SEHK:551

Stock Analysis Report

Yue Yuen Industrial (Holdings)

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.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


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


Market Performance


7 Day Return

-4.3%

SEHK:551

2.3%

HK Luxury

-0.6%

HK Market


1 Year Return

-3.9%

SEHK:551

9.3%

HK Luxury

-6.7%

HK Market

551 underperformed the Luxury industry which returned 9.9% over the past year.

551 outperformed the Market in Hong Kong which returned -5.3% over the past year.


Share holder returns

551IndustryMarket
7 Day-4.3%2.3%-0.6%
30 Day-5.2%4.2%3.0%
90 Day-1.4%8.2%-4.9%
1 Year3.1%-3.9%13.0%9.3%-3.3%-6.7%
3 Year-16.4%-37.1%35.1%19.0%15.5%3.7%
5 Year29.6%-10.5%40.1%12.6%16.8%-2.7%

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

Valuation

Is Yue Yuen Industrial (Holdings) undervalued based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Yue Yuen Industrial (Holdings)'s share price is below the future cash flow value, but not at a moderate discount (< 20%).

Yue Yuen Industrial (Holdings)'s share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Yue Yuen Industrial (Holdings) is overvalued based on earnings compared to the HK Luxury industry average.

Yue Yuen Industrial (Holdings) is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Yue Yuen Industrial (Holdings) is poor value based on expected growth next year.


Price Based on Value of Assets

Yue Yuen Industrial (Holdings) is overvalued based on assets compared to the HK Luxury industry average.


Next Steps

Future Growth

How is Yue Yuen Industrial (Holdings) expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Yue Yuen Industrial (Holdings)'s revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Yue Yuen Industrial (Holdings)'s earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).

Yue Yuen Industrial (Holdings)'s revenue growth is positive but not above the Hong Kong market average.

Yue Yuen Industrial (Holdings)'s earnings growth is expected to exceed the Hong Kong market average.

Yue Yuen Industrial (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Yue Yuen Industrial (Holdings) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Yue Yuen Industrial (Holdings)'s year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Yue Yuen Industrial (Holdings)'s 1-year earnings growth is negative, it can't be compared to the 5-year average.

Yue Yuen Industrial (Holdings)'s 1-year earnings growth is negative, it can't be compared to the HK Luxury industry average.


Return on Equity

Yue Yuen Industrial (Holdings) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Yue Yuen Industrial (Holdings) used its assets less efficiently than the HK Luxury industry average last year based on Return on Assets.


Return on Capital Employed

Yue Yuen Industrial (Holdings)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Yue Yuen Industrial (Holdings) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Yue Yuen Industrial (Holdings)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Yue Yuen Industrial (Holdings)'s level of debt (45.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (18.9% vs 45.4% today).

Debt is well covered by operating cash flow (28.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

7.12%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Yue Yuen Industrial (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Yue Yuen Industrial (Holdings)'s dividend is above the markets top 25% of dividend payers in Hong Kong (6.17%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

What is the CEO of Yue Yuen Industrial (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average board tenure


CEO

Patty Tsai (39yo)

6.3yrs

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

Patty's remuneration is lower than average for companies of similar size in Hong Kong.

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


Board Age and Tenure

5.0yrs

Average Tenure

54.5yo

Average Age

The tenure for the Yue Yuen Industrial (Holdings) board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$24,058,75331 May 19
Silchester International Investors LLP
EntityCompany
Shares1,102,000
Max PriceUS$21.83

Ownership Breakdown


Management Team

  • Lu Chan (64yo)

    Executive Director

    • Tenure: 18.5yrs
    • Compensation: US$274.00k
  • Patty Tsai (39yo)

    MD & Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$347.00k
  • Chin-Chu Lu (65yo)

    Chairman

    • Tenure: 5.5yrs
    • Compensation: US$769.00k
  • Dickens Chau (55yo)

    Senior Director of Finance & Treasury and Company Secretary

    • Tenure: 0yrs
  • Jerry Lin (59yo)

    Senior EVP & Executive Director

    • Tenure: 4.5yrs
    • Compensation: US$383.00k
  • George Liu (46yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$556.00k
  • Ming Tsai (42yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$291.00k
  • Christina Yau (58yo)

    Director of Accounting & Special Projects

    • Tenure: 0yrs
  • Chia-Ho Hu (50yo)

    Executive Director

    • Tenure: 4.5yrs
    • Compensation: US$142.00k
  • Dien Chien Hu (39yo)

    Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$544.00k

Board Members

  • Lu Chan (64yo)

    Executive Director

    • Tenure: 18.5yrs
    • Compensation: US$274.00k
  • Patty Tsai (39yo)

    MD & Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$347.00k
  • Chin-Chu Lu (65yo)

    Chairman

    • Tenure: 5.5yrs
    • Compensation: US$769.00k
  • Jerry Lin (59yo)

    Senior EVP & Executive Director

    • Tenure: 4.5yrs
    • Compensation: US$383.00k
  • George Liu (46yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$556.00k
  • Ming Tsai (42yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$291.00k
  • Chia-Ho Hu (50yo)

    Executive Director

    • Tenure: 4.5yrs
    • Compensation: US$142.00k
  • Dien Chien Hu (39yo)

    Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$544.00k
  • Hak Kun Wong (62yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: US$23.00k
  • Lai Ho (61yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

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$34.002b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YUEI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1992
551SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1992
YUE1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1992
551SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1992
551SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1992
YUEI.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 12:35
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.