On July 19, Guolianhui | Goldman Sachs updated its profit forecast for Yue Yuen Industrial and Pou Sheng International, lowering Pou Sheng's Q2 revenue forecast by 10.5% YoY, reflecting weak overall consumer demand and unfavorable weather factors. Gross margin expansion is still benefiting from disciplined discounting, but is partially offset by deleveraging of operations and relatively unfavorable sales channel mix. The bank expects Yue Yuen to be on track for high-single digit unit sales growth forecast for the year. Equipment utilization and efficiency improvements should support margin expansion. The bank lowered its average net income forecast for Pou Sheng from this year to 2026 by 9% and its profit forecast for Yue Yuen for the same period by 1%, believing that the growth in outsourcing businesses offsets weaker-than-expected retail performance. The bank expects Yue Yuen to have a net profit of $82 million in Q2, up 151% YoY. The bank believes that Yue Yuen's risk-return is attractive, as its stock price is at a predicted P/E ratio of 7 times and a dividend yield of 10%. The bank lowered its target price for Yue Yuen from HK$19 to HK$18.8 and for Pou Sheng from HK$1.15 to HK$1.04, both with a "buy" rating.