-on-year, in line with the bank's expectations. The bank lowered Yuexin's forecast for the next two years by 3% and 7% respectively, to reflect the slow recovery of the Chinese retail market and profit margin pressure in the manufacturing sector. Maintaining a valuation basis of 8 times the forecast earnings for this year, the target price was lowered from 14 Hong Kong dollars to 13.7 Hong Kong dollars, considering a dividend yield of around 10%, and maintaining a "neutral" rating.