YGM Trading Limited (0375) AI Stock Analysis

• Market Cap: HK$165.86M
• Dividend Yield: 10.1%
• Average Volume (3M): 53.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -25.41%
• EPS Growth: -361.49%
• Country: HK
• Employees: 200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.13
• Shares Outstanding: 165,863,780
• 10 Day Avg. Volume: 38,000
• 30 Day Avg. Volume: 53,545
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$1.00 ▲(1.01% Upside)

YGM Trading Limited's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability issues. The technical analysis suggests potential oversold conditions, but the valuation remains weak due to negative earnings. The high dividend yield is a positive aspect, but it is overshadowed by the company's broader financial struggles.

YGM Trading Limited Business Overview & Revenue Model

Company Description

YGM Trading Limited, an investment holding company, engages in the wholesale and retail of garments in Hong Kong, Taiwan, Mainland China, 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 shirts, blouses, trousers and casual pants, blousons, polo shirts, T-shirts, etc.; golf and ski wears; perfume, watches, eyewear, leather goods, and home fashion products; and suits and casual wears. It is also involved in 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 under the Ashworth, Black Clover, Guy Laroche, Michel René, and J.Lindeberg brands. It serves customers through a distribution network of 87 points of sales in Hong Kong, Macau, Mainland China, and Taiwan. YGM Trading Limited was founded in 1949 and is headquartered in San Po Kong, Hong Kong.

How the Company Makes Money

YGM Trading Limited generates revenue through multiple streams, primarily from the wholesale and retail sale of its products. The company sources products from manufacturers and suppliers, then sells them to retailers and direct consumers. Additionally, YGM Trading benefits from brand partnerships, which can include licensing agreements that provide royalties or profit-sharing arrangements. The company also explores opportunities in e-commerce, expanding its market reach and enhancing sales channels. Factors contributing to its earnings include its established distribution network, brand reputation, and the ability to adapt to market trends.

YGM Trading Limited Financial Statement Overview

Summary

YGM Trading Limited faces significant challenges in its financial performance, particularly in terms of revenue decline and profitability. While the balance sheet remains stable with low leverage, the company struggles with negative returns on equity and cash flow generation. Improving operational efficiency and profitability will be crucial for future growth and financial stability.

Income Statement

YGM Trading Limited's income statement shows a declining revenue trend with a significant drop of 19.3% in the latest year. The company has been struggling with profitability, as indicated by negative net profit margins and EBIT margins over the years. The gross profit margin remains relatively stable, but the negative net income highlights ongoing challenges in managing costs and generating profits.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.11, indicating conservative leverage. However, the negative return on equity suggests inefficiencies in generating returns from shareholders' equity. The equity ratio is strong, showing a solid capital structure, but the company needs to improve its profitability to enhance overall financial health.

Cash Flow

Cash flow analysis reveals a mixed performance. The operating cash flow to net income ratio is below 1, indicating challenges in converting income into cash. Free cash flow has decreased by 14.9% recently, reflecting potential issues in cash generation. Despite these challenges, the free cash flow to net income ratio is close to 1, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	220.38M	177.85M	238.44M	214.13M	211.49M	216.18M
Gross Profit	145.03M	117.46M	166.96M	143.84M	134.47M	136.18M
EBITDA	4.28M	9.63M	37.59M	25.98M	38.10M	31.50M
Net Income	224.00K	-23.65M	-5.12M	-13.77M	3.28M	-11.74M
Balance Sheet
Total Assets	551.97M	505.78M	571.61M	584.13M	608.93M	690.66M
Cash, Cash Equivalents and Short-Term Investments	110.63M	101.63M	112.98M	128.73M	149.91M	158.90M
Total Debt	44.21M	44.73M	65.02M	63.06M	63.03M	82.62M
Total Liabilities	106.05M	87.28M	113.20M	106.51M	101.26M	131.73M
Stockholders Equity	440.24M	413.16M	452.21M	470.42M	499.00M	538.89M
Cash Flow
Free Cash Flow	40.73M	34.66M	39.36M	34.12M	-10.44M	27.10M
Operating Cash Flow	40.94M	36.38M	41.02M	38.81M	-4.00M	28.19M
Investing Cash Flow	5.36M	3.40M	1.59M	2.12M	85.03M	1.40M
Financing Cash Flow	-54.56M	-49.56M	-55.96M	-45.47M	-89.21M	-44.55M

YGM Trading Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.99
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 0.99 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.09, and above the 200-day MA of 0.89, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0375.

