YGM Trading Limited Overview
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Employees (approx., year-end) | 320 | 200 | 180 |
YGM Trading is a family-controlled Hong Kong micro-cap and a legacy of the Yangtzekiang garment group founded in 1949. Over the past decade it has shrunk from a multi-brand, pan-Asian apparel platform into a small, cash-rich holding company with four businesses:
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a Hong Kong and Macau apparel retail and wholesale network of 28 points of sale, selling Guy Laroche, J.Lindeberg and Ashworth product;
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a trademark-licensing arm built on its global ownership of the Guy Laroche brand. It also owned Ashworth until the related-party disposal of YGM Retail, approved on 26 June 2026;
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a small security-printing business; and
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a fully let office/retail townhouse in Soho, London.
The group has no bank debt and holds HKD 89M of cash against equity of HKD 368M. It still pays a HKD 0.10 annual dividend despite three consecutive years of widening losses. The strategic narrative is one of retrenchment and monetisation:
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exits from Mainland China and Taiwan retail;
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the sale of Ashworth; and
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an open-ended search for "new business opportunities".
The shares trade at less than half of book value.
Company's own description (Annual Report 2025/26, Directors' Report)
The company describes its principal activities as garment wholesaling and retailing, trademark ownership and licensing, property investment, and the provision of security printing, general business printing and trading of printing products. It reports four segments:
Sales of garments: wholesaling and retailing of garments.
Licensing of trademarks: management and licensing of trademarks for royalty income.
Printing and related services: security printing and sale of printed products.
Property rental: leasing of properties for rental income.
Independent characterisation
YGM is best understood as a sub-scale branded apparel retailer bolted onto an asset-holding company. The apparel retail business is the largest revenue line, at 63.7% of FY2026 revenue. However, it is now confined to Hong Kong and Macau, and its contribution to segment EBITDA halved in FY2026, from HKD 21.1M to HKD 10.6M.
The three other segments contribute steadier but small cash flows:
Licensing: royalty income of about HKD 22M a year from Guy Laroche (global IP owner) and, until mid-2026, Ashworth. The Ashworth income included a PRC licence with a related party.
Printing: about HKD 26–27M of revenue at a near break-even margin.
Property: about HKD 10M of London rental income.
The economic value of the group sits mainly on the balance sheet rather than in earnings power. At 31 March 2026 it comprised:
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HKD 171.2M of London investment property (fair value);
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HKD 106.9M of trademarks (intangible assets, after HKD 26.5M of cumulative impairment over FY2025–FY2026); and
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HKD 89.1M of cash.
Together these total about HKD 367M, roughly equal to shareholders' equity of HKD 368.4M.
Business and revenue model mix (FY2026)
| Revenue type | FY2026 HKD Mn | % of revenue | Model |
|---|---|---|---|
| Product sales: garments (retail and wholesale) | 102.7 | 63.7% | Product (B2C retail and B2B wholesale/consignment) |
| Royalty and related income | 21.9 | 13.6% | Licensing |
| Printing and related services | 26.5 | 16.4% | Product/service (B2B) |
| Gross rental income (London) | 10.1 | 6.3% | Lease income |
| Total | 161.1 | 100% | — |
Source: FY2026 results announcement, note 3: ### Value-chain position, customers and end markets
Value-chain position
Apparel: mainly downstream. The group designs and sources (via third-party and related-party suppliers, including Yangtzekiang Garment and Citimark Trading), distributes and retails. It owns no manufacturing plants in the current structure. The PRC garment manufacturing subsidiary, YGM Clothing, was sold in 2016.
Licensing: upstream brand-owner role. Third parties manufacture and sell, and YGM collects royalties.
Printing: manufacturer and service provider for institutional customers.
Customers
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Retail consumers in Hong Kong and Macau, typically mid-to-upper-income adults buying premium menswear and golf/lifestyle apparel.
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Brand licensees worldwide, for Guy Laroche.
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Institutional printing customers. The company does not name them.
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Commercial tenants in London.
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The customer base is diversified: no customer exceeded 10% of revenue in FY2025 or FY2026, and the five largest customers accounted for under 30% of turnover.
End markets: Hong Kong and Macau apparel retail; global fashion licensing; Hong Kong security printing; and the London West End (Soho) commercial property market.
Strategy
Stated strategy themes (AR 2025/26 Chairman's Statement and MD&A; FY2025 results outlook)
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Prudence and cost discipline. Management emphasises "stringent cost control measures" and "disciplined working capital management" as the route to long-term sustainability.
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Store-network caution. The group "will remain prudent regarding the size of the store network" and will assess rent affordability before renewing leases or expanding.
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Monetisation of non-core IP. The Ashworth ownership is being sold "to bolster our cash reserves", in line with the group's strategic review.
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Reinvention via new businesses. "With our current cash reserves, we are exploring new business opportunities that align with our goal of enhancing shareholder returns." The FY2025 outlook added "diversification and expansion into emerging business sectors".
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Printing modernisation. Cost-cutting to eliminate losses, combined with promotion of the "innovative near field security system".
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Brand focus. Guy Laroche (owned) and J.Lindeberg (distributed) are positioned as the core Hong Kong and Macau retail franchises.
