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Cocoon Holdings Limited (HK:0428)
:0428
Hong Kong Market
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Cocoon Holdings Limited (0428) AI Stock Analysis

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HK

Cocoon Holdings Limited

(0428)

Rating:39Underperform
Price Target:
Cocoon Holdings Limited is experiencing significant financial challenges, with a lack of profitability and negative cash flows being key concerns. The technical indicators suggest bearish momentum, while the valuation is unattractive due to a negative P/E ratio and no dividend yield. The strong equity position and low debt levels provide some financial stability, but improvements in profitability and cash flow generation are crucial for enhancing the stock's attractiveness.

Cocoon Holdings Limited (0428) vs. iShares MSCI Hong Kong ETF (EWH)

Cocoon Holdings Limited Business Overview & Revenue Model

Company DescriptionCocoon 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 MoneyCocoon 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
Cocoon Holdings Limited faces significant challenges in profitability and cash flow management, despite maintaining a robust equity position. The company has experienced volatility in revenue and net income, with negative cash flows impacting liquidity. Financial stability is supported by a low debt-to-equity ratio, but the company needs to address profitability and cash flow generation to improve overall financial health.
Income Statement
35
Negative
The company has experienced significant fluctuations in revenue, with a sharp decline from 2023 to 2024. The gross profit margin remained high at 100% in 2024, but net income has been volatile, swinging from a positive figure in 2023 to a significant loss in 2024. Despite this, EBIT margin remained high at 100% in 2024 due to low revenue. Net profit margins are negative, indicating challenges in achieving profitability.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with an equity ratio of 88.2% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.11, suggesting conservative leverage. However, the return on equity is negative due to the loss in net income, highlighting profitability issues.
Cash Flow
20
Very Negative
The cash flow statement reveals challenges in generating positive cash flows, with operating cash flow consistently negative. The free cash flow is also negative, indicating potential liquidity issues. The absence of operating cash flow in 2024 further stresses cash management concerns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue254.00K1.40M4.55M7.70M8.11M
Gross Profit254.00K1.20M4.27M7.41M7.82M
EBITDA0.0054.74M-45.81M-26.71M-2.46M
Net Income-76.81M53.51M-93.04M-59.00M-10.41M
Balance Sheet
Total Assets147.46M203.02M133.88M168.27M185.53M
Cash, Cash Equivalents and Short-Term Investments144.99M202.35M81.15M89.12M85.45M
Total Debt13.94M14.34M14.37M20.71M20.35M
Total Liabilities17.39M16.78M15.58M23.87M22.79M
Stockholders Equity130.06M186.25M118.30M144.40M162.75M
Cash Flow
Free Cash Flow0.00-10.28M-13.88M-19.96M-8.33M
Operating Cash Flow1.25M-10.28M-13.88M-19.96M-8.33M
Investing Cash Flow0.000.000.000.00-10.00M
Financing Cash Flow0.0016.03M14.29M13.69M-1.95M

Cocoon Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.22
Price Trends
50DMA
0.20
Positive
100DMA
0.25
Negative
200DMA
0.34
Negative
Market Momentum
MACD
<0.01
Negative
RSI
56.90
Neutral
STOCH
59.26
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 0.22 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.20, and below the 200-day MA of 0.34, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.88B11.729.78%3.73%11.83%-7.72%
57
Neutral
HK$55.69M31.88-8.67%88.97%
55
Neutral
HK$36.00M-4.99%144.14%13.23%
53
Neutral
HK$39.36M-13.40%-18.11%-83.63%
51
Neutral
HK$33.25M210.000.15%-13.81%-91.30%
39
Underperform
HK$23.14M4.21-48.57%-220.23%-201.46%
HK$11.58M-212.50%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0428
Cocoon Holdings Limited
0.22
-0.32
-59.26%
HK:8340
Vinco Financial Group Limited
0.54
-0.96
-64.00%
HK:0299
Glory Sun Land Group Limited
0.11
-0.06
-35.29%
HK:8210
DLC Asia Ltd.
0.04
-0.02
-33.33%
HK:8221
PF Group Holdings Limited
1.17
-0.08
-6.40%
HK:8333
Astrum Financial Holdings Limited
0.41
-0.06
-12.77%

Cocoon Holdings Limited Corporate Events

Cocoon Holdings Announces Special General Meeting for Share Management Resolutions
Apr 30, 2025

Cocoon Holdings Limited has announced a special general meeting to be held on May 16, 2025, in Hong Kong. The meeting will address resolutions concerning the revocation of an existing general mandate and the approval of a new mandate for directors to manage the company’s shares. This move could potentially impact the company’s share issuance strategy, allowing for flexibility in capital management and possibly influencing shareholder value.

