YUE YUEN IND (00551) declined more than 4% again. As of the time of writing, the stock was down 4.15%, trading at HK$15.7, with a turnover of HK$127 million. On the news front, YUE YUEN IND recently announced its financial results, reporting a profit attributable to owners of approximately US$381 million, a decrease of 2.9% year-on-year. Daiwa noted that YUE YUEN IND's management highlighted that order visibility remained weak in the first quarter of this year. Sales volume and gross profit margin are likely to face year-on-year pressure due to multiple extended holidays in China, Vietnam, and Indonesia, ongoing tariff-sharing arrangements, and cautious ordering patterns from customers. Four major brand clients, accounting for about 70% of YUE YUEN IND's OEM revenue, continue to require tariff-sharing arrangements, which is exerting a low single-digit impact on the company's average selling price. Jefferies also commented that YUE YUEN IND's management has issued warnings regarding uncertainties surrounding OEM shipment volumes, average selling prices, and gross profit margins for the first quarter of 2026, while also anticipating a year-on-year increase in capital expenditure. Jefferies stated it is convinced that YUE YUEN IND's OEM business will fail to achieve its 2026 guidance. Regarding average selling prices, pressures are expected to intensify quarter-on-quarter. Considering the risks to profitability and elevated capital expenditures, Jefferies continues to see risks to YUE YUEN IND's free cash flow and dividend payments.