Goldman Sachs
May 14, 2026
Yue Yuen and Pou Sheng 1Q26 Earnings Review
Single Stock ReportEquitiesConsumer Discretionary
Goldman Sachs maintains Buy ratings for Yue Yuen and Pou Sheng following 1Q26 earnings, noting that while OEM manufacturing faces macro and input cost headwinds, sequential margin improvements are expected.
Key Takeaways
- 1.Yue Yuen 1Q26 OEM margins missed expectations due to tariff-sharing, uneven capacity, and new factory ramp-ups, but are expected to recover sequentially.
- 2.Pou Sheng is showing resilience with improving retail discounts and self-help efficiency gains, despite choppy macro consumption trends.
- 3.Input cost inflation is a concern, with raw material prices for chemical products and adhesives rising by 20-40%.
Table of Contents
- Yue Yuen's OEM business
- Order outlook
- Thoughts on margin trajectory
- Input cost inflation impact
- Tariff implications
- Capex plan
- Pou Sheng
- Recent updates and 2026 outlook
- Comments on strategy
- Price target risks and methodology
- Disclosure Appendix
- Ratings, coverage universe and related definitions
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Authors
Michele ChengCarol Chen
Securities
0551.HKPou Sheng International Holdings
Themes
Manufacturing Margin HeadwindsRetail Efficiency and Pricing Discipline
Regions
Asia PacificChinaIndonesiaVietnam