Yue Yuen Industrial (Holdings)
Market Cap
HK$19.7b
Last Updated
2020/03/30 12:43 UTC
Data Sources
Company Financials +
Executive Summary
Yue Yuen Industrial (Holdings) Limited, an investment holding company, engages in manufacturing, marketing, and retailing athletic footwear, athletic style leisure footwear, and casual and outdoor footwear in the People’s Republic of China, the United States, Europe, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
Similar Companies
Share Price & News
How has Yue Yuen Industrial (Holdings)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 551's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
17.4%
551
12.5%
HK Luxury
7.4%
HK Market
1 Year Return
-56.4%
551
-21.7%
HK Luxury
-22.7%
HK Market
Return vs Industry: 551 underperformed the Hong Kong Luxury industry which returned -19.4% over the past year.
Return vs Market: 551 underperformed the Hong Kong Market which returned -20.3% over the past year.
Shareholder returns
| 551 | Industry | Market | |
|---|---|---|---|
| 7 Day | 17.4% | 12.5% | 7.4% |
| 30 Day | -37.5% | -13.3% | -11.2% |
| 90 Day | -49.0% | -25.7% | -17.3% |
| 1 Year | -53.3%-56.4% | -19.5%-21.7% | -19.9%-22.7% |
| 3 Year | -49.2%-61.8% | 10.1%-2.9% | -5.3%-14.8% |
| 5 Year | -37.7%-57.0% | 10.9%-6.7% | -8.7%-23.4% |
Price Volatility Vs. Market
How volatile is Yue Yuen Industrial (Holdings)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
What Is Yue Yuen Industrial (Holdings)'s (HKG:551) P/E Ratio After Its Share Price Tanked?2 weeks ago | Simply Wall St
Is Yue Yuen Industrial (Holdings) Limited (HKG:551) Excessively Paying Its CEO?1 month ago | Simply Wall St
What Does Yue Yuen Industrial (Holdings) Limited's (HKG:551) P/E Ratio Tell You?Valuation
Is Yue Yuen Industrial (Holdings) 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: 551 (HK$11.74) is trading below our estimate of fair value (HK$25)
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 (7.3x) compared to the Luxury industry average (7.3x).
PE vs Market: 551 is good value based on its PE Ratio (7.3x) compared to the Hong Kong market (9x).
Price to Earnings Growth Ratio
PEG Ratio: 551 is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: 551 is good value based on its PB Ratio (0.6x) compared to the HK Luxury industry average (0.7x).
Next Steps
Future Growth
How is Yue Yuen Industrial (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
8.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 551's forecast earnings growth (8.8% per year) is above the savings rate (1.6%).
Earnings vs Market: 551's earnings (8.8% per year) are forecast to grow slower than the Hong Kong market (12.8% per year).
High Growth Earnings: 551's earnings are forecast to grow, but not significantly.
Revenue vs Market: 551's revenue (6.8% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).
High Growth Revenue: 551's revenue (6.8% 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 (9.6%).
Next Steps
Past Performance
How has Yue Yuen Industrial (Holdings) performed over the past 5 years?
-1.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 551 has high quality earnings.
Growing Profit Margin: 551's current net profit margins (3.3%) are lower than last year (3.4%).
Past Earnings Growth Analysis
Earnings Trend: 551's earnings have declined by -1.1% per year over the past 5 years.
Accelerating Growth: 551's earnings growth over the past year (1.2%) exceeds its 5-year average (-1.1% per year).
Earnings vs Industry: 551 earnings growth over the past year (1.2%) exceeded the Luxury industry -0.2%.
Return on Equity
High ROE: 551's Return on Equity (8.5%) is considered low.
Next Steps
Financial Health
How is Yue Yuen Industrial (Holdings)'s financial position?
Financial Position Analysis
Short Term Liabilities: 551's short term assets ($4.1B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: 551's short term assets ($4.1B) exceed its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: 551's debt to equity ratio (45.4%) is considered high.
