Cosmos Machinery Enterprises Limited (0118) AI Stock Analysis

• Market Cap: HK$187.90M
• Dividend Yield: N/A
• Average Volume (3M): 18.67K
• Price to Earnings (P/E): 20.2
• Beta (1Y): -0.01
• 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: 50 Neutral
• Price Target: HK$0.24 ▼(-1.67% Downside)

The score is held back primarily by weakening operating performance and a 2024 swing to negative operating/free cash flow, despite an improving, low-leverage balance sheet. Technical indicators are broadly neutral, and valuation (P/E ~21.9) looks only fair given thin margins and no provided dividend yield support.

Positive Factors

Leverage Profile

The company's conservative leverage profile enhances balance-sheet flexibility, offering resilience in cyclical environments and reducing financial risk.

Gross Margin Improvement

Improved gross margins indicate effective cost management and pricing strategies, which can support profitability despite revenue challenges.

Balance Sheet Resilience

A strong equity base relative to assets provides financial stability, allowing the company to better withstand economic fluctuations.

Negative Factors

Revenue Decline

Continued revenue decline indicates weakening market position and demand, challenging the company's ability to sustain growth and profitability.

Cash Flow Deterioration

Negative cash flow in 2024 raises concerns about the company's ability to fund operations and investments, potentially impacting long-term growth.

Thin Profitability

Persistently low profitability limits the company's capacity to reinvest in growth initiatives and improve shareholder returns, posing a long-term challenge.

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 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: Negative
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0118, the sentiment is Negative. 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 bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 27.06 is Positive, neither overbought nor oversold. The STOCH value of 15.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
0118	50 Neutral	HK$187.90M	20.19	0.53%	―	-9.32%	―
0474	50 Neutral	HK$871.05M	-2.25	-63.64%	―	-64.04%	1.66%
0862	48 Neutral	HK$184.44M	-3.15	-33.36%	―	-25.59%	0.69%
8269	46 Neutral	HK$427.55M	-127.63	-41.21%	―	8.75%	87.90%
1063	45 Neutral	HK$161.55M	11.15	7.00%	―	9.69%	-33.79%