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China Weaving Materials Holdings Ltd.
(3778)
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Rating:48Neutral
Price Target:
HK$3.00
▼(-6.25% Downside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by multi-year net losses and weak operating profitability alongside a 2025 revenue decline. Support comes from improved operating/free cash flow in 2024–2025 and a moderate-leverage balance sheet, while technicals are mildly positive (price above shorter-term averages, positive MACD) and valuation is mixed due to a high dividend yield but negative P/E.
Positive Factors
Improved cash generation
The shift from negative to positive operating and free cash flow in 2024–2025 indicates the business can internally fund working capital and some investments without relying heavily on new financing. Sustained cash generation supports operational resilience, dividend capacity, and strategic flexibility over quarters and years, though consistency should be monitored.
Negative Factors
Multi-year net losses
Several consecutive years of net losses erode retained earnings and impair the firm's ability to generate shareholder returns. Persistent unprofitability increases reliance on cash reserves or external funding, constrains reinvestment, and heightens risk that structural issues in pricing, demand, or cost base remain unresolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
The shift from negative to positive operating and free cash flow in 2024–2025 indicates the business can internally fund working capital and some investments without relying heavily on new financing. Sustained cash generation supports operational resilience, dividend capacity, and strategic flexibility over quarters and years, though consistency should be monitored.
Read all positive factors
China Weaving Materials Holdings Ltd. (3778) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$356.92M
Dividend Yield5.26%
Average Volume (3M)1.13K
Price to Earnings (P/E)21.5
Beta (1Y)0.41
Revenue Growth-11.28%
EPS GrowthN/A
CountryHK
Employees2,190
SectorConsumer Cyclical
Sector Strength84
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)-0.05
Shares Outstanding125,234,990
10 Day Avg. Volume400
30 Day Avg. Volume1,133
Financial Highlights & Ratios
PEG Ratio1.17
Price to Book (P/B)0.52
Price to Sales (P/S)0.31
P/FCF Ratio3.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
China Weaving Materials Holdings Ltd. Business Overview & Revenue Model
Company Description
As an investment holding company, China Weaving Materials Holdings Limited manufactures and trades various yarn products and staple fibers across the People's Republic of China. Its operations are divided into two primary divisions: Yarns and Stap...
How the Company Makes Money
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China Weaving Materials Holdings Ltd. Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.10B | 1.28B | 1.11B | 1.32B | 1.64B |
| Gross Profit | 72.52M | 42.20M | 11.26M | 58.10M | 303.18M |
| EBITDA | 81.08M | 79.75M | 54.45M | 43.01M | 311.21M |
| Net Income | -6.70M | -11.74M | -26.52M | -12.56M | 202.54M |
Balance Sheet | |||||
| Total Assets | 1.36B | 1.40B | 1.50B | 1.60B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 319.42M | 213.71M | 190.07M | 263.40M | 283.03M |
| Total Debt | 446.56M | 412.73M | 476.16M | 515.16M | 553.24M |
| Total Liabilities | 704.79M | 721.18M | 811.51M | 880.25M | 908.37M |
| Stockholders Equity | 653.26M | 676.79M | 688.53M | 715.06M | 781.19M |
Cash Flow | |||||
| Free Cash Flow | 99.66M | 76.21M | -96.71M | 114.14M | 66.75M |
| Operating Cash Flow | 112.44M | 80.47M | -80.11M | 202.63M | 121.26M |
| Investing Cash Flow | -7.46M | 1.99M | 45.71M | -129.43M | -15.00M |
| Financing Cash Flow | -53.33M | -63.43M | -38.93M | -92.84M | -7.83M |
China Weaving Materials Holdings Ltd. Technical Analysis
Negative
3.20
Price Trends
2.94
Negative
2.88
Negative
2.99
Negative
Market Momentum
-0.02
Positive
13.79
Positive
>-0.01
Positive
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 3.2 is above the 20-day moving average (MA) of 2.92, above the 50-day MA of 2.94, and above the 200-day MA of 2.99, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 13.79 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$19.81B | 10.56 | 14.47% | 6.21% | 4.21% | 9.77% | |
62 Neutral | HK$54.63B | 10.23 | 12.10% | 5.78% | 1.86% | -27.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | HK$1.31B | 8.08 | 3.28% | 10.64% | -7.87% | 38.45% | |
59 Neutral | HK$3.12B | 11.30 | 9.33% | 6.15% | -1.56% | 53.99% | |
51 Neutral | HK$1.31B | 15.77 | 2.83% | 7.45% | -0.86% | -50.37% | |
48 Neutral | HK$356.92M | 21.48 | 2.16% | 5.26% | -11.28% | ― |
* Consumer Cyclical Sector Average
HK:3778
China Weaving Materials Holdings Ltd.
2.85
-0.20
-6.56%
HK:1382
Pacific Textiles Holdings
0.94
-0.53
-35.92%
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Shenzhou International Group Holdings
35.98
-20.84
-36.67%
HK:0321
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0.94
0.21
29.30%
HK:2199
Regina Miracle International (Holdings) Limited
2.60
0.52
25.12%
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6.84
0.36
5.51%
China Weaving Materials Holdings Ltd. Corporate Events
China Weaving Materials Sets August Board Meeting to Review Interim Results and Dividend
Aug 5, 2026
China Weaving Materials Holdings Ltd. has scheduled a board meeting for 27 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the payment of an interim dividend, which may sign...
China Weaving Materials Signals Interim Profit on Higher-Margin Yarn Shift
Jun 26, 2026
China Weaving Materials Holdings Ltd. has signalled a sharp turnaround in its interim performance, expecting to post a consolidated net profit for the six months to 30 June 2026 after recording a loss of about RMB10.1 million a year earlier. Based...
China Weaving Materials Shareholders Unanimously Back All AGM Resolutions
Jun 4, 2026
China Weaving Materials Holdings Limited, a Hong Kong-listed textile materials producer incorporated in the Cayman Islands, supplies weaving-related products from its operations in Fengxin County, Jiangxi Province in mainland China. Its board cons...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.