Glonghui, March 15 | Goldman Sachs published a research report saying that recently communicated with Yu Yuan and Baosheng management, the company revealed that it is expected that the OEM business order volume will increase by a medium to high percentage of units from year to year. Although there is still uncertainty in the macro and logistics chain, making the recent outlook for the global footwear market relatively uncertain, Goldman Sachs believes that the company's overall order visibility has been increasing, and that orders from major customers are also on the right track. It is expected that the company will continue to increase its gross profit margin this year after improving utilization and production efficiency. However, the bank warned that due to the high average sales price base, profit margins for the first quarter of this year may record a quarterly decline, but the annual growth trend is expected to improve. As for the retail business, sales growth is expected to stabilize in 2024. It is expected that with strict discount control and healthy inventory support, gross margin and operating profit margin will increase. The bank predicts that Yuyuan and Pou Sheng will have dividend ratios of 13% and 6% this year. Accordingly, Yuyuan's 2024-2025 net interest rate forecast was raised by 7% to 16%, and Pou Sheng's net profit forecast was lowered by 1% to 4% to reflect a slowdown in sales growth. The target price for Yuyuan rose from HK$12.4 to HK$14.2, while Pou Sheng dropped from HK$1.32 to HK$1.24, all with a “buy” rating.