SEHK:1968

Stock Analysis Report

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Executive Summary

Hingtex Holdings Limited designs, manufactures, and sells denim fabrics.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1968's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.2%

1968

6.6%

HK Luxury

3.4%

HK Market


1 Year Return

-57.2%

1968

4.2%

HK Luxury

-7.8%

HK Market

Return vs Industry: 1968 underperformed the Hong Kong Luxury industry which returned 4.2% over the past year.

Return vs Market: 1968 underperformed the Hong Kong Market which returned -7.8% over the past year.


Shareholder returns

1968IndustryMarket
7 Day-5.2%6.6%3.4%
30 Day-12.9%5.7%-1.4%
90 Day-27.2%-0.9%-5.8%
1 Year-55.1%-57.2%6.5%4.2%-4.8%-7.8%
3 Yearn/a25.2%12.0%-2.6%-12.4%
5 Yearn/a19.7%1.9%-13.6%-27.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hingtex Holdings 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: 1968 (HK$0.18) is trading below our estimate of fair value (HK$0.99)

Significantly Below Fair Value: 1968 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1968 is poor value based on its PE Ratio (22.1x) compared to the Luxury industry average (6.8x).

PE vs Market: 1968 is poor value based on its PE Ratio (22.1x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1968's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1968 is good value based on its PB Ratio (0.3x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is Hingtex Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.9%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hingtex Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hingtex Holdings performed over the past 5 years?

-35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1968 has high quality earnings.

Growing Profit Margin: 1968's current net profit margins (1%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: 1968's earnings have declined by -35.2% per year over the past 5 years.

Accelerating Growth: 1968's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1968 had negative earnings growth (-92.8%) over the past year, making it difficult to compare to the Luxury industry average (3%).


Return on Equity

High ROE: 1968's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is Hingtex Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1968's short term assets (HK$435.5M) exceed its short term liabilities (HK$158.7M).

Long Term Liabilities: 1968's short term assets (HK$435.5M) exceed its long term liabilities (HK$8.2M).


Debt to Equity History and Analysis

Debt Level: 1968's debt to equity ratio (15.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1968's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1968's debt is well covered by operating cash flow (110.3%).

Interest Coverage: Insufficient data to determine if 1968's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

4.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1968's dividend (4.4%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.55%).

High Dividend: 1968's dividend (4.4%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.26%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1968's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1968's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (97.2%), 1968's dividend payments are not 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?

2.4yrs

Average management tenure


CEO

Stephen Tung (49yo)

2.42yrs

Tenure

Mr. Tung Wai Ting, also known as Stephen, is Chief Executive Officer of Hingtex Holdings Limited since 16 January, 2018 and its Executive Director since November 3, 2017. Mr. Stephen Tung has approximately ...


Leadership Team

NamePositionTenureCompensationOwnership
Tsun Hong Tung
Chairman2.42yrsno datano data
Wai Ting Tung
CEO & Executive Director2.42yrsno datano data
Ka Chun Cheung
CFO & Company Secretary2.42yrsno datano data
Poon Yuet Ling
Senior Accounting Manager23.83yrsno datano data
Cheuk Ming Tung
Sales Director & Executive Director2.58yrsno datano data

2.4yrs

Average Tenure

49yo

Average Age

Experienced Management: 1968's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tsun Hong Tung
Chairman2.42yrsno datano data
Wai Ting Tung
CEO & Executive Director2.42yrsno datano data
Cheuk Ming Tung
Sales Director & Executive Director2.58yrsno datano data
Che Kit Cheung
Independent Non-Executive Director2yrsno datano data
Ling Biu Tsang
Independent Non-Executive Director2yrsno datano data
Wang Ching Leung
Independent Non-Executive Director2yrsno datano data

2.2yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 1968's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Hingtex Holdings Limited
  • Ticker: 1968
  • Exchange: SEHK
  • Founded: 1981
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$116.480m
  • Shares outstanding: 640.00m
  • Website: https://www.hwtextiles.com.hk

Number of Employees


Location

  • Hingtex Holdings Limited
  • Gaoping Industrial Area
  • Zhongshan
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1968SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018

Biography

Hingtex Holdings Limited designs, manufactures, and sells denim fabrics. It offers non-stretchable, stretchable cotton, and stretchable blended denim fabrics. The company was founded in 1981 and is headquartered in Zhongshan, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 13:39
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.