YGM Trading Limited (0375) AI Stock Analysis

• Market Cap: HK$187.43M
• Dividend Yield: 10.75%
• Average Volume (3M): 53.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$1.00 ▲(11.11% Upside)
• Action: Reiterated Date: 12/13/25
• Date: Action: Reiterated 12/13/25

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

Multi-channel distribution and brand partnerships

YGM's wholesale, retail and online distribution plus partnerships with established fashion brands create durable revenue diversification and customer reach. This multi-channel model reduces dependence on any single channel, supports stock-keeping scale, and helps sustain sales as consumer habits shift.

Conservative leverage / solid capital structure

Very low leverage and a strong equity base give YGM financial flexibility to absorb retail cyclicality, invest in omnichannel initiatives, and manage inventory cycles. Conservative capital structure reduces refinancing risk and preserves capacity for strategic investments over the medium term.

Stable gross profit margins

A relatively stable gross margin amid falling sales suggests resilience in sourcing, pricing or product mix control. Stable gross margins provide a foundation for management to recover operating profitability once revenue stabilizes, supporting a faster path to positive operating leverage.

Negative Factors

Sustained revenue decline

Significant and persistent top-line decline (reported ~19-24%) indicates weakening demand or loss of market share. Continued revenue contraction undermines fixed-cost absorption and scale economics, forcing structural changes in merchandising, distribution or brand positioning to restore durable growth.

Persistent unprofitability and weak returns

Consistent negative net and EBIT margins plus negative ROE point to structural profitability issues. Without meaningful margin improvement or a change in cost structure, the company cannot generate sustainable shareholder returns, limiting reinvestment and long-term competitiveness.

Weakened cash generation and conversion

Subpar cash conversion and a near 15% decline in free cash flow reduce internal funding for inventory, store upkeep and digital investment. Weak cash generation increases reliance on balance-sheet reserves and constrains strategic flexibility during recovery periods.

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. 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	168.03M	177.85M	238.44M	214.13M	211.49M	216.18M
Gross Profit	108.91M	117.46M	166.96M	143.84M	134.47M	136.18M
EBITDA	10.03M	9.63M	37.59M	25.98M	38.10M	31.50M
Net Income	-22.49M	-23.65M	-5.12M	-13.77M	3.28M	-11.74M
Balance Sheet
Total Assets	511.85M	505.78M	571.61M	584.13M	608.93M	690.66M
Cash, Cash Equivalents and Short-Term Investments	106.19M	101.63M	112.98M	128.73M	149.91M	158.90M
Total Debt	67.89M	44.73M	65.02M	63.06M	63.03M	82.62M
Total Liabilities	106.78M	87.28M	113.20M	106.51M	101.26M	131.73M
Stockholders Equity	400.40M	413.16M	452.21M	470.42M	499.00M	538.89M
Cash Flow
Free Cash Flow	40.42M	34.66M	39.36M	34.12M	-10.44M	27.10M
Operating Cash Flow	42.33M	36.38M	41.02M	38.81M	-4.00M	28.19M
Investing Cash Flow	-986.00K	3.40M	1.59M	2.12M	85.03M	1.40M
Financing Cash Flow	-47.02M	-49.56M	-55.96M	-45.47M	-89.21M	-44.55M

YGM Trading Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.90
• 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 0.9 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 0.98, and below the 200-day MA of 0.97, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.70 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 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
0483	70 Outperform	HK$108.38M	-4.24	4.49%	―	-1.14%	―
0709	67 Neutral	HK$2.36B	4.81	10.57%	9.18%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0375	55 Neutral	HK$187.43M	-61.60	-5.53%	10.75%	-23.76%	-9785.71%
1817	54 Neutral	HK$266.00M	9.64	4.46%	―	-7.95%	98.95%
2528	49 Neutral	HK$140.00M	2.75	-11.64%	―	-5.89%	71.06%
0330	37 Underperform	HK$260.44M	3.33	―	―	―	―

YGM Trading Limited Corporate Events

YGM Trading Sets New Connected Trading Framework with Citimark Trading

YGM Trading Limited, through its wholly owned subsidiary YGM Marketing, is engaged in the sale and purchase of branded consumer products, including apparel, often under licensing or consignment structures, targeting regional markets via both group companies and external distributors. The company operates within a closely held shareholder and management structure, with multiple executive directors from the Chan family and related parties involved in connected transactions.

YGM Marketing has entered into a Sales Master Agreement and a Purchase Master Agreement with Citimark Trading, a company controlled by relatives of several YGM executive directors, to govern ongoing sales and purchases of products on an order-by-order basis from 31 December 2025 to 31 March 2028. These arrangements constitute continuing connected transactions under Hong Kong Listing Rules, triggering reporting, announcement and annual review requirements, though they are exempt from circular and independent shareholders’ approval due to their size. Pricing will be set at arm’s length with reference to quantity, costs, product characteristics, comparable third-party pricing and prevailing market levels, and the sales caps are aggregated with a prior consignment arrangement with Citimark Trading, underscoring the growing volume and regulatory sensitivity of intra-group and related-party trading for the company’s stakeholders.

The most recent analyst rating on (HK:0375) stock is a Hold with a HK$0.95 price target. To see the full list of analyst forecasts on YGM Trading Limited stock, see the HK:0375 Stock Forecast page.