Jefferies Financial released a report on August 13, stating that Yue Yuen Ind's retail business Pou Sheng Int'l is facing a challenging retail environment, but is still able to recover profits, which is seen as a surprising upside potential. On the other hand, the manufacturing industry is affected by global consumer downgrades, and it is expected that Pou Sheng will further defend its gross margin. In addition to global demand risks and capacity expansion, the view on the manufacturing business has become more cautious. The bank pointed out that despite the challenging retail environment, Pou Sheng's profit margin has still improved compared to the same period last year. At the same time, Pou Sheng has managed expenses properly (closing underperforming stores to optimize costs). In the second half of the year, it is expected that Pou Sheng will further manage markdowns and expenses. On the other hand, the bank expects the brands under Pou Sheng to provide more support to help manage inventory. The bank has lowered Pou Sheng's profit forecasts for 2024 to 2026, and reduced its target price from HKD 1.08 to HKD 1.06, giving it a "buy" rating. At the same time, the bank has raised Yue Yuen Ind's target price from HKD 9.3 to HKD 9.5, giving it a "hold" rating.