Yue Yuen Industrial (Holdings) (0551) AI Stock Analysis

• Market Cap: HK$26.93B
• Dividend Yield: 7.69%
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.52
• Revenue Growth: 5.75%
• EPS Growth: 0.93%
• Country: US
• Employees: 285,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.52
• Shares Outstanding: 1,604,556,500
• 10 Day Avg. Volume: 3,783,736
• 30 Day Avg. Volume: 4,060,344
• PEG Ratio: 0.22
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 10.80
• 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$17.47
• Price Target Upside: 1.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$19.50 ▲(13.84% Upside)

Yue Yuen Industrial's overall stock score is driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, which make it attractive to value and income investors. The financial performance is solid, with improving profitability and a strong balance sheet. Technical analysis shows bullish momentum, though caution is advised due to overbought signals.

Positive Factors

Contract manufacturing relationships with major brands

Serving leading global brands creates durable, repeatable demand via long-term contracts and high volume orders. This business model drives predictable cash flows, economies of scale and operational leverage, reducing sales risk and supporting stable manufacturing utilization over years.

Extensive manufacturing footprint across Asia

A broad Asian production footprint gives cost and logistical advantages: lower unit costs, capacity flexibility, and proximity to component suppliers. This structural setup supports rapid allocation of capacity for major clients and resilience to single-site disruptions, sustaining competitiveness long-term.

Consistent free cash flow generation

Strong free cash flow historically supports dividends, reinvestment and balance-sheet strength. Growing FCF provides flexibility to fund capex, maintain client service levels, and weather demand cycles, underpinning durable financial health and strategic optionality over multiple years.

Negative Factors

Moderate profit margins

Relatively low net and operating margins limit earnings resilience to cost inflation or pricing pressure. With modest EBIT/EBITDA, adverse raw-material or labor cost shifts or client-driven price cuts could compress operating cash flow and impair margin recovery without structural pricing leverage.

Customer concentration with major brand clients

Heavy reliance on a few large brand customers concentrates revenue risk and reduces pricing power. Loss or order reduction from a key client, or strategic reshoring by clients, would materially affect volumes and margins, making top-line stability dependent on client relationships.

Recent gap in 2024 cash flow reporting

Missing 2024 cash flow figures reduces transparency into current liquidity and cash conversion trends. This data gap complicates assessment of short-to-medium term free cash flow sustainability and capital allocation, increasing uncertainty around near-term financial flexibility.

Yue Yuen Industrial (Holdings) Business Overview & Revenue Model

Company Description

Yue Yuen Industrial (Holdings) Limited, an investment holding company, engages in manufacturing, marketing, and retailing athletic footwear, athletic leisure footwear, and casual and outdoor footwear in the People's Republic of China, rest of Asia, the United States, Europe, and internationally. It operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as adidas, Asics, Converse, Decathlon, Merrell, Mizuno, New Balance, Nike, Puma, Reebok, Salomon, Saucony, Timberland, and XTRATUF, as well as retails and distributes sportswear and apparel products. The company also engages in the manufacture and sale of leather products, apparels, and sports sandals, as well as soles, components, and others. As of December 31, 2021, it had 4,631 directly operated stores and 3,786 stores operated by sub-distributors in the Greater China region. The company was founded in 1969 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Yue Yuen generates revenue primarily through the manufacturing and sale of footwear products. The company operates on a business model that involves producing shoes for well-known global brands, which accounts for a significant portion of its revenue. Key revenue streams include contract manufacturing for major clients, direct sales through its retail channels, and the distribution of footwear products. Yue Yuen's ability to leverage economies of scale, coupled with its established relationships with clients like Nike, Adidas, and other sportswear brands, allows for consistent demand and cash flow. Additionally, the company benefits from efficiencies in its supply chain and production processes, which help to maintain profitability. Strategic partnerships and collaborations further enhance its market position and contribute to its earnings.

Yue Yuen Industrial (Holdings) Financial Statement Overview

Summary

Yue Yuen Industrial shows steady financial health with improving revenue and profit margins. The balance sheet is strong with low leverage, and past cash flow performance is robust, though current data gaps limit analysis.

Income Statement

Yue Yuen Industrial has shown a positive trend in profitability metrics such as Gross Profit Margin (24.35%) and Net Profit Margin (4.79%) for 2024. The company has also achieved revenue growth of 3.7% compared to 2023. However, the EBIT and EBITDA margins, while showing improvement, remain moderate at 5.61% and 8.57% respectively.

Balance Sheet

The company maintains a healthy Debt-to-Equity Ratio of 0.22, indicating low leverage, and a Return on Equity of 8.84% in 2024, suggesting efficient use of equity. The Equity Ratio stands strong at 60.18%, reflecting financial stability. However, the total assets have slightly decreased over the years.

Cash Flow

Despite a lack of reported cash flow figures for 2024, previous year data shows strong Free Cash Flow of $743.4 million in 2023, growing by 5.87% from 2022. The Operating Cash Flow to Net Income Ratio was strong in 2023 at 3.44, indicating robust cash flow in relation to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.23B	8.18B	7.89B	8.97B	8.53B	8.44B
Gross Profit	1.94B	1.99B	1.93B	2.14B	2.05B	1.83B
EBITDA	654.50M	701.30M	881.56M	974.09M	807.26M	561.03M
Net Income	379.20M	392.42M	274.71M	296.35M	115.07M	-90.79M
Balance Sheet
Total Assets	7.44B	7.38B	7.36B	7.94B	8.64B	8.52B
Cash, Cash Equivalents and Short-Term Investments	880.38M	921.72M	1.13B	1.08B	956.19M	1.02B
Total Debt	1.16B	970.22M	1.24B	1.77B	2.17B	2.39B
Total Liabilities	2.50B	2.46B	2.65B	3.29B	4.03B	4.15B
Stockholders Equity	4.44B	4.44B	4.24B	4.19B	4.10B	3.90B
Cash Flow
Free Cash Flow	0.00	334.20M	743.40M	702.13M	173.30M	575.69M
Operating Cash Flow	0.00	537.08M	944.66M	907.90M	463.10M	834.23M
Investing Cash Flow	0.00	-58.54M	-151.69M	-92.28M	-96.83M	-298.16M
Financing Cash Flow	0.00	-630.95M	-859.67M	-627.31M	-431.28M	-640.44M

