New comers include 3 textile companies, namely, Thai Unique Textile, K.H. Textile, Jaspal & Sons, 1 garment company (HBI Manufacturing) and 3 technical textile producers, i.e., CNC International, Carpet International, Interface Modernform.
Companies that dropped out this year because their revenues did not reach the Baht1,000 million benchmark or they went into rehabilitation include Union Textile Industries, Indorama Textiles (Thailand) Ltd., Tuntex (Thailand) Plc., TTL Industries Plc., Union Thread Industries Co., Ltd., Pattaya Manufacturing Co., Ltd., and Sunflag (Thailand) Ltd.
Textile & Garment Situation
The financial crisis had a direct impact on the
Previously dependent on fabric imports from China, non-integrated factories in Laos, Vietnam and Cambodia also shifted to Thai fabrics to offset dwindling PRC supplies. Driven by the Japan-Thailand Economic Partnership Agreement (JTEPA) and yen appreciation, Japanese buyers likewise shifted to Thai suppliers who offer fully integrated production facilities.
Trade Pattern & Trends
Total Thai textile & garment export value increased by 2.9% and 2.4% in 2008 and 2009. Textiles account for 51.3% of total textile & garment exports, woven fabrics 1/3 of textile exports. Lower exports of woven cotton and silk as well as cotton/MMF yarn and staple fiber were offset by rising exports of other woven fabrics which accounted for 36.3% of textile exports in 2008.
Household textiles represent 9.8% of textile exports in 2008, reflecting steady high growth in 2007- 2008. Embroidery & lace and ‘Other’ textile products (representing 14% of total textile exports), fishing nets, shawls and scarves, other made up articles and dress patterns also increased briskly.
The proportion of clothing exports dropped from 51.9% of total textile & garment exports in 2006 to 48.7% in 2008, but garment made of wool/fine animal hair, babies garment, brassieres and corsets, panty hose, stockings, tights and gloves show steady growth trends.
Steady decline of Thai textile & garment exports to the USA in 2006-2008 preceded the -26% dip in 2009. Export growth to the EU also decelerated to 3.2% in 2008 before dropping -11% in 2009. While the
Reflecting steady export growth to 9 ASEAN countries and double-digit growth in garment exports to neighboring countries and Indonesia, Thai textile exports to ASEAN rose from 11.7% of total textile & garment exports in 2006 to 15.7% in 2009.
Japan’s share of Thai textile & garment exports also edged up to 7% in 2009, China’s market share 4.2%. Exports to ‘Other’ markets also increased by 2-6% annually prior to 2009.
Going forward from 2009, Thai textile and garment exports to the ASEAN market and Japan will continue to grow briskly, offsetting declining exports to Europe and the USA.
Ten fiber companies included in textile & garment 2008 ranking contribute 24.9% of grand total revenues of ranking companies, 20.8% of grand total earnings, 24% of total assets, 15.9% of total liabilities and 31.5% of total equity. The sector’s average ROE of 4%, 105% revenue/asset ratio, -1% revenues growth, and -63% earnings growth approximate industry averages of 5.5%, 101.7%, 0.3%, and -65%.
Going against industry trend, Thai Rayon topped this year’s list by revenues and asset size while ranking 2nd by debt/equity ratio, profit, and net profit margin (25%), backed by 2 consecutive years of high revenues growth (22%), 15% ROE and 252% ROA.
No. 2 by revenue and asset size, Thai Toray Synthetics made the Top Ten by Profit with 2.8% net margin, 54.6% earnings growth, 6.3% ROE and 7.3% ROA, confirming strong performance in 2007.
Backed by 2.7% net margin, 120.6% revenues/asset ratio, Thai Indo Kordsa headed the Top Ten list by Earnings Growth with an annualized increase of 2,760%, backed by 2% revenues growth, 3.8% ROE and 22% ROA.
Working with 0.2% net margin, 123% revenues/asset ratio, Asia Fiber reported 107% earnings growth and 4.7% ROA despite -24% revenues growth.
36 textile companies included in this year’s ranking contributed 39.5% of grand total textile & garment revenues, 22% of grand total earnings, 48% of total assets and 41% total equity. Their average ROE of -3%, revenues/asset ratio of 83%, -2% revenues growth and -592% earnings growth were well below averages for the entire textile & garment industry.
Among the Top Ten companies by revenues, Jong Stit increased ROA to 0.9% despite negative revenues (-7%) and earnings (-14%) growth while maintaining 0.2% net margin and accelerating revenues/asset ratio to 170%. Luckytex sustained positive ROE and ROA approximating industry averages for the second consecutive year despite negative revenues and earnings growth.
YRC Textile, which made the Top Ten list by revenues and asset size, recorded positive ROE and ROA for the second year running, backed by 0.7% revenues growth, but earnings dropped 6%.
Thai Textile Industry’s ROE and ROA turned positive at 1.1% and 1.6% while revenues growth continued to drop by -16.8% and revenues/asset gearing ratio down from 97% to 84%. Nonetheless, 838% earnings hike placed the company in the 4th spot of the Top Ten by earnings growth.
Thai Silk Co., made the Top Ten lists by asset, profit, as well as debt/equity ratio and net profit margin (13.6%) while yielding 7.8% ROE and 54% ROA, despite -2% revenues growth and -15% earnings growth.
Among mid-sized textile companies (below Baht 2billion revenues) which made the Top Ten list by revenues and earnings growth in 2008, Thai Kurabo reported 27.5% revenues growth and 115% earnings growth while net margin turned around from -5.6% to 0.7%. Kurabo’s ROE and ROA also turned positive at 1.4% and 2% while revenue/asset gearing rose from 92% to 120%.