Strategic initiatives register (last 24 months)
| Date | Initiative | Status / targets |
|---|---|---|
| FY2025 | Termination of Mainland China retail | Completed. Points of sale cut by 57. |
| FY2026 | Cessation of Taiwan retail | Completed by 31 Mar 2026 |
| FY2025–FY2026 | Cost programme | Operating expenses reduced from HKD 173.1M (FY2024) to HKD 110.3M (FY2026). No formal target published. |
| Sep 2025 → Mar 2026 → Jun 2026 | Sale of YGM Retail (Ashworth IP) and shareholder loan for HKD 34.32M | Approved 26 Jun 2026; completion scheduled 30 Jun 2026 |
| 4 Nov 2025 (effective 22 Dec 2025) | Capital reduction: HKD 363.9M transferred from share capital to a distributable capital reduction reserve | Completed; enables distributions despite accumulated losses |
| 31 Dec 2025 | Sales and Purchase Master Agreements with Citimark (caps up to HKD 9.9M a year to FY2028) | Purchase Master Agreement to terminate on completion of the Ashworth disposal |
| Post-completion | Royalty-free three-year DML Agreement for Ashworth in Hong Kong and Macau, with Citimark as supplier (purchase caps HKD 8.9M to Mar 2027, then HKD 9.9M a year) | Effective on completion |
| FY2026 | Disposal of all trading securities (proceeds HKD 8.0M) | Completed |
| FY2027 | London building lift installation | Planned capex; amount n.d. |
ESG and sustainability commitments
These are limited to a qualitative commitment to reduce electricity consumption, staff volunteering through the "YGM Volunteer Team", and compliance statements. No quantified targets are disclosed.
Medium-term financial targets and guidance
None. The company publishes no revenue, margin or return targets. Its dividend policy is discretionary.
Products & Services
Sales of garments segment
| Brand / offering | Ownership status | Description | Target customer | Territory | Latest status |
|---|---|---|---|---|---|
| Guy Laroche | Owned (global IP); YGM is the official distributor in Hong Kong and Macau | French heritage fashion label; menswear and womenswear sold through YGM's own points of sale | Mature, mid-to-upper-income consumers seeking European heritage brands | Hong Kong and Macau retail; worldwide licensing | Chairman described FY2026 performance as satisfactory. Acquired c. Sep 2004 (PitchBook). |
| J.Lindeberg | Third-party brand (Stockholm); YGM is distributor and retailer | Swedish premium fashion and golf apparel | Affluent, style-conscious golfers and fashion consumers | Hong Kong and Macau | Overall sales improved in FY2026 versus FY2025, per the Chairman |
| Ashworth | Owned (global IP) via YGM Retail until the 2026 disposal. Afterwards, a royalty-free, non-exclusive three-year distribution and manufacturing (DML) licence for Hong Kong and Macau. | American golf apparel brand founded 1987 in Carlsbad, California; acquired from TaylorMade Golf on 9 Sep 2019 | Golfers and active-lifestyle consumers | Hong Kong and Macau retail; PRC via licensee Citimark until disposal | Underperforming Hong Kong stores closed in FY2026; brand IP sold to related party Chanson (HK) Ltd for HKD 34.32M (shares plus loan) |
| Michel René | Owned (group private label) | Men's and women's wear private label, historically the group's core house brand | Value-to-mid-market consumers | Historically Hong Kong, PRC and Taiwan | Listed on the company website as an own brand; current point-of-sale count n.d. |
| Black Clover | Distributed (US brand) | US golf lifestyle brand listed among brands on the company website and Simply Wall St | Golf consumers | — | Not mentioned in AR 2025/26; current status n.d. |
| Ashworth consignment goods (T-shirts, knit shirts, outerwear, pants, leather goods and belts, skirts, vests, bodywear, socks) | Sold by YGM Retail to Citimark on consignment | Ashworth-branded products for sale in Mainland China | PRC consumers via Citimark | Mainland China | Consignment agreement ran 1 Jun 2024–31 May 2026. FY2026 sales HKD 3.41M (FY2025: HKD 3.83M). |
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Total points of sale (year-end) | 92 | 35 | 28 |
Points of sale
At 31 Mar 2026 the 28 points of sale comprised 23 in Hong Kong and 5 in Macau. At 31 Mar 2025 the 35 comprised 28 in Hong Kong, 5 in Macau and 2 in Taiwan.
Pricing model: Not disclosed. The company states a free-market, supply-and-demand pricing policy. Gross margins of 65–70% are consistent with full-price premium branded retail.
Historical brands no longer in the portfolio: Aquascutum (sold 2017), Charles Jourdan (licence; status n.d.), Peak Performance (distribution; status n.d.) and Hang Ten (spun off).