Yue Yuen Industrial (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.13
• 50DMA: Positive
• 100DMA: Positive
• 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:0551, the sentiment is Positive. The current price of 17.13 is above the 20-day moving average (MA) of 16.96, above the 50-day MA of 16.72, and above the 200-day MA of 13.30, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0551.

Yue Yuen Industrial (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1836	82 Outperform	HK$11.87B	9.51	14.55%	10.16%	-0.14%	-14.24%
1361	81 Outperform	HK$11.54B	8.80	12.52%	5.22%	14.63%	15.55%
0551	74 Outperform	HK$26.93B	9.14	8.72%	7.69%	5.75%	0.93%
1731	73 Outperform	HK$840.00M	4.30	14.86%	9.21%	6.92%	4.74%
1023	62 Neutral	HK$500.61M	-2.86	-10.55%	11.54%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1170	49 Neutral	HK$351.06M	-12.44	-2.53%	4.15%	2.32%	-88.07%

Yue Yuen Industrial (Holdings) Corporate Events

Yue Yuen Posts Slight Full-Year Revenue Dip as China Retail Arm Drags on Growth

Yue Yuen Industrial (Holdings) reported unaudited net consolidated operating revenue of US$644.5 million for December 2025 and US$8.03 billion for the full year to 31 December 2025, as disclosed in line with regulatory requirements following Pou Chen Corporation’s monthly revenue announcement in Taiwan. On a year-on-year basis, December’s consolidated operating revenue declined 5.8%, with the manufacturing business down 3.7% and its Chinese retail arm Pou Sheng falling 11% in RMB terms, while full-year consolidated revenue slipped 1.8%, reflecting modest growth of 0.5% in manufacturing but a 7.2% decline at Pou Sheng, highlighting ongoing pressure in the China retail segment despite relative stability in core manufacturing operations.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$18.00 price target. To see the full list of analyst forecasts on Yue Yuen Industrial (Holdings) stock, see the HK:0551 Stock Forecast page.

Yue Yuen Reports November 2025 Revenue Decline

Yue Yuen Industrial (Holdings) Limited announced its net consolidated operating revenue for November 2025, reporting a total of USD 660,164,000. The company’s year-to-date revenue for the eleven months ended November 30, 2025, amounted to USD 7,382,152,000. The announcement highlighted a year-over-year decline in revenue, with a 3.1% decrease for the current month and a 1.6% decrease year-to-date. The manufacturing business saw a slight year-over-year growth of 0.9% year-to-date, while the retail subsidiary, Pou Sheng, experienced a decline of 6.8% in RMB terms. This financial update is part of the company’s compliance with the Taiwan Stock Exchange Rules and aims to provide timely information to investors.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$16.90 price target. To see the full list of analyst forecasts on Yue Yuen Industrial (Holdings) stock, see the HK:0551 Stock Forecast page.

Yue Yuen Industrial Revises Annual Caps for PCC Connected Sales Agreement

Yue Yuen Industrial (Holdings) has announced a revision of its annual caps for continuing connected transactions under the PCC Connected Sales Agreement due to anticipated increased demand from the PCC Group. The revised caps for 2025 and 2026 are set higher than the existing ones, reflecting the company’s efforts to accommodate growing order volumes. This adjustment is significant as it highlights the company’s proactive approach in managing its business relationships and ensuring compliance with the Hong Kong Stock Exchange’s Listing Rules. The revised caps are subject to reporting and announcement requirements but do not require independent shareholders’ approval, indicating a streamlined process for the company.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$16.00 price target. To see the full list of analyst forecasts on Yue Yuen Industrial (Holdings) stock, see the HK:0551 Stock Forecast page.

Yue Yuen Reports Decreased Profit for Nine Months Ending September 2025

Yue Yuen Industrial (Holdings) Limited reported an unaudited consolidated profit of approximately US$278.7 million for the nine months ending September 30, 2025. This reflects a decrease compared to the previous year, with revenue slightly declining to US$6,017,405,000. The announcement is part of the company’s regular practice of quarterly financial disclosures, highlighting a challenging period with reduced gross profit and increased administrative expenses. The results may impact stakeholders’ perceptions of the company’s financial health and market positioning.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$16.00 price target. To see the full list of analyst forecasts on Yue Yuen Industrial (Holdings) stock, see the HK:0551 Stock Forecast page.

Yue Yuen Reports October 2025 Financial Results Amid Revenue Decline

Yue Yuen Industrial (Holdings) Limited announced its financial results for October 2025, reporting a net consolidated operating revenue of USD 699,092,000 for the month and USD 6,719,071,000 for the year-to-date period ending October 31, 2025. The company experienced a year-over-year decline of 5.6% in monthly revenue and a 1.5% decrease in year-to-date revenue. The manufacturing business saw a slight annual increase of 1.2%, while its retail subsidiary, Pou Sheng, reported a 7.0% decline in year-to-date revenue. This announcement is part of the company’s compliance with the Taiwan Stock Exchange Rules and aims to provide timely information to investors.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$16.00 price target. To see the full list of analyst forecasts on Yue Yuen Industrial (Holdings) stock, see the HK:0551 Stock Forecast page.