YGM Trading Limited (0375) AI Stock Analysis

• Market Cap: HK$169.18M
• Dividend Yield: 9.71%
• Average Volume (3M): 45.77K
• Price to Earnings (P/E): 685.7
• Beta (1Y): 0.19
• Revenue Growth: -25.41%
• EPS Growth: -361.49%
• Country: HK
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Apparel - Retail
• EPS (TTM): -0.13
• Shares Outstanding: 165,863,780
• 10 Day Avg. Volume: 40,232
• 30 Day Avg. Volume: 45,766
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ―

YGM Trading Limited's stock score reflects a solid balance sheet and strong cash flow management, which support its resilience. The high dividend yield offers income potential, but the extremely high P/E ratio raises concerns about overvaluation. Technical indicators suggest neutral market sentiment without clear bullish momentum.

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 through multiple streams, primarily driven by the sale of apparel and related products. The company earns income from its retail operations, which include company-owned stores and concessions in department stores. Additionally, YGM Trading Limited benefits from licensing agreements, where it manages and distributes international fashion brands, earning royalties and licensing fees. The company may also engage in wholesale operations, supplying products to other retailers and distributors. Key factors contributing to its earnings include brand partnerships, market expansion, and product diversification.

YGM Trading Limited Financial Statement Overview

Summary

YGM Trading Limited demonstrates a recovery path with improving revenue and cash flow metrics, though profitability remains a challenge. The company has a solid balance sheet with low leverage, providing a cushion against economic fluctuations. Continued focus on improving profitability will be crucial for enhancing shareholder value.

Income Statement

YGM Trading Limited has shown a positive revenue growth rate of 11.34% in the recent year, signaling a recovery trend. However, the company is still grappling with profitability challenges, as indicated by a negative net profit margin of -2.15% and an EBIT margin of -0.97%, although these have improved from previous years. The gross profit margin stands at a healthy 70.04%, which is a strong point in its income statement.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 79.12%, highlighting financial stability. The debt-to-equity ratio is low at 0.14, indicating minimal leverage, which reduces financial risk. However, the return on equity is negative at -1.13%, pointing towards profitability issues that need addressing to improve shareholder returns.

Cash Flow

YGM Trading Limited shows robust cash flow management with a free cash flow growth rate of 15.38% and a strong free cash flow to net income ratio of 7.69. The operating cash flow to net income ratio is high at 8.01, indicating efficient cash conversion. These metrics suggest strong liquidity and the ability to fund operations without relying on external financing.

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	132.66M	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: 1.03
• 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 1.03 is above the 20-day moving average (MA) of 0.96, above the 50-day MA of 0.94, and above the 200-day MA of 0.91, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.26 is Neutral, neither overbought nor oversold. The STOCH value of 58.63 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
0375	64 Neutral	HK$169.18M	685.71	-5.47%	9.71%	-25.41%	-361.49%
Sector *	63 Neutral	AU$3.11B	29.20	24.23%	4.46%	2.10%	-21.18%
ESHDF	―	$36.29M	―	-90.66%	―	―	―
GRDZF	―	$314.62M	11.33	10.30%	9.31%	―	―
0483	64 Neutral	HK$74.21M	6.35	6.87%	―	0.78%	863.64%
1817	59 Neutral	HK$394.25M	11.80	4.29%	―	-4.28%	-25.99%
2528	46 Neutral	HK$124.00M	―	-40.69%	―	-6.89%	-356.53%

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.