Texwinca Holdings (0321) AI Stock Analysis

• Market Cap: HK$1.70B
• Dividend Yield: 9.71%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.39
• 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$1.50 ▲(41.51% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

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

Balance sheet stability

Moderate leverage and a healthy equity ratio provide structural resilience: the company can better absorb demand shocks, maintain supplier and creditor confidence, and has headroom to fund working capital or targeted capex without immediate refinancing stress over the next several months.

Cash generation

A positive free cash flow trend and a healthy FCF-to-net-income ratio indicate the business converts earnings into cash. That durability supports dividends, working capital needs and selective reinvestment, lowering reliance on external funding despite volatility in cash flows.

Diversified business model & customer base

Multiple product lines (yarn, fabrics, finished garments), sales channels to retailers and custom manufacturing plus global brand partnerships provide stable order flow, economies of scale and pricing leverage from sustainability/quality credentials that support durable revenue streams.

Negative Factors

Declining revenue and margin pressure

Sustained revenue decline and deteriorating gross and operating margins signal structural demand or cost competitiveness issues. Negative EBIT reduces reinvestment capacity and increases dependence on cash reserves or external funds to support operations and strategic initiatives over the medium term.

Weak return on equity

Low ROE indicates the company struggles to translate equity into sustainable profits. This structural inefficiency can constrain future dividend sustainability and capital attraction, and suggests management may face difficulty improving shareholder returns absent operational improvements.

Volatile cash flow quality

While FCF is positive on trend, volatility in cash generation and only moderate operating cash-to-income conversion raise uncertainty for consistent capex, dividends and debt servicing. This variability increases execution risk and complicates multi-month planning.

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

Weak profitability and declining revenue (lower gross margin, low net margin, negative EBIT) offset by a stable balance sheet with moderate leverage and generally decent cash generation with positive (though volatile) free cash flow growth.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 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: Positive
• RSI: Neutral
• 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 below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.14, and above the 200-day MA of 0.84, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 55.14 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 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$775.00M	4.91	21.11%	8.89%	-8.00%	-11.37%
1346	71 Outperform	HK$939.48M	7.37	31.67%	6.76%	7.12%	28.89%
2011	65 Neutral	HK$850.26M	17.77	25.73%	―	21.10%	―
0608	63 Neutral	HK$458.42M	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$1.70B	13.51	2.58%	9.71%	-7.47%	-33.28%
0420	54 Neutral	HK$833.02M	14.51	1.77%	1.90%	-7.20%	-55.24%

Texwinca Holdings Corporate Events

Texwinca Outlines Board Composition and Key Governance Committees

Texwinca Holdings Limited has announced the current composition of its board of directors, led by Executive Chairman Poon Bun Chak, Executive Vice Chairman Poon Ho Tak and Chief Executive Officer Ho Lai Hong, alongside four other executive and independent non-executive directors. The company has also confirmed the membership and chairmanship of its three key board committees—Audit, Nomination and Remuneration—reinforcing its corporate governance structure and delineating oversight responsibilities among independent non-executive directors and senior management, a move that underscores regulatory compliance and governance transparency for shareholders and other stakeholders.

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 Reshapes Board With New Senior Advisor and Independent Director

Texwinca Holdings has announced changes to its board and governance structure, re-designating long-serving independent non-executive director Dr. Chan Yuk Mau Eddie as Senior Advisor to the Board from 30 January 2026, following his resignation as independent non-executive director and his roles on the nomination, audit and remuneration committees effective 29 January 2026. To fill these positions and reinforce independent oversight, the company will appoint information technology veteran Mr. Lee Wai Yip Alvin as an independent non-executive director, chairman of the nomination committee and member of the audit and remuneration committees from 29 January 2026, a move that brings digital and technology expertise into the boardroom and signals a continued focus on strategic development and corporate governance for its textile and garment operations.

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 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.