Pacific Textiles Holdings Ltd reports 15.3% CAPEX decline and almost no change in Revenue of 6,928
24/06/2016 • About Pacific Textiles Holdings Ltd (
$1382) • By InTwits
Pacific Textiles Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 19.0% in FY2016 vs. 18.4% in FY2015 vs. 19.1% in FY2012
- Pacific Textiles Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 4.7%.
- CAPEX is quite volatile: 354 in FY2016, 418 in FY2015, 262 in FY2014, 113 in FY2013, 162 in FY2012
- The company has highly profitable business model: ROIC is at 26.6%
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 | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,420 | 6,649 | 7,423 | 6,907 | 6,928 | 0.3% |
| Gross Profit | 1,099 | 1,182 | 1,361 | 1,178 | 1,303 | 10.6% |
| SG&A | 238 | 207 | 193 | 167 | 221 | 32.1% |
| EBITDA | 1,226 | 1,265 | 1,445 | 1,269 | 1,313 | 3.5% |
| Net Income | 893 | 925 | 1,117 | 1,075 | 1,126 | 4.7% |
Balance Sheet
|
|---|
| Cash | 1,893 | 1,793 | 1,776 | 2,025 | 1,452 | -28.3% |
| Short Term Debt | 0 | 0 | 0 | 1,034 | 686 | -33.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 162 | 113 | 262 | 418 | 354 | -15.3% |
Ratios
|
|---|
| Revenue growth | -10.6% | 3.6% | 11.6% | -7.0% | 0.3% | |
| EBITDA growth | -12.5% | 3.2% | 14.2% | -12.2% | 3.5% | |
| Gross Margin | 17.1% | 17.8% | 18.3% | 17.1% | 18.8% | 1.7% |
| EBITDA Margin | 19.1% | 19.0% | 19.5% | 18.4% | 19.0% | 0.6% |
| Net Income Margin | 13.9% | 13.9% | 15.0% | 15.6% | 16.2% | 0.7% |
| SG&A, % of revenue | 3.7% | 3.1% | 2.6% | 2.4% | 3.2% | 0.8% |
| CAPEX, % of revenue | 2.5% | 1.7% | 3.5% | 6.1% | 5.1% | -0.9% |
| ROIC | 23.7% | 26.4% | 31.6% | 25.9% | 26.6% | 0.7% |
| ROE | 23.0% | 23.4% | 28.3% | 28.9% | 32.8% | 3.9% |
| Net Debt/EBITDA | -1.5x | -1.4x | -1.2x | -0.8x | -0.6x | 0.2x |
Revenue and profitability
The company's Revenue showed almost no change in FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.58 pp from 18.4% to 19.0% in FY2016.
Gross Margin increased slightly on 1.7 pp from 17.1% to 18.8% in FY2016. SG&A as a % of Revenue increased slightly on 0.77 pp from 2.4% to 3.2% in FY2016.
Net Income marign increased slightly on 0.69 pp from 15.6% to 16.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Pacific Textiles Holdings Ltd had CAPEX/Revenue of 5.1%. Pacific Textiles Holdings Ltd's CAPEX/Revenue increased on 3.4 pp from 1.7% in FY2013 to 5.1% in FY2016. It's average CAPEX/Revenue for the last three years was 4.9%.
