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

• Market Cap: HK$457.11M
• Dividend Yield: N/A
• Average Volume (3M): 60.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 14.05%
• EPS Growth: 56.22%
• Country: HK
• Employees: 2,410
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Manufacturers
• EPS (TTM): >-0.01
• Shares Outstanding: 1,252,350,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 60,933
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 38.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(38.89% Upside)

China Weaving Materials Holdings Ltd. is on a recovery path with improving cash flow, yet faces significant profitability challenges. The stock's technical indicators suggest bearish momentum, and valuation metrics are unattractive due to ongoing losses. Investors may consider the potential for operational improvements but should be cautious of the current financial health.

China Weaving Materials Holdings Ltd. Business Overview & Revenue Model

Company Description

China Weaving Materials Holdings Ltd. (3778) is a textile company primarily engaged in the manufacturing and trading of yarn products. The company operates in the textile sector, focusing on the production of polyester, polyester-cotton, and cotton yarns, which are essential raw materials for the textile and garment industry. With manufacturing facilities strategically located in China, the company serves a diverse clientele both domestically and internationally.

How the Company Makes Money

China Weaving Materials Holdings Ltd. generates revenue primarily through the sale of its yarn products. The company's key revenue streams include the production and sale of various types of yarns, such as polyester yarn, polyester-cotton blended yarn, and cotton yarn. These products are sold to textile manufacturers who use them as raw materials to produce fabrics and garments. The company's earnings are significantly influenced by factors such as raw material costs, demand dynamics in the textile industry, and its ability to maintain efficient production processes. Additionally, any strategic partnerships or long-term contracts with major textile manufacturers can enhance its revenue stability and growth.

China Weaving Materials Holdings Ltd. Financial Statement Overview

Summary

China Weaving Materials Holdings Ltd. shows signs of recovery with improving cash flow and operational metrics, but profitability remains a concern. Revenue growth is visible, yet profit margins and ROE are still weak. The balance sheet is stable with manageable leverage.

Income Statement

The company has experienced volatile revenue changes with recent growth of 15.83% from 2023 to 2024. Gross profit margins have been low, with a slight improvement to 3.29% in 2024 from 1.02% in 2023, indicating ongoing challenges in cost management. The net profit margin remains negative, reflecting persistent losses, though there is a narrowing of losses. EBIT and EBITDA margins have seen some recovery, which suggests some operational improvements, but overall profitability remains weak.

Balance Sheet

The company maintains a moderate Debt-to-Equity ratio of 0.61 in 2024, indicating manageable leverage levels. However, the equity ratio has slightly decreased to 48.42%, showing pressure on equity relative to total assets. Return on Equity remains negative due to net losses, reflecting profitability challenges. The balance sheet indicates some stability, but profitability issues persist.

Cash Flow

The company has shown significant improvement in cash flow, with a positive swing in operating and free cash flow in 2024, indicating better cash generation capability. The Operating Cash Flow to Net Income ratio is strong, suggesting effective cash management despite net losses. The Free Cash Flow to Net Income ratio also supports the improvement in cash flows, highlighting a better cash position relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.11B	1.32B	1.72B	1.42B
Gross Profit	42.20M	11.26M	58.10M	317.50M	143.16M
EBITDA	43.79M	12.06M	67.56M	311.21M	170.05M
Net Income	-11.74M	-26.52M	-4.88M	202.54M	62.75M
Balance Sheet
Total Assets	1.40B	1.50B	1.60B	1.69B	1.51B
Cash, Cash Equivalents and Short-Term Investments	213.71M	190.07M	263.40M	283.03M	184.61M
Total Debt	412.73M	476.16M	515.16M	553.24M	508.93M
Total Liabilities	721.18M	811.51M	880.25M	908.37M	879.32M
Stockholders Equity	676.79M	688.53M	715.06M	781.19M	631.90M
Cash Flow
Free Cash Flow	76.21M	-96.71M	114.14M	66.75M	82.23M
Operating Cash Flow	80.47M	-80.11M	202.63M	121.26M	96.05M
Investing Cash Flow	1.99M	45.71M	-129.43M	-15.00M	-69.57M
Financing Cash Flow	-63.43M	-38.93M	-92.84M	-7.83M	22.54M

China Weaving Materials Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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 0.36 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.37, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 28.29 is Positive, neither overbought nor oversold. The STOCH value of -20.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	HK$25.46B	5.06	-2.69%	5.60%	-0.43%	-53.15%
3322	50 Neutral	HK$281.28M	―	-4.86%	―	29.26%	81.76%
3778	45 Neutral	HK$457.11M	―	-1.72%	―	14.05%	56.22%
1906	41 Neutral	HK$426.63M	―	-5.04%	―	46.93%	63.40%

China Weaving Materials Holdings Ltd. Corporate Events

China Weaving Materials Announces Upcoming Board Meeting for Interim Results

China Weaving Materials Holdings Ltd. has announced that its board of directors will hold a meeting on August 28, 2025, to discuss and approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting could have significant implications for the company’s financial strategy and shareholder returns.

China Weaving Materials Issues Profit Warning Amid Revenue Decline

China Weaving Materials Holdings Ltd. has issued a profit warning, indicating a significant increase in its consolidated net loss for the first half of 2025 compared to the same period in 2024. The anticipated loss is attributed to a decrease in revenue from yarn products due to poor market conditions, a reduction in other income, and increased administrative expenses. The company recorded a consolidated revenue of approximately RMB410 million for the first five months of 2025, a decline from the previous year’s figure. Shareholders and potential investors are advised to exercise caution as the company finalizes its results, expected to be released by the end of August 2025.

China Weaving Materials Secures Unanimous Approval at AGM

China Weaving Materials Holdings Ltd. announced that all resolutions proposed at its Annual General Meeting held on June 5, 2025, were approved unanimously by shareholders. The resolutions included the re-election of directors, approval of financial statements, and granting of mandates to the board for share issuance and repurchase, indicating strong shareholder support and stability in the company’s governance.