Pou Chen Corp.

Company Background

Pou Chen is a holding company that controls a massive contract shoemaking empire, servicing international brands including Nike, Adidas and Puma. It operates factories in China, Vietnam and Indonesia. The company also distributes major international casualwear brands in Taiwan and China.

The company was founded in 1969 by C.J. Tsai in the central Taiwanese farming county of Changhua. It started out making rubber shoes for export, and first became a contract manufacturer in 1979 when it made shoes for Adidas.

In recent years, Pou Chen has transformed itself into a holding company by transferring shoe production to the Hong Kong-listed subsidiary Yue Yuen Industrial (Holdings) in 2002 and the distribution business to its subsidiary Pou Sheng International Holdings in 2008.

Chief Executive Patty Tsai is the daughter of C.J. She obtained a bachelor's degree in economics with a concentration in finance from the Wharton School of the University of Pennsylvania in 2002, and joined the family business in the same year. She was appointed CEO in 2012.

Business Summary

Pou Chen Corp. engages in the manufacture and sale of athletic and casual footwear. It focuses on footwear, sports apparel, and sports accessories such as sports bag, backpacks, luggage, and travel accessories. Its products include sports shoes, leather shoes, plastic shoes, rubber shoes, cloth shoes, and plastic foam boards. It also engaged in manufacture and sale of cotton. rayon. rayon. synthetic fiber, and blended knit. The company was founded on September 4, 1969 and is headquartered in Taichung, Taiwan.

Financial Highlights

Dec 2022	TWD	USD
Revenue	267,496.80M	8,972.49M
Gross Profit	55,391.17M	1,857.95M
Operating income	10,603.78M	355.67M
Income before tax	13,890.80M	465.93M
Net income	12,644.85M	424.13M
EBITDA	25,719.60M	862.69M
Diluted EPS	4.27	0.14
Dividends Per Share	1.30	0.04
Total Assets	324,529.40M	10,558.78M
Total liabilities	142,401.92M	4,633.14M
Total equity	107,012.02M	3,481.70M
Operating cash flow	27,132.13M	910.07M
	Currency in TWD	Currency in USD

Historical Data

TWD | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	293,316.08M	313,156.58M	249,954.31M	239,884.40M	267,496.80M
Gross Profit	70,826.70M	70,265.54M	44,540.21M	47,839.01M	55,391.17M
Operating income	13,823.68M	13,972.51M	-2,089.74M	2,495.21M	10,603.78M
Income before tax	14,500.34M	14,107.45M	-1,936.36M	6,179.44M	13,890.80M
Net income	10,708.64M	11,828.60M	4,840.18M	14,439.30M	12,644.85M
EBITDA	24,223.83M	29,675.08M	14,494.56M	19,246.66M	25,719.60M
Diluted EPS	3.62	4.00	1.63	4.88	4.27
Dividends Per Share	1.50	1.25	0.50	1.50	1.30
Total Assets	304,262.41M	363,056.33M	368,914.55M	366,890.82M	324,529.40M
Total liabilities	152,064.70M	173,187.30M	167,671.35M	159,394.07M	142,401.92M
Total equity	77,863.39M	117,408.93M	134,109.45M	139,432.95M	107,012.02M
Operating cash flow	12,541.31M	27,168.07M	26,109.45M	14,552.87M	27,132.13M

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	9,727.12M	10,130.35M	8,488.99M	8,588.19M	8,972.49M
Gross Profit	2,348.79M	2,273.03M	1,512.68M	1,712.70M	1,857.95M
Operating income	458.42M	451.99M	-70.97M	89.33M	355.67M
Income before tax	480.86M	456.36M	-65.76M	221.23M	465.93M
Net income	355.12M	382.64M	164.38M	516.94M	424.13M
EBITDA	803.32M	959.96M	492.26M	689.05M	862.69M
Diluted EPS	0.12	0.12	0.05	0.17	0.14
Dividends Per Share	0.04	0.04	0.01	0.05	0.04
Total Assets	9,898.89M	12,111.16M	13,129.56M	13,260.95M	10,558.78M
Total liabilities	4,947.28M	5,777.33M	5,967.37M	5,761.16M	4,633.14M
Total equity	2,533.21M	3,916.63M	4,772.91M	5,039.68M	3,481.70M
Operating cash flow	415.90M	878.86M	886.73M	521.01M	910.07M

Valuation Measures

Dec 2022
PER	7.96
ROA	3.65%
ROE	10.26%
Operating margin	3.96%
Profit margin	4.72%

Key executives

Chairman & General Manager-Administration: Lu Min Chan
General Manager & Director: Chin Chu Lu
Operations Director: Yuang Whang Liao
Head-Finance & Assistant Deputy GM: Ya Fen Chang
Vice President: Nai Yung Tsai

Shareholders

TSAI CHI JUI (8.2%)
Chuan Mou Investments Co. Ltd. (5.5%)
The Vanguard Group, Inc. (2.8%)
BlackRock Fund Advisors (2.0%)
Norges Bank Investment Management (1.4%)
Shun Tai Investment Co. Ltd. /TW/ (0.8%)
Dimensional Fund Advisors LP (0.7%)
SHIH CHING I (0.7%)
Charles Schwab Investment Management, Inc. (0.5%)
BlackRock Advisors (UK) Ltd. (0.5%)

Contact Details

Website:http://www.pouchen.com
Address: No. 600 Taiwan Boulevard Section 4, Xitun District, Taichung, 407 64, Taiwan
Phone: +886.4.2461.5678

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Competitors

HWASEUNG ENTERPRISE Co., Ltd.
Eagle Nice (International) Holdings Ltd.

Last Updated on 2 Jun, 2023