Licensing of trademarks segment
| Licensing programme | Counterparty | Key terms | FY2026 economics |
|---|---|---|---|
| Guy Laroche worldwide licensing | Multiple third-party licensees (not named) | Royalty-based; terms n.d. | Bulk of segment revenue of HKD 21.9M. An HKD 4.7M compensation income from a licensee was recognised in FY2026. |
| Ashworth PRC trademark licence | Citimark Trading Ltd (related party: 75% Michael Chan, 25% Jason Chan) | Term 1 Jun 2024–31 May 2029. Royalty of 5% on the first USD 10M of net invoiced revenue and 4% thereafter. Minimum royalties of USD 250K, 300K, 350K, 400K and 500K across the agreement years. | Earned royalty HKD 1.82M (FY2025: HKD 0.975M). Ceases on completion of the YGM Retail disposal. |
| Ashworth other international licences | — | — | — |
Printing and related services segment
| Offering | Description | Target customer | Status |
|---|---|---|---|
| Security printing | Printing of security documents and products | Institutional and commercial clients (not named) | Facing secular decline from the shift to paperless solutions. Chairman reports a loss before tax in FY2026, against positive segment EBITDA of HKD 0.6M. |
| General business printing | Commercial print work | Businesses | Ongoing |
| Trading of printing products | Resale of printed products | Businesses | Ongoing |
| Authentication and electronic forgery detection solutions | Solutions to detect counterfeit documents (per Simply Wall St and MarketInOut profiles) | Document issuers, brand owners | Ongoing; specifications n.d. |
| "Near field security system" | Innovative near-field security system being promoted to stay competitive (Chairman's Statement, AR 2025/26) | Security-document customers | Launch year, specifications and pricing n.d. |
Property rental segment
| Asset | Description | Valuation / carrying amount | Income |
|---|---|---|---|
| Soho, London townhouse office/retail building | Investment property, fully let during FY2026; a new lift to be installed in FY2027 | Fair value HKD 171.2M (FY2025: HKD 175.2M; FY2024: HKD 189.0M) | Gross rent HKD 10.1M (FY2025: HKD 9.6M); net of direct outgoings HKD 8.0M |
| San Po Kong industrial building, Kowloon | Owner-occupied by the security printing business | Net book value HKD 5.3M (FY2025: HKD 5.6M) | Inter-segment rent HKD 2.4M per year |
Financial Narrative
All figures are HKD M for fiscal years ended 31 March. Sources:
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five-year financial highlights (AR 2025/26, p.2);
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FY2025 and FY2026 results announcements;
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etnet for depreciation and amortisation and pre-tax profit history.
Margins
Revenue CAGR (FY2022–FY2026): -6.6% a year (analyst-derived: 161.1 ÷ 211.5, four years).
Detailed balance sheet (3 years)
Goodwill is not separately disclosed; there are no goodwill balances in the line items reviewed.
Cash flow
Note on cash flow. "Cash generated from operations" is reported before lease principal repayments, which sit in financing under HKFRS 16. Right-of-use depreciation of HKD 25.8M in FY2026 and HKD 28.7M in FY2025 is a reasonable proxy for annual lease cash costs. On that basis, lease-adjusted free cash flow was roughly HKD 5M in FY2026, which did not cover the HKD 16.6M dividend.
Ratios
Interest coverage on EBIT basis is not meaningful because the operating result is negative or near zero.
Commentary on trends, inflections and drivers
1. Revenue trajectory.
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FY2024 (+11.3%) was a post-COVID reopening peak, helped by the return of Mainland visitors to Hong Kong.
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FY2025 (-25.4%) marked the strategic inflection. Management terminated loss-making Mainland China retail, and points of sale fell from 92 to 35.
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FY2026 (-9.4%) reflected the Taiwan exit, Ashworth store closures in Hong Kong and weak local clothing demand.
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Non-garment revenue has been stable to slightly rising, from HKD 55.8M in FY2024 to HKD 58.5M in FY2026. It now provides 36% of revenue.
2. Gross margin. Gross margin peaked at 70.0% in FY2024 and has drifted to 65.1%. This is consistent with more clearance activity and a mix shift away from full-price retail. It remains high for apparel, reflecting a premium brand mix and royalty and rental income with minimal cost of sales.
3. Operating costs. The cost base has been cut aggressively. Total operating expenses fell from HKD 173.1M in FY2024 to HKD 110.3M in FY2026, a 36% reduction, and distribution costs fell 42%. Even so, cost cuts have not kept pace with gross-profit erosion, and the FY2026 operating result swung back to a HKD 2.9M loss.
4. Below-the-line items drive the reported losses.
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FY2025: HKD 22.5M of non-cash charges (London valuation loss of HKD 17.5M and trademark impairment of HKD 5.0M).
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FY2026: HKD 40.5M of charges. These comprised a London valuation loss (HKD 12.4M), trademark impairment (HKD 21.5M), a loss on deregistration of subsidiaries (HKD 6.7M, mainly recycled exchange reserves) and PPE impairment (HKD 1.6M).
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Excluding these, FY2026 pre-tax would have been about HKD 1.6M positive.
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The deregistration loss is largely offset in other comprehensive income by a HKD 6.6M release of exchange reserve.
5. Balance sheet. Equity has eroded by HKD 130.6M (-26%) since FY2022, from both losses and dividends that exceeded earnings. Cash has declined every year, from HKD 125.7M to HKD 89.1M. The group remains debt-free apart from lease liabilities.
6. Dividend sustainability. The HKD 0.10 dividend costs HKD 16.6M a year, against lease-adjusted free cash flow of about HKD 5M in FY2026. It is therefore being funded from the balance sheet. The November 2025 capital reduction created HKD 363.9M of distributable reserve, which removes any legal constraint on continued distributions.
