Yue Yuen &Pou Sheng:4Q16results –first take
Announcements by Yue Yuen (Buy) and Pou Sheng (Buy) likely positive
Yue Yuen’s operating profit beat DBe by 37%, due to ODM efficiency recovery. Pou Sheng’s accounting incident likely cleared after review by Deloitte. Although 4Q16 OPM missed DBe by 34bps, this should be well-anticipated by the market. Pou Sheng’s 4Q16 operating profit grew 14% YoY. Both companies proposed in-line cash dividends for 2016. The companies will host an analyst meeting on 27 March. We will obtain more details on 4Q16 during the meeting. Maintaining Buy on Yue Yuen and Pou Sheng.