YGM Trading Limited (0375) AI Stock Analysis

• Market Cap: HK$154.25M
• Dividend Yield: 10.75%
• Average Volume (3M): 53.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -23.76%
• EPS Growth: -9785.71%
• Country: HK
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 165,863,780
• 10 Day Avg. Volume: 38,000
• 30 Day Avg. Volume: 53,545
• PEG Ratio: -0.02
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 4.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.95 ▲(2.47% Upside)

YGM Trading Limited's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability issues. The technical analysis suggests bearish momentum, but the high dividend yield offers some valuation appeal. Improving operational efficiency and profitability will be key to enhancing the stock's attractiveness.

Positive Factors

Low Leverage

YGM Trading's low leverage indicates a conservative financial strategy, providing flexibility to manage downturns and invest in growth opportunities.

Strong Brand Partnerships

These partnerships strengthen YGM Trading's market position by attracting a loyal customer base and supporting steady sales growth over time.

Multi-Channel Distribution

A diversified distribution strategy helps mitigate risks associated with reliance on a single channel, enhancing revenue stability and market reach.

Negative Factors

Declining Revenue

A consistent decline in revenue suggests challenges in market competitiveness and consumer demand, impacting long-term growth prospects.

Profitability Issues

Ongoing profitability challenges highlight inefficiencies in cost management and pricing strategy, which could hinder financial sustainability.

Cash Flow Challenges

Decreasing cash flow limits the company's ability to invest in growth initiatives and manage operational expenses, affecting future financial health.

YGM Trading Limited Business Overview & Revenue Model

Company Description

YGM Trading Limited, an investment holding company, engages in the wholesale and retail of garments in Hong Kong, Taiwan, Mainland China, the United Kingdom, and internationally. It operates through four segments: Sales of Garments; Licensing of Trademarks; Printing and Related Services; and Property Rental. The company offers shirts, blouses, trousers and casual pants, blousons, polo shirts, T-shirts, etc.; golf and ski wears; perfume, watches, eyewear, leather goods, and home fashion products; and suits and casual wears. It is also involved in managing and licensing trademarks; investment and leasing of properties; provision of security and general business printing services; trading of printing products; and development of authentication and electronic forgery detection solutions. The company offers its products under the Ashworth, Black Clover, Guy Laroche, Michel René, and J.Lindeberg brands. It serves customers through a distribution network of 87 points of sales in Hong Kong, Macau, Mainland China, and Taiwan. YGM Trading Limited was founded in 1949 and is headquartered in San Po Kong, Hong Kong.

How the Company Makes Money

YGM Trading Limited generates revenue primarily through the sale of its apparel and accessories. The company operates a multi-channel distribution strategy that includes wholesale partnerships with retailers and direct-to-consumer sales through its retail stores and online platforms. Key revenue streams include the sale of branded clothing and accessories, which are sourced from both local and international manufacturers. Significant partnerships with well-known fashion brands enhance its product offerings and attract a loyal customer base, contributing to steady sales growth. Additionally, seasonal promotions and marketing campaigns play a crucial role in driving consumer interest and increasing sales volumes.

YGM Trading Limited Financial Statement Overview

Summary

YGM Trading Limited faces significant challenges in its financial performance, particularly in terms of revenue decline and profitability. The income statement shows a declining revenue trend with a significant drop of 19.3% in the latest year. The balance sheet is stable with low leverage, but the company struggles with negative returns on equity and cash flow generation.

Income Statement

YGM Trading Limited's income statement shows a declining revenue trend with a significant drop of 19.3% in the latest year. The company has been struggling with profitability, as indicated by negative net profit margins and EBIT margins over the years. The gross profit margin remains relatively stable, but the negative net income highlights ongoing challenges in managing costs and generating profits.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.11, indicating conservative leverage. However, the negative return on equity suggests inefficiencies in generating returns from shareholders' equity. The equity ratio is strong, showing a solid capital structure, but the company needs to improve its profitability to enhance overall financial health.

