SEHK:375

Stock Analysis Report

Executive Summary

YGM Trading Limited, an investment holding company, engages in the manufacture, wholesale, and retail of garments and accessories in the People’s Republic of China, Taiwan, the United Kingdom, and internationally.

Snowflake

Fundamentals

Adequate balance sheet unattractive dividend payer.

Risks

  • YGM Trading is not covered by any analysts.

Share Price & News

How has YGM Trading's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

SEHK:375

1.5%

HK Luxury

2.5%

HK Market


1 Year Return

-0.7%

SEHK:375

10.5%

HK Luxury

-3.9%

HK Market

375 underperformed the Luxury industry which returned 10.5% over the past year.

375 outperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

375IndustryMarket
7 Day-1.7%1.5%2.5%
30 Day-7.5%6.0%6.9%
90 Day-7.2%14.5%0.8%
1 Year2.1%-0.7%14.2%10.5%-0.4%-3.9%
3 Year190.5%71.7%40.3%23.4%19.6%7.6%
5 Year-30.9%-61.0%39.6%12.2%17.7%-1.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is YGM Trading undervalued based on future cash flows and its price relative to the stock market?

12.51x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

YGM Trading's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

YGM Trading's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

YGM Trading is overvalued based on earnings compared to the HK Luxury industry average.

YGM Trading is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for YGM Trading, we can't assess if its growth is good value.


Price Based on Value of Assets

YGM Trading is overvalued based on assets compared to the HK Luxury industry average.


Next Steps

Future Growth

How is YGM Trading expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.5%

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 YGM Trading 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 YGM Trading performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

YGM Trading's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

YGM Trading's 1-year earnings growth is negative, it can't be compared to the 5-year average.

YGM Trading's 1-year earnings growth is negative, it can't be compared to the HK Luxury industry average.


Return on Equity

YGM Trading has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

YGM Trading used its assets more efficiently than the HK Luxury industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if YGM Trading improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is YGM Trading's financial position?


Financial Position Analysis

YGM Trading is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

YGM Trading's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

YGM Trading's level of debt (1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (1.1% vs 1% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on YGM Trading's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 69.4x debt.


Next Steps

Dividend

What is YGM Trading's current dividend yield, its reliability and sustainability?

5.88%

Current Dividend Yield


Upcoming Dividend Payment

Purchase YGM Trading before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

YGM Trading's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

YGM Trading's dividend is below the markets top 25% of dividend payers in Hong Kong (6.06%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of YGM Trading's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

William Fu (57yo)

4yrs

Tenure

HK$7,359,000

Compensation

Mr. Sing Yam Fu, also known as William, has been an Executive Director of YGM Trading Ltd. since 1995. Mr. Fu has been the Chief Executive Officer of YGM Trading Ltd. since September 23, 2015 and served as ...


CEO Compensation Analysis

William's remuneration is higher than average for companies of similar size in Hong Kong.

William's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

64.5yo

Average Age

The tenure for the YGM Trading management team is about average.


Board Age and Tenure

11.2yrs

Average Tenure

68yo

Average Age

The average tenure for the YGM Trading board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Peter Chan (74yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$60.00k
  • Wing Kee Chan (72yo)

    Executive Director

    • Tenure: 32.7yrs
    • Compensation: HK$60.00k
  • Shirley Chan (68yo)

    Vice Chairman

    • Tenure: 4yrs
    • Compensation: HK$6.61m
  • Wing To Chan (68yo)

    Executive Director

    • Tenure: 32.7yrs
    • Compensation: HK$60.00k
  • Samuel Chan (71yo)

    Chairman of the Board

    • Tenure: 4yrs
    • Compensation: HK$2.56m
  • William Fu (57yo)

    CEO & Executive Director

    • Tenure: 4yrs
    • Compensation: HK$7.36m
  • Kwai Yung Ngai (61yo)

    Managing Director of Hong Kong Security Printing Ltd

    • Tenure: 21.7yrs
  • Andrew Chan (41yo)

    MD & Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$3.36m
  • Hendrik H. Penndorf (55yo)

    CEO of Societe Guy Laroche & Director of Gl Europa S.A.

    • Tenure: 0yrs
  • Ying Tung Kwok (56yo)

    Company Secretary & Financial Controller

    • Tenure: 1.5yrs

Board Members

  • Peter Chan (74yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$60.00k
  • Wing Kee Chan (72yo)

    Executive Director

    • Tenure: 32.7yrs
    • Compensation: HK$60.00k
  • Shirley Chan (68yo)

    Vice Chairman

    • Tenure: 4yrs
    • Compensation: HK$6.61m
  • Wing To Chan (68yo)

    Executive Director

    • Tenure: 32.7yrs
    • Compensation: HK$60.00k
  • Samuel Chan (71yo)

    Chairman of the Board

    • Tenure: 4yrs
    • Compensation: HK$2.56m
  • William Fu (57yo)

    CEO & Executive Director

    • Tenure: 4yrs
    • Compensation: HK$7.36m
  • Keping Lin (80yo)

    Independent Non-Executive Director

    • Tenure: 15.7yrs
    • Compensation: HK$150.00k
  • Andrew Chan (41yo)

    MD & Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$3.36m
  • Hendrik H. Penndorf (55yo)

    CEO of Societe Guy Laroche & Director of Gl Europa S.A.

    • Tenure: 0yrs
  • Ting Ki Choi (64yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$150.00k

Company Information

YGM Trading Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: YGM Trading Limited
  • Ticker: 375
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$1.128b
  • Shares outstanding: 165.86m
  • Website: https://www.ygmtrading.com

Number of Employees


Location

  • YGM Trading Limited
  • 22 Tai Yau Street
  • San Po Kong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
375SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

YGM Trading Limited, an investment holding company, engages in the manufacture, wholesale, and retail of garments and accessories in the People’s Republic of China, Taiwan, the United Kingdom, and internat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:34
End of Day Share Price2019/09/13 00:00
Earnings2019/03/31
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.