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Pacific Textiles Holdings Limited (HK:1382)
:1382

Pacific Textiles Holdings (1382) AI Stock Analysis

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HK

Pacific Textiles Holdings

(OTC:1382)

Rating:50Neutral
Price Target:
Pacific Textiles Holdings struggles with declining revenues and profit margins, which is a significant concern. While the balance sheet remains stable and valuation metrics like dividend yield and P/E ratio are appealing, technical indicators suggest bearish momentum. The overall score reflects the company's financial and technical challenges, partially offset by its valuation appeal.

Pacific Textiles Holdings (1382) vs. iShares MSCI Hong Kong ETF (EWH)

Pacific Textiles Holdings Business Overview & Revenue Model

Company DescriptionPacific Textiles Holdings Limited manufactures and trades in textile products. It is involved in the knitting, dyeing, printing, and finishing of fabrics. The company's fabrics are used in a range of garments, including men's, women's, and children's clothing, as well as sportswear, swimwear, and inner-wear. It is also involved in the information technology services. The company operates in Hong Kong, the People's Republic of China, Vietnam, Bangladesh, the United States, Jordan, Indonesia, Cambodia, Sri Lanka, India, Haiti, rest of Asia, Africa, and internationally. Pacific Textiles Holdings Limited was founded in 1997 and is headquartered in Kwai Chung, Hong Kong.
How the Company Makes MoneyPacific Textiles Holdings generates revenue primarily through the manufacturing and sale of knitted fabrics. The company works closely with brand owners, retailers, and garment manufacturers to deliver high-quality fabric solutions tailored to their specific needs. Its revenue streams are diversified across various product categories, such as casual and sportswear, ensuring a steady demand for its products. The company's strategic partnerships with major apparel brands enhance its market presence and contribute significantly to its earnings. Additionally, its vertically integrated production processes enable cost efficiencies and quality control, further solidifying its competitive position in the textile industry.

Pacific Textiles Holdings Financial Statement Overview

Summary
Pacific Textiles Holdings faces challenges with declining revenues and profit margins, affecting overall financial health. The balance sheet remains stable, supported by moderate leverage, but cash flow issues due to negative free cash flow could pose a risk if not addressed. Maintaining operational efficiency is crucial as the company navigates a contracting sales environment.
Income Statement
45
Neutral
Pacific Textiles Holdings shows declining revenue and profit margins over the recent years. Gross Profit Margin decreased from 15.8% in 2023 to 9.1% in 2024, and Net Profit Margin fell from 5.4% to 3.6%. The Revenue Growth Rate is negative at -7% in 2024, indicating a contraction in sales. However, EBIT and EBITDA margins remain relatively stable, suggesting operational efficiency is maintained.
Balance Sheet
60
Neutral
The company's balance sheet indicates moderate financial leverage with a Debt-to-Equity Ratio of 0.5 in 2024. Return on Equity decreased to 5.7% from 8.7% in 2023, reflecting reduced profitability. The Equity Ratio stands at 53.1%, showing a stable capital structure with a good proportion of equity financing.
Cash Flow
35
Negative
The cash flow situation is concerning with Free Cash Flow turning negative in 2024. Operating Cash Flow to Net Income Ratio remains robust at 3.2, but the Free Cash Flow to Net Income Ratio is negative due to heavy capital expenditure, indicating potential cash flow constraints.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
5.04B4.67B5.02B6.07B5.38B5.48B
Gross Profit
409.73M423.59M473.12M755.74M846.04M911.76M
EBIT
240.63M275.53M316.68M563.98M629.22M712.23M
EBITDA
419.33M463.09M521.11M812.03M991.25M1.00B
Net Income Common Stockholders
149.52M167.12M268.57M572.68M721.49M743.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
894.94M894.94M1.35B1.59B957.48M928.79M
Total Assets
5.57B5.57B5.53B5.94B5.21B4.81B
Total Debt
1.49B1.49B1.48B1.62B812.03M863.38M
Net Debt
594.57M594.57M293.05M69.89M-134.12M96.24M
Total Liabilities
2.60B2.60B2.44B2.51B1.86B1.82B
Stockholders Equity
2.95B2.95B3.07B3.42B3.34B2.99B
Cash FlowFree Cash Flow
-91.05M-327.75M305.29M444.07M532.30M714.16M
Operating Cash Flow
369.21M540.85M808.51M605.64M648.68M900.87M
Investing Cash Flow
-427.05M-666.51M-616.52M-191.99M138.27M-345.83M
Financing Cash Flow
-236.20M-162.02M-555.47M171.08M-730.38M-456.96M

Pacific Textiles Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.28
Price Trends
50DMA
1.30
Negative
100DMA
1.40
Negative
200DMA
1.45
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
48.88
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1382, the sentiment is Negative. The current price of 1.28 is below the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.30, and below the 200-day MA of 1.45, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1382.

Pacific Textiles Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$925.00M5.4321.91%6.64%-4.16%-2.85%
68
Neutral
HK$1.89B5.1014.66%16.02%4.95%94.03%
65
Neutral
$8.88B15.014.76%203.76%3.54%-2.49%
63
Neutral
HK$2.18B9.5811.95%7.92%12.67%-25.28%
50
Neutral
$1.78B11.964.99%9.38%10.66%3.88%
DEFOV
€91.72M45.000.43%5.63%
56
Neutral
HK$1.90B18.263.10%3.03%9.38%-41.33%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1382
Pacific Textiles Holdings
1.28
-0.12
-8.70%
DE:FOV
Fountain Set (Holdings) Limited
0.06
-0.02
-25.00%
HK:1425
Justin Allen Holdings Limited
0.73
0.08
12.31%
HK:1982
Nameson Holdings Ltd.
0.83
0.21
33.87%
HK:2199
Regina Miracle International (Holdings) Limited
1.55
-1.09
-41.29%
HK:2368
Eagle Nice (International) Holdings Ltd.
3.79
-0.59
-13.47%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.