Cocoon Holdings Limited (0428) AI Stock Analysis

• Market Cap: HK$32.78M
• Dividend Yield: N/A
• Average Volume (3M): 258.81K
• Price to Earnings (P/E): 1.6
• Beta (1Y): 0.14
• Revenue Growth: -596.04%
• EPS Growth: -951.58%
• Country: HK
• Employees: 5
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.03
• Shares Outstanding: 128,548,540
• 10 Day Avg. Volume: 338,363
• 30 Day Avg. Volume: 258,807
• PEG Ratio: <0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 108.99
• P/FCF Ratio: 22.24
• 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: 47 Neutral
• Price Target: HK$0.24 ▼(-2.08% Downside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is held down primarily by weak and highly volatile financial performance, driven by a severe 2024 revenue contraction and a swing to a large loss, with only modest and inconsistent cash generation. Technicals are neutral with limited trend strength, offering neither strong support nor major warning signs. Valuation is constrained by a negative P/E due to losses, and no dividend yield data is available to offset that.

Positive Factors

Conservative Leverage

Low leverage provides financial flexibility, allowing the company to navigate economic fluctuations without significant debt burden.

Legal Stability

Resolving legal disputes enhances operational stability and reduces risk of disruptions, supporting long-term business continuity.

Cash Flow Improvement

Positive cash flow, despite being small, marks a step towards financial stability, aiding in meeting operational expenses and investments.

Negative Factors

Revenue Collapse

A severe revenue decline indicates challenges in market demand or execution, threatening long-term growth and profitability.

Earnings Volatility

High earnings volatility undermines predictability and investor confidence, complicating strategic planning and investment.

Equity Decline

A decline in equity reflects potential value erosion, impacting the company's ability to raise capital and invest in growth opportunities.

Cocoon Holdings Limited Business Overview & Revenue Model

Company Description

Cocoon Holdings Limited is a principal investment firm specializing in investments in listed and unlisted companies. The firm typically invests in the fields of resources, technology enabled manufacturing, food and retail and healthcare. It also offers other investment services that include money market instruments, capital syndication, and arranging strategic corporate deals, with an emphasis on financial restructuring and capital infusion. The firm invests in Asia and the Greater China region. Cocoon Holdings Limited, formerly known as Huge China Holdings Limited, was founded in 1993 and is based in Hong Kong with additional office in Hamilton, Bermuda.

How the Company Makes Money

Cocoon Holdings Limited generates revenue primarily through its investment activities. The company invests in a variety of financial instruments, including listed and unlisted securities, with the aim of realizing capital gains and earning dividend income. Additionally, Cocoon Holdings may engage in property investment, generating rental income and capital appreciation from its real estate assets. The company's revenue streams are significantly influenced by market conditions and the performance of its investment portfolio, which it manages and adjusts to optimize returns. Partnerships with financial institutions and other investment entities may also play a role in enhancing Cocoon Holdings' investment capabilities and opportunities.

Cocoon Holdings Limited Financial Statement Overview

Summary

Income statement weakness dominates: 2024 revenue fell ~97% YoY and results swung from strong profitability in 2023 to a very large loss in 2024, indicating highly unstable earnings quality. Balance sheet leverage is conservative (debt-to-equity ~0.11 in 2024), but equity declined and ROE deteriorated sharply, showing value erosion. Cash flow improved to slightly positive in 2024, yet remains small and historically volatile.

Income Statement

Profitability and scale deteriorated sharply. Revenue collapsed in 2024 (down ~97% YoY) to a very small base, and results swung from strong profitability in 2023 (net margin ~38%) to a very large loss in 2024 (net margin deeply negative). While gross margin remains reported as very high, the earnings profile is highly volatile across years (multiple loss years with one outsized profit year), which reduces confidence in earnings quality and durability.

Balance Sheet

Leverage looks conservative with debt-to-equity staying low (~0.08–0.14 historically; ~0.11 in 2024), which provides balance-sheet flexibility. However, equity declined from 2023 to 2024 (roughly 186m to 130m), and return on equity swung from positive in 2023 (~29%) to materially negative in 2024 (~-59%), signaling meaningful value erosion despite modest debt levels.

