SEHK:2678

Stock Analysis Report

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Executive Summary

Texhong Textile Group Limited, an investment holding company, primarily manufactures and sells yarns, grey fabrics, and garment fabrics. More Details


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2678 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 2678's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-3.8%

2678

0.9%

HK Luxury

0.4%

HK Market


1 Year Return

-13.5%

2678

22.5%

HK Luxury

10.1%

HK Market

Return vs Industry: 2678 underperformed the Hong Kong Luxury industry which returned 22.5% over the past year.

Return vs Market: 2678 underperformed the Hong Kong Market which returned 10.1% over the past year.


Shareholder returns

2678IndustryMarket
7 Day-3.8%0.9%0.4%
30 Day13.8%15.8%9.3%
90 Day14.6%23.3%6.1%
1 Year-11.0%-13.5%25.0%22.5%14.6%10.1%
3 Year-21.9%-30.0%58.7%44.4%1.5%-9.1%
5 Year53.2%26.0%100.5%71.3%33.7%11.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Texhong Textile Group 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: 2678 (HK$6.92) is trading below our estimate of fair value (HK$31.77)

Significantly Below Fair Value: 2678 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2678 is poor value based on its PE Ratio (12.7x) compared to the HK Luxury industry average (11.6x).

PE vs Market: 2678 is poor value based on its PE Ratio (12.7x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2678 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 2678's PB Ratio (0.7x) is in line with the HK Luxury industry average.


Next Steps

Future Growth

How is Texhong Textile Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

56.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2678's forecast earnings growth (56.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 2678's earnings (56.5% per year) are forecast to grow faster than the Hong Kong market (22.6% per year).

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

Revenue vs Market: 2678's revenue (10% per year) is forecast to grow slower than the Hong Kong market (13.8% per year).

High Growth Revenue: 2678's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2678's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Texhong Textile Group performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2678 has high quality earnings.

Growing Profit Margin: 2678's current net profit margins (2.1%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: 2678's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: 2678's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2678 had negative earnings growth (-59%) over the past year, making it difficult to compare to the Luxury industry average (-30.3%).


Return on Equity

High ROE: 2678's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Texhong Textile Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2678's short term assets (CN¥11.8B) exceed its short term liabilities (CN¥9.8B).

Long Term Liabilities: 2678's short term assets (CN¥11.8B) exceed its long term liabilities (CN¥5.2B).


Debt to Equity History and Analysis

Debt Level: 2678's debt to equity ratio (126.1%) is considered high.

Reducing Debt: 2678's debt to equity ratio has increased from 83% to 126.1% over the past 5 years.

Debt Coverage: 2678's debt is well covered by operating cash flow (21.5%).

Interest Coverage: 2678's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Texhong Textile Group current dividend yield, its reliability and sustainability?

4.59%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2678's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2678's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2678's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2678's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2678 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2678's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

11.4yrs

Average board tenure


CEO

Yongxiang Zhu (54 yo)

no data

Tenure

CN¥861,000

Compensation

Mr. Yongxiang Zhu serves as Vice-Chairman of Texhong Textile Group Ltd. Also serves as Chief Executive Officer since October 10, 2011 and has has been an Executive Director at Texhong Textile Group Ltd. Si...


CEO Compensation Analysis

Compensation vs Market: Yongxiang's total compensation ($USD131.02K) is below average for companies of similar size in the Hong Kong market ($USD458.55K).

Compensation vs Earnings: Yongxiang's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Tianzhu Hong
Founder & Executive Chairmanno dataCN¥2.59m43.52%
CN¥ 2.9b
Yongxiang Zhu
CEO & Executive Vice-Chairmanno dataCN¥861.00k7.43%
CN¥ 499.1m
Daoping Tang
COO & Executive Director16.08yrsCN¥5.00m0.063%
CN¥ 4.3m
Zhongliang Ji
Executive Director5.33yrsCN¥2.46mno data
Tsz Wai Hui
Financial Consultant5.83yrsCN¥3.89mno data
Leung Huel Ting
Independent Non-Executive Director16.08yrsCN¥269.00kno data
Longdi Cheng
Independent Non-Executive Director16.08yrsCN¥134.00kno data
Xiaoming Tao
Independent Non-Executive Director6.75yrsCN¥161.00kno data

11.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 2678's board of directors are seasoned and experienced ( 11.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Texhong Textile Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Texhong Textile Group Limited
  • Ticker: 2678
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$6.716b
  • Shares outstanding: 915.00m
  • Website: https://www.texhong.com

Number of Employees


Location

  • Texhong Textile Group Limited
  • Cable TV Tower
  • Room 03
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2678SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2004
TTXT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2004
2678SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2004
2678SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2004

Biography

Texhong Textile Group Limited, an investment holding company, primarily manufactures and sells yarns, grey fabrics, and garment fabrics. It also offers dyed clothes and dress, dyed and denim fabrics, finis...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 10:07
End of Day Share Price2020/12/02 00:00
Earnings2020/06/30
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.