SEHK:321

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 321's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.8%

321

8.5%

HK Luxury

5.8%

HK Market


1 Year Return

-52.9%

321

10.1%

HK Luxury

-4.0%

HK Market

Return vs Industry: 321 underperformed the Hong Kong Luxury industry which returned 8.8% over the past year.

Return vs Market: 321 underperformed the Hong Kong Market which returned -5.3% over the past year.


Shareholder returns

321IndustryMarket
7 Day10.8%8.5%5.8%
30 Day-10.3%10.5%4.0%
90 Day-31.5%2.3%-2.6%
1 Year-46.9%-52.9%12.8%10.1%-0.6%-4.0%
3 Year-63.3%-73.5%35.4%22.6%1.3%-9.2%
5 Year-76.1%-85.7%32.5%11.6%-9.2%-23.5%

Price Volatility Vs. Market

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


Simply Wall St News

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$1.13) is trading below our estimate of fair value (HK$2.78)

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 (4.6x) compared to the Luxury industry average (6.8x).

PE vs Market: 321 is good value based on its PE Ratio (4.6x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 321 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 321 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 Texwinca Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 321's forecast earnings growth (14.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 321's earnings (14.9% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 321's earnings are forecast to grow, but not significantly.

Revenue vs Market: 321's revenue (4.8% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 321's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 321's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Texwinca Holdings performed over the past 5 years?

-23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 321 has high quality earnings.

Growing Profit Margin: 321's current net profit margins (4.2%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: 321's earnings have declined by -23.6% per year over the past 5 years.

Accelerating Growth: 321's earnings growth over the past year (6.9%) exceeds its 5-year average (-23.6% per year).

Earnings vs Industry: 321 earnings growth over the past year (6.9%) exceeded the Luxury industry 3%.


Return on Equity

High ROE: 321's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Texwinca Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 321's short term assets (HK$6.4B) exceed its short term liabilities (HK$3.5B).

Long Term Liabilities: 321's short term assets (HK$6.4B) exceed its long term liabilities (HK$493.4M).


Debt to Equity History and Analysis

Debt Level: 321's debt to equity ratio (26.2%) is considered satisfactory.

Reducing Debt: 321's debt to equity ratio has increased from 24.7% to 26.2% over the past 5 years.

Debt Coverage: 321's debt is well covered by operating cash flow (55.2%).

Interest Coverage: 321 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

17.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 321's dividend (17.7%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.46%).

High Dividend: 321's dividend (17.7%) is in the top 25% of dividend payers in the Hong Kong market (7.13%)


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: With its high payout ratio (101.1%), 321's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 321's dividends in 3 years are forecast to be covered by earnings (75.4% payout ratio).


Next Steps

Management

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

17.0yrs

Average board tenure


CEO

Kit Chung Ting (64yo)

7yrs

Tenure

HK$15,733,000

Compensation

Mr. Ting Kit Chung 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 ($USD2.03M) is above average for companies of similar size in the Hong Kong market ($USD279.69K).

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


Board Members

NamePositionTenureCompensationOwnership
Bun Chak Poon
Executive Chairman7yrsHK$34.27m49.49% HK$738.5m
Kit Chung Ting
CEO, Head of Financial Management7yrsHK$15.73m0.44% HK$6.6m
Ho Tak Poon
Executive Director2.67yrsHK$6.64mno data
Shu Wing Cheng
Independent Non-Executive Director27.92yrsHK$485.00kno data
Son Yiu Au
Independent Non-Executive Director24.92yrsHK$485.00kno data
Chung Nin Law
Independent Non-Executive Director9.17yrsHK$485.00kno data

17.0yrs

Average Tenure

67yo

Average Age

Experienced Board: 321's board of directors are seasoned and experienced ( 17 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 company bio, 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$1.492b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXWH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1992
321SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1992
TXWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1992
321SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1992
321SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1992

Biography

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. In addition, the company retails and distributes casual apparel and accessories; and offers franchise services. Further, it is involved in the property holding and sub-letting activities; holding of trademarks; procurement of raw materials; provision of management services; and investing in properties. The company sells its products primarily in the United States, Mainland China, Japan, Hong Kong, and internationally. Texwinca Holdings Limited was founded in 1975 and is headquartered in Kwai Chung, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 12:42
End of Day Share Price2020/06/05 00:00
Earnings2019/09/30
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.