7. Interim pattern. H1 FY2026 showed only a HKD 0.93M attributable loss on HKD 78.7M of revenue. This implies the H2 FY2026 loss was about HKD 36.7M, driven by year-end impairments and valuation losses.
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Segment Overview
| Segment | Contents | Products / services |
|---|---|---|
Sales of garments | Retail and wholesale of apparel in Hong Kong and Macau. Taiwan and Mainland China retail ceased in FY2025–FY2026. Ashworth consignment sales to the PRC licensee were included until mid-2026. | Guy Laroche, J.Lindeberg, Ashworth apparel; Michel René (own brand) |
Licensing of trademarks | Global management and licensing of owned trademarks | Guy Laroche worldwide licences; Ashworth licences until YGM Retail disposal |
Printing and related services | Security printing, general business printing, trading of printing products, authentication / forgery-detection solutions | Security printed products; "near field security system" |
Property rental | Leasing of investment property | Soho, London townhouse office/retail building. The San Po Kong industrial building is owner-occupied by printing and generates inter-segment rent only. |
Segment revenue (HKD Mn)
| Segment revenue (HKD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Sales of garments | 182.6 | 119.0 | 102.7 |
Licensing of trademarks | 19.9 | 21.7 | 21.9 |
Printing and related services | 27.1 | 27.5 | 26.5 |
Property rental | 8.9 | 9.6 | 10.1 |
Total revenue | 238.4 | 177.9 | 161.1 |
Reportable segment revenue (HKD Mn)
| Reportable segment revenue (HKD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Sales of garments | 182.6 | 119.0 | 102.7 |
Licensing of trademarks | 19.9 | 21.7 | 21.9 |
Printing and related services | 27.1 | 27.5 | 26.5 |
Property rental | 11.1 | 12.1 | 12.5 |
Inter-segment revenue total | 2.3 | 2.5 | 2.4 |
Segment profit (HKD Mn)
| Segment profit (HKD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Sales of garments | 25.7 | 21.1 | 10.6 |
Licensing of trademarks | 6.5 | 3.1 | 10.3 |
Printing and related services | 0.1 | 1.5 | 0.6 |
Property rental | 3.9 | 4.1 | 5.3 |
Total segment profit | 36.2 | 29.8 | 26.9 |
Segment margin (%)
| Segment margin (%) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Sales of garments | 14.1 | 17.7 | 10.3 |
Licensing of trademarks | 32.9 | 14.3 | 47.0 |
Printing and related services | 0.3 | 5.3 | 2.3 |
Property rental | 35.1 | 34.2 | 42.6 |
Group (segment EBITDA ÷ revenue) | 15.2 | 16.8 | 16.7 |
YoY growth (%)
| YoY growth (%) | FY2025 | FY2026 |
|---|---|---|
Sales of garments | -34.8 | -13.7 |
Licensing of trademarks | 9.5 | 0.6 |
Printing and related services | 1.4 | -3.7 |
Property rental | 8.7 | 5.0 |
Total | -25.4 | -9.4 |
% of total revenue
| % of total revenue | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Sales of garments | 76.6 | 66.9 | 63.7 |
Licensing of trademarks | 8.3 | 12.2 | 13.6 |
Printing and related services | 11.4 | 15.4 | 16.4 |
Property rental | 3.7 | 5.4 | 6.3 |
Segment Assets & Liabilities
| Segment balance sheet (HKD Mn) | FY2025 | FY2026 |
|---|---|---|
Garments: segment assets | 449.3 | 354.7 |
Licensing: segment assets | 139.5 | 120.3 |
Printing: segment assets | 13.1 | 13.9 |
Property: segment assets | 187.1 | 181.2 |
Garments: segment liabilities | 427.2 | 341.3 |
Licensing: segment liabilities | 17.4 | 12.6 |
Printing: segment liabilities | 5.0 | 5.7 |
Property: segment liabilities | 15.0 | 18.7 |
H1 FY2026 segment revenue (HKD Mn)
| H1 FY2026 segment revenue (HKD Mn) | Value | YoY |
|---|---|---|
Sales of garments | 48.8 | -17.9% |
Licensing of trademarks | 11.1 | +4.5% |
Printing and related services | 13.6 | +1.1% |
Property rental | 5.1 | +4.6% |
Total | 78.7 | -11.1% |
Income statement (HKD Mn)
| Income statement (HKD Mn) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue | 211.5 | 214.1 | 238.4 | 177.9 | 161.1 |
Cost of sales and direct costs | 77.0 | 70.3 | 71.5 | 60.4 | 56.3 |
Gross profit | 134.5 | 143.8 | 167.0 | 117.5 | 104.9 |
Operating result (gain/loss from operations) | -15.4 | -21.7 | -2.3 | 0.4 | -2.9 |
Depreciation and amortisation | 33.8 | 38.4 | 39.9 | 31.6 | 27.4 |
EBITDA, analyst-derived (operating result + D&A) | 18.4 | 16.7 | 37.6 | 32.1 | 24.5 |
Investment property valuation gain/(loss) | 6.4 | 9.3 | 0.0 | -17.5 | -12.4 |
