Cosmos Machinery Enterprises Limited (0118) AI Stock Analysis

• Market Cap: HK$205.14M
• Dividend Yield: N/A
• Average Volume (3M): 18.67K
• Price to Earnings (P/E): 21.9
• Beta (1Y): -0.02
• Revenue Growth: -9.32%
• EPS Growth: N/A
• Country: HK
• Employees: 1,743
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): <0.01
• Shares Outstanding: 861,930,660
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 18,666
• PEG Ratio: -0.19
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -3.05
• 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: 49 Neutral
• Price Target: HK$0.24 ▼(-1.25% Downside)

Cosmos Machinery Enterprises Limited's overall stock score reflects significant financial challenges, particularly in revenue decline and cash flow issues. The technical analysis provides mixed signals, and the valuation indicates moderate pricing without a dividend yield. These factors collectively suggest a cautious outlook for the stock.

Positive Factors

Stable Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and reducing risk in volatile market conditions.

Diverse Revenue Streams

Diverse revenue streams from machinery sales and services ensure consistent income and foster long-term customer relationships.

Strategic Partnerships

Strategic partnerships enhance market reach and product offerings, supporting competitive positioning and potential for higher margins.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in market demand or competition, potentially impacting long-term growth and profitability.

Cash Flow Issues

Significant cash flow challenges can strain liquidity, limiting the company's ability to invest in growth and manage operational expenses.

Low Profitability

Low profitability margins suggest inefficiencies or pricing pressures, which may hinder the company's ability to generate sustainable profits.

Cosmos Machinery Enterprises Limited Business Overview & Revenue Model

Company Description

Cosmos Machinery Enterprises Limited (0118) is a Hong Kong-based company engaged in the manufacturing and distribution of advanced machinery and equipment. Operating primarily in the sectors of plastic processing, packaging, and automation, the company offers a diverse range of products, including injection molding machines, blow molding machines, and industrial automation solutions. Cosmos Machinery serves various industries such as automotive, electronics, and consumer goods, positioning itself as a key player in the machinery sector in Asia.

How the Company Makes Money

Cosmos Machinery Enterprises Limited generates revenue through multiple streams, primarily by selling its machinery and equipment to various industries. The company's core revenue comes from the direct sale of machinery, including injection and blow molding machines, to manufacturers in sectors like plastics and packaging. Additionally, Cosmos earns income through after-sales services, which include maintenance, repair, and spare parts supply, ensuring ongoing customer relationships and recurring revenue. The company also capitalizes on strategic partnerships with global suppliers and distributors, enhancing its market reach and product offerings. These collaborations allow Cosmos to provide integrated solutions, which can command higher pricing and foster customer loyalty, ultimately contributing to its financial performance.

Cosmos Machinery Enterprises Limited Financial Statement Overview

Summary

Cosmos Machinery Enterprises Limited shows a mixed financial performance. The income statement reveals declining revenue and low margins, despite a slight recovery in net profitability. The balance sheet is strong with low leverage, but the absence of cash flow data raises liquidity concerns.

Income Statement

Cosmos Machinery Enterprises Limited exhibits declining revenue with a negative growth rate over the past year. The gross profit margin stands at 18.49% for 2024, showing a slight decrease from previous years. The net profit margin has improved to 0.42%, compared to negative figures in the past, indicating a recovery from losses. However, the EBIT and EBITDA margins remain low at 1.50% and 3.92%, respectively, suggesting challenges in operational efficiency.

Balance Sheet

The company maintains a solid equity ratio of 57.17%, reflecting strong financial stability. The debt-to-equity ratio is low at 0.10, suggesting conservative leverage. Return on equity improved to 0.64%, although still modest, indicating potential for better profitability. Overall, the balance sheet displays financial resilience with manageable debt levels.

Cash Flow

The absence of operating, investing, and free cash flows in 2024 raises concerns regarding cash generation and liquidity. Previous years showed positive free cash flow, but the lack of data for the latest period suggests potential cash flow management issues. The company needs to address cash flow generation to improve its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.86B	1.87B	2.18B	2.34B	3.08B	2.43B
Gross Profit	358.72M	344.92M	369.67M	372.30M	544.49M	407.98M
EBITDA	79.33M	73.07M	37.64M	118.28M	203.12M	130.85M
Net Income	9.31M	7.90M	-43.80M	24.41M	89.73M	19.58M
Balance Sheet
Total Assets	2.31B	2.17B	2.46B	2.63B	2.97B	2.83B
Cash, Cash Equivalents and Short-Term Investments	470.52M	519.03M	666.10M	570.16M	451.41M	493.73M
Total Debt	151.91M	126.96M	243.52M	268.30M	352.64M	378.18M
Total Liabilities	982.11M	861.67M	1.03B	1.09B	1.33B	1.33B
Stockholders Equity	1.26B	1.24B	1.27B	1.32B	1.41B	1.27B
Cash Flow
Free Cash Flow	-89.45M	-52.25M	93.94M	221.75M	-3.10M	230.15M
Operating Cash Flow	-56.09M	-15.81M	164.77M	254.29M	36.66M	256.50M
Investing Cash Flow	-40.27M	57.36M	-15.85M	3.92M	-80.88M	-19.27M
Financing Cash Flow	22.46M	-187.06M	-23.53M	-98.43M	-57.83M	-78.35M

Cosmos Machinery Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0118, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.24, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0118.

Cosmos Machinery Enterprises Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0474	50 Neutral	HK$885.81M	-2.16	-63.64%	―	-64.04%	1.66%
0118	49 Neutral	HK$205.14M	21.94	0.53%	―	-9.32%	―
1063	49 Neutral	HK$155.39M	10.10	7.00%	―	9.69%	-33.79%
0862	48 Neutral	HK$172.66M	-3.15	-33.36%	―	-25.59%	0.69%
8269	39 Underperform	HK$463.18M	-130.26	-41.21%	―	8.75%	87.90%

Cosmos Machinery Enterprises Limited Corporate Events

Cosmos Machinery Reports Strong Interim Results for 2025

Cosmos Machinery Enterprises Limited reported a significant improvement in its financial performance for the first half of 2025, with revenue from continuing operations increasing by 11.6% to HK$996,205,000 and operating profit surging by 165.2% to HK$13,205,000. Despite the improved results, the Board did not recommend an interim dividend, indicating a cautious approach to capital allocation amidst the company’s ongoing strategic adjustments.

Cosmos Machinery Schedules Board Meeting for Interim Results

Cosmos Machinery Enterprises Limited has announced a board meeting scheduled for August 27, 2025, to review and approve the unaudited interim results for the first half of the year and discuss the potential payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.