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China Weaving Materials Holdings (3778) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$376M

CW China Weaving Materials Holdings 3778 · HK
PriceHK$2.95
Fair ValueHK$3.80
Upside+28.8%
Quality54/100
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Mixed Growth
Loss-making · -0.6% net margin
Low debt · generates free cash flow
4.50% dividend yield
Mixed vs. peers (6/12)
Narrow moat 17/100
Evidence: High Range HK$3.69 – HK$3.91 Share as image

Fair value as of: Aug 6, 2026

From 16 valuation models · updated 4 days ago

Fair value updated Aug 6, 2026, revised from HK$3.84 to HK$3.80 (−1.0%) since Jul 2, 2026. Share price +1.7% over the past month.

A solid business, screening 29% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$3.69). The market is more pessimistic than our downside scenario.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
  • The models converge in a tight band (HK$3.69 to HK$3.91), unusually little disagreement for a valuation.
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Price vs Fair Value (5 years)

HK$4.86 HK$2.29 Fair Value HK$3.80 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 6, 2026.

How to read this chart

60‑month range HK$2.29 – HK$4.86 · fair‑value band HK$3.69 – HK$3.91 · the HK$2.95 price screens below the HK$3.80 fair value. Dashed = 300-day average. As of Aug 6, 2026.

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Analysis

China Weaving Materials Holdings (3778) currently trades at HK$2.95, while our model-based Fair Value estimate is HK$3.80, implying the stock looks roughly 28.8% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, China Weaving Materials Holdings generated revenue of HK$1.1B at a net margin of -0.6%. Revenue declined 17.0% year over year. It earns a return on equity of -1.0%. Net debt stands at HK$127M. Fundamentals as of Aug 6, 2026

Our scenario range runs from HK$3.69 (bear case) to HK$3.91 (bull case); at HK$2.95, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 63% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -27% fair-value upside, at 29%, 3778 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$9.14 HK$11.00 HK$13.88 80
Rev-Margin DCF HK$6.19 HK$7.19 HK$8.51 74
ROIC Compounder HK$3.22 HK$3.33 HK$3.41 72
All 16 models by family
DCF Models
FCF DCF HK$8.93 HK$10.89 HK$14.18 38
Owner Earnings HK$6.07 HK$7.16 HK$8.99 31
5Y Revenue Exit HK$6.19 HK$7.02 HK$8.22 39
5Y EBITDA Exit HK$8.71 HK$11.38 HK$14.93 41
10Y Revenue Exit HK$7.33 HK$8.02 HK$8.68 36
10Y EBITDA Exit HK$8.77 HK$10.48 HK$12.28 37
Earnings-Based
EPV HK$3.22 HK$3.33 HK$3.41 59
Dividend Discount
Gordon GGM HK$1.03 HK$1.12 HK$1.24 70
DDM Multi-Stage HK$1.03 HK$1.23 HK$1.49 61
Multiples
EV/EBIT HK$5.01 HK$5.86 HK$6.71 53
EV/EBITDA HK$9.55 HK$11.91 HK$14.27 54
EV/Revenue HK$4.18 HK$4.92 HK$5.65 43
Asset-Based
NCAV (Graham) HK$2.61 HK$3.49 HK$5.22 50
Growth DCF
Growth DCF HK$9.14 HK$11.00 HK$13.88 80
Rev-Margin DCF HK$6.19 HK$7.19 HK$8.51 74
Economic Profit
ROIC Compounder HK$3.22 HK$3.33 HK$3.41 72

Widest divergence: DCF Models (HK$8.02) versus Dividend Discount (HK$1.12). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$1.1B
Revenue growth (YoY) -17.0%
Net margin -0.6%
Return on equity -1.0%
Free cash flow HK$99.7M FY2025
Operating margin 0.6%
More key figures
Dividend yield 4.5%
EPS growth (YoY) -67.0%
Net debt HK$127M FY2025

Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 54 · Market factors (momentum, volatility) 47

Profitability 21
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 32
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Weaving Materials Holdings Limited, an investment holding company, engages in the manufacturing and trading of yarns products and related raw materials in the People's Republic of China.

Full company description

China Weaving Materials Holdings Limited, an investment holding company, engages in the manufacturing and trading of yarns products and related raw materials in the People's Republic of China. It offers pure cotton yarn, polyester yarn, and polyester cotton blended yarn products; and grey and deep grey mélange, grey mélange-cotton blended, and other products. China Weaving Materials Holdings Limited was incorporated in 2011 and is headquartered in Kowloon, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Weaving Materials Holdings reported revenue of HK$1.1B in FY2025 versus HK$1.7B in FY2021, a compound −10.7%/yr. Reported net income was −HK$6.7M in FY2025.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$1.1B
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−9.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.5%
Avg. growth/yr (16Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.5%
Revenue −10.7%/yr
FY21 HK$1.7B
FY22 HK$1.3B
FY23 HK$1.1B
FY24 HK$1.3B
FY25 HK$1.1B
Net income
FY21 HK$203M
FY22 −HK$12.6M
FY23 −HK$26.5M
FY24 −HK$11.7M
FY25 −HK$6.7M

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Cite: Fair Value Calculator (2026). "China Weaving Materials Holdings Fair Value". https://www.fairvalue-calculator.com/stock/3778

Peer Group

Textile Manufacturing · 307 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside +29% · Above median
Return on assets 0% · Below median
Net margin (TTM) -1% · Bottom 25%
Operating margin (TTM) 1% · Below median
Revenue growth -17% · Bottom 25%
Dividend yield (TTM) 4.5% · Top 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/B 0.07× · Cheaper than 75% of peers
P/S (TTM) 0.04× · Cheaper than 75% of peers
P/FCF 0.5× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 72 · sector 8
FUTURE 0 · sector 0
PAST 0 · sector 15
HEALTH 99 · sector 95
DIVIDEND 90 · sector 34

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 6, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$44.40 HK$75.65 +70%
Tongkun Group 601233 ¥23.56 ¥14.53 -38%
Inner Mongolia ERDOS Resources Co 600295 ¥12.04 ¥14.35 +19%
HMT (Xiamen) New Technical Materials Co 603306 ¥91.75 ¥12.85 -86%
Far Eastern New Century Corporation 1402 27.55 TWD 28.72 TWD +4%
K.P.R. Mill Limited KPRMILL ₹1,083 ₹467.49 -57%
Zhejiang Orient Holdings 600120 ¥5.18 ¥2.21 -57%
Vardhman Textiles Limited VTL ₹602.20 ₹437.53 -27%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 323.84 TRY +86%
Shandong Fiberglass Group 605006 ¥16.75 ¥6.42 -62%

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Frequently asked questions

Is China Weaving Materials Holdings (3778) overvalued or undervalued?
As of Aug 6, 2026, our model estimates a fair value of HK$3.80 versus a price of HK$2.95, about +29% (undervalued).
What is the fair value of 3778?
Our model-based fair value for China Weaving Materials Holdings is HK$3.80 (as of Aug 6, 2026), built from audited fundamentals. The current price is HK$2.95.
What is the quality score of 3778?
China Weaving Materials Holdings has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Weaving Materials Holdings (3778)?
China Weaving Materials Holdings reported trailing-twelve-month revenue of about HK$1.1B (latest available figure, as of Aug 6, 2026).
What is the net profit margin of 3778?
The net profit margin of China Weaving Materials Holdings is about -0.6%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does China Weaving Materials Holdings pay a dividend?
China Weaving Materials Holdings currently shows a dividend yield of about 4.50% relative to its recent price (as of Aug 6, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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