Reducing Debt: 551's debt to equity ratio has increased from 18.9% to 45.4% over the past 5 years.
Debt Coverage: 551's debt is well covered by operating cash flow (28.6%).
Interest Coverage: 551's interest payments on its debt are well covered by EBIT (4.2x coverage).
Balance Sheet
Inventory Level: 551 has a high level of physical assets or inventory.
Debt Coverage by Assets: 551's debt is covered by short term assets (assets are 2x debt).
Next Steps
Dividend
What is Yue Yuen Industrial (Holdings)'s current dividend yield, its reliability and sustainability?
12.62%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 551's dividend (12.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).
High Dividend: 551's dividend (12.62%) is in the top 25% of dividend payers in the Hong Kong market (7.29%)
Stability and Growth of Payments
Stable Dividend: 551's dividends per share have been stable in the past 10 years.
Growing Dividend: 551's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (92.9%), 551's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 551's dividends in 3 years are forecast to be covered by earnings (71% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average board tenure
CEO
Patty Tsai (39yo)
6.75s
Tenure
US$347,000
Compensation
Ms. Pei-Chun Tsai, also known as Patty, serves as Chief Executive Officer of Pou Chen Group at Pou Chen Corporation. Ms. Tsai has been Managing Director of Yue Yuen Industrial (Holdings) Limited since June ...
CEO Compensation Analysis
Compensation vs Market: Patty's total compensation ($USD347.00K) is about average for companies of similar size in the Hong Kong market ($USD488.81K).
Compensation vs Earnings: Patty's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6yrs | US$769.00k | 0.0028% $548.5k | |
| MD & Executive Director | 6.75yrs | US$347.00k | no data | |
| Senior EVP & Executive Director | 5yrs | US$383.00k | 0.0028% $548.5k | |
| Executive Director | 19yrs | US$274.00k | no data | |
| Executive Director | 6.75yrs | US$556.00k | 0.0073% $1.4m | |
| Executive Director | 6.75yrs | US$291.00k | 0.0045% $890.6k | |
| Executive Director | 5yrs | US$142.00k | 0.0073% $1.4m | |
| Executive Director | 3yrs | US$544.00k | 0.012% $2.3m | |
| Independent Non-Executive Director | 1.75yrs | US$23.00k | no data | |
| Independent Non-Executive Director | 0.83yr | no data | no data |
5.5yrs
Average Tenure
54.5yo
Average Age
Experienced Board: 551's board of directors are considered experienced (5.5 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Yue Yuen Industrial (Holdings) Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Yue Yuen Industrial (Holdings) Limited
- Ticker: 551
- Exchange: SEHK
- Founded: 1969
- Industry: Footwear
- Sector: Consumer Durables
- Market Cap: HK$19.660b
- Shares outstanding: 1.61b
- Website: https://www.yueyuen.com
Number of Employees
Location
- Yue Yuen Industrial (Holdings) Limited
- C-BONS International Center
- 22nd Floor
- Kwun Tong
- Kowloon
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| YUEI.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jul 1992 |
| 551 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jul 1992 |
| YUE1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 1992 |
| 551 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jul 1992 |
| 551 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jul 1992 |
| YUEI.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Oct 2008 |
Biography
Yue Yuen Industrial (Holdings) Limited, an investment holding company, engages in manufacturing, marketing, and retailing athletic footwear, athletic style leisure footwear, and casual and outdoor footwear in the People’s Republic of China, the United States, Europe, and internationally. It operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as Nike, Adidas, Reebok, ASICS, New Balance, Puma, Under Amour, Converse, Merrell, Salomon, and Timberland, as well as retails and distributes sportswear and apparel products. The company manufactures and sells of leather products, apparels, and sports sandals, as well as soles, components, and others; distribution of licensed products; and property leasing and management. The company was founded in 1969 and is headquartered in Kwun Tong, Hong Kong. Yue Yuen Industrial (Holdings) Limited is a subsidiary of Pou Chen Corporation.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 12:43 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.