Yue Yuen Industrial (Holdings) (SEHK:551) - Share price, News & Analysis

551 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

551 Overview

Rewards

Trading at 32.9% below our estimate of its fair value

Earnings are forecast to grow 28.49% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Yue Yuen Industrial (Holdings) Competitors

Daphne International Holdings

SEHK:210

HK$304.8m

NIKE

NYSE:NKE

US$256.7b

adidas

XTRA:ADS

€53.2b

Deckers Outdoor

NYSE:DECK

US$10.5b

Price History & Performance

Summary of all time highs, changes and price drops for Yue Yuen Industrial (Holdings)
Historical stock prices
Current Share Price	HK$16.48
52 Week High	HK$12.54
52 Week Low	HK$21.25
Beta	1.24
1 Month Change	3.65%
3 Month Change	2.23%
1 Year Change	22.26%
3 Year Change	-19.22%
5 Year Change	-43.17%
Change since IPO	304.42%

Recent News & Updates

Sep 19

These Return Metrics Don't Make Yue Yuen Industrial (Holdings) (HKG:551) Look Too Strong

When we're researching a company, it's sometimes hard to find the warning signs, but there are some financial metrics...

Sep 01

Is Yue Yuen Industrial (Holdings) Limited (HKG:551) Trading At A 31% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Yue Yuen Industrial...

Aug 14

Yue Yuen Industrial (Holdings) (HKG:551) Seems To Use Debt Quite Sensibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 30

Should You Think About Buying Yue Yuen Industrial (Holdings) Limited (HKG:551) Now?

While Yue Yuen Industrial (Holdings) Limited ( HKG:551 ) might not be the most widely known stock at the moment, it saw...

Shareholder Returns

	551	HK Luxury	HK Market
7D	-1.7%	4.4%	1.8%
1Y	22.3%	54.1%	5.7%

Return vs Industry: 551 underperformed the Hong Kong Luxury industry which returned 50% over the past year.

Return vs Market: 551 exceeded the Hong Kong Market which returned 6.2% over the past year.

Price Volatility

Is 551's price volatile compared to industry and market?
551 volatility
551 Beta	1.24
Industry Beta	0.94
Market Beta	1

Stable Share Price: 551 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 551's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1969	303,800	Patty Tsai	https://www.yueyuen.com

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, New Balance, Nike, Puma, Reebok, Salomon, and Timberland, as well as retails and distributes sportswear and apparel products. The company engages in the manufacture and sale of leather products, apparels, and sports sandals, as well as soles, components, and others.

Yue Yuen Industrial (Holdings) Fundamentals Summary

How do Yue Yuen Industrial (Holdings)'s earnings and revenue compare to its market cap?
551 fundamental statistics
Market Cap	US$3.42b
Earnings (TTM)	US$216.22m
Revenue (TTM)	US$9.17b

15.8x

P/E Ratio

0.4x

P/S Ratio

Is 551 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
551 income statement (TTM)
Revenue	US$9.17b
Cost of Revenue	US$6.93b
Gross Profit	US$2.24b
Expenses	US$2.02b
Earnings	US$216.22m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 11, 2021

Earnings per share (EPS)	0.13
Gross Margin	24.40%
Net Profit Margin	2.36%
Debt/Equity Ratio	41.8%

How did 551 perform over the long term?

See historical performance and comparison

Valuation

Is Yue Yuen Industrial (Holdings) undervalued compared to its fair value and its price relative to the market?

32.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 551 (HK$16.48) is trading below our estimate of fair value (HK$24.55)

Significantly Below Fair Value: 551 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 551 is poor value based on its PE Ratio (15.8x) compared to the Hong Kong Luxury industry average (9x).

PE vs Market: 551 is poor value based on its PE Ratio (15.8x) compared to the Hong Kong market (9.7x).

Price to Earnings Growth Ratio

PEG Ratio: 551 is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: 551's PB Ratio (0.8x) is in line with the HK Luxury industry average.

Future Growth

How is Yue Yuen Industrial (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

28.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 551's forecast earnings growth (28.5% per year) is above the savings rate (1.5%).

Earnings vs Market: 551's earnings (28.5% per year) are forecast to grow faster than the Hong Kong market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 551's revenue (9.4% per year) is forecast to grow slower than the Hong Kong market (12.6% per year).

High Growth Revenue: 551's revenue (9.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 551's Return on Equity is forecast to be low in 3 years time (8.7%).

Past Performance

How has Yue Yuen Industrial (Holdings) performed over the past 5 years?

-34.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 551 has high quality earnings.

Growing Profit Margin: 551 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 551's earnings have declined by 34.7% per year over the past 5 years.

Accelerating Growth: 551 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 551 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (40.3%).

Return on Equity

High ROE: 551's Return on Equity (6%) is considered low.

Financial Health

How is Yue Yuen Industrial (Holdings)'s financial position?

Financial Position Analysis

Short Term Liabilities: 551's short term assets ($4.4B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: 551's short term assets ($4.4B) exceed its long term liabilities ($1.8B).

Debt to Equity History and Analysis

Debt Level: 551's debt to equity ratio (41.8%) is considered high.

Reducing Debt: 551's debt to equity ratio has increased from 18.1% to 41.8% over the past 5 years.

Debt Coverage: 551's debt is well covered by operating cash flow (40.5%).

Interest Coverage: 551's interest payments on its debt are well covered by EBIT (5.2x coverage).

Balance Sheet

Dividend

What is Yue Yuen Industrial (Holdings) current dividend yield, its reliability and sustainability?

5.28%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 551's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 551's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 551's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 551's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: 551 is not paying a notable dividend for the Hong Kong market.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 551's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.

Next Steps

Explore strong dividend paying companies in the Consumer Durables industry.

Management

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

2.3yrs

Average management tenure

CEO

Patty Tsai (41 yo)

8.33yrs

Tenure

US$169,000

Compensation

Ms. Pei-Chun Tsai, also known as Patty, serves as Chief Executive Officer of Pou Chen Group at Pou Chen Corporation. Ms. Tsai has been Managing Director of Yue Yuen Industrial (Holdings) Limited since June...

CEO Compensation Analysis

Compensation vs Market: Patty's total compensation ($USD169.00K) is below average for companies of similar size in the Hong Kong market ($USD703.31K).

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

Leadership Team

Experienced Management: 551's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: 551's board of directors are considered experienced (6.6 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.

Data	Last Updated (UTC time)
Company Analysis	2021/10/21 18:03
End of Day Share Price	2021/10/21 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data