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

China Weaving Materials Holdings Ltd.

(HKEX:3778)

Select Model

Rating:54Neutral

Price Target:HKD 3.00▲(5.63% Upside)

Action:reiterated

Date:08/10/26

The score is held back mainly by weak profitability and declining revenue, while improving cash flow and stable leverage provide the main fundamental support. Technicals are modestly constructive, and the dividend yield adds some valuation support, but negative earnings prevent a stronger rating.

Positive Factors

Improved cash generationThe 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 lossesSeveral 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.

China Weaving Materials Holdings Ltd. (3778) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 355.67M
Dividend Yield: 5.28%
Average Volume (3M): 66.80K
Price to Earnings (P/E): 21.2
Beta (1Y): -0.02
Revenue Growth: -11.28%
EPS Growth: ―
Country: Hong Kong
Employees: 2,128
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Manufacturing - Textiles

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 Staple...

How the Company Makes Money

null

China Weaving Materials Holdings Ltd. Financial Statement Overview

Summary

Mixed fundamentals: cash flow has improved materially and leverage is stable, but revenue has fallen sharply and profitability remains negative, with equity still eroding.

Income Statement

35Negative

Balance Sheet

55Neutral

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.05B	1.10B	1.28B	1.11B	1.32B	1.64B
Gross Profit	82.15M	72.52M	42.20M	11.26M	58.10M	303.18M
EBITDA	89.05M	80.70M	84.04M	56.66M	45.29M	311.21M
Net Income	14.22M	-6.70M	-11.74M	-26.52M	-12.56M	202.54M
Balance Sheet
Total Assets	1.45B	1.36B	1.40B	1.50B	1.60B	1.69B
Cash, Cash Equivalents and Short-Term Investments	282.35M	319.42M	213.71M	190.07M	263.40M	283.03M
Total Debt	464.25M	446.56M	412.73M	476.16M	515.16M	553.24M
Total Liabilities	781.97M	704.79M	721.18M	811.51M	880.25M	908.37M
Stockholders Equity	663.66M	653.26M	676.79M	688.53M	715.06M	781.19M
Cash Flow
Free Cash Flow	6.65M	99.66M	76.21M	-96.71M	114.14M	66.75M
Operating Cash Flow	67.27M	112.44M	80.47M	-80.11M	202.63M	121.26M
Investing Cash Flow	-118.18M	-7.46M	1.99M	45.71M	-129.43M	-15.00M
Financing Cash Flow	25.76M	-53.33M	-63.43M	-38.93M	-92.84M	-7.83M

China Weaving Materials Holdings Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2.84

Price Trends

50DMA2.88Negative

100DMA2.90Negative

200DMA2.93Negative

Market Momentum

MACD-0.01Negative

RSI30.81Neutral

STOCH93.33Negative

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 2.84 is below the 20-day moving average (MA) of 2.85, below the 50-day MA of 2.88, and below the 200-day MA of 2.93, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 30.81 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:3778 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:2232	80Outperform	HKD 21.97B	11.88	14.47%	5.52%	4.21%	9.77%
HK:2313	62Neutral	HKD 57.57B	10.80	12.10%	5.43%	1.86%	-27.58%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HK:2199	61Neutral	HKD 3.14B	11.15	9.33%	6.24%	-1.56%	53.99%
HK:3778	54Neutral	HKD 355.67M	21.23	2.16%	5.28%	-11.28%	―
HK:0321	46Neutral	HKD 1.06B	6.58	3.28%	13.07%	-7.87%	38.45%
HK:1382	40Underperform	HKD 1.09B	13.34	2.83%	8.81%	-0.86%	-50.37%

* Consumer Cyclical Sector Average

Performance Comparison

HK:3778 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:3778	China Weaving Materials Holdings Ltd.	2.84	-0.16	-5.33%
HK:1382	Pacific Textiles Holdings	0.80	-0.56	-41.29%
HK:2313	Shenzhou International Group Holdings	38.30	-25.23	-39.71%
HK:0321	Texwa Holdings	0.77	0.07	9.29%
HK:2199	Regina Miracle International (Holdings) Limited	2.56	0.67	35.57%
HK:2232	Crystal International Group Limited	7.70	1.26	19.64%

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 signal...

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 on...

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 consist...

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.

Date of analysis: Aug 10, 2026

China Weaving Materials Holdings Ltd. AI Stock Analysis