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

• Market Cap: $19.49B
• Dividend Yield: 14.8%
• Average Volume (3M): 6.24M
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.55
• Revenue Growth: 3.35%
• EPS Growth: 42.58%
• Country: HK
• Employees: 285,500
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.37
• Shares Outstanding: 1,604,556,500
• 10 Day Avg. Volume: 7,348,169
• 30 Day Avg. Volume: 6,236,323
• PEG Ratio: -0.37
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 0.99
• 1Y Price Target: $13.19
• Price Target Upside: 9.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: HK$13.50 ▲(12.31%Upside)

Yue Yuen Industrial receives a strong valuation score due to its low P/E ratio and high dividend yield, making it attractive to value and income investors. Financial performance is steady, though slightly affected by the lack of current cash flow data. Technical analysis indicates stable momentum, suggesting a balanced outlook.

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 Industrial (Holdings) Limited primarily generates revenue through its footwear manufacturing operations. The company operates on a business-to-business model, producing shoes for a variety of international brands. Key revenue streams include manufacturing contracts with major athletic and casual footwear brands, which rely on Yue Yuen's large-scale production capabilities and advanced technology. Additionally, the company benefits from economies of scale, which allow it to maintain competitive pricing and strong profit margins. Strategic partnerships with leading global brands and a diversified production base across several countries further bolster its revenue generation.

Yue Yuen Industrial (Holdings) Financial Statement Overview

Summary

Yue Yuen Industrial shows a positive trend in profitability and revenue growth, with a solid balance sheet and low leverage. However, the absence of current cash flow data slightly dampens the financial 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.18B	7.89B	8.97B	8.53B	8.44B
Gross Profit	1.99B	1.93B	2.14B	2.05B	1.83B
EBITDA	701.30M	881.56M	974.09M	807.26M	561.03M
Net Income	392.42M	274.71M	296.35M	115.07M	-72.36M
Balance Sheet
Total Assets	7.38B	7.36B	7.94B	8.64B	8.52B
Cash, Cash Equivalents and Short-Term Investments	921.72M	948.13M	1.08B	956.19M	1.02B
Total Debt	970.22M	1.24B	1.77B	2.17B	2.36B
Total Liabilities	2.46B	2.65B	3.29B	4.03B	4.15B
Stockholders Equity	4.44B	4.24B	4.19B	4.10B	3.90B
Cash Flow
Free Cash Flow	324.50M	743.40M	702.13M	173.30M	575.69M
Operating Cash Flow	537.08M	944.66M	907.90M	463.10M	834.23M
Investing Cash Flow	-58.54M	-151.69M	-92.28M	-96.83M	-298.16M
Financing Cash Flow	-630.95M	-859.67M	-627.31M	-431.28M	-640.44M

Yue Yuen Industrial (Holdings) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 12.02 is above the 20-day moving average (MA) of 11.91, above the 50-day MA of 11.41, and below the 200-day MA of 13.35, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 52.05 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
0551	74 Outperform	$19.49B	6.32	9.04%	14.80%	3.35%	42.58%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
KMSWF	―	$50.63M	―	-3.04%	20.61%	―	―
SLNLF	―	$1.55B	9.99	15.89%	17.86%	―	―
TSIOF	―	$1.33B	8.43	12.43%	4.01%	―	―
1731	74 Outperform	HK$929.60M	3.85	18.71%	8.43%	16.66%	99.90%
1023	55 Neutral	HK$481.35M	5.10	-1.08%	11.76%	-4.68%	-112.44%

Yue Yuen Industrial (Holdings) Corporate Events

Yue Yuen Reports June 2025 Revenue Growth in Manufacturing, Decline in Retail

Yue Yuen Industrial (Holdings) Limited announced its net consolidated operating revenue for June 2025, reporting USD 657,399,000 for the month and USD 4,060,148,000 for the first half of the year. The announcement highlights a year-over-year increase in manufacturing business revenue by 9.4% for the month and 6.2% year-to-date, while its retail subsidiary, Pou Sheng, experienced a decline in revenue. This financial disclosure aligns with regulatory requirements to provide timely information to investors and reflects the company’s ongoing operational performance and market positioning.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$17.50 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 Interim Results