Impairment of intangible assets | 0.0 | 0.0 | 0.0 | -5.0 | -21.5 |
Pre-tax profit/(loss) | 2.0 | -14.8 | -6.0 | -24.4 | -39.0 |
Net profit/(loss) for the year (incl. NCI) | 2.1 | -14.7 | -5.9 | -24.5 | -38.7 |
Net profit/(loss) attributable to shareholders | 3.3 | -13.8 | -5.1 | -23.7 | -37.6 |
EPS basic and diluted (HKD) | 0.02 | -0.08 | -0.03 | -0.14 | -0.23 |
Dividends per share (HKD) | 0.15 | 0.10 | 0.10 | 0.10 | 0.10 |
Company-defined EBITDA (HKD Mn)
| Company-defined EBITDA (HKD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Reportable segment profit ("EBITDA") | 36.2 | 29.8 | 26.9 |
Margins (%)
| Margins (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin | 63.6 | 67.2 | 70.0 | 66.0 | 65.1 |
Operating margin | -7.3 | -10.1 | -1.0 | 0.2 | -1.8 |
EBITDA margin, analyst-derived | 8.7 | 7.8 | 15.8 | 18.0 | 15.2 |
Net margin (attributable) | 1.6 | -6.4 | -2.1 | -13.3 | -23.3 |
Income Statement
| Operating lines (HKD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Other net gain | 3.8 | 9.5 | 2.6 |
Distribution costs | 118.6 | 79.7 | 68.4 |
Administrative and other operating expenses | 54.5 | 46.9 | 41.9 |
Finance costs (lease interest and long-service-payment interest) | 3.7 | 2.4 | 2.1 |
Income tax charge/(credit) | -0.1 | 0.2 | -0.3 |
Loss/(gain) on deregistration of subsidiaries | 0.0 | -1.9 | 6.7 |
Balance Sheet and Financial Ratios (x)
| Balance sheet (HKD Mn, 31 March) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets | 608.9 | 584.1 | 571.6 | 505.8 | 462.8 |
Total liabilities | 101.3 | 106.5 | 113.2 | 87.3 | 92.2 |
Shareholders' equity (attributable) | 499.0 | 470.4 | 452.2 | 413.2 | 368.4 |
Cash and bank deposits (net of overdrafts) | 125.7 | 118.1 | 103.4 | 93.7 | 89.1 |
Net current assets (working capital) | 160.0 | 131.2 | 103.6 | 99.2 | 77.3 |
Lease liabilities (derived from gearing ratio for FY2022–FY2023) | 62.9 | 63.0 | 65.0 | 44.7 | 50.6 |
Balance Sheet
| Detailed balance sheet (HKD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Investment properties | 189.0 | 175.2 | 171.2 |
Other property, plant and equipment (incl. right-of-use assets) | 58.5 | 38.5 | 42.9 |
Intangible assets (trademarks) | 133.4 | 128.4 | 106.9 |
Inventories | 38.2 | 31.8 | 25.8 |
Trade and other receivables | 32.9 | 28.4 | 22.2 |
Trading securities | 9.6 | 8.0 | 0.0 |
Bank borrowings (interest-bearing) | 0.0 | 0.0 | 0.0 |
Lease liabilities, current | 33.6 | 21.4 | 18.8 |
Lease liabilities, non-current | 31.4 | 23.3 | 31.9 |
Net cash excl. leases (cash minus bank debt) | 103.4 | 93.7 | 89.1 |
Net cash incl. leases (cash minus lease liabilities) | 38.4 | 48.9 | 38.4 |
Non-controlling interests | 6.2 | 5.3 | 2.3 |
Cash flow (HKD Mn)
| Cash flow (HKD Mn) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Cash generated from/(used in) operations | -3.8 | 38.9 | 40.8 | 36.4 | 31.3 |
Dividends paid, analyst-derived (DPS paid in year × 165.86M shares) | 33.2 | 8.3 | 16.6 | 16.6 | 16.6 |
Cash flow detail (HKD Mn)
| Cash flow detail (HKD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Capex excl. right-of-use assets (incl. investment property additions) | 1.7 | 1.7 | 0.7 |
"Free cash flow" before lease payments (operating cash minus capex), analyst-derived | 39.2 | 34.7 | 30.6 |
Share buybacks | 0.0 | 0.0 | 0.0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratios | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE, company-reported (%) | 0.7 | -2.9 | -1.1 | -5.7 | -10.2 |
ROA, company-reported (%) | 0.5 | -2.4 | -0.9 | -4.7 | -8.1 |
Current ratio (x) | 3.3 | 2.9 | 2.3 | 2.6 | 2.3 |
Gearing (lease liabilities ÷ equity, x) | 0.126 | 0.134 | 0.144 | 0.108 | 0.137 |
Asset turnover (revenue ÷ total assets, x), analyst-derived | 0.35 | 0.37 | 0.42 | 0.35 | 0.35 |
Dividend payout, company-reported (%) | 750.0 | -125.0 | -333.3 | -71.4 | -43.5 |
Ratios, analyst-derived
| Ratios, analyst-derived | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Pre-tax ROIC (operating result ÷ (equity + leases − cash)) (%) | -0.6 | 0.1 | -0.9 |
EBITDA ÷ finance costs (x) | 10.1 | 13.6 | 11.5 |
Debt ÷ equity, bank debt only (x) | 0.0 | 0.0 | 0.0 |
Net debt ÷ EBITDA (x; negative means net cash) | -2.8 | -2.9 | -3.6 |
Days inventory outstanding (average inventory ÷ cost of inventories × 365) | — | 219 | 195 |
Days sales outstanding (trade debtors ÷ revenue × 365) | 26 | 23 | 26 |
