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 Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 375's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

375

9.0%

HK Luxury

3.6%

HK Market


1 Year Return

-60.4%

375

-15.7%

HK Luxury

-18.5%

HK Market

Return vs Industry: 375 underperformed the Hong Kong Luxury industry which returned -21% over the past year.

Return vs Market: 375 underperformed the Hong Kong Market which returned -20.6% over the past year.


Shareholder returns

375IndustryMarket
7 Day-0.3%9.0%3.6%
30 Day-15.0%-6.4%-3.8%
90 Day-24.9%-23.0%-13.2%
1 Year-58.2%-60.4%-13.3%-15.7%-15.5%-18.5%
3 Year-38.0%-64.8%14.6%1.3%0.7%-9.5%
5 Year-55.2%-75.9%8.9%-7.8%-14.0%-27.8%

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 compared to its fair value and its price relative to the market?

12.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 375 (HK$2.89) is trading below our estimate of fair value (HK$3.3)

Significantly Below Fair Value: 375 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 375 is good value based on its PE Ratio (6.1x) compared to the Luxury industry average (7.6x).

PE vs Market: 375 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 375's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 375 is overvalued based on its PB Ratio (0.8x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

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

15.1%

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?

17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 375 has a high level of non-cash earnings.

Growing Profit Margin: 375's current net profit margins (23.7%) are lower than last year (33.8%).


Past Earnings Growth Analysis

Earnings Trend: 375's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: 375's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 375 had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Luxury industry average (0.6%).


Return on Equity

High ROE: 375's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is YGM Trading's financial position?


Financial Position Analysis

Short Term Liabilities: 375's short term assets (HK$394.5M) exceed its short term liabilities (HK$290.6M).

Long Term Liabilities: 375's short term assets (HK$394.5M) exceed its long term liabilities (HK$50.2M).


Debt to Equity History and Analysis

Debt Level: 375's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: 375's debt to equity ratio has increased from 0.9% to 1.1% over the past 5 years.

Debt Coverage: 375's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 375's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

6.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 375's dividend (6.92%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 375's dividend (6.92%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 375's dividend payments have been volatile in the past 10 years.

Growing Dividend: 375's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.1%), 375's dividend payments are 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?

4.6yrs

Average management tenure


CEO

William Fu (57yo)

4.58s

Tenure

HK$2,493,000

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

Compensation vs Market: William's total compensation ($USD321.59K) is above average for companies of similar size in the Hong Kong market ($USD232.26K).

Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wing Sun Chan
Chairman of the Board4.58yrsHK$1.31m8.75% HK$42.0m
Sing Yam Fu
CEO & Executive Director4.58yrsHK$2.49m1.25% HK$6.0m
Suk Ling Chan
Vice Chairman4.58yrsHK$2.24m4.37% HK$20.9m
Wing To Chan
Executive Director33.25yrsHK$60.00k6.06% HK$29.0m
Wing Fui Chan
Executive Directorno dataHK$60.00k0.015% HK$69.6k
Wing Kee Chan
Executive Director33.25yrsHK$60.00k6.25% HK$29.9m
Andrew Chan
MD & Executive Director5.75yrsHK$1.71m0.24% HK$1.1m
Ying Tung Kwok
Company Secretary & Financial Controller2.08yrsno datano data
Hendrik H. Penndorf
CEO of Societe Guy Laroche & Director of Gl Europa S.A.no datano datano data
Kwai Yung Ngai
Managing Director of Hong Kong Security Printing Ltd22.25yrsno datano data

4.6yrs

Average Tenure

64.5yo

Average Age

Experienced Management: 375's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wing Sun Chan
Chairman of the Board4.58yrsHK$1.31m8.75% HK$42.0m
Sing Yam Fu
CEO & Executive Director4.58yrsHK$2.49m1.25% HK$6.0m
Suk Ling Chan
Vice Chairman4.58yrsHK$2.24m4.37% HK$20.9m
Wing To Chan
Executive Director33.25yrsHK$60.00k6.06% HK$29.0m
Wing Fui Chan
Executive Directorno dataHK$60.00k0.015% HK$69.6k
Wing Kee Chan
Executive Director33.25yrsHK$60.00k6.25% HK$29.9m
Andrew Chan
MD & Executive Director5.75yrsHK$1.71m0.24% HK$1.1m
Hendrik H. Penndorf
CEO of Societe Guy Laroche & Director of Gl Europa S.A.no datano datano data
Keping Lin
Independent Non-Executive Director16.25yrsHK$150.00k0.015% HK$72.2k
Ting Ki Choi
Independent Non-Executive Director7.33yrsHK$150.00kno data

11.8yrs

Average Tenure

68yo

Average Age

Experienced Board: 375's board of directors are seasoned and experienced ( 11.8 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

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$479.347m
  • 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 internationally. It operates through four segments: Sales of Garments; Licensing of Trademarks; Printing and Related Services; and Property Rental. The company offers various men's and ladies' wear products, such as shirts, blouses, trousers and casual pants, blousons, polo shirts, T-shirts, etc.; perfume, watches, eyewear, leather goods, and home fashion products; suits and casual wears; and swimwear, accessories, footwear, and homeware. It is also involved in the managing and licensing trademarks; investment and leasing of properties; provision of security and general business printing services; trading of printing products; and development of authentication and electronic forgery detection solutions. The company offers its products primarily under the Ashworth, Black Clover, Guy Laroche, Harmont & Blaine, MICHEL RENÉ, Save My Bag, Tommy Bahama, and J.Lindeberg brands. It serves customers through a network of approximately 100 retail outlets in Hong Kong, Macau, China, Taiwan, South-east Asia, and Europe. The company was founded in 1949 and is headquartered in San Po Kong, Hong Kong. YGM Trading Limited is a subsidiary of Chan Family Investment Corporation Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 12:38
End of Day Share Price2020/04/08 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.