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YGM Trading Limited (HK:0375)
:0375
Hong Kong Market

YGM Trading Limited (0375) AI Stock Analysis

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HK

YGM Trading Limited

(0375)

Rating:64Neutral
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 (0375) vs. iShares MSCI Hong Kong ETF (EWH)

YGM Trading Limited Business Overview & Revenue Model

Company DescriptionYGM Trading Limited (0375) is a Hong Kong-based company primarily engaged in the apparel and fashion business. The company designs, manufactures, and distributes a wide range of clothing products, including men's and women's apparel and accessories. YGM Trading Limited also operates retail stores and manages various international fashion brands under licensing agreements, offering a diverse portfolio of high-end and luxury fashion items to its customers.
How the Company Makes MoneyYGM 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
65
Positive
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
75
Positive
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
80
Positive
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue220.38M238.44M214.13M211.49M216.18M269.82M
Gross Profit145.03M166.96M143.84M134.47M136.18M139.34M
EBITDA4.28M37.59M25.98M38.10M31.50M2.18M
Net Income224.00K-5.12M-13.77M3.28M-11.74M-87.13M
Balance Sheet
Total Assets551.97M571.61M584.13M608.93M690.66M725.13M
Cash, Cash Equivalents and Short-Term Investments132.66M112.98M128.73M149.91M158.90M171.90M
Total Debt44.21M65.02M63.06M63.03M82.62M113.48M
Total Liabilities106.05M113.20M106.51M101.26M131.73M167.30M
Stockholders Equity440.24M452.21M470.42M499.00M538.89M538.10M
Cash Flow
Free Cash Flow40.73M39.36M34.12M-10.44M27.10M-58.35M
Operating Cash Flow40.94M41.02M38.81M-4.00M28.19M-17.22M
Investing Cash Flow5.36M1.59M2.12M85.03M1.40M-38.58M
Financing Cash Flow-54.56M-55.96M-45.47M-89.21M-44.55M-110.79M

YGM Trading Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.90
Price Trends
50DMA
0.88
Positive
100DMA
0.86
Positive
200DMA
0.92
Negative
Market Momentum
MACD
<0.01
Positive
RSI
48.86
Neutral
STOCH
42.11
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 0.9 is below the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.88, and below the 200-day MA of 0.92, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 42.11 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$133.97B22.9322.73%2.94%0.94%-32.06%
79
Outperform
HK$257.05B15.3228.11%2.56%11.51%47.88%
76
Outperform
$129.22B18.2520.60%2.83%14.60%24.66%
75
Outperform
$43.49B13.2811.92%2.69%1.85%-6.19%
65
Neutral
€21.28B12.827.21%3.45%0.31%-40.22%
65
Neutral
$75.26B25.6111.45%0.77%18.80%142.93%
64
Neutral
HK$149.28M642.860.05%11.11%-5.58%-91.36%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0375
YGM Trading Limited
0.90
-0.07
-7.22%
HK:2382
Sunny Optical Technology (Group) Co
68.90
26.13
61.09%
HK:1913
Prada SpA
50.50
-4.27
-7.79%
HK:2020
ANTA Sports Products
92.25
22.90
33.02%
HK:2331
Li Ning Company
16.84
2.01
13.56%
HK:1929
Chow Tai Fook Jewellery Group
13.58
5.97
78.47%

YGM Trading Limited Corporate Events

YGM Trading Limited Announces Supplemental Information on Connected Transactions
Apr 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025