SEHK:1382

Stock Analysis Report

Pacific Textiles Holdings

Executive Summary

Pacific Textiles Holdings Limited, an investment holding company, engages in the manufacturing and trading of textile products.

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.

Share Price & News

How has Pacific Textiles Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

1382

4.1%

HK Luxury

2.4%

HK Market


1 Year Return

-29.7%

1382

25.8%

HK Luxury

0.4%

HK Market

Return vs Industry: 1382 underperformed the Hong Kong Luxury industry which returned 25.8% over the past year.

Return vs Market: 1382 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

1382IndustryMarket
7 Day2.9%4.1%2.4%
30 Day-3.3%2.7%-2.6%
90 Day-14.8%6.5%-5.6%
1 Year-23.5%-29.7%30.2%25.8%4.0%0.4%
3 Year-33.8%-46.6%44.2%27.0%15.1%3.5%
5 Year-25.4%-47.8%43.8%15.6%20.3%0.3%

Price Volatility Vs. Market

How volatile is Pacific Textiles Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pacific Textiles Holdings undervalued compared to its fair value and its price relative to the market?

39.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1382 (HK$5.3) is trading below our estimate of fair value (HK$8.81)

Significantly Undervalued: 1382 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1382 is good value based on its PE Ratio (8.9x) compared to the Luxury industry average (9.4x).

PE vs Market: 1382 is good value based on its PE Ratio (8.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1382 is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: 1382 is overvalued based on its PB Ratio (2.3x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Pacific Textiles Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1382's forecast earnings growth (4.4% per year) is above the savings rate (2%).

Earnings vs Market: 1382's earnings (4.4% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 1382's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1382's revenue (3.2% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1382's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1382's Return on Equity is forecast to be high in 3 years time (26.5%)


Next Steps

Past Performance

How has Pacific Textiles Holdings performed over the past 5 years?

-6.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1382's earnings have declined by -6.7% per year over the past 5 years.

Accelerating Growth: 1382's earnings growth over the past year (15.8%) exceeds its 5-year average (-6.7% per year).

Earnings vs Industry: 1382 earnings growth over the past year (15.8%) exceeded the Luxury industry -4.9%.


Return on Equity

High ROE: 1382's Return on Equity (26.6%) is considered high.


Return on Assets

ROA vs Industry: 1382 has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 1382's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pacific Textiles Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1382's short term assets (HK$2.5B) exceeds its short term liabilities (HK$1.1B)

Long Term Liabilities: 1382's short term assets (2.5B) exceeds its long term liabilities (209.0M)


Debt to Equity History and Analysis

Debt Level: 1382's debt to equity ratio (13.6%) is considered satisfactory

Reducing Debt: 1382's debt to equity ratio has increased from 1.3% to 13.6% over the past 5 years.

Debt Coverage: 1382's debt is well covered by operating cash flow (242.7%).

Interest Coverage: 1382 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1382 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1382's debt is covered by short term assets (assets are 5.667410x debt).


Next Steps

Dividend

What is Pacific Textiles Holdings's current dividend yield, its reliability and sustainability?

10.75%

Current Dividend Yield


Dividend Yield vs Market

company10.8%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Years10.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1382's dividend (10.75%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1382's dividend (10.75%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)

Stable Dividend: 1382's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1382's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.7%), 1382's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1382's dividends in 3 years are forecast to be covered by earnings (86.5% payout ratio).


Next Steps

Management

What is the CEO of Pacific Textiles Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Wai Loi Wan (69yo)

4.3yrs

Tenure

HK$24,747,000

Compensation

Mr. Wai Loi Wan founded Pacific Textiles Holdings Limited in 1997 and has been its Chief Executive Officer since July 1, 2015. Mr. Wan serves as Chairman of Pacific Textiles Holdings Limited and has been i ...


CEO Compensation Analysis

Compensation vs. Market: Wai Loi's total compensation ($USD3.15M) is above average for companies of similar size in the Hong Kong market ($USD405.05K).

Compensation vs Earnings: Wai Loi's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 1382's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

12.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 1382's board of directors are seasoned and experienced ( 12.6 years average tenure).


Insider Trading

Insider Buying: 1382 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyHK$838,74616 Sep 19
Schroder Investment Management Limited
EntityCompany
Shares153,000
Max PriceHK$5.48
BuyHK$1,655,56416 Sep 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares302,000
Max PriceHK$5.48
SellHK$4,164,93110 Sep 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares770,000
Max PriceHK$5.41
BuyHK$11,241,28220 Aug 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares2,118,000
Max PriceHK$5.31
SellHK$3,895,24202 Aug 19
Wing Lam
EntityIndividual
Shares617,000
Max PriceHK$6.31
SellHK$75,189,96703 Dec 18
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares9,554,000
Max PriceHK$7.87
SellHK$1,747,48506 Nov 18
Matthews International Capital Management, LLC
EntityCompany
Shares225,000
Max PriceHK$7.77
BuyHK$5,283,56224 Oct 18
Matthews International Capital Management, LLC
EntityCompany
Shares669,000
Max PriceHK$7.90

Ownership Breakdown


Management Team

  • Eugene Cheng (59yo)

    Assistant General Manager of Human Resources Management & Administration

    • Tenure: 0yrs
  • Joyce Chan (46yo)

    Company Secretary

    • Tenure: 1.9yrs
  • Ken Tou (56yo)

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$4.49m
  • Wai Loi Wan (69yo)

    Founder

    • Tenure: 4.3yrs
    • Compensation: HK$24.75m
  • Chi Man Lai (52yo)

    General Manager of Sales

    • Tenure: 0yrs
  • E. Rohan Goonetilleke (66yo)

    Managing Director of Textured Jersey Lanka (Private) Limited

    • Tenure: 16.3yrs
  • Toshiya Ishii (57yo)

    Executive Director

    • Tenure: 2yrs
    • Compensation: HK$3.13m
  • Sian Chung Tsang (42yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Koji Asada (50yo)

    General Manager of Marketing

    • Tenure: 2.8yrs
  • Masaru Okutomi (61yo)

    Vice Chairman

    • Tenure: 0.3yrs

Board Members

  • Michael Chan (67yo)

    Independent Non-Executive Director

    • Tenure: 12.6yrs
    • Compensation: HK$250.00k
  • Ken Tou (56yo)

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$4.49m
  • Wai Loi Wan (69yo)

    Founder

    • Tenure: 4.3yrs
    • Compensation: HK$24.75m
  • Nigel Sze (62yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: HK$250.00k
  • Ching Wah Ng (70yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: HK$250.00k
  • Yiu Tong Lau (71yo)

    Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: HK$12.04m
  • Toshiya Ishii (57yo)

    Executive Director

    • Tenure: 2yrs
    • Compensation: HK$3.13m
  • Masaru Okutomi (61yo)

    Vice Chairman

    • Tenure: 0.3yrs

Company Information

Pacific Textiles Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pacific Textiles Holdings Limited
  • Ticker: 1382
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$7.655b
  • Shares outstanding: 1.44b
  • Website: https://www.pacific-textiles.com

Number of Employees


Location

  • Pacific Textiles Holdings Limited
  • Eastern Sea Industrial Building
  • 7th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1382SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2007
WHEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
1382SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2007
1382SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2007

Biography

Pacific Textiles Holdings Limited, an investment holding company, engages in the manufacturing and trading of textile products. The company is involved in the knitting, dyeing, printing, and finishing of f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:49
End of Day Share Price2019/10/15 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.