Return on investment
The company operates at high and attractive ROIC (26.56%) and ROE (32.83%). ROIC increased slightly on 0.68 pp from 25.9% to 26.6% in FY2016. ROE increased on 3.9 pp from 28.9% to 32.8% in FY2016.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from -0.8x to -0.6x in FY2016. Debt dropped on 33.6% while cash dropped on 28.3%.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ping Shan Tea Group Ltd ($364) | -25.9% | 63.7% | -45.7% | 71.6% | |
| China Weaving Materials Holdings Ltd ($3778) | -15.4% | -4.2% | -3.8% | 53.9% | |
| Easyknit Enterprises Holdings Ltd ($616) | 9.6% | 10.2% | 7.3% | 22.3% | |
| Kingdom Holding Co Ltd ($528) | 1.1% | 6.0% | 20.0% | 12.2% | |
| Kam Hing International Holdings Ltd ($2307) | 0.9% | -4.3% | 1.6% | 4.2% | |
| |
|---|
| Median (21 companies) | 0.5% | -4.3% | -8.6% | -5.4% | 0.2% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | | 3.6% | 11.6% | -7.0% | 0.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Art Textile Technology International Co Ltd ($565) | 9.4% | 11.8% | 18.0% | 81.8% | |
| TAI Ping Carpet International Ltd ($146) | 41.0% | 45.4% | 46.7% | 46.6% | |
| Texwinca Holdings Ltd ($321) | 29.6% | 30.9% | 33.3% | 34.1% | 34.0% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 4.9% | 7.3% | 24.9% | 28.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 31.1% | 32.5% | 32.5% | 28.3% | |
| |
|---|
| Median (20 companies) | 17.3% | 16.6% | 14.4% | 16.6% | 34.0% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 17.1% | 17.8% | 18.3% | 17.1% | 18.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Weiqiao Textile Co ($2698) | 17.5% | 20.2% | 21.4% | 30.8% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 28.1% | 28.7% | 30.2% | 23.4% | |
| Kingdom Holding Co Ltd ($528) | 26.3% | 25.3% | 24.8% | 23.0% | |
| Yongsheng Advanced Materials Co Ltd ($3608) | 2.5% | 5.1% | 17.5% | 18.9% | |
| Ping Shan Tea Group Ltd ($364) | 11.2% | | 39.3% | 18.1% | |
| |
|---|
| Median (20 companies) | 11.2% | 10.0% | 11.7% | 10.1% | 15.8% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 19.1% | 19.0% | 19.5% | 18.4% | 19.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Art Textile Technology International Co Ltd ($565) | 1.0% | 1.9% | 3.9% | 105.3% | |
| Hua Lien International Holding Co Ltd ($969) | 19.7% | 40.5% | 79.6% | 58.1% | |
| Kam Hing International Holdings Ltd ($2307) | 10.6% | 10.5% | 7.6% | 8.3% | |
| TAI Ping Carpet International Ltd ($146) | 8.2% | 10.1% | 6.9% | 7.4% | |
| Wang Tai Holdings Ltd ($1400) | 34.1% | 18.8% | 7.5% | 7.3% | |
| |
|---|
| Median (20 companies) | 4.2% | 2.1% | 5.6% | 4.1% | 2.2% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 2.5% | 1.7% | 3.5% | 6.1% | 5.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Yongsheng Advanced Materials Co Ltd ($3608) | 6.2% | 13.2% | 15.4% | 19.6% | |
| Kingdom Holding Co Ltd ($528) | 13.8% | 12.7% | 13.8% | 12.7% | |
| CECEP COSTIN New Materials Group Ltd ($2228) | 22.3% | 20.1% | 17.6% | 11.0% | |
| Texwinca Holdings Ltd ($321) | 8.3% | 5.3% | 5.5% | 8.1% | 14.9% |
| Easyknit Enterprises Holdings Ltd ($616) | 22.2% | 21.3% | 16.1% | 7.7% | |
| |
|---|
| Median (21 companies) | 5.2% | 5.3% | 4.0% | 4.2% | 14.9% |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 23.7% | 26.4% | 31.6% | 25.9% | 26.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Weaving Materials Holdings Ltd ($3778) | 3.6x | 3.0x | 5.3x | 5.5x | |
| Silverman Holdings Ltd ($1616) | 1.5x | 2.5x | 2.0x | 3.2x | |
| Wang Tai Holdings Ltd ($1400) | 3.2x | 1.9x | 1.8x | 2.7x | |
| Kam Hing International Holdings Ltd ($2307) | 2.5x | 2.5x | 2.8x | 2.6x | |
| Victory City International Holdings Ltd ($539) | 1.5x | 2.0x | 3.2x | 2.5x | |
| |
|---|
| Median (14 companies) | 1.5x | 1.9x | 1.0x | 0.5x | -1.5x |
|---|
| Pacific Textiles Holdings Ltd ($1382) | -1.5x | -1.4x | -1.2x | -0.8x | -0.6x |
