Texwinca Holdings (0321) AI Stock Analysis

• Market Cap: HK$898.10M
• Dividend Yield: 3.9%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.37
• Revenue Growth: 7.89%
• EPS Growth: 3176.19%
• Country: HK
• Employees: 9,588
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.14
• Shares Outstanding: 1,381,696,200
• 10 Day Avg. Volume: 2,192,000
• 30 Day Avg. Volume: 2,103,259
• PEG Ratio: 0.09
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ―

Texwinca Holdings receives an overall score of 54, indicating moderate performance with key challenges and opportunities. The most significant factors include financial stability but declining revenue and cash flow, alongside bearish technical indicators. However, the stock's valuation suggests it may be undervalued, providing potential upside if operational issues are addressed.

Texwinca Holdings Business Overview & Revenue Model

Company Description

Texwinca Holdings Limited (0321) is a Hong Kong-based investment holding company primarily engaged in the textile and apparel industry. The company operates through two main segments: the production and sale of knitted fabric and yarn, and the retailing and distribution of casual apparel. With a significant presence in both the manufacturing and retail sectors, Texwinca provides comprehensive textile solutions, from yarn production to finished garments, catering to a global clientele.

How the Company Makes Money

Texwinca Holdings generates revenue through two primary streams. The first is the production and sale of knitted fabric and yarn, where the company manufactures and supplies raw textile materials to various clothing manufacturers and brands around the world. This segment benefits from economies of scale and advanced manufacturing technologies that enable cost-effective production. The second revenue stream comes from the retailing and distribution of casual apparel through its Baleno brand, which operates numerous retail outlets across Asia. The retail segment capitalizes on consumer demand for affordable, fashion-forward clothing. Additionally, strategic partnerships and joint ventures in various regions enhance Texwinca's market reach and contribute to its overall earnings.

Texwinca Holdings Financial Statement Overview

Summary

Texwinca Holdings demonstrates moderate financial performance. Despite a healthy gross profit margin, the company faces challenges with a declining revenue and low net profit margin. The balance sheet is stable with conservative leverage, but profitability is limited. Cash flow issues persist with a significant drop in free cash flow, though operational efficiency remains a positive aspect.

Income Statement

Texwinca Holdings shows mixed results in its income statement. The gross profit margin is relatively healthy at approximately 26.3% for the latest year, but the net profit margin is lower at 2.47%, indicating challenges in managing operating costs. Revenue has declined from the previous year by about 11.42%, which is a concern. However, the positive EBIT and EBITDA margins at 0.21% and 10.97% respectively show some operational efficiency, although the EBIT margin is notably low.

Balance Sheet

The balance sheet indicates moderate stability with a debt-to-equity ratio of 0.26, suggesting a conservative use of leverage. The equity ratio is fairly strong at 67.36%, reflecting a robust equity position. However, the return on equity (ROE) is modest at 2.76%, indicating limited profitability from shareholders' equity.

Cash Flow

The cash flow statement reveals challenges with a significant decline in free cash flow from the previous year, dropping by about 77.83%. The operating cash flow to net income ratio is relatively healthy at 2.94, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio is 1.31, which is reasonable but reflects a significant drop from prior years.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
5.72B	5.37B	6.06B	8.04B	7.35B	7.63B
	Gross Profit
1.47B	1.41B	1.57B	2.33B	2.28B	2.44B
	EBIT
26.54M	11.31M	-161.66M	289.36M	303.35M	285.69M
	EBITDA
225.17M	588.92M	491.94M	668.98M	904.87M	798.56M
	Net Income Common Stockholders
190.18M	132.33M	75.15M	191.06M	274.21M	169.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59B	1.59B	1.97B	2.45B	1.76B	1.83B
	Total Assets
7.11B	7.11B	6.95B	8.98B	8.74B	8.31B
	Total Debt
1.24B	1.24B	847.71M	1.89B	1.40B	1.86B
	Net Debt
-310.35M	-310.35M	-737.06M	890.27M	-252.22M	770.24M
	Total Liabilities
2.32B	2.32B	1.93B	3.54B	3.34B	3.38B
	Stockholders Equity
4.79B	4.79B	5.03B	5.44B	5.40B	4.93B
Cash Flow		Free Cash Flow
210.90M	173.08M	780.78M	639.76M	561.60M	435.44M
	Operating Cash Flow
350.56M	388.74M	1.03B	931.50M	749.76M	657.39M
	Investing Cash Flow
-976.42M	-1.04B	883.29M	-1.57B	497.45M	-660.57M
	Financing Cash Flow
929.05M	-23.69M	-1.30B	-33.54M	-663.75M	-872.02M

Texwinca Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0321, the sentiment is Positive. The current price of 0.65 is above the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.64, and below the 200-day MA of 0.77, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 96.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0321.

Texwinca Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1929	80 Outperform	HK$114.46B	25.56	17.34%	4.35%	0.94%	-32.06%
1093	76 Outperform	$72.44B	15.76	13.20%	4.74%	-9.60%	-27.18%
2313	76 Outperform	HK$85.53B	12.64	18.17%	4.09%	12.76%	34.50%
1177	66 Neutral	$74.80B	39.40	6.14%	1.44%	7.63%	-24.23%
2382	65 Neutral	$69.14B	23.53	11.45%	0.34%	18.80%	142.93%
Sector *	62 Neutral	$6.88B	11.26	2.78%	3.93%	2.65%	-22.00%
0321	54 Neutral	HK$898.10M	4.72	3.89%	3.90%	7.89%	3176.19%

Texwinca Holdings Corporate Events

Texwinca Holdings Announces Change in Share Registrar Office

Texwinca Holdings Limited has announced a change in its Hong Kong share registrar and transfer office, effective from 1 February 2025. The new registrar will be Tricor Investor Services Limited, and all share transfer applications and uncollected share certificates will need to be handled through the new office from the specified date, impacting stakeholders involved in share transactions.