Texwinca Holdings (0321) AI Stock Analysis

• Market Cap: HK$1.58B
• Dividend Yield: 9.71%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.37
• Revenue Growth: -7.47%
• EPS Growth: -33.28%
• Country: HK
• Employees: 9,588
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.08
• Shares Outstanding: 1,381,696,200
• 10 Day Avg. Volume: 7,279,000
• 30 Day Avg. Volume: 2,762,066
• PEG Ratio: -0.68
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 4.53
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$1.00 ▼(-5.66% Downside)

The score is driven primarily by mixed financial performance: profitability and revenue trends are weak, but the balance sheet is stable and cash flow generation is relatively supportive. Technicals indicate an established uptrend, though overbought signals temper the outlook. Valuation is a positive contributor, supported by a moderate P/E and a high dividend yield.

Positive Factors

Cash Generation Ability

The positive trend in free cash flow growth indicates effective cash management, providing the company with the ability to reinvest in its business and weather economic fluctuations.

Stable Balance Sheet

A moderate debt-to-equity ratio suggests a stable financial structure, allowing Texwinca to maintain financial flexibility and reduce risk associated with high leverage.

Market Position

Strong partnerships with global fashion brands enhance Texwinca's market presence and provide a stable order flow, supporting long-term revenue stability and growth.

Negative Factors

Declining Revenue

A consistent decline in revenue reflects challenges in maintaining market share and demand, potentially impacting long-term growth and profitability.

Profitability Challenges

Decreasing gross profit margins suggest increased cost pressures or pricing challenges, which could hinder the company's ability to sustain profits over time.

Low Return on Equity

Low return on equity indicates inefficiencies in using shareholder capital to generate profits, which may deter investment and affect long-term shareholder value.

Texwinca Holdings Business Overview & Revenue Model

Company Description

Texwinca Holdings Limited engages in the production, dyeing, and sale of knitted fabrics, yarns, and garments. The company offers finished knitted fabric products in single knit, double knit, velour and polar fleece, jacquard, spandex, stripe, and flat knit areas. It also provides dyed yarn products, such as ramie/cotton, rayon/cotton, acrylic/cotton, and polyester/cotton blend yarn dyed products, as well as cotton yarn dyed products. In addition, the company retails and distributes casual apparel and accessories; and offers franchise services. Further, it is involved in the trading of machines; provision of management services; and holding of trademarks and properties. The company sells its products in the United States, Mainland China, Japan, Hong Kong, and internationally. Texwinca Holdings Limited was founded in 1975 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

Texwinca Holdings generates revenue through multiple streams, primarily from the sale of textiles and apparel products. The company produces a wide variety of fabrics, including knitted and woven textiles, which are sold to garment manufacturers and retailers around the world. Key revenue streams include direct sales to large retail chains and brands, along with custom manufacturing services. Additionally, Texwinca has established significant partnerships with numerous global fashion brands, which contributes to its stable order flow and enhances its market presence. The company also benefits from economies of scale in production and a reputation for high-quality, sustainable products, which allows for premium pricing and customer loyalty.

Texwinca Holdings Financial Statement Overview

Summary

Texwinca Holdings faces challenges in revenue growth and profitability, with declining margins and negative EBIT. The balance sheet remains stable with moderate leverage, but returns on equity are low. Cash flow generation is a positive aspect, with growth in free cash flow and effective cash management.

Income Statement

Texwinca Holdings has experienced a decline in revenue over the past few years, with a negative revenue growth rate in recent periods. The gross profit margin has decreased, indicating pressure on profitability. The net profit margin is low, and EBIT margins have been negative, reflecting operational challenges. However, the EBITDA margin remains positive, suggesting some resilience in core operations.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leverage. Return on equity has been low, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a stable financial structure with a solid asset base.

Cash Flow

Texwinca Holdings shows a positive trend in free cash flow growth, although it has been volatile. The operating cash flow to net income ratio is moderate, indicating decent cash generation relative to net income. The free cash flow to net income ratio is healthy, suggesting effective cash management despite profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.30B	5.59B	5.37B	6.06B	8.04B	7.35B
Gross Profit	1.35B	1.32B	1.41B	1.57B	2.33B	2.28B
EBITDA	622.83M	593.33M	588.92M	491.94M	668.98M	913.71M
Net Income	126.86M	116.07M	132.33M	75.15M	191.06M	274.21M
Balance Sheet
Total Assets	6.69B	6.89B	7.11B	6.95B	8.98B	8.74B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.64B	1.59B	1.97B	2.45B	1.76B
Total Debt	885.79M	1.26B	1.24B	847.71M	1.89B	1.40B
Total Liabilities	1.84B	2.12B	2.32B	1.93B	3.54B	3.34B
Stockholders Equity	4.84B	4.76B	4.79B	5.03B	5.44B	5.40B
Cash Flow
Free Cash Flow	65.78M	213.69M	173.08M	780.78M	639.76M	561.60M
Operating Cash Flow	829.30M	508.97M	388.74M	1.03B	931.50M	749.76M
Investing Cash Flow	2.23M	603.22M	-1.04B	883.29M	-1.57B	497.45M
Financing Cash Flow	-1.64B	-336.61M	-23.69M	-1.30B	-33.54M	-663.75M

Texwinca Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 1.06 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 0.97, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 76.07 is Negative, neither overbought nor oversold. The STOCH value of 75.69 is Neutral, 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
1425	75 Outperform	HK$800.00M	5.07	21.11%	8.89%	-8.00%	-11.37%
1346	71 Outperform	HK$913.91M	6.51	31.67%	6.76%	7.12%	28.89%
2011	65 Neutral	HK$856.00M	17.89	25.73%	―	21.10%	―
0608	63 Neutral	HK$473.70M	5.72	2.55%	2.33%	-4.07%	-26.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0321	60 Neutral	HK$1.58B	12.75	2.58%	9.71%	-7.47%	-33.28%
0420	54 Neutral	HK$796.27M	14.51	1.77%	1.90%	-7.20%	-55.24%

Texwinca Holdings Corporate Events

Texwinca Holdings Reports Increased Profit Despite Revenue Decline

Texwinca Holdings Limited reported its interim results for the six months ended 30 September 2025, showing a 9.6% decline in revenue to HK$2,711.8 million due to a subdued economic environment. However, the company achieved a 10.6% increase in profit attributable to ordinary equity holders, amounting to HK$112.3 million, driven by improved cost control and operational efficiency. The Board declared an interim dividend of HK4.0 cents per ordinary share, reflecting a dividend payout ratio of 49.2%.

The most recent analyst rating on (HK:0321) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Texwinca Holdings stock, see the HK:0321 Stock Forecast page.

Texwinca Holdings Declares Interim Dividend for 2025

Texwinca Holdings Limited has announced an interim cash dividend of HKD 0.04 per share for the six months ending September 30, 2025. This dividend reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively, reinforcing its stable financial position within the textile industry.

The most recent analyst rating on (HK:0321) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Texwinca Holdings stock, see the HK:0321 Stock Forecast page.

Texwinca Holdings Schedules Board Meeting to Review Interim Results

Texwinca Holdings Limited has announced that its board of directors will convene a meeting on November 13, 2025, to approve the unaudited interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting could have significant implications for the company’s financial strategy and shareholder returns, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0321) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Texwinca Holdings stock, see the HK:0321 Stock Forecast page.