Days payables outstanding (trade creditors ÷ cost of sales × 365) | 54 | 62 | 55 |
Cash conversion cycle (days) | — | 180 | 166 |
Segment Overview — Garments
| Segment | Hong Kong | Macau | Mainland China | Taiwan | United Kingdom | Rest of world |
|---|---|---|---|---|---|---|
Garments | Primary market (23 points of sale) | 5 points of sale | Retail closed (FY2025); Ashworth consignment to Citimark until May 2026 | Retail ceased in FY2026 | — | Wholesale n.d. |
Licensing | Royalty base n.d. | — | Ashworth PRC licence (Citimark) | — | — | Guy Laroche global licensees |
Printing | Primary market | — | — | — | — | — |
Property | San Po Kong building (inter-segment only) | — | — | — | London building: 100% of external rent | — |
Identifiable geographic revenue (HKD Mn)
| Identifiable geographic revenue (HKD Mn) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
United Kingdom: London rental income | 8.9 | 9.6 | 10.1 |
Revenue by Region
| Mainland China related-party flows (HKD Mn) | FY2025 | FY2026 |
|---|---|---|
Ashworth PRC earned royalty from Citimark | 0.975 | 1.820 |
Ashworth consignment sales to Citimark (PRC) | 3.831 | 3.407 |
Geographic Revenue
| Points of sale by territory | FY2025 | FY2026 |
|---|---|---|
Hong Kong | 28 | 23 |
Macau | 5 | 5 |
Taiwan | 2 | 0 |
Total | 35 | 28 |
Market Valuation and Share Price
| Market data (31 March, company-reported) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Market capitalisation (HKD Mn) | 298.6 | 185.8 | 182.5 | 139.3 | 152.6 |
Implied share price at year-end (HKD; market cap ÷ 165.86M shares) | 1.80 | 1.12 | 1.10 | 0.84 | 0.92 |
Share Price & Returns
| Period | Return | Source / date |
|---|---|---|
1 year | +9.0% | Simply Wall St, c. Sep 2025 |
3 years | -22.7% | Simply Wall St, c. Sep 2025 |
5 years | -56.4% | Simply Wall St, c. Sep 2025 |
1 year | +4.95% | MarketInOut, as of 31 Jul 2026 |
6 months | -21.26% | MarketInOut, as of 31 Jul 2026 |
1 month | -10.71% | MarketInOut, as of 31 Jul 2026 |
Valuation Multiples
| Multiple | YGM Trading | Giordano International (approx.) |
|---|---|---|
Market capitalisation (HKD Mn) | ~161 | ~2,270 (HKD 1.40 × ~1.62bn shares, 31 Jul 2026) |
P/E (x) | n.m. (loss-making) | ~10.5 (FY2025 net income HKD 217M) |
P/B (x) | ~0.44 | — |
EV/Sales excl. leases (x) | ~0.45 | — |
EV/Sales incl. leases (x) | ~0.76 | — |
EV/EBITDA, company segment EBITDA incl. leases (x) | ~4.6 | — |
Dividend yield (%) | ~10.3 | — |
Dividend per share (HKD)
| Dividend per share (HKD) | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|
Total DPS (incl. special) | 4.70 | 0.40 | 0.10 | 0.10 | 0.15 | 0.10 | 0.10 | 0.10 | 0.10 |
Special DPS | 4.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Analyst Conclusions
Management guidance
Management provides no quantitative guidance. Its qualitative outlook (AR 2025/26) is:
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"cautiously optimistic" about Hong Kong retail, where early signs of improvement are emerging;
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continued rent-affordability discipline;
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stringent cost control; and
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exploration of new business opportunities using cash reserves.
Consensus expectations
None; there is no analyst coverage.
Bull case
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Asset value floor. The market capitalisation of about HKD 161M is below the London property value (HKD 171.2M) alone. Add pro-forma cash of roughly HKD 100–105M after the Ashworth proceeds and the October dividend (analyst estimate: HKD 89.1M + about HKD 30.9M remaining consideration − HKD 16.6M dividend). Add the Guy Laroche trademark as well. The shares imply a deep discount to sum-of-the-parts.
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Underlying break-even. Stripping out non-cash valuation, impairment and deregistration charges, FY2026 pre-tax was about HKD +1.6M. H1 FY2026 attributable loss was only HKD 0.93M. Further cost cuts and the exit from loss-making Ashworth retail could restore modest profitability.
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Capital-return or privatisation optionality. The HKD 363.9M distributable reserve, about 63% family ownership, a 0.44x P/B and a 10% yield make a special distribution, buyback or privatisation offer plausible catalysts.
