TPE:9904

Pou Chen Warns of Up to 60% Profit Decline in H1

Pou Chen (TPE:9904) unit Yue Yuen Industrial warned its profit attributable to shareholders for the six months ended June 30 could fall about 55% to 60% from $171.2 million a year earlier, according to a Friday Taiwan Exchange filing.Yue Yuen attributed the expected decline to weaker demand, rising labor and overhead costs, and production scheduling disruptions that hurt manufacturing efficiency and margins.Manufacturing revenue fell 4.7% year over year during the period as cautious customer ordering amid macroeconomic uncertainty, tariffs and inflation weighed on sales.The footwear manufacturer said it is finalizing its interim results, which are scheduled for release on Aug. 12.

CTBC Securities Starts Pou Chen at Add with NT$30 Price Target

Pou Chen Unit Warns of Up to 55% Plunge in Q1 Profit

Pou Chen's (TPE:9904) major unit Yue Yuen Industrial expects profit attributable to shareholders to plunge about 50% to 55% annually in the first quarter from $75.8 million, according to a Tuesday Taiwan Exchange filing.Shares slid about 1% in Wednesday's late morning trade.The decline was mainly driven by a 5.5% fall in manufacturing revenue amid weaker demand and cautious ordering by brand customers, alongside tariff-related pressures.Rising labor costs and increased headcount, as well as production inefficiencies caused by holiday-related disruptions across China, Vietnam and Indonesia, also weighed on margins.The company said seasonal misalignments and operational bottlenecks led to higher unit costs, hurting short-term profitability in its manufacturing business.Yue Yuen added that results are preliminary and subject to change, with full unaudited earnings due for release on May 13.