Cocoon Holdings Limited Announces 2025 Annual General Meeting
Apr 25, 2025

Cocoon Holdings Limited has announced its annual general meeting scheduled for June 27, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, re-election of independent non-executive directors, re-appointment of the independent auditor, and resolutions for share repurchase and issuance. These resolutions aim to enhance the company’s governance and operational flexibility, potentially impacting shareholder value and market positioning.

Cocoon Holdings Proposes Refreshment of General Mandate for Share Issuance
Apr 15, 2025

Cocoon Holdings Limited has announced a proposal to refresh its general mandate, allowing directors to issue and deal with new shares up to 20% of the company’s issued share capital. This move comes after the full utilization of the existing mandate, and it aims to provide the company with greater flexibility in managing its capital structure. The proposal is subject to approval by independent shareholders at a special general meeting, with an independent board committee and financial adviser appointed to guide the process.

Cocoon Holdings Limited Reports Net Asset Value Per Share
Apr 15, 2025

Cocoon Holdings Limited announced its unaudited consolidated net asset value per share as of March 31, 2025, which stands at approximately HK$1.28. This figure is calculated based on the 89,269,814 shares of the company in issue. The announcement provides stakeholders with a snapshot of the company’s financial health, potentially impacting investor perception and market positioning.

Cocoon Holdings Reports Significant Financial Loss for 2024
Mar 31, 2025

Cocoon Holdings Limited reported a significant financial downturn for the year ended December 31, 2024, with revenue dropping to approximately HK$254,000 from HK$1,399,000 the previous year. The company experienced a loss of approximately HK$76,810,000 compared to a profit of HK$53,505,000 in the prior year, leading the Board to not recommend a final dividend payment. This financial performance reflects challenges in the company’s operations and may impact its market positioning and stakeholder confidence.

Cocoon Holdings Issues Profit Warning Amid Investment Losses
Mar 25, 2025

Cocoon Holdings Limited has issued a profit warning, indicating an expected net loss of at least HK$70 million for the year ending December 31, 2024, compared to a net profit of approximately HK$53.5 million in the previous year. This significant financial downturn is attributed to a substantial unrealized loss on listed investments due to the poor performance of the securities held in the United States. The announcement highlights the preliminary nature of the financial assessment, as the figures are based on unaudited management accounts and are subject to further adjustments. Shareholders and potential investors are advised to exercise caution when dealing with the company’s securities.

Cocoon Holdings Reschedules Board Meeting for Annual Results
Mar 19, 2025

Cocoon Holdings Limited has announced a change in the date of its board meeting, initially scheduled for March 26, 2025, now moved to March 31, 2025. This meeting will address the approval of the company’s annual results for the year ending December 31, 2024, and discuss the recommendation of a final dividend payment, impacting the company’s financial disclosures and potential shareholder returns.

Cocoon Holdings to Review Annual Results and Dividend
Mar 13, 2025

Cocoon Holdings Limited has announced that its board of directors will meet on March 26, 2025, to review and approve the company’s annual financial results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could impact the company’s financial strategy and shareholder returns.

Cocoon Holdings Reports Net Asset Value Update
Mar 12, 2025

Cocoon Holdings Limited announced that its unaudited consolidated net asset value per share as of February 28, 2025, was approximately HK$1.23, based on 89,269,814 shares in issue. This financial update provides stakeholders with an insight into the company’s current financial standing, which could influence investor confidence and market perception.

Cocoon Holdings Announces Net Asset Value Update
Feb 16, 2025

Cocoon Holdings Limited reported that its unaudited consolidated net asset value per share as of January 31, 2025, was approximately HK$1.25, based on 89,269,814 shares outstanding. This financial update may influence investor perceptions and market strategies related to the company’s valuation and potential growth trajectory.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025