Cash Flow

Cash flow analysis reveals a mixed performance. The operating cash flow to net income ratio is below 1, indicating challenges in converting income into cash. Free cash flow has decreased by 14.9% recently, reflecting potential issues in cash generation. Despite these challenges, the free cash flow to net income ratio is close to 1, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	177.85M	177.85M	238.44M	214.13M	211.49M	216.18M
Gross Profit	117.46M	117.46M	166.96M	143.84M	134.47M	136.18M
EBITDA	-2.78M	9.63M	37.59M	25.98M	38.10M	31.50M
Net Income	-23.65M	-23.65M	-5.12M	-13.77M	3.28M	-11.74M
Balance Sheet
Total Assets	505.78M	505.78M	571.61M	584.13M	608.93M	690.66M
Cash, Cash Equivalents and Short-Term Investments	101.63M	101.63M	112.98M	128.73M	149.91M	158.90M
Total Debt	44.73M	44.73M	65.02M	63.06M	63.03M	82.62M
Total Liabilities	87.28M	87.28M	113.20M	106.51M	101.26M	131.73M
Stockholders Equity	413.16M	413.16M	452.21M	470.42M	499.00M	538.89M
Cash Flow
Free Cash Flow	34.66M	34.66M	39.36M	34.12M	-10.44M	27.10M
Operating Cash Flow	36.38M	36.38M	41.02M	38.81M	-4.00M	28.19M
Investing Cash Flow	1.03M	3.40M	1.59M	2.12M	85.03M	1.40M
Financing Cash Flow	-49.56M	-49.56M	-55.96M	-45.47M	-89.21M	-44.55M

YGM Trading Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0375, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.03, and above the 200-day MA of 0.91, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0375.

YGM Trading Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0483	70 Outperform	HK$102.87M	13.86	4.49%	―	-1.14%	―
0709	67 Neutral	HK$2.39B	11.02	10.57%	9.12%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0375	55 Neutral	HK$154.25M	-6.86	-5.35%	10.75%	-23.76%	-9785.71%
1817	54 Neutral	HK$294.50M	8.42	4.51%	―	-7.95%	98.95%
2528	49 Neutral	HK$132.00M	-7.55	-10.66%	―	-5.89%	71.06%
0330	37 Underperform	HK$322.71M	-0.19	―	―	―	―

YGM Trading Limited Corporate Events

YGM Trading Limited Reports Decreased Revenue and Losses for Interim 2025

YGM Trading Limited reported its unaudited interim results for the six months ending September 30, 2025, showing a decrease in revenue from HK$88,524,000 in 2024 to HK$78,701,000 in 2025. Despite a reduction in losses compared to the previous year, the company still experienced a loss of HK$1,597,000, attributed to high distribution and administrative costs, although there was a notable improvement in total comprehensive income due to favorable exchange differences.

YGM Trading Limited Schedules Board Meeting for Financial Review

YGM Trading Limited has announced that its board of directors will hold a meeting on November 21, 2025, to approve the company’s unaudited consolidated results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

YGM Trading Limited Announces EGM Results: Capital Reduction Approved

YGM Trading Limited announced the results of its Extraordinary General Meeting held on November 4, 2025. The meeting saw the rejection of proposed ordinary resolutions related to the SPA and DML Agreement by independent shareholders, while a special resolution concerning Capital Reduction was approved. The Chan Family, holding a significant share interest, abstained from voting on the ordinary resolutions due to a material interest, impacting the outcome. The approval of the Capital Reduction may influence the company’s financial structuring and shareholder distributions.

YGM Trading Limited Announces Strategic Resolutions at Upcoming EGM

YGM Trading Limited has announced an Extraordinary General Meeting to approve several significant resolutions, including a share purchase agreement involving the sale of YGM Retail Limited and a distribution and manufacturing license agreement with YGM Marketing. Additionally, a special resolution proposes a capital reduction to enhance shareholder value, subject to court approval. These strategic moves are expected to streamline operations and potentially improve the company’s financial standing.

YGM Trading Limited AGM Resolutions Unanimously Passed

YGM Trading Limited announced that all resolutions proposed at their Annual General Meeting on September 26, 2025, were approved by shareholders. These resolutions included the acceptance of financial statements, the declaration of a final dividend, the re-election of directors, the re-appointment of KPMG as auditors, and the granting of mandates to the board for share allotment and buybacks. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

YGM Trading Limited Announces Proposed Capital Reduction

YGM Trading Limited has announced a proposed capital reduction, intending to decrease its share capital from HK$383,909,000 to HK$20,000,000. This move aims to create a capital reduction reserve, which will be considered as realized profit to offset accumulated losses or make distributions to shareholders. The company assures that this reduction will not affect its net asset value, business operations, or shareholder interests, and it will maintain its ability to meet liabilities as they arise.

YGM Trading Announces Major Share Disposal and New Licensing Agreement

YGM Trading Limited has announced a discloseable and connected transaction involving the sale of its entire issued shares in YGM Retail and the assignment of a Sale Loan for HK$34,320,000. This transaction, which involves connected persons under the Listing Rules, requires Independent Shareholders’ approval and is expected to impact the company’s operations by establishing a new distribution and manufacturing license agreement. This agreement grants YGM Marketing exclusive rights to market and distribute products in Hong Kong and Macau, and non-exclusive rights to manufacture products worldwide, thereby continuing connected transactions post-completion.