Yue Yuan Group is up 1.51% medium-term profit growth

Buoyed by the company's medium-term earnings growth, Yu Yuan Group (00551-HK) is up 1.51%, reporting 17.50 Hong Kong dollars and trading at HK $3.6357 million. The company reported a 4% per cent growth in the medium term, a sharp slowdown from 23.4% per cent in 08. The net profit for the period will be reduced by 2.2% per year if the Non-recurrent operating items are deducted.　　The median dividend per share was HK $0.34, consistent with the same period last year.　　Credit Suisse maintained the neutral rating of the unit but set its target price from HK $15.00 to HK $15.70, which was expected to increase its profit forecast for fiscal year 1% to 3% per cent, as the ODM business had higher margins than expected. The bank said demand for branded sneakers remained weak in the global market and that it would take some time for the company to resolve its retail inventory in the mainland, which the bank believes is still not encouraging.