Yue Yuen Industrial (Holdings) Ltd
HKEX:551

Watchlist Manager
Yue Yuen Industrial (Holdings) Ltd Logo
Yue Yuen Industrial (Holdings) Ltd
HKEX:551
Watchlist
Price: 14.55 HKD -1.69% Market Closed
Market Cap: HK$23.3B

EV/IC

0.5
Current
7%
More Expensive
vs 3-y average of 0.4

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.5
=
Enterprise Value
HK$20.9B
/
Invested Capital
$5.5B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.5
=
Enterprise Value
HK$20.9B
/
Invested Capital
$5.5B

Valuation Scenarios

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

If EV/IC returns to its 3-Year Average (0.4), the stock would be worth HK$13.56 (7% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-30%
Maximum Upside
+9%
Average Downside
8%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 0.5 HK$14.55
0%
3-Year Average 0.4 HK$13.56
-7%
5-Year Average 0.4 HK$13.91
-4%
Industry Average 0.3 HK$10.16
-30%
Country Average 0.5 HK$15.91
+9%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
HK
Yue Yuen Industrial (Holdings) Ltd
HKEX:551
23.3B HKD 0.5 7.8
US
Nike Inc
NYSE:NKE
65.7B USD 2.5 29.2
JP
Asics Corp
TSE:7936
3.1T JPY 7.5 31.2
US
Deckers Outdoor Corp
NYSE:DECK
14.4B USD 8.7 13.8
CH
On Holding AG
NYSE:ONON
11.4B USD 5.2 44
US
Skechers USA Inc
NYSE:SKX
9.5B USD 1.2 14.3
UK
Birkenstock Holding PLC
NYSE:BIRK
7.1B USD 1.5 16
CN
Huali Industrial Group Co Ltd
SZSE:300979
44.5B CNY 2.9 15.7
US
Crocs Inc
NASDAQ:CROX
5.2B USD 1.6 -64.3
DE
Puma SE
XETRA:PUM
3.8B EUR 1 -5.9
US
Steven Madden Ltd
NASDAQ:SHOO
2.7B USD 1.8 61
P/E Multiple
Earnings Growth PEG
HK
Yue Yuen Industrial (Holdings) Ltd
HKEX:551
Average P/E: 25.9
7.8
3%
2.6
US
Nike Inc
NYSE:NKE
29.2
3%
9.7
JP
Asics Corp
TSE:7936
31.2
17%
1.8
US
Deckers Outdoor Corp
NYSE:DECK
13.8
7%
2
CH
On Holding AG
NYSE:ONON
44
49%
0.9
US
Skechers USA Inc
NYSE:SKX
14.3
1%
14.3
UK
Birkenstock Holding PLC
NYSE:BIRK
16
16%
1
CN
Huali Industrial Group Co Ltd
SZSE:300979
15.7
N/A N/A
US
Crocs Inc
NASDAQ:CROX
Negative Multiple: -64.3 N/A N/A
DE
Puma SE
XETRA:PUM
Negative Multiple: -5.9 N/A N/A
US
Steven Madden Ltd
NASDAQ:SHOO
61
81%
0.8

Market Distribution

In line with most companies in Hong Kong
Percentile
47th
Based on 1 589 companies
47th percentile
0.5
Low
0 — 0.3
Typical Range
0.3 — 0.9
High
0.9 —
Distribution Statistics
Hong Kong
Min 0
30th Percentile 0.3
Median 0.5
70th Percentile 0.9
Max 59 382.5

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
21.66 HKD
Undervaluation 33%
Intrinsic Value
Price HK$14.55
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett