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

-3.6%

1382

-2.5%

HK Luxury

-2.7%

HK Market


1 Year Return

-15.8%

1382

5.5%

HK Luxury

-9.4%

HK Market

1382 underperformed the Luxury industry which returned 5.5% over the past year.

1382 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

1382IndustryMarket
7 Day-3.6%-2.5%-2.7%
30 Day1.3%0.02%1.8%
90 Day-11.5%5.7%-5.6%
1 Year-8.4%-15.8%8.9%5.5%-6.2%-9.4%
3 Year-33.2%-46.0%34.0%18.4%14.3%2.7%
5 Year-21.5%-45.1%38.8%11.8%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Pacific Textiles Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Pacific Textiles Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Pacific Textiles Holdings is overvalued based on earnings compared to the HK Luxury industry average.

Pacific Textiles Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Pacific Textiles Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Pacific Textiles Holdings is overvalued based on assets compared to the HK Luxury industry average.


Next Steps

Future Growth

How is Pacific Textiles Holdings expected 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 Estimates


Future Annual Growth Analysis

Pacific Textiles Holdings's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Pacific Textiles Holdings's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Pacific Textiles Holdings's revenue growth is positive but not above the Hong Kong market average.

Pacific Textiles Holdings's earnings growth is positive but not above the Hong Kong market average.

Pacific Textiles Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Pacific Textiles Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Pacific Textiles Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Pacific Textiles Holdings's 1-year earnings growth exceeds its 5-year average (15.8% vs -6.7%)

Pacific Textiles Holdings's earnings growth has exceeded the HK Luxury industry average in the past year (15.8% vs -4.9%).


Return on Equity

Pacific Textiles Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Pacific Textiles Holdings used its assets more efficiently than the HK Luxury industry average last year based on Return on Assets.


Return on Capital Employed

Pacific Textiles Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Pacific Textiles Holdings's financial position?


Financial Position Analysis

Pacific Textiles Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pacific Textiles Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Pacific Textiles Holdings's level of debt (13.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (1.3% vs 13.6% today).

Debt is well covered by operating cash flow (242.7%, greater than 20% of total debt).

Pacific Textiles Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 5.7x debt.


Next Steps

Dividend

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

10.91%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Pacific Textiles Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Pacific Textiles Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (6.16%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


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?

4.2yrs

Average management tenure


CEO

Wai Loi Wan (69yo)

4.2yrs

Tenure

HK$27,747,000

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

Wai Loi's remuneration is higher than average for companies of similar size in Hong Kong.

Wai Loi's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

56.5yo

Average Age

The tenure for the Pacific Textiles Holdings management team is about average.


Board Age and Tenure

12.5yrs

Average Tenure

64.5yo

Average Age

The average tenure for the Pacific Textiles Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Pacific Textiles Holdings individual 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: 1.8yrs
  • Ken Tou (56yo)

    CFO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$11.48m
  • Wai Loi Wan (69yo)

    Founder

    • Tenure: 4.2yrs
    • Compensation: HK$27.75m
  • 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: 1.9yrs
    • Compensation: HK$7.39m
  • Sian Chung Tsang (42yo)

    Chief Information Officer

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

    General Manager of Marketing

    • Tenure: 2.7yrs
  • Masaru Okutomi (61yo)

    Vice Chairman

    • Tenure: 0.2yrs

Board Members

  • Michael Chan (67yo)

    Independent Non-Executive Director

    • Tenure: 12.5yrs
    • Compensation: HK$250.00k
  • Ken Tou (56yo)

    CFO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: HK$11.48m
  • Wai Loi Wan (69yo)

    Founder

    • Tenure: 4.2yrs
    • Compensation: HK$27.75m
  • Nigel Sze (62yo)

    Independent Non-Executive Director

    • Tenure: 12.7yrs
    • Compensation: HK$250.00k
  • Ching Wah Ng (70yo)

    Independent Non-Executive Director

    • Tenure: 12.7yrs
    • Compensation: HK$250.00k
  • Yiu Tong Lau (71yo)

    Non-Executive Director

    • Tenure: 12.7yrs
    • Compensation: HK$34.13m
  • Toshiya Ishii (57yo)

    Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$7.39m
  • Masaru Okutomi (61yo)

    Vice Chairman

    • Tenure: 0.2yrs

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$7.674b
  • Shares outstanding: 1.45b
  • 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 Analysis2019/09/21 12:42
End of Day Share Price2019/09/20 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.