YGM Trading Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0483	70 Outperform	HK$113.89M	9.75	6.87%	―	0.78%	863.64%
0709	67 Neutral	HK$2.39B	11.02	10.57%	9.06%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1817	54 Neutral	HK$342.00M	9.47	4.51%	―	-7.95%	98.95%
0375	51 Neutral	HK$165.86M	-7.01	-5.47%	10.10%	-25.41%	-361.49%
2528	49 Neutral	HK$106.00M	-5.97	-10.66%	―	-5.89%	71.06%
0330	41 Neutral	$362.34M	-0.22	―	―	―	―

YGM Trading Limited Corporate Events

YGM Trading Limited Announces Strategic Resolutions at Upcoming EGM

YGM Trading Limited has announced an Extraordinary General Meeting to approve several significant resolutions, including a share purchase agreement involving the sale of YGM Retail Limited and a distribution and manufacturing license agreement with YGM Marketing. Additionally, a special resolution proposes a capital reduction to enhance shareholder value, subject to court approval. These strategic moves are expected to streamline operations and potentially improve the company’s financial standing.

The most recent analyst rating on (HK:0375) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on YGM Trading Limited stock, see the HK:0375 Stock Forecast page.

YGM Trading Limited AGM Resolutions Unanimously Passed

YGM Trading Limited announced that all resolutions proposed at their Annual General Meeting on September 26, 2025, were approved by shareholders. These resolutions included the acceptance of financial statements, the declaration of a final dividend, the re-election of directors, the re-appointment of KPMG as auditors, and the granting of mandates to the board for share allotment and buybacks. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

The most recent analyst rating on (HK:0375) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on YGM Trading Limited stock, see the HK:0375 Stock Forecast page.

YGM Trading Limited Announces Proposed Capital Reduction

YGM Trading Limited has announced a proposed capital reduction, intending to decrease its share capital from HK$383,909,000 to HK$20,000,000. This move aims to create a capital reduction reserve, which will be considered as realized profit to offset accumulated losses or make distributions to shareholders. The company assures that this reduction will not affect its net asset value, business operations, or shareholder interests, and it will maintain its ability to meet liabilities as they arise.

The most recent analyst rating on (HK:0375) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on YGM Trading Limited stock, see the HK:0375 Stock Forecast page.

YGM Trading Announces Major Share Disposal and New Licensing Agreement

YGM Trading Limited has announced a discloseable and connected transaction involving the sale of its entire issued shares in YGM Retail and the assignment of a Sale Loan for HK$34,320,000. This transaction, which involves connected persons under the Listing Rules, requires Independent Shareholders’ approval and is expected to impact the company’s operations by establishing a new distribution and manufacturing license agreement. This agreement grants YGM Marketing exclusive rights to market and distribute products in Hong Kong and Macau, and non-exclusive rights to manufacture products worldwide, thereby continuing connected transactions post-completion.

The most recent analyst rating on (HK:0375) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on YGM Trading Limited stock, see the HK:0375 Stock Forecast page.

YGM Trading Limited Updates Nomination Committee to Enhance Governance

YGM Trading Limited, a company listed on the Hong Kong Stock Exchange, has announced changes in its Nomination Committee. Effective August 1, 2025, Mr. Chan Wing Sun, Samuel, will step down, and Ms. Chan Suk Ling, Shirley, will join the committee. These changes align with recent amendments to the Listing Rules and Corporate Governance Code, aiming to enhance the Board’s effectiveness and diversity, thereby promoting better corporate governance practices.

YGM Trading Limited Announces Board Composition and Committee Roles

YGM Trading Limited, a company incorporated in Hong Kong, has announced the composition of its board of directors and their respective roles and functions. The board includes both executive and independent non-executive directors, with various members serving on four key committees: Audit, Remuneration, Nomination, and Risk Management. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic decision-making and operational oversight.

YGM Trading Limited Strengthens Governance with New Nomination Committee

YGM Trading Limited has established a Nomination Committee as part of its board of directors to ensure effective governance and strategic alignment. The committee, composed mainly of independent non-executive directors, is tasked with reviewing the board’s structure, identifying qualified candidates for board positions, and assessing the independence of directors. This move is aimed at strengthening the company’s governance framework and ensuring that the board’s composition aligns with the company’s corporate strategy.

YGM Trading Limited Announces AGM Agenda for 2025

YGM Trading Limited has announced its upcoming Annual General Meeting (AGM) scheduled for September 26, 2025, in Hong Kong. The agenda includes reviewing financial statements, approving a final dividend, re-electing directors, re-appointing auditors, and considering resolutions regarding share allotments. These decisions are crucial for the company’s governance and financial strategies, potentially impacting its market operations and shareholder interests.