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Yue Yuen Industrial (Holdings) (HK:0551)
:0551

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

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HK

Yue Yuen Industrial (Holdings)

(OTC:0551)

Rating:72Outperform
Price Target:
HK$12.50
▲(12.01%Upside)
Yue Yuen Industrial scores well due to its strong financial position and attractive valuation, with a particularly appealing dividend yield. The technical indicators suggest stability but not strong momentum. The lack of recent earnings call data and corporate events does not detract from the overall positive outlook.

Yue Yuen Industrial (Holdings) (0551) vs. iShares MSCI Hong Kong ETF (EWH)

Yue Yuen Industrial (Holdings) Business Overview & Revenue Model

Company DescriptionYue 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 MoneyYue 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 exhibits steady financial health with improving revenue and profit margins, supported by a strong balance sheet with low leverage. The cash flow situation appears robust based on past performance, although current data gaps limit complete analysis. The company is well-positioned in the industry, with potential for growth if current profitability trends continue.
Income Statement
75
Positive
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
70
Positive
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
60
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.18B7.89B8.97B8.53B8.44B
Gross Profit
1.99B1.93B2.14B2.05B1.83B
EBIT
470.61M330.53M468.32M184.63M35.39M
EBITDA
701.30M881.56M974.09M807.26M561.03M
Net Income Common Stockholders
392.42M274.71M296.35M115.07M-72.36M
Balance SheetCash, Cash Equivalents and Short-Term Investments
921.72M948.13M1.08B956.19M1.02B
Total Assets
7.38B7.36B7.94B8.64B8.52B
Total Debt
970.22M1.24B1.77B2.17B2.36B
Net Debt
213.37M316.44M747.91M1.34B1.46B
Total Liabilities
2.46B2.65B3.29B4.03B4.15B
Stockholders Equity
4.44B4.24B4.19B4.10B3.90B
Cash FlowFree Cash Flow
324.50M743.40M702.13M173.30M575.69M
Operating Cash Flow
537.08M944.66M907.90M463.10M834.23M
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
Negative
Last Price11.16
Price Trends
50DMA
10.75
Positive
100DMA
12.27
Negative
200DMA
13.38
Negative
Market Momentum
MACD
0.14
Negative
RSI
50.23
Neutral
STOCH
51.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0551, the sentiment is Negative. The current price of 11.16 is above the 20-day moving average (MA) of 11.13, above the 50-day MA of 10.75, and below the 200-day MA of 13.38, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 51.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0551.

Yue Yuen Industrial (Holdings) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$17.89B5.879.04%16.13%3.35%42.58%
62
Neutral
$6.76B11.062.80%6.66%2.68%-24.89%
$52.32M-1.27%20.61%
$1.48B9.9915.89%10.39%
$1.20B7.6312.43%4.38%
70
Outperform
HK$784.00M3.3718.71%10.00%16.66%99.90%
58
Neutral
HK$481.35M5.10-1.08%12.00%-4.68%-112.44%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0551
Yue Yuen Industrial (Holdings)
11.16
-2.91
-20.68%
KMSWF
Kingmaker Footwear Holdings
0.05
-0.03
-37.50%
SLNLF
Stella International Holdings Limited
2.11
0.39
22.67%
TSIOF
361 Degrees International
0.58
0.12
26.09%
HK:1023
Sitoy Group Holdings Limited
0.50
-0.01
-1.96%
HK:1731
Prosperous Industrial (Holdings) Ltd.
0.70
0.12
20.69%

Yue Yuen Industrial (Holdings) Corporate Events

Yue Yuen Industrial Reports May 2025 Revenue
Jun 10, 2025

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
Jun 1, 2025

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
May 30, 2025

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
May 23, 2025

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
May 12, 2025

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
May 12, 2025

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
Apr 22, 2025

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
Apr 17, 2025

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.

Yue Yuen Industrial Schedules Board Meeting to Approve Q1 Results
Apr 11, 2025

Yue Yuen Industrial (Holdings) Limited has announced that its board of directors will convene a meeting on May 12, 2025, to approve the publication of the unaudited consolidated results for the first quarter ending March 31, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational health, potentially impacting investor confidence and market positioning.

Yue Yuen Reports Mixed Revenue Performance for March 2025
Apr 10, 2025

Yue Yuen Industrial (Holdings) Limited announced its net consolidated operating revenue for March 2025, reporting USD 657,747,000 for the month and USD 2,029,636,000 for the first quarter of the year. The company experienced a year-over-year revenue decrease of 0.7% for March but a 1.3% increase year-to-date. The manufacturing business saw growth, while its retail subsidiary, Pou Sheng, experienced a decline, indicating mixed performance across its operations.

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.