Cosmos Machinery Enterprises Limited (0118) AI Stock Analysis

• Market Cap: HK$161.18M
• Dividend Yield: N/A
• Average Volume (3M): 7.83K
• Price to Earnings (P/E): 30.2
• Beta (1Y): -0.09
• Revenue Growth: -14.31%
• EPS Growth: N/A
• Country: HK
• Employees: 1,743
• Sector: Industrials
• Sector Strength: 85
• Industry: Conglomerates
• EPS (TTM): <0.01
• Shares Outstanding: 861,930,660
• 10 Day Avg. Volume: 22,200
• 30 Day Avg. Volume: 7,833
• PEG Ratio: -0.17
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.11
• 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

• Rating: 54 Neutral
• Price Target: ―

Cosmos Machinery Enterprises Limited scores moderately due to its robust balance sheet and positive market momentum. However, the declining revenue, low operational margins, and liquidity concerns weigh down the score. The stock is trading above key moving averages, but high RSI signals caution. Valuation is reasonable, though lack of dividends is a downside.

Cosmos Machinery Enterprises Limited Business Overview & Revenue Model

Company Description

Cosmos Machinery Enterprises Limited, an investment holding company, manufactures and sells machineries in Hong Kong, Mainland China, other Asia-Pacific countries, North America, and Europe. The company operates through four segments: Trading of Industrial Consumables, Processing and Manufacturing of Plastic Products, Manufacturing of Machinery, and Processing and Trading of Printed Circuit Boards. Its machinery products include two-platen injection molding, servo-driven injection molding, all-electric high precision injection molding, special purpose injection molding, multi-material injection molding, rubber injection, extrusion line, hydraulic press, CNC turret punching, CNC brake press, and CNC shearing machines. The company's plastic processing products comprise aseptic food packaging products and tableware, IML products, plastic cutlery and containers, plastic mannequins, plastic spare parts for washing machines and automobiles, high precision figurines, and various other plastic spare parts. It also trades in spring steel wires and special alloy materials, screws and fasteners, abrasive products, electric and pneumatic tools, production facility accessories, hydraulic motors and pumps, stepping motors, servo motors, cooling fans, 3 phase induction motors, frequency inverters, vision inspection and illumination systems, hydraulic and power presses, CNC machines and machining centers, and CNC wire-cut EDM and EDM machines. In addition, the company provides printed circuit boards, CNC electrical discharged machines, CNC brass and molybdenum wire-cut machines, EDM, and drill EDM machines. Further, it offers various services comprising consultation and implementation of ERP and CRM systems, system integration, information technology training, maintenance of small computers, development of software and Websites, and information technology contract services. Cosmos Machinery Enterprises Limited was founded in 1958 and is headquartered in Cheung Sha Wan, Hong Kong.

How the Company Makes Money

Cosmos Machinery Enterprises Limited generates revenue through the sale of machinery and industrial products. The company's primary revenue streams include the manufacturing and distribution of plastic processing machinery and the trading of industrial machinery and spare parts. The company benefits from its established market presence and extensive distribution network, which supports its sales activities. Additionally, Cosmos Machinery may engage in strategic partnerships with other manufacturers or suppliers to enhance its product offerings and expand its market reach, further contributing to its earnings.

Cosmos Machinery Enterprises Limited Financial Statement Overview

Summary

Cosmos Machinery Enterprises Limited shows mixed financial performance. While net profitability is recovering, revenue decline and low operational margins are concerning. The balance sheet is strong with low leverage, but liquidity issues are flagged due to missing cash flow data.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.87B	2.18B	2.34B	3.08B	2.43B
	Gross Profit
344.92M	369.67M	372.30M	544.49M	407.98M
	EBIT
27.91M	4.74M	29.76M	119.81M	49.93M
	EBITDA
73.07M	37.64M	118.28M	203.12M	130.85M
	Net Income Common Stockholders
7.90M	-43.80M	18.84M	89.73M	19.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
519.03M	666.10M	545.28M	451.41M	493.73M
	Total Assets
2.17B	2.46B	2.63B	2.97B	2.83B
	Total Debt
126.96M	243.52M	268.30M	352.64M	378.18M
	Net Debt
-392.07M	-406.36M	-266.62M	-37.86M	-107.35M
	Total Liabilities
861.67M	1.03B	1.09B	1.33B	1.33B
	Stockholders Equity
1.24B	1.27B	1.32B	1.41B	1.27B
Cash Flow		Free Cash Flow
0.00	93.94M	221.75M	-3.10M	230.15M
	Operating Cash Flow
0.00	164.77M	254.29M	36.66M	256.50M
	Investing Cash Flow
0.00	-15.85M	3.92M	-80.88M	-19.27M
	Financing Cash Flow
0.00	-23.53M	-98.43M	-57.83M	-78.35M

Cosmos Machinery Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 0.19 is above the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.20, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 34.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
0187	56 Neutral	HK$6.06B	1,052.38	0.20%	―	12.45%	―
0759	55 Neutral	HK$86.60M	―	-11.99%	9.09%	-8.59%	-464.46%
0118	54 Neutral	HK$161.18M	30.16	0.21%	―	-14.31%	―
CATWF		$16.52M	―	-128.01%	―	―	―
GSZ		€3.35B	28.94	3.19%	―	―	―
2349	45 Neutral	HK$172.06M	―	-10.46%	―	-7.60%	41.01%

Cosmos Machinery Enterprises Limited Corporate Events

Cosmos Machinery Enterprises Limited Announces 2025 AGM and Key Resolutions

Cosmos Machinery Enterprises Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 18, 2025, in Hong Kong. The meeting will address ordinary business matters such as the reception of financial statements and the re-election of directors, as well as special business resolutions including the authorization for directors to allot and issue shares and buy back issued shares. These resolutions aim to provide the company with flexibility in managing its capital structure and enhancing shareholder value.

Cosmos Machinery Reports 2024 Financial Results with Revenue Growth but Decline in Profit

Cosmos Machinery Enterprises Limited announced its audited consolidated results for the year ended December 31, 2024. The company reported an 8.2% increase in revenue from continuing operations, reaching HK$1,865,354,000. However, the operating profit decreased by 22.6%, and profit for the year from continuing operations dropped by 49%. Despite a profit of HK$7,690,000 from discontinued operations, the overall profit for the year was HK$18,753,000, a significant improvement from a loss of HK$59,515,000 in 2023. The Board did not recommend a final dividend for the year.

Cosmos Machinery Schedules Board Meeting to Approve 2024 Results

Cosmos Machinery Enterprises Limited has announced a board meeting scheduled for March 27, 2025, to discuss and approve the company’s final results for the year ending December 31, 2024. The meeting will also consider the declaration of a final dividend, which could impact shareholder returns and indicate the company’s financial health.

Cosmos Machinery Signals Positive Profit Turnaround

Cosmos Machinery Enterprises Limited has announced a positive profit alert, expecting to record an unaudited consolidated profit of not less than HK$12 million for the year ended December 31, 2024. This marks a significant turnaround from a loss of approximately HK$59.5 million in 2023, primarily due to non-recurring losses related to the disposal of a printed circuit board processing business and an impairment loss on goodwill. The final results are yet to be finalized and may differ from the preliminary assessment.