SEHK:294

Stock Analysis Report

Executive Summary

Yangtzekiang Garment Limited engages in the manufacturing, sourcing, wholesaling, and retailing of garment and textiles.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Yangtzekiang Garment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 294 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

294

-7.0%

HK Luxury

-3.3%

HK Market


1 Year Return

-15.7%

294

0.1%

HK Luxury

-9.6%

HK Market

Return vs Industry: 294 underperformed the Hong Kong Luxury industry which returned 1% over the past year.

Return vs Market: 294 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

294IndustryMarket
7 Day0%-7.0%-3.3%
30 Day0.7%-11.9%-3.8%
90 Day-6.7%-12.0%-0.2%
1 Year-12.1%-15.7%3.5%0.1%-6.3%-9.6%
3 Year11.0%-1.1%32.8%17.2%11.2%-0.05%
5 Year16.7%-1.1%34.3%8.3%12.7%-6.0%

Price Volatility Vs. Market

How volatile is Yangtzekiang Garment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yangtzekiang Garment undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 294 (HK$2.8) is trading below our estimate of fair value (HK$23.47)

Significantly Below Fair Value: 294 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 294 is poor value based on its PE Ratio (305.3x) compared to the Luxury industry average (8.3x).

PE vs Market: 294 is poor value based on its PE Ratio (305.3x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 294's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 294 is good value based on its PB Ratio (0.5x) compared to the HK Luxury industry average (0.8x).


Next Steps

Future Growth

How is Yangtzekiang Garment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.2%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Yangtzekiang Garment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Yangtzekiang Garment performed over the past 5 years?

43.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 294 has a large one-off loss of HK$4.7M impacting its September 30 2019 financial results.

Growing Profit Margin: 294's current net profit margins (0.3%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: 294 has become profitable over the past 5 years, growing earnings by 43.3% per year.

Accelerating Growth: 294's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 294 had negative earnings growth (-95.3%) over the past year, making it difficult to compare to the Luxury industry average (-1.7%).


Return on Equity

High ROE: 294's Return on Equity (0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yangtzekiang Garment's financial position?


Financial Position Analysis

Short Term Liabilities: 294's short term assets (HK$481.5M) exceed its short term liabilities (HK$137.5M).

Long Term Liabilities: 294's short term assets (HK$481.5M) exceed its long term liabilities (HK$56.1M).


Debt to Equity History and Analysis

Debt Level: 294 is debt free.

Reducing Debt: 294 has not had any debt for past 5 years.

Debt Coverage: 294 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 294 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 294 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 294's debt is covered by short term assets.


Next Steps

Dividend

What is Yangtzekiang Garment's current dividend yield, its reliability and sustainability?

4.29%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.3%markettop25%6.4%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 294's dividend (4.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 294's dividend (4.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.41%).


Stability and Growth of Payments

Stable Dividend: 294's dividend payments have been volatile in the past 10 years.

Growing Dividend: 294's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1308.6%), 294's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

27.1yrs

Average management tenure


CEO

Wing Kee Chan (72yo)

33.1yrs

Tenure

HK$2,471,000

Compensation

Mr. Wing Kee Chan, GBM, GBS, OBE, JP, has been the Managing Director of Yangtzekiang Garment Limited since 1987. Mr. Chan serves as the Chief Executive Officer of Asia Television Limited. He joined Yangtze ...


CEO Compensation Analysis

Compensation vs Market: Wing Kee's total compensation ($USD317.15K) is above average for companies of similar size in the Hong Kong market ($USD225.90K).

Compensation vs Earnings: Wing Kee's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wing Fui Chan
Chairman of the Board0yrsHK$2.47m4.66% HK$27.0m
Wing Kee Chan
MD & Executive Director33.1yrsHK$2.47m4.31% HK$24.9m
Suk Ling Chan
Executive Director37.1yrsHK$60.00k2.45% HK$14.2m
Suk Man Chan
Executive Director27.1yrsHK$1.53m1.66% HK$9.6m
Wing To Chan
Deputy MD & Executive Director37.1yrsHK$60.00k4.87% HK$28.2m
Ying Woon So
GM & Executive Director14.3yrsHK$2.03m0.0058% HK$33.6k
Wing Sun Chan
Executive Director43.1yrsHK$60.00k4.81% HK$27.8m
Sau Ling Hui
Financial Controller & Company Secretary20.1yrsno datano data

27.1yrs

Average Tenure

70yo

Average Age

Experienced Management: 294's management team is seasoned and experienced (27.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wing Fui Chan
Chairman of the Board0yrsHK$2.47m4.66% HK$27.0m
Wing Kee Chan
MD & Executive Director33.1yrsHK$2.47m4.31% HK$24.9m
Suk Ling Chan
Executive Director37.1yrsHK$60.00k2.45% HK$14.2m
Suk Man Chan
Executive Director27.1yrsHK$1.53m1.66% HK$9.6m
Wing To Chan
Deputy MD & Executive Director37.1yrsHK$60.00k4.87% HK$28.2m
Ying Woon So
GM & Executive Director14.3yrsHK$2.03m0.0058% HK$33.6k
Wing Sun Chan
Executive Director43.1yrsHK$60.00k4.81% HK$27.8m
Hon Cheung So
Independent Non-Executive Director2.4yrsHK$150.00kno data
Keping Lin
Independent Non-Executive Director16.1yrsHK$150.00kno data
Ting Ki Choi
Independent Non-Executive Director7.2yrsHK$150.00kno data

27.1yrs

Average Tenure

70yo

Average Age

Experienced Board: 294's board of directors are seasoned and experienced ( 27.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Yangtzekiang Garment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yangtzekiang Garment Limited
  • Ticker: 294
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$578.894m
  • Shares outstanding: 206.75m
  • Website: https://www.ygm.com.hk

Number of Employees


Location

  • Yangtzekiang Garment Limited
  • 22 Tai Yau Street
  • San Po Kong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
294SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Yangtzekiang Garment Limited engages in the manufacturing, sourcing, wholesaling, and retailing of garment and textiles. It operates through three segments: Manufacture and Sale of Garments and Textiles; Interests in Joint Ventures; and Property Leasing. Its products include men’s and ladies’ shirts, trousers, shorts, polo shirts, T-shirts, skirts, loungewear, underwear and pyjamas, suits and jackets, knitted outerwear, blouses, etc. The company engages in the manufacture and sale of textile yarn products, as well as knitting and dyeing fabrics. In addition, it provides garment processing services; and leases commercial and industrial premises. The company sells its products and services primarily in Hong Kong, the United Kingdom, Italy, Spain, and other European countries; Mainland China; the United States; Canada; and internationally. The company was formerly known as Yangtzekiang Garment Mfg. Co., Ltd. and changed its name to Yangtzekiang Garment Limited in 2005. Yangtzekiang Garment Limited was founded in 1949 and is based in San Po Kong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:37
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.