Yue Yuen Industrial (Holdings) Limited has announced that its board of directors will meet on August 11, 2025, to approve the unaudited consolidated interim results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns to shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$16.50 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 Reports May 2025 Revenue

Yue Yuen Industrial (Holdings) Limited announced its monthly revenue for May 2025, reporting a net consolidated operating revenue of USD 711,425,000. The company’s year-to-date revenue reached USD 3,400,697,000, showing a slight increase of 0.9% compared to the previous year. The manufacturing business experienced a modest growth of 0.5% for the month and 5.6% year-to-date, while its retail subsidiary, Pou Sheng, saw a decline in revenue by 3.3% for the month and 6.9% year-to-date. 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 Buy with a HK$16.50 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 Board Composition and Roles

Yue Yuen Industrial (Holdings) Limited has announced the composition of its board of directors and the roles they will undertake. The board includes executive directors and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This update is significant for stakeholders as it outlines the leadership structure and governance, which can impact the company’s strategic direction and operational oversight.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$16.50 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 Announces Executive Director Change

Yue Yuen Industrial (Holdings) Limited announced a change in its executive leadership, effective June 1, 2025, with Mr. Chan Lu Min retiring as Executive Director and Mr. Chou Wei-Te taking over the role. Mr. Chou, who has been with the company since 2015 and has extensive experience in finance and administration, is expected to bring strategic insights to the company’s operations across multiple countries. This leadership transition is anticipated to support the company’s ongoing growth and strengthen its market position.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$16.50 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 Successfully Passes AGM Resolutions

Yue Yuen Industrial (Holdings) Limited announced the successful passing of all proposed resolutions during its Annual General Meeting held on May 23, 2025. The resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and the re-appointment of auditors. The meeting also granted mandates to the board for issuing and repurchasing shares. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives with reinforced governance and financial management.

The most recent analyst rating on (HK:0551) stock is a Buy with a HK$21.00 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 April 2025 Revenue Growth Amid Retail Decline

Yue Yuen Industrial (Holdings) Limited announced its net consolidated operating revenue for April 2025, reporting a total of USD 658,310,000. The company’s year-to-date revenue reached USD 2,687,261,000, with a year-over-year increase of 1.2% for the current month and 1.3% year-to-date. The manufacturing business saw a 10.5% increase in revenue for the month, while Pou Sheng, the retail subsidiary, experienced a decline of 15.3% in the same period. This announcement reflects the company’s compliance with financial disclosure requirements and provides investors with timely information on its financial performance.

Yue Yuen Industrial Reports Q1 2025 Financial Results

Yue Yuen Industrial (Holdings) Limited reported an unaudited consolidated profit of approximately US$75.8 million for the first quarter of 2025. Despite a slight increase in revenue to US$2,029,464, the company experienced a decrease in gross profit and net profit compared to the same period in 2024, indicating potential challenges in managing costs and maintaining profitability.

Yue Yuen Industrial Announces AGM with Key Resolutions

Yue Yuen Industrial (Holdings) Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for 2024, the declaration of a final dividend, re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as external auditors. The meeting will also address resolutions related to the issuance of additional shares, reflecting the company’s strategic focus on maintaining robust governance and shareholder engagement.

Yue Yuen Industrial Issues Profit Warning Amid Rising Costs

Yue Yuen Industrial (Holdings) Limited has issued a profit warning, indicating an expected decrease of up to 25% in profit for the first quarter of 2025 compared to the same period in 2024. This decline is attributed to increased unit costs in footwear manufacturing, driven by reduced production efficiency and rising labor costs, which have not been offset by anticipated improvements in production processes.