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

• Market Cap: $23.20B
• Dividend Yield: 7.89%
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.54
• Revenue Growth: 5.75%
• EPS Growth: 0.93%
• Country: HK
• 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: 1.09
• Enterprise Value/Revenue: 3.08
• Enterprise Value/Gross Profit: 13.11
• Enterprise Value/Ebitda: 38.77
• 1Y Price Target: $15.17
• Price Target Upside: -7.97% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$18.00 ▲(9.22% 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

Strong Balance Sheet

A low Debt-to-Equity Ratio indicates financial stability and low leverage, providing flexibility for future investments and growth.

Revenue Growth

Consistent revenue growth signifies strong market demand and effective business strategies, supporting long-term expansion.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns.

Negative Factors

Moderate Profit Margins

Moderate profit margins may limit profitability improvements and indicate potential challenges in cost management or pricing power.

Decreasing Total Assets

A decrease in total assets could signal divestments or underinvestment, potentially impacting future growth and operational capacity.

Lack of Current Cash Flow Data

The absence of current cash flow data limits transparency and hinders a full assessment of financial health and cash management efficiency.

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. However, the lack of current cash flow data limits a full assessment.

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: 16.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 16.48 is above the 20-day moving average (MA) of 15.18, above the 50-day MA of 14.06, and above the 200-day MA of 12.44, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 79.63 is Negative, neither overbought nor oversold. The STOCH value of 95.67 is Negative, 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	$13.83B	11.09	14.55%	9.81%	-0.14%	-14.24%
1361	81 Outperform	HK$12.34B	9.42	12.52%	5.09%	14.63%	15.55%
0551	74 Outperform	$23.20B	7.87	8.72%	7.89%	5.75%	0.93%
1731	73 Outperform	HK$873.60M	4.47	14.86%	9.33%	6.92%	4.74%
1023	62 Neutral	HK$500.61M	-2.81	-10.55%	11.76%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1170	49 Neutral	$331.18M	-9.90	-3.04%	4.37%	-9.20%	-268.90%

Yue Yuen Industrial (Holdings) Corporate Events

Yue Yuen Industrial Faces Revenue Dip Amid Challenges

Yue Yuen Industrial (Holdings) Limited, a leading manufacturer in the footwear industry, specializes in producing athletic, casual, and sports sandals, and operates a significant retail subsidiary, Pou Sheng International, in the Greater China region.

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.

Yue Yuen Industrial Announces Upcoming Board Meeting for Financial Results

Yue Yuen Industrial (Holdings) Limited has announced a board meeting scheduled for November 12, 2025, to approve the unaudited consolidated results for the nine months ending September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:0551) stock is a Sell with a HK$10.40 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 September 2025 Revenue Decline Amid Market Challenges

Yue Yuen Industrial (Holdings) Limited announced its net consolidated operating revenue for September 2025, reporting a figure of USD 633,036,000. The company’s year-to-date revenue reached USD 6,017,406,000, with a year-over-year decrease of 4.1% for the current month and a 1.0% decline year-to-date. The manufacturing business saw a slight increase of 2.3% year-to-date, while its retail subsidiary, Pou Sheng, experienced a 7.7% decline. This announcement, made in compliance with regulatory requirements, provides investors with timely financial information, reflecting the company’s current market performance and challenges.

The most recent analyst rating on (HK:0551) stock is a Sell with a HK$10.40 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 August 2025 Revenue Decline

Yue Yuen Industrial (Holdings) Limited announced its net consolidated operating revenue for August 2025, reporting USD 650,433,000 for the month and USD 5,382,043,000 for the first eight months of the year. The company experienced a year-over-year decline in revenue of 8.8% for the current month and 0.5% year-to-date. The manufacturing business saw a 9.7% decrease for the month but a 3.1% increase year-to-date, while its retail subsidiary in China, Pou Sheng, reported a 6.0% monthly decline and an 8.1% year-to-date decrease in RMB terms. This announcement ensures compliance with regulatory requirements and provides timely financial information to investors.

The most recent analyst rating on (HK:0551) stock is a Sell with a HK$10.40 price target. To see the full list of analyst forecasts on Yue Yuen Industrial (Holdings) stock, see the HK:0551 Stock Forecast page.