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321

Texwinca HoldingsSEHK:321 Stock Report

Market Cap

HK$2.3b

7D

-0.6%

1Y

30.4%

Updated

24 Oct, 2021

Data

Company Financials +
321 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends3/6

321 Overview

Texwinca Holdings Limited engages in the production, dyeing, and sale of knitted fabrics, yarns, and garments.

Price History & Performance

Summary of all time highs, changes and price drops for Texwinca Holdings
Historical stock prices
Current Share PriceHK$1.63
52 Week HighHK$1.13
52 Week LowHK$2.11
Beta1.21
1 Month Change1.24%
3 Month Change-5.23%
1 Year Change30.40%
3 Year Change-37.31%
5 Year Change-69.82%
Change since IPO169.42%

Recent News & Updates

Aug 05
Should Shareholders Reconsider Texwinca Holdings Limited's (HKG:321) CEO Compensation Package?

Should Shareholders Reconsider Texwinca Holdings Limited's (HKG:321) CEO Compensation Package?

Texwinca Holdings Limited ( HKG:321 ) has not performed well recently and CEO Kit Chung Ting will probably need to up...

Shareholder Returns

321HK LuxuryHK Market
7D-0.6%6.1%2.1%
1Y30.4%56.8%5.9%

Return vs Industry: 321 underperformed the Hong Kong Luxury industry which returned 56.8% over the past year.

Return vs Market: 321 exceeded the Hong Kong Market which returned 6% over the past year.

Price Volatility

Is 321's price volatile compared to industry and market?
321 volatility
321 Beta1.21
Industry Beta0.94
Market Beta1

Stable Share Price: 321 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 321's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197512,536Kit Chung Tinghttps://www.texwinca.com

Texwinca Holdings Limited engages in the production, dyeing, and sale of knitted fabrics, yarns, and garments. The company offers finished knitted fabric products in single knit, double knit, velour and polar fleece, jacquard, spandex, stripe, and flat knit areas. It also provides dyed yarn products, such as ramie/cotton, rayon/cotton, acrylic/cotton, and polyester/cotton blend yarn dyed products, as well as cotton yarn dyed products.

Texwinca Holdings Fundamentals Summary

How do Texwinca Holdings's earnings and revenue compare to its market cap?
321 fundamental statistics
Market CapHK$2.25b
Earnings (TTM)HK$274.21m
Revenue (TTM)HK$7.35b

8.2x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
321 income statement (TTM)
RevenueHK$7.35b
Cost of RevenueHK$5.07b
Gross ProfitHK$2.28b
ExpensesHK$2.01b
EarningsHK$274.21m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.20
Gross Margin31.01%
Net Profit Margin3.73%
Debt/Equity Ratio15.8%

How did 321 perform over the long term?

See historical performance and comparison

Dividends

12.3%

Current Dividend Yield

76%

Payout Ratio

Valuation

Is Texwinca 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: 321 (HK$1.63) is trading below our estimate of fair value (HK$6.65)

Significantly Below Fair Value: 321 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 321 is good value based on its PE Ratio (8.2x) compared to the Hong Kong Luxury industry average (9.1x).

PE vs Market: 321 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 321's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 321 is good value based on its PB Ratio (0.4x) compared to the HK Luxury industry average (0.8x).


Future Growth

How is Texwinca Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 321's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if 321's earnings are forecast to grow faster than the Hong Kong market

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

Revenue vs Market: 321's revenue (10.2% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 321's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 321's Return on Equity is forecast to be low in 3 years time (7.9%).


Past Performance

How has Texwinca Holdings performed over the past 5 years?

-36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 321 has high quality earnings.

Growing Profit Margin: 321's current net profit margins (3.7%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 321's earnings have declined by 36.6% per year over the past 5 years.

Accelerating Growth: 321's earnings growth over the past year (62.2%) exceeds its 5-year average (-36.6% per year).

Earnings vs Industry: 321 earnings growth over the past year (62.2%) exceeded the Luxury industry 40.3%.


Return on Equity

High ROE: 321's Return on Equity (5.1%) is considered low.


Financial Health

How is Texwinca Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 321's short term assets (HK$6.2B) exceed its short term liabilities (HK$2.9B).

Long Term Liabilities: 321's short term assets (HK$6.2B) exceed its long term liabilities (HK$468.2M).


Debt to Equity History and Analysis

Debt Level: 321's debt to equity ratio (15.8%) is considered satisfactory.

Reducing Debt: 321's debt to equity ratio has increased from 13.1% to 15.8% over the past 5 years.

Debt Coverage: 321's debt is well covered by operating cash flow (82.1%).

Interest Coverage: 321's interest payments on its debt are well covered by EBIT (112.1x coverage).


Balance Sheet


Dividend

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

12.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 321's dividend (12.27%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 321's dividend (12.27%) is in the top 25% of dividend payers in the Hong Kong market (6.77%)


Stability and Growth of Payments

Stable Dividend: 321's dividend payments have been volatile in the past 10 years.

Growing Dividend: 321's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.6%), 321's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 321's dividends in 3 years are not forecast to be well covered by earnings (124.1% payout ratio).


Next Steps

Management

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

18.4yrs

Average board tenure


CEO

Kit Chung Ting (66 yo)

8.33yrs

Tenure

HK$8,671,000

Compensation

Mr. Kit Chung Ting has been the Chief Executive Officer of Texwinca Holdings Ltd. since June 17, 2013 and serves as its Head of Financial Management and General Administration. Mr. Ting is responsible for...


CEO Compensation Analysis

Compensation vs Market: Kit Chung's total compensation ($USD1.12M) is above average for companies of similar size in the Hong Kong market ($USD298.06K).

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


Board Members

Experienced Board: 321's board of directors are seasoned and experienced ( 18.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 321 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

Texwinca Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Texwinca Holdings Limited
  • Ticker: 321
  • Exchange: SEHK
  • Founded: 1975
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$2.252b
  • Shares outstanding: 1.38b
  • Website: https://www.texwinca.com

Number of Employees


Location

  • Texwinca Holdings Limited
  • Metroplaza
  • Tower II
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 10:06
End of Day Share Price2021/10/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.