China Weaving Materials Holdings Ltd. (HK:3778)
:3778
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China Weaving Materials Holdings Ltd.
(3778)
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Rating:45Neutral
Price Target:
HK$3.00
▼(-6.25% Downside)
Action:Reiterated
Date:05/09/26
The score is held down primarily by weak financial performance (multi-year losses and 2025 revenue decline) and bearish technicals (below key moving averages with negative MACD). A manageable balance sheet, improved recent cash flow, and a ~5% dividend yield provide partial support but do not outweigh the profitability and trend concerns.
Positive Factors
Improved cash generation
Operating and free cash flow turned positive in 2024–2025 after earlier weakness, creating durable internal funding for working capital, dividends and capex. This reduces reliance on external financing and gives management room to stabilize operations if cash generation persists.
Negative Factors
Multi-year net losses
Sustained net losses over several years erode retained earnings and limit the firm's ability to self-fund growth or rebuild margins. Continued losses depress returns on equity, constrain reinvestment capacity, and make long-term recovery dependent on clear, sustained profitability improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Operating and free cash flow turned positive in 2024–2025 after earlier weakness, creating durable internal funding for working capital, dividends and capex. This reduces reliance on external financing and gives management room to stabilize operations if cash generation persists.
Read all positive factors
China Weaving Materials Holdings Ltd. (3778) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$373.20M
Dividend Yield4.55%
Average Volume (3M)987.30K
Price to Earnings (P/E)25.3
Beta (1Y)0.34
Revenue Growth-14.46%
EPS Growth44.09%
CountryHK
Employees2,410
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.05
Shares Outstanding125,234,990
10 Day Avg. Volume0
30 Day Avg. Volume987,301
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
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 ...
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
3.02
Negative
3.04
Negative
3.11
Negative
Market Momentum
-0.01
Negative
26.31
Positive
94.02
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 3.2 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 3.02, and above the 200-day MA of 3.11, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 26.31 is Positive, neither overbought nor oversold. The STOCH value of 94.02 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | HK$382.02M | 4.50 | 2.16% | 2.33% | -8.16% | -23.90% | |
49 Neutral | HK$263.30M | -0.50 | -14.46% | ― | -13.96% | -167.54% | |
46 Neutral | HK$735.56M | -2.73 | -17.17% | ― | -13.06% | -197.89% | |
45 Neutral | HK$373.20M | 25.25 | -1.02% | 4.55% | -14.46% | 44.09% |
* Consumer Cyclical Sector Average
HK:3778
China Weaving Materials Holdings Ltd.
2.90
-0.72
-19.89%
HK:3322
Win Hanverky Holdings Limited
0.20
-0.04
-16.67%
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High Fashion International Limited
1.25
-0.09
-6.72%
HK:1906
Bonny International Holding Ltd.
0.50
0.09
23.75%
China Weaving Materials Holdings Ltd. Corporate Events
China Weaving Materials Sets 2026 AGM to Approve Results and Share Issuance Mandate
Apr 29, 2026
China Weaving Materials Holdings Limited has convened its annual general meeting for 4 June 2026 in Jiangxi Province, where shareholders will review and approve the audited consolidated financial statements for the year ended 31 December 2025. The...
China Weaving Materials Narrows 2025 Loss as Operating Profit Improves
Mar 25, 2026
China Weaving Materials Holdings Limited reported a decline in revenue to RMB1.10 billion for 2025 from RMB1.28 billion a year earlier, but gross profit improved significantly as cost of sales fell more sharply than turnover. The group’s aud...
China Weaving Materials Sets March Board Meeting to Approve 2025 Results and Consider Dividend
Mar 9, 2026
China Weaving Materials Holdings Limited has scheduled a board meeting for 25 March 2026 to review and approve the audited annual results for the year ended 31 December 2025. The board will also consider declaring a final dividend or other distrib...
China Weaving Materials Clarifies Independence of Vendor in Equipment Purchase
Mar 6, 2026
China Weaving Materials Holdings Limited has issued a supplemental announcement regarding its previously disclosed purchase of production equipment. The company clarified that the vendor, Murata Machinery, Ltd., and its ultimate beneficial owners ...
China Weaving Materials invests USD5 million in high‑speed vortex spinning upgrade
Mar 3, 2026
China Weaving Materials Holdings Limited has agreed, via its indirect wholly owned subsidiary Jiangxi Jinyuan, to purchase 12 Murata Vortex Spinning Machines from Murata Machinery, Ltd. for USD5.05 million, with payment by letter of credit and del...
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.