Bear case
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Structural decline. Garment revenue fell 44% in two years and segment EBITDA halved in FY2026. Hong Kong clothing sales turned negative in mid-2026, and printing faces obsolescence. There is no visible growth engine.
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Value leakage. The key brand asset (Ashworth) went to a family-owned buyer for HKD 34.32M including the loan, with only an HKD 2.36M gain. The dividend is funded from shrinking cash. Minority shareholders bear the cost of an undefined "new business" pivot directed by an ageing, interlocked board.
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Repeated write-downs. HKD 26.5M of trademark impairment and HKD 29.9M of London valuation losses in two years suggest book value may still be overstated. The discount to NAV may therefore be justified rather than an opportunity.
Catalysts and monitorables (next 12 months)
| Expected timing | Catalyst / monitorable |
|---|---|
| Late Nov / early Dec 2026 | H1 FY2027 interim results: first period without Ashworth IP and PRC royalties; Hong Kong retail trading; any interim dividend |
| Q4 2026 | Confirmation of completion and receipt of the Ashworth proceeds (if not already announced); use of proceeds |
| Ongoing | Announcement of any "new business opportunity" acquisition, investment or diversification |
| Ongoing | Exercise of the buyback mandate, or special dividends from the capital reduction reserve |
| 31 Mar 2027 | London property revaluation; Guy Laroche impairment test |
| Monthly | Hong Kong C&SD clothing and footwear retail sales data |
| FY2027 | J.Lindeberg contract continuity; renewal of the Yangtzekiang premises licence and garment agreements |
| Sep 2027 | AGM: board succession and INED refresh progress |
Concluding analyst verdict
YGM Trading is no longer an operating growth story. It is a family-controlled holding company in managed retreat.
The past three fiscal years have dismantled what remained of the pan-Asian apparel platform:
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Mainland China retail was terminated in FY2025;
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Taiwan followed in FY2026;
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the Ashworth brand, bought from TaylorMade in 2019 as a "platform" for global direct-to-consumer expansion, has been sold back into family hands seven years later for HKD 34.32M including the shareholder loan.
What remains is a 28-door Hong Kong and Macau retail network with collapsing segment profitability, a Guy Laroche licensing stream, a marginal security-printing unit and a well-let London building.
The investment debate is therefore about balance-sheet value and governance, not earnings. On paper the shares look optically cheap:
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about 0.44x book value;
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below the value of the London asset alone; and
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a double-digit dividend yield.
Yet the evidence counsels caution:
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equity has fallen 26% in four years;
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trademarks and property have been written down by HKD 56M in two years;
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cash declines every year because the dividend exceeds lease-adjusted free cash flow;
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the most consequential recent transaction was a related-party disposal.
The board's stated intention to deploy cash into unspecified "new business opportunities" adds execution risk rather than reducing it, given an executive bench averaging about 75 years and no disclosed strategic framework.
**Verdict: a deep-value, special-situation holding. Absent such a catalyst, continued NAV erosion through dividends, impairments and sub-scale retail losses is the base case.
Key monitorables are:
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H1 FY2027 results, the first without Ashworth;
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disclosure of how the disposal proceeds are used; and
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any move to use the HKD 363.9M distributable reserve.
We would require evidence of either sustained underlying profitability or a credible capital-return commitment before viewing the discount to NAV as an opportunity rather than a fair reflection of risk.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Board tenure (first appointed) | Age | Education | Background / other roles |
|---|---|---|---|---|---|
Chan Wing Sun, Samuel | Executive Director, Chairman (since Sep 2015); Chairs Risk Management Committee | 1987 | 78 | BA, University of Manchester (1970); Chartered Accountant (1973) | Company Secretary of Yangtzekiang Garment 1974–88 and its executive director since 1979. YGM Managing Director 1987–2006, CEO 2006–10, Vice Chairman 2010–15. Chairman of Crater Gold Mining (delisted from ASX July 2023). |
