Pacific Textiles Holdings Ltd CAPEX surged on 59.3% in 2015 while Revenue decreased on 7.0%
25/06/2015 • About Pacific Textiles Holdings Ltd (
$1382) • By InTwits
Pacific Textiles Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 18.4% in FY2015 vs. 19.5% in FY2014 vs. 19.5% in FY2011
- Pacific Textiles Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 17.7%.
- CAPEX is quite volatile: 418 in FY2015, 262 in FY2014, 113 in FY2013, 162 in FY2012, 175 in FY2011
- The company has highly profitable business model: ROIC is at 25.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Textiles Holdings Ltd ($1382) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,181 | 6,420 | 6,649 | 7,423 | 6,907 | -7.0% |
| Gross Profit | 1,290 | 1,099 | 1,182 | 1,361 | 1,178 | -13.5% |
| SG&A | 279 | 238 | 207 | 193 | 167 | -13.4% |
| EBITDA | 1,401 | 1,226 | 1,265 | 1,445 | 1,269 | -12.2% |
| Net Income | 876 | 893 | 925 | 1,117 | 1,075 | -3.8% |
Balance Sheet
|
|---|
| Cash | 947 | 1,893 | 1,793 | 1,776 | 2,025 | 14.0% |
| Short Term Debt | 160 | 0 | 0 | 0 | 1,034 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 175 | 162 | 113 | 262 | 418 | 59.3% |
Ratios
|
|---|
| Revenue growth | 22.0% | -10.6% | 3.6% | 11.6% | -7.0% | |
| EBITDA growth | 9.4% | -12.5% | 3.2% | 14.2% | -12.2% | |
| Gross Margin | 18.0% | 17.1% | 17.8% | 18.3% | 17.1% | -1.3% |
| EBITDA Margin | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% | -1.1% |
| Net Income Margin | 12.2% | 13.9% | 13.9% | 15.0% | 15.6% | 0.5% |
| SG&A, % of revenue | 3.9% | 3.7% | 3.1% | 2.6% | 2.4% | -0.2% |
| CAPEX, % of revenue | 2.4% | 2.5% | 1.7% | 3.5% | 6.1% | 2.5% |
| ROIC | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% | -5.7% |
| ROE | 24.8% | 23.0% | 23.4% | 28.3% | 28.9% | 0.7% |
| Net Debt/EBITDA | -0.6x | -1.5x | -1.4x | -1.2x | -0.8x | 0.4x |
Revenue and profitability
Pacific Textiles Holdings Ltd's Revenue decreased on 7.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.96 pp from 21.9% to 22.8% in 2015.
Gross Margin decreased slightly on 1.3 pp from 18.3% to 17.1% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 0.52 pp from 15.0% to 15.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Pacific Textiles Holdings Ltd had CAPEX/Revenue of 6.1%. CAPEX/Revenue increased on 3.5 pp from 2.5% in FY2012 to 6.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at high and attractive ROIC (25.88%) and ROE (28.92%). ROIC decreased on 5.7 pp from 31.6% to 25.9% in FY2015. ROE increased slightly on 0.65 pp from 28.3% to 28.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.8x and Debt / EBITDA is 0.8x. Net Debt / EBITDA jumped on 0.4x from -1.2x to -0.8x in FY2015. Debt surged while cash surged on 14.0% in FY2015.
Appendix 1: Peers in Textiles
Below we provide Pacific Textiles Holdings Ltd benchmarking against other companies in Textiles industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Victory City International Holdings Ltd ($539) | 4.8% | -5.2% | 6.5% | 31.5% | |
| Guangdong Tannery Ltd ($1058) | 12.7% | 6.1% | -4.5% | 29.0% | |
| Kingdom Holding Co Ltd ($528) | 13.1% | 1.1% | 6.0% | 20.0% | |
| Kam Hing International Holdings Ltd ($2307) | 24.4% | 0.9% | -4.3% | 1.6% | |
| TAI Ping Carpet International Ltd ($146) | 2.3% | 20.2% | -4.6% | -0.3% | |
| |
|---|
| Median (19 companies) | 14.9% | 0.1% | -4.3% | -11.5% | -5.4% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | | -10.6% | 3.6% | 11.6% | -7.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | |
| Ping Shan Tea Group Ltd ($364) | 15.3% | 11.2% | 20.8% | 42.9% | |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | |
| Kingdom Holding Co Ltd ($528) | 32.1% | 29.1% | 27.2% | 26.8% | |
| |
|---|
| Median (19 companies) | 15.3% | 16.3% | 12.6% | 13.6% | 34.1% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 18.0% | 17.1% | 17.8% | 18.3% | 17.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ping Shan Tea Group Ltd ($364) | 14.9% | 11.2% | | 39.3% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | |
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 3.2% | 2.5% | 5.1% | 17.5% | |
| |
|---|
| Median (19 companies) | 13.3% | 9.4% | 8.8% | 11.7% | 10.2% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hua Lien International Holding Co Ltd ($969) | 0.0% | 19.7% | 40.5% | 79.6% | |
| Ping Shan Tea Group Ltd ($364) | 18.1% | 32.0% | | 14.0% | |
| Kingdom Holding Co Ltd ($528) | 6.2% | 8.4% | 18.8% | 10.9% | |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | |
| Silverman Holdings Ltd ($1616) | 8.7% | 6.5% | 18.0% | 8.4% | |
| |
|---|
| Median (19 companies) | 2.7% | 4.2% | 2.1% | 5.6% | 1.4% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 2.4% | 2.5% | 1.7% | 3.5% | 6.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | |
| TAI Ping Carpet International Ltd ($146) | | | 2.6% | 5.7% | |
| Texwinca Holdings Ltd ($321) | 15.5% | 8.3% | 5.3% | 5.5% | 8.1% |
| |
|---|
| Median (19 companies) | 7.3% | 5.0% | 3.8% | 3.5% | 8.1% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | |
| |
|---|
| Median (17 companies) | 1.3x | 1.5x | 2.0x | 1.0x | 0.5x |
|---|
| Pacific Textiles Holdings Ltd ($1382) | -0.6x | -1.5x | -1.4x | -1.2x | -0.8x |
