YGM Trading Limited (0375) AI Stock Analysis

• Market Cap: HK$144.30M
• Dividend Yield: 11.36%
• Average Volume (3M): 9.76K
• Price to Earnings (P/E): 621.4
• Beta (1Y): 0.10
• Revenue Growth: -5.58%
• EPS Growth: -91.36%
• Country: HK
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Retail
• EPS (TTM): <0.01
• Shares Outstanding: 165,863,780
• 10 Day Avg. Volume: 7,600
• 30 Day Avg. Volume: 9,759
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

YGM Trading Limited's stock exhibits strengths in its cash flow and balance sheet stability, reflecting a solid financial foundation. However, profitability issues and a very high P/E ratio present significant challenges. The attractive dividend yield may appeal to certain investors, while the technical indicators suggest a cautious approach given the neutral momentum.

YGM Trading Limited Business Overview & Revenue Model

Company Description

YGM Trading Limited (0375) is a Hong Kong-based company primarily engaged in the apparel and fashion business. The company designs, manufactures, and distributes a wide range of clothing products, including men's and women's apparel and accessories. YGM Trading Limited also operates retail stores and manages various international fashion brands under licensing agreements, offering a diverse portfolio of high-end and luxury fashion items to its customers.

How the Company Makes Money

YGM Trading Limited generates revenue through multiple streams, primarily driven by the sale of apparel and related products. The company earns income from its retail operations, which include company-owned stores and concessions in department stores. Additionally, YGM Trading Limited benefits from licensing agreements, where it manages and distributes international fashion brands, earning royalties and licensing fees. The company may also engage in wholesale operations, supplying products to other retailers and distributors. Key factors contributing to its earnings include brand partnerships, market expansion, and product diversification.

YGM Trading Limited Financial Statement Overview

Summary

YGM Trading Limited shows a positive revenue growth and strong cash flow management, but struggles with profitability. The balance sheet is strong with low leverage, providing financial stability despite negative profitability metrics.

Income Statement

YGM Trading Limited has shown a positive revenue growth rate of 11.34% in the recent year, signaling a recovery trend. However, the company is still grappling with profitability challenges, as indicated by a negative net profit margin of -2.15% and an EBIT margin of -0.97%, although these have improved from previous years. The gross profit margin stands at a healthy 70.04%, which is a strong point in its income statement.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 79.12%, highlighting financial stability. The debt-to-equity ratio is low at 0.14, indicating minimal leverage, which reduces financial risk. However, the return on equity is negative at -1.13%, pointing towards profitability issues that need addressing to improve shareholder returns.

Cash Flow

YGM Trading Limited shows robust cash flow management with a free cash flow growth rate of 15.38% and a strong free cash flow to net income ratio of 7.69. The operating cash flow to net income ratio is high at 8.01, indicating efficient cash conversion. These metrics suggest strong liquidity and the ability to fund operations without relying on external financing.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
220.38M	238.44M	214.13M	211.49M	216.18M	269.82M
	Gross Profit
145.03M	166.96M	143.84M	134.47M	136.18M	139.34M
	EBIT
2.33M	-2.31M	-21.66M	-15.39M	-6.96M	-154.54M
	EBITDA
4.28M	37.59M	25.98M	38.10M	31.50M	2.18M
	Net Income Common Stockholders
224.00K	-5.12M	-13.77M	3.28M	-11.74M	-87.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
216.90M	112.98M	128.73M	149.91M	158.90M	171.90M
	Total Assets
1.19B	571.61M	584.13M	608.93M	690.66M	725.13M
	Total Debt
48.51M	65.02M	63.06M	63.03M	82.62M	113.48M
	Net Debt
-166.04M	-38.38M	-55.06M	-69.76M	-59.80M	-40.02M
	Total Liabilities
249.37M	113.20M	106.51M	101.26M	131.73M	167.30M
	Stockholders Equity
922.41M	452.21M	470.42M	499.00M	538.89M	538.10M
Cash Flow		Free Cash Flow
40.73M	39.36M	34.12M	-10.44M	27.10M	-58.35M
	Operating Cash Flow
40.94M	41.02M	38.81M	-4.00M	28.19M	-17.22M
	Investing Cash Flow
5.36M	1.59M	2.12M	85.03M	1.40M	-38.58M
	Financing Cash Flow
-54.56M	-55.96M	-45.47M	-89.21M	-44.55M	-110.79M

YGM Trading Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0375, the sentiment is Positive. The current price of 0.88 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.84, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0375.

YGM Trading Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2020	81 Outperform	$250.36B	14.92	28.11%	2.87%	11.51%	47.88%
1929	80 Outperform	$96.18B	21.48	17.34%	5.33%	0.94%	-32.06%
1913	74 Outperform	$118.47B	16.73	20.60%	2.45%	14.60%	24.66%
0375	65 Neutral	HK$144.30M	621.43	0.05%	11.36%	-5.58%	-91.36%
2382	62 Neutral	$69.96B	23.81	11.45%	0.40%	18.80%	141.66%
Sector *	60 Neutral	$6.55B	11.40	3.24%	4.25%	2.38%	-21.28%

YGM Trading Limited Corporate Events

YGM Trading Limited Announces Supplemental Information on Connected Transactions

YGM Trading Limited has issued a supplemental announcement to its Annual Report 2023/24, detailing connected transactions with Yangtzekiang Garment Limited. These transactions include a Garment Master Agreement for purchasing garment products and a Licence Agreement for leasing warehouse and office space. The transactions are deemed connected due to shared controlling shareholders and comply with Chapter 14A of the Listing Rules. The disclosed transactions do not affect other information in the Annual Report.