Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>We compile a list of ten high-yielding/net cash or low-net debt stocks in HK's apparel/footwear value chain. HK is a pariah for investors, and trailing dividend yields are approaching 6-20%. </li>
<li>As in other insights, we don't estimate future earnings for all companies, but we indicate if the company has quality by measuring long-term ROCE (average five years).</li>
<li>By expanding outside of China, most of these companies have derisked themselves from the trade war ( to the extent they can) and are also ready for earnings inflection.</li>
</ul>


We compile a list of ten high-yielding/net cash or low-net debt stocks in HK's apparel/footwear value chain. HK is a pariah for investors, and trailing dividend yields are approaching 6-20%. 
As in other insights, we don't estimate future earnings for all companies, but we indicate if the company has quality by measuring long-term ROCE (average five years).
By expanding outside of China, most of these companies have derisked themselves from the trade war ( to the extent they can) and are also ready for earnings inflection.


High Dividend Yield, Expansion Outside China, Listed HK Apparel/Footwear Stocks Screener

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Back in June 2017, <a href="https://www.smartkarma.com/entities/toray-industries-inc" target="_blank" data-smartkarma-citation="entities:625:1" rel="noopener">Toray Industries (3402 JP)</a> acquired a 28.03% stake in <a href="https://www.smartkarma.com/entities/pacific-textiles-holdings" target="_blank" data-smartkarma-citation="entities:12638:1" rel="noopener">Pacific Textiles (1382 HK)</a> (@ HK$10/share). Rumours that Toray would take this stake to 50% never unfolded.</li>
<li>Pacific Textiles is currently trading at HK$1.30/share, its lowest level outside of the GFC. </li>
<li>Relatively inexpensive, high digit yield and M&amp;A angle, Pacific Textiles remains attractive. This is supported by the recent Offer for <a href="https://www.smartkarma.com/entities/weiqiao-textile-co" target="_blank" data-smartkarma-citation="entities:3690:1" rel="noopener">Weiqiao (2698 HK)</a> and David Webb taking a 5% stake. </li>
</ul>


Back in June 2017, Toray Industries (3402 JP) acquired a 28.03% stake in Pacific Textiles (1382 HK) (@ HK$10/share). Rumours that Toray would take this stake to 50% never unfolded.
Pacific Textiles is currently trading at HK$1.30/share, its lowest level outside of the GFC. 
Relatively inexpensive, high digit yield and M&amp;A angle, Pacific Textiles remains attractive. This is supported by the recent Offer for Weiqiao (2698 HK) and David Webb taking a 5% stake. 


Pacific Textiles (1382 HK): Material Benefits

<ul>
<li>With a 50% tariff imposed on India by the US, Vietnam's factories have now become the busiest in the region. Our textile stocks have rallied slightly in response to this. </li>
<li>Corroborating Vietnam's strength was <a href="https://www.smartkarma.com/insights/dream-international-1126-hk-post-results-call-moving-into-a-great-peak-season" target="_blank" data-smartkarma-citation="insights:200438" rel="noopener">Dream International (1126 HK) Post Results Call: Moving Into A Great Peak Season, </a>and now recently <a href="https://www.smartkarma.com/entities/nameson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22670:1" rel="noopener">Nameson Holdings (1982 HK)</a> and <a href="https://www.smartkarma.com/entities/stella-international" target="_blank" data-smartkarma-citation="entities:7610:1" rel="noopener">Stella International (1836 HK)</a> </li>
<li>
<a href="https://www.smartkarma.com/entities/nameson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22670:1" rel="noopener">Nameson Holdings (1982 HK)</a> trades at 6x PE trailing with a 13% dividend yield. However, as we enter peak season with busy factories, we believe the situation could improve significantly. </li>
</ul>


With a 50% tariff imposed on India by the US, Vietnam's factories have now become the busiest in the region. Our textile stocks have rallied slightly in response to this. 
Corroborating Vietnam's strength was Dream International (1126 HK) Post Results Call: Moving Into A Great Peak Season, and now recently Nameson Holdings (1982 HK) and Stella International (1836 HK) 

Nameson Holdings (1982 HK) trades at 6x PE trailing with a 13% dividend yield. However, as we enter peak season with busy factories, we believe the situation could improve significantly. 


