Polytex (4429-TW), Taiwan's leading manufacturer of functional moisture-permeable and waterproof fabrics, recently held a pre-listing corporate briefing on October 14th. The company officially listed with a price of NT$40 per share, becoming the first specialized firm in Taiwan focused on high-performance fabric technology. This marks a significant milestone for the company as it expands its presence in the global market.
In the first half of this year, Polytex saw a strong performance driven by increased shipments of high-margin products such as protective clothing, outdoor wear, and medical materials. The after-tax net profit per share reached NT$2.89, nearly matching the full-year profit. A legal representative noted that the off-season did not bring weak results, and with government subsidies, the projected annual after-tax net profit per share is expected to reach NT$5.
With a paid-in capital of NT$244 million, the company reported revenue of NT$517 million in the first half of the year, with an after-tax net profit of NT$70.61 million. The net profit per share stood at NT$2.89, setting a new record with a gross margin of 22%. Even during the off-season, monthly revenue remained strong, and with government support, the company continued to break records. Revenue reached NT$71.36 million in August alone, up 51.61% compared to the same period last year, and total revenue from January to August reached NT$644 million, an annual increase of 19.23%.
Founded in 1999, Polytex was the first company in Taiwan to develop wet micro-porous coating and bonding technologies. Its wet coating technology is industry-leading, with product moisture permeability comparable to Japan’s Toray Entrant GII and even rivaling Gore-Tex in terms of processing properties and softness. The company's main clients include top international outdoor brands like The North Face, Columbia, Helly Hansen, Patagonia, and Jack Wolfskin.
Currently, ECFA-related stocks are gaining popularity in the market. Polytex benefits not only from ECFA-related policies but also from the appreciation of the Japanese yen, which enhances the value of its moisture-permeable and waterproof processing technology. As a result, the company is expected to see stronger performance in the second half of the year. After years of quiet development, the textile industry is entering a golden decade, with analysts projecting a 30%-50% growth over the next three years. At its current P/E ratio, the stock is undervalued, and there is potential for further gains, including the possibility of a future listing.
A recent survey by the Japan Chemical Fiber Association (JCFA) highlighted a decline in Japan's chemical fiber output, while China and India are expected to see significant growth. In 2009, Japan's total chemical fiber production fell by 6%, reaching a historic low. Nylon and polyester production dropped by 34% and 33%, respectively. However, global demand for fibers is expected to rise, with predictions that chemical fiber consumption will reach 53.95 million tons by 2015—an increase of 24% from 2008 levels. China and India are expected to lead this growth, making them key markets for companies like Polytex.
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