Yue Yuen Industrial (Holdings) Ltd
HKEX:551

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Yue Yuen Industrial (Holdings) Ltd
HKEX:551
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Price: 14.74 HKD -1.47% Market Closed
Market Cap: HK$23.7B

EV/OCF

5.6
Current
62%
More Expensive
vs 3-y average of 3.4

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
5.6
=
Enterprise Value
HK$22.8B
/
Operating Cash Flow
$473.8m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
5.6
=
Enterprise Value
HK$22.8B
/
Operating Cash Flow
$473.8m

Valuation Scenarios

Yue Yuen Industrial (Holdings) Ltd is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (3.4), the stock would be worth HK$9.08 (38% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-38%
Maximum Upside
+33%
Average Downside
11%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 5.6 HK$14.74
0%
3-Year Average 3.4 HK$9.08
-38%
5-Year Average 4.7 HK$12.52
-15%
Industry Average 4.2 HK$11.04
-25%
Country Average 7.4 HK$19.57
+33%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
HK
Yue Yuen Industrial (Holdings) Ltd
HKEX:551
24B HKD 5.6 8.1
US
Nike Inc
NYSE:NKE
66.3B USD 38.5 29.5
JP
Asics Corp
TSE:7936
3.2T JPY 28 31.7
US
Deckers Outdoor Corp
NYSE:DECK
15.3B USD 13.1 14.8
CH
On Holding AG
NYSE:ONON
12B USD 24.4 46.2
US
Skechers USA Inc
NYSE:SKX
9.5B USD 12.9 14.3
UK
Birkenstock Holding PLC
NYSE:BIRK
7.5B USD 20.1 16.8
CN
Huali Industrial Group Co Ltd
SZSE:300979
49.6B CNY 12.2 15.5
US
Crocs Inc
NASDAQ:CROX
5.2B USD 8.7 -64.5
DE
Puma SE
XETRA:PUM
3.7B EUR -15 -5.8
US
Steven Madden Ltd
NASDAQ:SHOO
2.8B USD 17.8 61.8
P/E Multiple
Earnings Growth PEG
HK
Yue Yuen Industrial (Holdings) Ltd
HKEX:551
Average P/E: 26.5
8.1
3%
2.7
US
Nike Inc
NYSE:NKE
29.5
3%
9.8
JP
Asics Corp
TSE:7936
31.7
17%
1.9
US
Deckers Outdoor Corp
NYSE:DECK
14.8
7%
2.1
CH
On Holding AG
NYSE:ONON
46.2
49%
0.9
US
Skechers USA Inc
NYSE:SKX
14.3
1%
14.3
UK
Birkenstock Holding PLC
NYSE:BIRK
16.8
16%
1
CN
Huali Industrial Group Co Ltd
SZSE:300979
15.5
N/A N/A
US
Crocs Inc
NASDAQ:CROX
Negative Multiple: -64.5 N/A N/A
DE
Puma SE
XETRA:PUM
Negative Multiple: -5.8 N/A N/A
US
Steven Madden Ltd
NASDAQ:SHOO
61.8
81%
0.8

Market Distribution

In line with most companies in Hong Kong
Percentile
41th
Based on 1 314 companies
41th percentile
5.6
Low
0 — 4
Typical Range
4 — 12.2
High
12.2 —
Distribution Statistics
Hong Kong
Min 0
30th Percentile 4
Median 7.4
70th Percentile 12.2
Max 20 343.5

Yue Yuen Industrial (Holdings) Ltd
Glance View

Yue Yuen Industrial (Holdings) Ltd., a behemoth in the footwear manufacturing industry, crafts a tale of craftsmanship and global reach. Founded in 1988 and headquartered in Hong Kong, this company epitomizes how meticulous production melds with mass-scale efficiency. As the world's largest branded athletic and casual footwear manufacturer, Yue Yuen commands an impressive production capacity. It supplies renowned global brands such as Nike, Adidas, and Puma. The essence of Yue Yuen's success lies in its vertically integrated manufacturing process, combining traditional shoemaking with cutting-edge technology. This allows them to respond swiftly to market demands, ensuring that top-quality footwear not only meets but often anticipates consumer trends. Financially, Yue Yuen's narrative extends beyond the assembly line to a strategic amalgamation of manufacturing prowess and retail operations. The company's subsidiary division, Pou Sheng International, plays a crucial role in the retail landscape across Greater China, further anchoring its revenue streams. By adopting a direct-to-consumer approach alongside wholesale distribution, Pou Sheng bridges the gap between production and end-user. This dual strategy helps Yue Yuen maximize profit margins by capitalizing on both ends of the supply chain. The company’s diversified portfolio and robust global distribution network are pivotal in maintaining its position as a dominant player in the global footwear industry. This strategic alignment of manufacturing and retail exemplifies a business model that is resilient and adaptable, navigating the complexities of global commerce with an unwavering stride.

Intrinsic Value
22.29 HKD
Undervaluation 34%
Intrinsic Value
Price HK$14.74
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