YUE YUEN IND (00551) declined more than 4% again. As of the time of writing, the stock was down 2.78% to HK$16.06, with a turnover of HK$106 million. On March 12, YUE YUEN IND announced its 2025 results, reporting a net profit attributable to owners of approximately US$381 million, a decrease of 2.9% year-on-year. Basic earnings per share were 23.76 US cents, and a final dividend of HK$0.9 per share was proposed. Daiwa noted that YUE YUEN IND's management emphasized that order visibility for the first quarter of this year remains persistently weak. Sales volume and gross margin may face year-on-year pressure due to multiple extended holidays in China, Vietnam, and Indonesia, ongoing tariff allocation arrangements, and cautious ordering patterns from customers. Four brand customers, accounting for approximately 70% of YUE YUEN IND's OEM revenue, continue to implement tariff allocation, which is exerting a low single-digit impact on the company's average selling price (ASP). Daiwa further indicated that management expressed a cautious outlook for the OEM business. According to guidance, ASP and sales volume for 2026 are expected to be flat to slightly weak, with order visibility reduced to approximately 2 to 3 months. Given that YUE YUEN IND's stock price has shown strong performance relative to its OEM peers since last April, the brokerage currently views the company's valuation as reasonable compared to its peers.