Chan Suk Ling, Shirley, BBS, JP | Executive Director, Vice Chairman; Risk Management Committee member; Nomination Committee member (from 1 Aug 2025) | 1987 | 75 | BA, Nottingham Trent University (1973) | Joined Yangtzekiang 1973 and is its executive director. Council Member of the HK Trade Development Council (chairs its Staff & Finance Committee). Election Committee member. Chairman Emeritus of the HK Brand Development Council. Chairs the PolyU Fashion & Textile advisory committee. |
Fu Sing Yam, William | Executive Director, Chief Executive Officer (since Sep 2015); Risk Management Committee member | 1995 (joined group 1985) | 64 | BA, University of Western Ontario (1984) | Deputy MD 2006–10 and MD 2010–15. Fashion retail, wholesale, marketing and merchandising specialist. |
Chan Wing Fui, Peter, MA | Executive Director; Remuneration and Nomination Committee member | 1987 | 80 | MA in Administrative Science, Yale (1969) | Chairman of Yangtzekiang Garment; YGM Chairman 2010–15 |
Chan Wing Kee, GBM, GBS, OBE, JP | Executive Director | 1987 | 79 | BSc Industrial Engineering, Purdue (1970) | INED of Kingboard Holdings (0148.HK). Former CPPCC Standing Committee member and NPC deputy. |
Choi Ting Ki | INED; Chairs Nomination Committee; Audit and Remuneration Committee member | Dec 2012 | 71 | Accounting, HK Polytechnic (1978); FCPA (HKICPA) | Former senior partner, KPMG Huazhen (retired 2010). Also INED of Yangtzekiang Garment. |
So Stephen Hon Cheung | INED; Chairs Audit Committee; Remuneration and Nomination Committee member | Sep 2017 | 70 | BCom, University of British Columbia; FCPA, CPA Canada | Director of T.M. Ho So & Leung CPA. CFO and company secretary of Ying Kee Tea House (8241). INED of Yangtzekiang Garment and PINE Technology (1079). Annual fee HKD 150,000 at appointment (2017). |
Li Guangming | INED; Chairs Remuneration Committee; Audit and Nomination Committee member. Retired at the 18 Sep 2026 AGM. | Jan 2018 | 74 | Wuxi Professional University (now Jiangnan University) | Former chairman, Wuxi No.1 Cotton Textile Group. Also INED of Yangtzekiang. Annual fee HKD 110,000 at appointment (2018). |
So Ying Woon, Alan (proposed) | Proposed INED at the 18 Sep 2026 AGM; to chair the Remuneration Committee and join the Audit and Nomination Committees | Proposed Sep 2026 | 76 | — | Former executive director of Yangtzekiang Garment. Holds 1.45M YGM shares (~0.88%). |
Directors' Remuneration
| Attribute | Detail |
|---|---|
Board size | 8 (5 executive, 3 INED). Pending AGM outcome: 8, with So Ying Woon Alan replacing Li Guangming. |
Independence | 37.5% INED, which meets the Listing Rule 3.10A one-third minimum |
Gender diversity | 1 female director (12.5%) |
Chair / CEO separation | Yes: Samuel Chan is Chairman and William Fu is CEO |
Audit Committee | 3 INEDs; chaired by So Stephen Hon Cheung; met 3 times in FY2026 |
Remuneration Committee | 2 executive directors and 3 INEDs; chaired by Li Guangming |
Nomination Committee | 2 executive directors and 3 INEDs; chaired by Choi Ting Ki |
Risk Management Committee | 3 executive directors; chaired by Samuel Chan |
Attendance FY2026 | 100% at all board (4/4) and committee meetings |
INED terms | No fixed term; subject to rotation |
Internal audit | Outsourced to an external consultant |
Policies | Whistleblowing (CG Code D.2.3), anti-corruption (D.2.4), board diversity, nomination and dividend policies adopted |
Average director age | ~74 years (analyst-derived from disclosed ages) |
Directors' Remuneration (2)
| Item | Detail |
|---|---|
Senior management (4 individuals), FY2026 bands | 2 individuals at HKD 0–1,000,000; 2 individuals at HKD 1,000,001–2,000,000 |
Share options / stock awards | None. No equity-linked agreements existed during FY2026. |
INED fees at appointment | So Stephen Hon Cheung HKD 150,000 a year (2017); Li Guangming HKD 110,000 a year (2018) |
Board & Management Changes
| Date | Change |
|---|---|
23 Sep 2022 | Andrew Chan retired as executive director and Managing Director |
1 Aug 2025 | Samuel Chan left the Nomination Committee; Shirley Chan joined it |
18 Sep 2026 | Li Guangming retired as INED; So Ying Woon, Alan nominated as INED |
Earlier, date n.d. | Chan Wing To resigned as executive director (Stockopedia brief). He remains a 6.06% substantial shareholder. |
Major Shareholders
| Holder | Shares | % of issued |
|---|---|---|
Chan Family Investment Corporation Ltd (owned by Chan Wing Kee, Samuel Chan, William Fu, Shirley Chan and other family members) | 42,298,332 | 25.50 |
Chan Wing Sun, Samuel (personal 8.34M, family 0.25M, corporate 8.09M) | 16,688,526 | 10.06 |
Chan Wing Fui, Peter (personal, family, corporate) | 13,193,243 | 7.95 |
Chan Wing Kee (personal and family) | 11,548,700 | 6.96 |
Chan Wing To (beneficial owner) | 10,051,366 | 6.06 |
Chan Suk Ling, Shirley (personal and family) | 9,138,397 | 5.51 |
Fu Sing Yam, William | 2,078,946 | 1.25 |
So Ying Woon, Alan (proposed INED) | 1,450,000 | 0.88 |
Competitive Landscape
Peer Comparison FY2026
| Metric | YGM Trading (FY Mar 2026) | Giordano International (FY Dec 2025) |
|---|---|---|
Revenue (HKD Mn) | 161.1 | 3,854 |
Revenue growth (%) | -9.4 | -1.7 |
Gross margin (%) | 65.1 | 55.8 |
Operating margin (%) | -1.8 | 6.4 |
Net margin (%) | -23.3 | 5.6 |
R&D intensity | — | — |
Employees | ~180 | ~6,600 (TipRanks, 2025) |
Recent Developments
Not identified in this period: * layoffs announcements (headcount fell from about 200 to 180 through attrition and closures), litigation and regulatory actions.
