YUE YUEN IND (00551) surged over 4% again, reaching HK$15.77 by the time of writing, with a trading volume of HK$50.66 million.

The company recently released its performance report for the first three quarters of 2025. Huaxi Securities noted that YUE YUEN IND's revenue/net profit attributable to shareholders for the period stood at US$6.017 billion/US$279 million, down 1%/16% year-on-year. In Q3 alone, revenue/net profit was US$1.957 billion/US$108 million, declining 5%/27% YoY. The negative sales growth in Q3 was attributed to capacity relocation, lower utilization rates due to ramp-up in Central Java, and tariff allocation impacts.

Breaking down volume and price, Q3 capacity utilization/footwear shipment/unit price was 92%/63 million pairs/US$21.43, reflecting a -3 percentage point/-5.2%/+3.38% YoY change. The volume decline stemmed from shifting production from China to overseas facilities amid tariff pressures, while price growth was driven by product mix optimization.

Huaxi Securities highlighted that 29% of YUE YUEN IND's exports go to the U.S., with production shares in Indonesia/Vietnam/China at 53%/32%/10%. The company can largely offset tariff impacts through Vietnam and Indonesia operations. Although tariffs may dampen end-consumer demand and orders, YUE YUEN IND is poised to expand market share through overseas capacity expansion.