China Weaving Materials Holdings Ltd. (3778) AI Stock Analysis

• Market Cap: HK$381.97M
• Dividend Yield: 5%
• Average Volume (3M): 987.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -1.24%
• EPS Growth: 5.81%
• Country: HK
• Employees: 2,410
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): >-0.01
• Shares Outstanding: 1,252,350,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 987,301
• PEG Ratio: 0.83
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 7.10
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(66.67% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. While there are improvements in cash flow and operational metrics, profitability remains a significant concern. The bearish technical indicators further weigh down the score, despite a high dividend yield offering some appeal.

China Weaving Materials Holdings Ltd. Business Overview & Revenue Model

Company Description

China Weaving Materials Holdings Limited, an investment holding company, engages in the manufacturing and trading of yarn products and staple fibers in the People's Republic of China. It operates through two segments, Yarns and Staple Fibres. The company offers cotton, polyester, polyester-cotton and viscose-cotton blended, viscose, and mélange and mélange-cotton blended yarns, as well as polyester staple fibers. China Weaving Materials Holdings Limited was incorporated in 2011 and is headquartered in Yichun, the People's Republic of China.

How the Company Makes Money

China Weaving Materials Holdings Ltd. generates revenue primarily through the sale of its weaving materials, including woven fabrics and yarns. The company's revenue model is based on direct sales to textile manufacturers and distributors, allowing it to establish long-term partnerships within the supply chain. Significant revenue streams include bulk orders from domestic textile factories and export sales to international clients. Additionally, the company may benefit from economies of scale and cost efficiencies in production, enhancing its profitability. Strategic partnerships with key players in the textile industry also contribute to its earnings, providing access to new markets and facilitating increased demand for its products.

China Weaving Materials Holdings Ltd. Financial Statement Overview

Summary

China Weaving Materials Holdings Ltd. shows signs of recovery with improving cash flow and operational metrics, but profitability remains a concern. Revenue growth is visible, yet profit margins and ROE are still weak. The balance sheet is stable with manageable leverage.

Income Statement

The company has experienced volatile revenue changes with recent growth of 15.83% from 2023 to 2024. Gross profit margins have been low, with a slight improvement to 3.29% in 2024 from 1.02% in 2023, indicating ongoing challenges in cost management. The net profit margin remains negative, reflecting persistent losses, though there is a narrowing of losses. EBIT and EBITDA margins have seen some recovery, which suggests some operational improvements, but overall profitability remains weak.

Balance Sheet

The company maintains a moderate Debt-to-Equity ratio of 0.61 in 2024, indicating manageable leverage levels. However, the equity ratio has slightly decreased to 48.42%, showing pressure on equity relative to total assets. Return on Equity remains negative due to net losses, reflecting profitability challenges. The balance sheet indicates some stability, but profitability issues persist.

Cash Flow

The company has shown significant improvement in cash flow, with a positive swing in operating and free cash flow in 2024, indicating better cash generation capability. The Operating Cash Flow to Net Income ratio is strong, suggesting effective cash management despite net losses. The Free Cash Flow to Net Income ratio also supports the improvement in cash flows, highlighting a better cash position relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.28B	1.11B	1.32B	1.64B	1.42B
Gross Profit	49.24M	42.20M	11.26M	58.10M	303.18M	143.16M
EBITDA	89.29M	43.79M	12.06M	43.01M	311.21M	170.05M
Net Income	-18.79M	-11.74M	-26.52M	-12.56M	202.54M	62.75M
Balance Sheet
Total Assets	1.38B	1.40B	1.50B	1.60B	1.69B	1.51B
Cash, Cash Equivalents and Short-Term Investments	195.14M	213.71M	190.07M	263.40M	283.03M	184.61M
Total Debt	372.56M	412.73M	476.16M	515.16M	553.24M	508.93M
Total Liabilities	713.03M	721.18M	811.51M	880.25M	908.37M	879.32M
Stockholders Equity	666.70M	676.79M	688.53M	715.06M	781.19M	631.90M
Cash Flow
Free Cash Flow	122.08M	76.21M	-96.71M	114.14M	66.75M	82.23M
Operating Cash Flow	126.38M	80.47M	-80.11M	202.63M	121.26M	96.05M
Investing Cash Flow	-17.85M	1.99M	45.71M	-129.43M	-15.00M	-69.57M
Financing Cash Flow	-92.48M	-63.43M	-38.93M	-92.84M	-7.83M	22.54M

China Weaving Materials Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3778, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.30, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 1.52 is Positive, neither overbought nor oversold. The STOCH value of 94.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3778.

China Weaving Materials Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0608	―	HK$452.31M	5.64	2.55%	2.36%	-4.07%	-26.53%
1906	―	HK$823.83M	―	-6.24%	―	5.88%	16.82%
3778	―	HK$381.97M	―	-2.76%	5.00%	-1.24%	5.81%
3322	―	HK$255.60M	―	-2.35%	―	24.99%	89.24%

China Weaving Materials Holdings Ltd. Corporate Events

China Weaving Materials Announces Share Consolidation Plan

China Weaving Materials Holdings Limited has announced an Extraordinary General Meeting to discuss a proposed share consolidation. The plan involves consolidating every ten issued and unissued ordinary shares into one share, effectively changing the par value from HK$0.1 to HK$1.0. This move aims to streamline the company’s share capital structure and potentially enhance the marketability and trading liquidity of its shares.

The most recent analyst rating on (HK:3778) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Weaving Materials Holdings Ltd. stock, see the HK:3778 Stock Forecast page.

China Weaving Materials Proposes Share Consolidation and Board Lot Size Change

China Weaving Materials Holdings Ltd. has announced a proposed share consolidation, where every ten existing shares of HK$0.1 par value will be consolidated into one share of HK$1.0 par value. Additionally, the board lot size for trading on the Stock Exchange will change from 4,000 existing shares to 2,000 consolidated shares. This move is subject to shareholder approval and regulatory compliance, and it is not expected to materially affect the company’s financial position or shareholder rights.

The most recent analyst rating on (HK:3778) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Weaving Materials Holdings Ltd. stock, see the HK:3778 Stock Forecast page.

China Weaving Materials Reports First Half 2025 Financial Results

China Weaving Materials Holdings Ltd. reported its unaudited financial results for the first half of 2025, revealing a revenue of RMB 511,461,000, a decrease from the previous year’s RMB 577,898,000. Despite a gross profit increase to RMB 32,126,000, the company faced a net loss of RMB 10,096,000, attributed to higher income tax expenses and other financial challenges.

The most recent analyst rating on (HK:3778) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Weaving Materials Holdings Ltd. stock, see the HK:3778 Stock Forecast page.

China Weaving Materials Announces Interim Dividend

China Weaving Materials Holdings Limited has announced an interim cash dividend of HKD 0.015 per share for the six months ending June 30, 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, with the payment scheduled for October 15, 2025.

The most recent analyst rating on (HK:3778) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Weaving Materials Holdings Ltd. stock, see the HK:3778 Stock Forecast page.

China Weaving Materials Announces Upcoming Board Meeting for Interim Results

China Weaving Materials Holdings Ltd. has announced that its board of directors will hold a meeting on August 28, 2025, to discuss and approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting could have significant implications for the company’s financial strategy and shareholder returns.