YGM Trading Limited (0375) AI Stock Analysis

• Market Cap: HK$174.16M
• Dividend Yield: 9.52%
• Average Volume (3M): 35.83K
• Price to Earnings (P/E): 685.7
• Beta (1Y): 0.22
• Revenue Growth: -25.41%
• EPS Growth: -361.49%
• Country: HK
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Apparel - Retail
• EPS (TTM): -0.13
• Shares Outstanding: 165,863,780
• 10 Day Avg. Volume: 28,000
• 30 Day Avg. Volume: 35,832
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$1.00
• Price Target Upside: -4.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$1.00 ▼(-4.76% Downside)

The overall stock score of 56 reflects the company's financial struggles, particularly in profitability and cash flow generation, despite a stable balance sheet. The technical analysis suggests some positive momentum, but the valuation is hindered by the negative P/E ratio. The high dividend yield is a positive aspect, but the company's unprofitability remains a significant risk.

YGM Trading Limited Business Overview & Revenue Model

Company Description

YGM Trading Limited (0375) is a Hong Kong-based company engaged primarily in the trading and distribution of a diverse range of consumer products, including textiles, apparel, and accessories. The company operates within the retail and wholesale sectors, serving both local and international markets. YGM Trading Limited is known for its strategic partnerships with well-established brands, enabling it to offer a variety of high-quality products to its customers.

How the Company Makes Money

YGM Trading Limited generates revenue through multiple streams, primarily from the wholesale and retail sale of its products. The company sources products from manufacturers and suppliers, then sells them to retailers and direct consumers. Additionally, YGM Trading benefits from brand partnerships, which can include licensing agreements that provide royalties or profit-sharing arrangements. The company also explores opportunities in e-commerce, expanding its market reach and enhancing sales channels. Factors contributing to its earnings include its established distribution network, brand reputation, and the ability to adapt to market trends.

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. While the balance sheet remains stable with low leverage, the company struggles with negative returns on equity and cash flow generation. Improving operational efficiency and profitability will be crucial for future growth and financial stability.

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	220.38M	177.85M	238.44M	214.13M	211.49M	216.18M
Gross Profit	145.03M	117.46M	166.96M	143.84M	134.47M	136.18M
EBITDA	4.28M	9.63M	37.59M	25.98M	38.10M	31.50M
Net Income	224.00K	-23.65M	-5.12M	-13.77M	3.28M	-11.74M
Balance Sheet
Total Assets	551.97M	505.78M	571.61M	584.13M	608.93M	690.66M
Cash, Cash Equivalents and Short-Term Investments	110.63M	101.63M	112.98M	128.73M	149.91M	158.90M
Total Debt	44.21M	44.73M	65.02M	63.06M	63.03M	82.62M
Total Liabilities	106.05M	87.28M	113.20M	106.51M	101.26M	131.73M
Stockholders Equity	440.24M	413.16M	452.21M	470.42M	499.00M	538.89M
Cash Flow
Free Cash Flow	40.73M	34.66M	39.36M	34.12M	-10.44M	27.10M
Operating Cash Flow	40.94M	36.38M	41.02M	38.81M	-4.00M	28.19M
Investing Cash Flow	5.36M	3.40M	1.59M	2.12M	85.03M	1.40M
Financing Cash Flow	-54.56M	-49.56M	-55.96M	-45.47M	-89.21M	-44.55M

YGM Trading Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1.05 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.97, and above the 200-day MA of 0.91, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.95 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0375.

YGM Trading Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
0375	56 Neutral	HK$174.16M	685.71	-5.47%	9.52%	-25.41%	-361.49%
ESHDF	―	$53.42M	―	-90.66%	―	―	―
GRDZF	―	$338.24M	12.11	10.57%	8.52%	―	―
0483	69 Neutral	HK$104.70M	8.96	6.87%	―	0.78%	863.64%
1817	59 Neutral	HK$370.50M	9.74	4.51%	―	-7.95%	98.95%
2528	46 Neutral	HK$99.20M	―	-10.66%	―	-5.89%	71.06%

YGM Trading Limited Corporate Events

YGM Trading Limited Announces Supplemental Information on Connected Transactions

YGM Trading Limited has issued a supplemental announcement to its Annual Report 2023/24, detailing connected transactions with Yangtzekiang Garment Limited. These transactions include a Garment Master Agreement for purchasing garment products and a Licence Agreement for leasing warehouse and office space. The transactions are deemed connected due to shared controlling shareholders and comply with Chapter 14A of the Listing Rules. The disclosed transactions do not affect other information in the Annual Report.