Despite -37.6% net margin and 42% revenues/asset gearing ratio, Bangkok Weaving Mills’ revenues growth turned around from -28% in 2007 to 39% in 2008, earnings growth from -99% to 1.8%, grabbing the No. 3 spot in the Top Ten list by revenues growth.
Backed by 43.9% climb in revenues K.H. Textile came 2nd in the Top Ten list by revenues growth while revenues/asset ratio decreased from 279% to 217% and net margin remained low at 0.2%. ROE and ROA remained positive at 1.5% and 0.4%.
Working with 0.4% net margin and135% revenues/assets gearing, Tong Siang made the Top Ten list with 285.5% earnings growth and 0.4% revenues growth.
28 ranking garment companies accounted for 29.5% of grand total revenues, 22.6% of total earnings, 22.9% of total assets and 21.2% of total equity. Their average ROE of 6%, 4% revenues growth, 52% earnings growth and 2% net margin compare favorably with grand industry averages. Altogether 10 garment companies made the Top Ten list by ROE in 2008.
Thai Garment Export, which made the Top Ten list by revenues despite
-18% revenues growth and -0.2% profit margin, showed improved ROE and ROA (albeit still negative at -0.5%) as earnings growth turned around from -982% in 2007 to 97%.
HBI Manufacturing headed the Top Ten list with 106% revenues growth, followed by Hi-Tech Apparel (39%), NC Apparel (36%), NK Apparel (36%), and Jaspal Co (23%).
HBI Manufacturing also reported 461.7% earnings growth, 12.6% net margin and 125% revenues/asset ratio, securing the 2nd slot in the Top Ten list by ROE with 59.5% ROE and 21% ROA.
Working with larger net profit margin (up from 0.3% to 4.8%) and 208.7% revenues/assets ratio, Lian’s Group (Asia) earned No.2 spot with 1,349% earnings growth, notwithstanding -12.8% revenues growth. As a result, ROE soared from 4.5% in 2007 to 65.8%, ROA from 0.6% to11.9%.
NK Apparel made the Top Ten list by revenues growth (35.7%) and ROE (23.5%). Owing to higher net margin (4.2%) and 112% earnings growth, ROE rose from 13% in 2007 to 23.5% and ROA doubled to 10.2%.
Also working with higher net margin (up from 2.6% to 4.9%) and 165% revenues/asset ratio, NC Apparel’s revenues growth turned around from -1.1% in 2007 to 36% while earnings growth shot up from 6% to 153%. As a result, ROE rose from 10.3% to 31.5% and ROA tripled to 11%.
Hi-Tech Apparel made the Top Ten lists by revenue size with 39% revenues growth and 32% earnings growth, despite 0.4% net margin, pushing ROE up from 4.2% to 5.3% and ROA to 1.3%.
With net margin more than doubling to 3.9% and revenues/asset ratio of 130%, Jaspal Co. made the Top Ten lists by revenues growth (23%), Earnings Growth (235%), and ROE (23%).
Working with 2.3% margin and only 35% revenues/asset ratio, Central Garment made the Top Ten list with 203% earnings growth, but revenue growth turned negative at -8.4%.
Hua Thai Manufacturing made the Top Ten lists by Earnings Growth (332%) and Net Profit Margin (8.3%) despite negative revenues growth (-1.2%). ROE and ROA also turned positive at 18% and 29%, respectively.
People’s Garment made the Top Ten lists by net margin (11%) and debt/ equity ratio, earning high ROE (10.3%) and ROA (79%). Lower revenues/asset ratio (down from 105% to 81%) is reflected in negative revenues growth (-18.5%) and -27% earnings growth.
Thanulux and Thai Wacoal made the Top Ten lists by debt/equity ratios and profit margin; the former also made the Top Ten by profit size.
Other Garment companies that made the Top Ten list by ROE include Chantasia (30%), East Board Industry (25%). The latter also reported 169% earnings growth backed by 2.9% net margin and 428% revenues/asset gearing ratio, notwithstanding -0.4% revenues growth.
With net margin nearly doubling to 7.6%, and 4% revenues growth and 106% earnings growth, Sheico also joined the Top Ten lists by ROE (18.3%) and profit size.
Despite -0.1 % revenues growth, Reno made the Top Ten by ROE (19.9%) backed by 4.8% net margin, 180% revenues/asset ratio (no change), to achieve 95.5% earnings growth and 15.6% ROA.
6 companies in the Other Category, account for 6% of grand total revenues, 4.9% of total assets and 6.4% of total equity but contributed as much as 78.9% of grand total earnings. Consequently, their average ROE of 68%, 5% revenues growth and 36% net margin far outstripped industry averages for all 80 ranking companies.
Backed by 10% net margin, 10% revenues growth and 14% debt/equity, Carpet International (Thailand) Plc. made the Top Ten lists by net margin (10.3%), profit size and debt/equity ratio while maintaining relatively high ROE (11.7%), hiking ROA from 8% to 84%.
CNC International made the Top Ten lists by revenues growth (22%) and earnings growth (883%) on the strength of 8.8% net margin, 98% revenues/asset ratio and 94% debt/equity ratio.
Working with relatively high net margin (7%) and 30% debt gearing ratio, Interface Modernform made the Top Ten list by profit size, with 8.4% revenues growth and 5.4% earnings growth to achieve 14.6% ROE and 49% ROA.
Formerly named Thai Baroda Industries, SRF Technical Textiles (Thailand) Co., Ltd., reported total revenues of Baht 1,539.69million and net profit of Baht 3,529.73 million. Because Other Income totaling Bt 3,938.27million derives from Bt3,898.74million of debt re-structuring, foreign exchange gain of Bt 12.16million and other income Bt27.26million, the company’s operating results are excluded in this review of Top Ten companies.