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China Weaving Materials Holdings (HKSE:03778) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
China Weaving Materials Holdings ROE % Related Terms
China Weaving Materials Holdings ROE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Weaving Materials Holdings ROE % Competitor Comparison
For the Textile Manufacturing subindustry, China Weaving Materials Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Weaving Materials Holdings ROE % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, China Weaving Materials Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where China Weaving Materials Holdings's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
China Weaving Materials Holdings (HKSE:03778) has a ROE % of 1.04% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on China Weaving Materials Holdings and its competitors. This is 29% below median its historical median of 1.46. According to the industry distribution chart, China Weaving Materials Holdings ranks #638 out of 1029 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 62%.
Is China Weaving Materials Holdings' ROE % too high?
China Weaving Materials Holdings' current ROE % of 1.04% is 29% below median its 10-year median of 1.46. The Manufacturing - Apparel & Accessories industry median ROE % is 4.59. China Weaving Materials Holdings' value of 1.04% is 77.3% below this industry median. Based on the distribution chart, China Weaving Materials Holdings ranks #638 out of 1029 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, China Weaving Materials Holdings has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Weaving Materials Holdings' ROE % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, China Weaving Materials Holdings ranks #638 out of 1029 companies for ROE %. This places China Weaving Materials Holdings in the lower half of its industry. The industry median ROE % is 4.59. China Weaving Materials Holdings' value of 1.04% is 77.3% below this benchmark. While the company's 10-year median is 1.46 vs. the industry median of 4.59, China Weaving Materials Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Manufacturing - Apparel & Accessories company?
The median ROE % among Manufacturing - Apparel & Accessories companies is 4.59, based on 1,029 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Weaving Materials Holdings's current ROE % of 1.04% is 77.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on China Weaving Materials Holdings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROE % is 4.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Weaving Materials Holdings's current ROE % is 1.04%, which is 29% below median its own 10-year median of 1.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Weaving Materials Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Weaving Materials Holdings (HKSE:03778) is currently considered Fairly Valued. The stock's GF Value™ is HK$3.09, compared to a current price of HK$2.85 — trading 7.8% below its estimated fair value. The current ROE % is 1.04%, which is 29% below median its 10-year median of 1.46 and 77.3% below the Manufacturing - Apparel & Accessories industry median of 4.59. China Weaving Materials Holdings' overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For China Weaving Materials Holdings (HKSE:03778), the current ROE % is 1.04% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Weaving Materials Holdings (HKSE:03778) Overvalued in 2026?
Based on GuruFocus' analysis, China Weaving Materials Holdings stock appears to be undervalued.
The current stock price of HK$2.85 is trading 7.8% below its estimated GF Value™ of HK$3.09.
GuruFocus considers China Weaving Materials Holdings to be Fairly Valued.
Key valuation signals for HKSE:03778:
ROE %: 1.04% (29% below median its 10-year median of 1.46)
GF Value™: HK$3.09 vs. price of HK$2.85 (7.8% below fair value)
Industry Position: 77.3% below the Manufacturing - Apparel & Accessories median (#638 of 1029)
No single metric tells the full story. See the HKSE:03778 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Weaving Materials Holdings Ltd is an investment holding company. It is principally engaged in the business of manufacturing and trading of yarns products and related raw materials. The company has one reportable segment named Yarns, which is engaged in manufacturing and trading. Geographically, the company derives revenue from the PRC. The products of the company are: Cotton yarn; Polyester Yarn; and Polyester-cotton blended Yarn.
68GF Score
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