Cash Flow

Cash generation is inconsistent. Operating and free cash flow were negative in 2021–2023 (including a sizable outflow in 2023) but turned slightly positive in 2024 (~1.2m). Even with the 2024 improvement, operating cash flow is small relative to the company’s debt load (coverage ~0.07x), and the year-to-year volatility suggests cash flows are not yet stable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.05M	254.00K	59.85M	4.55M	-19.21M	4.88M
Gross Profit	17.05M	254.00K	59.65M	2.27M	5.87M	4.60M
EBITDA	0.00	0.00	54.74M	-45.81M	-26.71M	-2.31M
Net Income	-54.79M	-76.81M	53.51M	-48.08M	-28.64M	-4.17M
Balance Sheet
Total Assets	156.09M	147.46M	203.02M	133.88M	168.27M	185.53M
Cash, Cash Equivalents and Short-Term Investments	85.19M	144.99M	202.35M	81.15M	89.12M	85.45M
Total Debt	13.89M	13.94M	14.34M	14.37M	20.71M	20.35M
Total Liabilities	16.87M	17.39M	16.78M	15.58M	23.87M	22.79M
Stockholders Equity	139.22M	130.06M	186.25M	118.30M	144.40M	162.75M
Cash Flow
Free Cash Flow	9.65M	1.25M	-10.28M	-13.88M	-19.96M	-8.33M
Operating Cash Flow	9.65M	1.25M	-10.28M	-13.88M	-19.96M	-8.33M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	-10.00M
Financing Cash Flow	12.40M	12.74M	16.03M	14.29M	13.69M	-1.95M

Cocoon Holdings 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:0428, the sentiment is Positive. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.24, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0428.

Cocoon Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8210	59 Neutral	HK$53.04M	-1.17	-12.48%	―	-26.76%	-1511.11%
8333	52 Neutral	HK$39.36M	77.85	1.83%	―	30.59%	―
8221	51 Neutral	HK$52.36M	-2.32	-5.53%	―	-30.93%	-584.06%
8340	48 Neutral	HK$38.66M	1.41	11.56%	―	94.66%	―
0428	47 Neutral	HK$32.78M	1.64	-34.60%	―	-596.04%	-951.58%
0299	42 Neutral	HK$11.58M	-0.02	―	―	―	―

Cocoon Holdings Limited Corporate Events

Cocoon Holdings Reports Unaudited Net Asset Value of HK$1.16 Per Share

Cocoon Holdings Limited, an investment holding company listed in Hong Kong and incorporated in the Cayman Islands with continuation in Bermuda, has disclosed its latest unaudited consolidated net asset value per share. As at 31 December 2025, the company’s unaudited consolidated net asset value stood at approximately HK$1.16 per share, based on 128,548,531 shares in issue, providing investors with an updated indication of the firm’s underlying asset backing and financial position as of year-end 2025.

The most recent analyst rating on (HK:0428) stock is a Hold with a HK$0.24 price target. To see the full list of analyst forecasts on Cocoon Holdings Limited stock, see the HK:0428 Stock Forecast page.

Cocoon Holdings Settles Dispute, Withdraws Winding-Up Petition

Cocoon Holdings Limited announced the withdrawal of a winding-up petition filed against it, following a full settlement with the petitioner, an independent third party holding a promissory note issued by the company. The settlement agreement resolved all disputes and claims, including those related to the promissory note, and resulted in the cessation of all legal proceedings without any costs. This development removes the risk of any voided transactions and stabilizes the company’s operational and legal standing.

Cocoon Holdings Announces Net Asset Value Update

Cocoon Holdings Limited, a company incorporated in the Cayman Islands and continued in Bermuda, has announced its unaudited consolidated net asset value per share as of October 31, 2025, which stands at approximately HK$1.19. This figure is based on the 128,548,531 shares issued by the company. The announcement provides stakeholders with an updated financial metric that can influence investment decisions and reflects the company’s current financial standing.

Cocoon Holdings Settles Winding-Up Petition

Cocoon Holdings Limited, a company incorporated in the Cayman Islands and continued in Bermuda, has announced a settlement regarding a winding-up petition filed by a promissory note holder. The note, issued in 2017 with a principal of HK$10 million, matured in March 2025 with an outstanding interest of HK$1.1 million. The settlement involves withdrawing the petition without costs, and the scheduled court hearing has been vacated. The company states that the petition has no material impact on its operations or financial position.

Cocoon Holdings Faces Winding-Up Petition Over Alleged Debt

Cocoon Holdings Limited has received a winding-up petition filed by a creditor, Ms. Zhou Xin, claiming an unpaid debt of approximately HK$11.1 million. The company asserts that the petition does not currently affect its business operations and is exploring legal options to dismiss the petition. The petition may impact the trading and transfer of the company’s shares, potentially leading to restrictions or suspensions in the Central Clearing and Settlement System (CCASS). Shareholders and potential investors are advised to exercise caution.