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Market Cap

CN¥4.7b

Last Updated

2021/04/14 10:03 UTC

Data Sources

Company Financials +

Executive Summary

Lu Thai Textile Co., Ltd., together with its subsidiaries, produces and sells middle and high-grade yarn-dyed fabrics and dyeing fabrics for shirts and garments. More Details


Snowflake Analysis

Very undervalued with excellent balance sheet.

Share Price & News

How has Lu Thai Textile's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 000726 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 000726's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-8.8%

726

-2.2%

CN Luxury

-3.2%

CN Market


1 Year Return

-29.2%

726

7.7%

CN Luxury

24.0%

CN Market

Return vs Industry: 000726 underperformed the CN Luxury industry which returned 7.7% over the past year.

Return vs Market: 000726 underperformed the CN Market which returned 24% over the past year.


Shareholder returns

726IndustryMarket
7 Day-8.8%-2.2%-3.2%
30 Day-11.9%7.0%-1.5%
90 Day-2.1%13.7%-7.4%
1 Year-28.4%-29.2%9.8%7.7%25.9%24.0%
3 Year-34.5%-41.1%-7.7%-13.1%26.6%20.5%
5 Yearn/a-41.8%-45.8%22.2%14.1%

Long-Term Price Volatility Vs. Market

How volatile is Lu Thai Textile's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lu Thai Textile undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 000726 (CN¥6.1) is trading below our estimate of fair value (CN¥15.73)

Significantly Below Fair Value: 000726 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 000726 is good value based on its PE Ratio (30.1x) compared to the CN Luxury industry average (31x).

PE vs Market: 000726 is good value based on its PE Ratio (30.1x) compared to the CN market (32.8x).


Price to Earnings Growth Ratio

PEG Ratio: 000726 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 000726 is good value based on its PB Ratio (0.4x) compared to the CN Luxury industry average (2.1x).


Future Growth

How is Lu Thai Textile forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

46.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000726's forecast earnings growth (46.6% per year) is above the savings rate (3.3%).

Earnings vs Market: 000726's earnings (46.6% per year) are forecast to grow faster than the CN market (23.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 000726's revenue (12.9% per year) is forecast to grow slower than the CN market (17.9% per year).

High Growth Revenue: 000726's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 000726's Return on Equity is forecast to be low in 3 years time (9.5%).


Past Performance

How has Lu Thai Textile performed over the past 5 years?

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 000726 has a large one-off loss of CN¥46.7M impacting its December 31 2020 financial results.

Growing Profit Margin: 000726's current net profit margins (2%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: 000726's earnings have declined by 4.8% per year over the past 5 years.

Accelerating Growth: 000726's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 000726 had negative earnings growth (-89.8%) over the past year, making it difficult to compare to the Luxury industry average (2.3%).


Return on Equity

High ROE: 000726's Return on Equity (1.1%) is considered low.


Financial Health

How is Lu Thai Textile's financial position?


Financial Position Analysis

Short Term Liabilities: 000726's short term assets (CN¥5.0B) exceed its short term liabilities (CN¥1.9B).

Long Term Liabilities: 000726's short term assets (CN¥5.0B) exceed its long term liabilities (CN¥2.2B).


Debt to Equity History and Analysis

Debt Level: 000726's debt to equity ratio (34.8%) is considered satisfactory.

Reducing Debt: 000726's debt to equity ratio has increased from 11.1% to 34.8% over the past 5 years.

Debt Coverage: 000726's debt is well covered by operating cash flow (21%).

Interest Coverage: 000726 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Lu Thai Textile current dividend yield, its reliability and sustainability?

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 000726's dividend (1.51%) is higher than the bottom 25% of dividend payers in the CN market (0.44%).

High Dividend: 000726's dividend (1.51%) is low compared to the top 25% of dividend payers in the CN market (1.84%).


Stability and Growth of Payments

Stable Dividend: 000726's dividend payments have been volatile in the past 10 years.

Growing Dividend: 000726's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.5%), 000726's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.0yrs

Average management tenure


CEO

Zibin Liu (55 yo)

no data

Tenure

CN¥1,475,900

Compensation

Mr. Zibin Liu serves as General Manager and Chairman of the Board of Lu Thai Textile Co. Ltd. Mr. Liu served as the Deputy General Manager and Chief Financial Officer of Lu Thai Textile Co. Ltd. He served ...


Leadership Team

Experienced Management: 000726's management team is seasoned and experienced (15 years average tenure).


Board Members

Experienced Board: 000726's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lu Thai Textile Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lu Thai Textile Co., Ltd.
  • Ticker: 726
  • Exchange: XSEC
  • Founded: NaN
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$5.629b
  • Listing Market Cap: HK$4.738b
  • Shares outstanding: 858.13m
  • Website: https://www.lttc.com.cn

Number of Employees


Location

  • Lu Thai Textile Co., Ltd.
  • No. 81, Songling East Road
  • Zichuan District
  • Zibo
  • Shandong Province
  • 255100
  • China

Listings


Biography

Lu Thai Textile Co., Ltd., together with its subsidiaries, produces and sells middle and high-grade yarn-dyed fabrics and dyeing fabrics for shirts and garments. It provides combed cotton and blended yarns...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/14 10:03
End of Day Share Price2021/04/13 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.