Textile Prestige Public Company Limited (TPCORP.BK) is a manufacturer of non-woven fabrics used for automotive, industrial, health care and home textile. The wide range of products includes, for example, automobile and aircraft interior textiles, aircon filters, masks and gowns for hospitals and bedding products for home use.[mepr-active membership=”1734″ ifallowed=”show” unauth=”message” unauth_message=”Please login or purchase a membership to view full text.”]
The original product line of basic textiles for the production of underwear has been abandoned and sold in early 2016 to focus on the technical textiles only. Two major manufacturers of automobile components are currently contributing almost 60% to Textile Prestige’s total sales, and 98% of the sales are generated in Asia.
The Bangkok-headquartered company was founded in 1976 and listed on the Stock Exchange Thailand since 1987. Around 17% of the company’s shares are in public hand, 18% are held by Japan’s lingerie manufacturer Wacoal.
With a workforce of 485 employees, Textile Prestige reported revenues of 1.1bn THB (31.5m USD) and profits before tax of 367m THB (10.6m USD) in 2016. An increase of 17% and 255% respectively on a year-on-year basis. Without the discontinued operations of the underwear business, revenues and profits grew by 40% and 168% respectively. In 2015 revenues were down 2% while profits up 6% compared to the year before. Textile Prestige had cash and equivalents of 180m THB (5.2m USD) at the end of 2016. The company shows a healthy balance sheet with an equity ratio of 86% and no debt.
Textile Prestige’s shares are in an uptrend since October 2012 and doubled in value since, 10% up alone this year. The company is still reasonably priced at only six times earnings, compared to 25 times in its industry peers. Textile Prestige trades furthermore slightly below book value. The last dividend yielded almost 9% which is mostly due to the sale of assets.
The company is strong in technical textiles and is benefitting from the growing automobile market worldwide. We expect Textile Prestige to better diversify revenues in the next time by acquiring new customers in other industries. The strong balance sheet and the reasonable valuation limits to some extend the downside risks. We are positive for another 15-20% share price increase this year.
AIS Rating: ★★★★☆
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|---|---|
| EPS (THB) | 0.54 | 1.08 | 0.44 | 0.88 | 0.83 | 2.84 |
| Change | 35% | 100% | -59% | 100% | -6% | 242% |
| P/E | P/E SECTOR |
P/B | P/CF | Equity Ratio* |
ROE | Debt/ Equity** |
Div YLD |
|---|---|---|---|---|---|---|---|
| 6 | 25 | 1 | 6 | 86% | 15% | 16% | 9% |
* Equity / Total Assets, ** Total Liabilities / Equity
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