OTCPK:WQTE.F

Stock Analysis Report

Executive Summary

Weiqiao Textile Company Limited, together with its subsidiaries, manufactures, distributes, and sells cotton yarns, grey fabrics, and denims primarily in Mainland China, Southeast Asia, Hong Kong, East Asia, and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WQTE.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

WQTE.F

-12.4%

US Luxury

-10.6%

US Market


1 Year Return

n/a

WQTE.F

-5.9%

US Luxury

5.2%

US Market

Return vs Industry: Insufficient data to determine how WQTE.F performed against the US Luxury industry.

Return vs Market: Insufficient data to determine how WQTE.F performed against the US Market.


Shareholder returns

WQTE.FIndustryMarket
7 Day2.3%-12.4%-10.6%
30 Day-4.1%-12.7%-8.5%
90 Day-5.9%-9.3%-4.6%
1 Yearn/a-4.0%-5.9%7.4%5.2%
3 Year-65.2%-65.2%46.3%39.6%31.7%23.2%
5 Year-58.3%-58.3%32.3%23.4%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Weiqiao Textile undervalued compared to its fair value and its price relative to the market?

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WQTE.F ($0.25) is trading below our estimate of fair value ($0.4)

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


Price To Earnings Ratio

PE vs Industry: WQTE.F is good value based on its PE Ratio (4x) compared to the Luxury industry average (17.2x).

PE vs Market: WQTE.F is good value based on its PE Ratio (4x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WQTE.F is good value based on its PB Ratio (0.1x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

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

12.3%

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 Weiqiao Textile 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

  • Examine whether Weiqiao Textile is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Weiqiao Textile's filings and announcements here.
  • Explore growth companies in the Consumer Durables industry.

Past Performance

How has Weiqiao Textile performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WQTE.F has high quality earnings.

Growing Profit Margin: WQTE.F's current net profit margins (3.5%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: WQTE.F's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: WQTE.F's earnings growth over the past year (4.3%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: WQTE.F earnings growth over the past year (4.3%) exceeded the Luxury industry -0.5%.


Return on Equity

High ROE: WQTE.F's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Weiqiao Textile's financial position?


Financial Position Analysis

Short Term Liabilities: WQTE.F's short term assets (CN¥14.1B) exceed its short term liabilities (CN¥6.5B).

Long Term Liabilities: WQTE.F's short term assets (CN¥14.1B) exceed its long term liabilities (CN¥223.5M).


Debt to Equity History and Analysis

Debt Level: WQTE.F's debt to equity ratio (16.2%) is considered satisfactory.

Reducing Debt: WQTE.F's debt to equity ratio has reduced from 56.1% to 16.2% over the past 5 years.

Debt Coverage: WQTE.F's debt is well covered by operating cash flow (52.5%).

Interest Coverage: WQTE.F's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: WQTE.F has a high level of physical assets or inventory.

Debt Coverage by Assets: WQTE.F's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

What is Weiqiao Textile's current dividend yield, its reliability and sustainability?

9.08%

Current Dividend Yield


Dividend Yield vs Market

company9.1%marketbottom25%1.6%markettop25%4.1%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: WQTE.F's dividend (9.08%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: WQTE.F's dividend (9.08%) is in the top 25% of dividend payers in the US market (4.09%)


Stability and Growth of Payments

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

Growing Dividend: WQTE.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), WQTE.F's dividend payments are 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?

12.5yrs

Average management tenure


CEO

Jiakun Wei (51yo)

5.3yrs

Tenure

CN¥711,000

Compensation

Mr. Wei Jiakun has been the General Manager and Chief Executive officer of Weiqiao Textile Co. Ltd. since November 18, 2014. Mr. Wei joined the Company's predecessor, Weiqiao Cotton Spinning Factory, in 1 ...


CEO Compensation Analysis

Compensation vs Market: Jiakun's total compensation ($USD101.51K) is below average for companies of similar size in the US market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hongxia Zhang
Chairman13.4yrsCN¥1.33m1.48% CN¥4.6m
Jiakun Wei
Chief Executive & GM5.3yrsCN¥711.00kno data
Suwen Zhao
CFO & Executive Director17.3yrsCN¥713.00kno data
Suhua Zhao
Deputy GM of Sales Department & Non-Executive Director11.8yrsCN¥196.00kno data
Jinglei Zhang
Company Secretary & Executive Director9.8yrsCN¥404.00kno data
Weijian Zhao
Head of Accounting15.4yrsno datano data
Wang Guoming
Head of Corporate Management Division and Deputy General Manager12.5yrsno datano data
Xiaoyun Wang
Chairman of the Supervisory Board & Head of the Production Technical Department1.8yrsCN¥98.00kno data

12.5yrs

Average Tenure

47.5yo

Average Age

Experienced Management: WQTE.F's management team is seasoned and experienced (12.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hongxia Zhang
Chairman13.4yrsCN¥1.33m1.48% CN¥4.6m
Suwen Zhao
CFO & Executive Director17.3yrsCN¥713.00kno data
Suhua Zhao
Deputy GM of Sales Department & Non-Executive Director11.8yrsCN¥196.00kno data
Jinglei Zhang
Company Secretary & Executive Director9.8yrsCN¥404.00kno data
Xiaoyun Wang
Chairman of the Supervisory Board & Head of the Production Technical Department1.8yrsCN¥98.00kno data
Wing Yau Chan
Independent Non-Executive Director17yrsCN¥526.00kno data
Yanhong Zhang
Vice Chairman0yrsCN¥679.00kno data
Shuwen Chen
Independent Non-Executive Director5.8yrsCN¥150.00kno data
Xuelian Fan
Supervisor1.9yrsno datano data
Yanzhao Liu
Independent Non-Executive Director1.8yrsCN¥150.00kno data

9.8yrs

Average Tenure

47.5yo

Average Age

Experienced Board: WQTE.F's board of directors are considered experienced (9.8 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

Weiqiao Textile Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weiqiao Textile Company Limited
  • Ticker: WQTE.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$2.425b
  • Listing Market Cap: HK$311.101m
  • Shares outstanding: 1.19b
  • Website: https://www.wqfz.com

Number of Employees


Location

  • Weiqiao Textile Company Limited
  • No. 1, Weifang Road
  • Zouping Economic Development Zone
  • Zouping
  • Shandong Province
  • 256200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WQTE.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDSep 2003
2698SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 2003
WEZDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURSep 2003

Biography

Weiqiao Textile Company Limited, together with its subsidiaries, manufactures, distributes, and sells cotton yarns, grey fabrics, and denims primarily in Mainland China, Southeast Asia, Hong Kong, East Asia, and internationally. The company operates through Textile Products; and Electricity and Steam segments. Its products include carded, combed, compact, and open-ended spun cotton yarns; grey fabrics, such as plain fabrics, twill weave fabrics, tribute silk series, jacquard series, and khaki drills; and denims comprising cotton, cotton spandex elasticity, cotton dacron elasticity, cotton and bamboo blend, bamboo joint, cotton regenerated cellulose fibers blend, and other denims. The company also produces and sells polyester yarn and related products; and trades in textile raw materials and products. In addition, it is involved in the generation and sale of electricity and steam. The company is based in Zouping, the People’s Republic of China. Weiqiao Textile Company Limited is a subsidiary of Shandong Weiqiao Chuangye Group Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:58
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.