HK-Listed Apparel & Footwear Screener Sept 2025: On Nameson (1982 HK), Building On The 13% Div Yield

<ul>
<li>We provide result updates for <a href="https://www.smartkarma.com/entities/jnby-design-ltd" target="_blank" rel="noopener">JNBY Design Ltd (3306 HK)</a> and <a href="https://www.smartkarma.com/entities/lever-style-corporation" target="_blank" rel="noopener">Lever Style (1346 HK). </a>Separately, <a target="_blank">Crystal International (2232 HK)</a> was added to the HSCI (eligible for trading on Stock Connect).</li>
<li>We introduce <a href="https://www.smartkarma.com/entities/bosideng-international-holdings-ltd" target="_blank" rel="noopener">Bosideng International Holdings (3998 HK)</a> on our screen. With a 5-year average ROCE of 17%, net cash, and a 7% dividend yield, the stock is worth a look.</li>
<li>Our top picks include <a href="https://www.smartkarma.com/entities/jnby-design-ltd" target="_blank" data-smartkarma-citation="entities:23642:1" rel="noopener">JNBY Design Ltd (3306 HK)</a> and <a href="https://www.smartkarma.com/entities/pacific-textiles-holdings" target="_blank" data-smartkarma-citation="entities:12638:1" rel="noopener">Pacific Textiles (1382 HK)</a>, with a favorable mention of <a href="https://www.smartkarma.com/entities/nameson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22670:1" rel="noopener">Nameson Holdings (1982 HK)</a>  due to its attractive dividend yield.</li>
</ul>


We provide result updates for JNBY Design Ltd (3306 HK) and Lever Style (1346 HK). Separately, Crystal International (2232 HK) was added to the HSCI (eligible for trading on Stock Connect).
We introduce Bosideng International Holdings (3998 HK) on our screen. With a 5-year average ROCE of 17%, net cash, and a 7% dividend yield, the stock is worth a look.
Our top picks include JNBY Design Ltd (3306 HK) and Pacific Textiles (1382 HK), with a favorable mention of Nameson Holdings (1982 HK)  due to its attractive dividend yield.


HK-Listed Apparel & Footwear Screener: March 2025 / Analysing JNBY, Leverstyle, And More

<ul>
<li>Our stock screen for textile/apparel companies listed in Hong Kong for FY24 summarizes the winners and losers. </li>
<li>
<a href="https://www.smartkarma.com/entities/yue-yuen-industrial-holdings-limited" target="_blank" data-smartkarma-citation="entities:12281:1" rel="noopener">Yue Yuen Industrial Holdings (551 HK)</a> / <a href="https://www.smartkarma.com/entities/jnby-design-ltd" target="_blank" data-smartkarma-citation="entities:23642:1" rel="noopener">JNBY Design Ltd (3306 HK)</a> and <a href="https://www.smartkarma.com/entities/stella-international" target="_blank" data-smartkarma-citation="entities:7610:1" rel="noopener">Stella International (1836 HK)</a> were the three best performers with returns of over 80% YTD.</li>
<li>We continue to be bullish on <a href="https://www.smartkarma.com/entities/jnby-design-ltd" target="_blank" data-smartkarma-citation="entities:23642:1" rel="noopener">JNBY Design Ltd (3306 HK)</a> / <a href="https://www.smartkarma.com/entities/pacific-textiles-holdings" target="_blank" data-smartkarma-citation="entities:12638:1" rel="noopener">Pacific Textiles (1382 HK)</a> and like <a href="https://www.smartkarma.com/entities/nameson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22670:1" rel="noopener">Nameson Holdings (1982 HK)</a> for its rich dividend yield.</li>
</ul>


Our stock screen for textile/apparel companies listed in Hong Kong for FY24 summarizes the winners and losers. 

Yue Yuen Industrial Holdings (551 HK) / JNBY Design Ltd (3306 HK) and Stella International (1836 HK) were the three best performers with returns of over 80% YTD.
We continue to be bullish on JNBY Design Ltd (3306 HK) / Pacific Textiles (1382 HK) and like Nameson Holdings (1982 HK) for its rich dividend yield.


HK-Listed Apparel & Footwear Screener:  Winners and Losers, Picks For 2025

Hong Kong

Pacific Textiles Holdings Limited manufactures customized knitted fabrics. The Company's fabrics are used in a broad range of fabrics, including men's, women's, and children's clothing, sportswear, swimwear, and inner-wear.

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Pacific Textiles (1382 HK)

High Dividend Yield, Expansion Outside China, Listed HK Apparel/Footwear Stocks Screener

We compile a list of ten high-yielding/net cash or low-net debt stocks in HK's apparel/footwear value chain. HK is a pariah for investors, and...

Sameer Taneja