The Zhitong Finance App learned that Lyon released a research report saying that giving Yuyuan Group (00551) a “outperforming market” dividend rate of 10.5% is attractive. The Group's sales for the last quarter and full year of last year were generally in line with expectations, but benefiting from strong profitability in the manufacturing business, its net profit last year far exceeded the bank's and market expectations.

According to the report, the company's revenue for the last quarter and full year of last year fell 5% and 12%, respectively, mainly due to weak global demand and inventory removal from major customers; however, passenger traffic and sales at its Baosheng International (03813) stores are recovering. Meanwhile, the company's production department benefited from a 22% year-on-year reduction in raw material costs and a 17% drop in labor costs, making gross margin much higher than the bank's and market expectations. In addition, operating profit margins also beat market expectations, mainly due to the strong gross profit margin of the production business, as well as the company's operating cost control and efficiency optimization.