Cosmo Lady (China) Holdings Co. Ltd. (2298) AI Stock Analysis

• Market Cap: HK$636.09M
• Dividend Yield: 5.52%
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.79
• Revenue Growth: 0.72%
• EPS Growth: 2.24%
• Country: HK
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.03
• Shares Outstanding: 2,249,457,000
• 10 Day Avg. Volume: 1,965,400
• 30 Day Avg. Volume: 2,440,333
• PEG Ratio: 0.02
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 2.28
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

Cosmo Lady's stock score is primarily influenced by its strong valuation, offering a low P/E ratio and high dividend yield. However, financial performance concerns, particularly in cash flow and revenue growth, along with bearish technical indicators, weigh down the overall score.

Positive Factors

Equity Management

A solid equity position with increasing stockholders' equity suggests strong financial health, providing a buffer against economic downturns and enabling investment in growth opportunities.

Profitability Improvements

Improved profitability and net income growth indicate effective cost management and operational efficiency, enhancing long-term financial stability and shareholder value.

Gross Profit Margin

An improving gross profit margin reflects effective cost control and pricing strategies, supporting sustainable earnings and competitive positioning in the market.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth and recent declines highlight potential demand challenges, which could undermine market position and long-term growth prospects if not addressed.

Cash Flow Generation Challenges

Challenges in generating free cash flow may limit the company's ability to invest in growth initiatives and meet financial obligations, impacting long-term operational flexibility.

Decline in Total Assets

A decline in total assets may restrict the company's ability to expand operations and invest in new opportunities, potentially affecting future revenue and market competitiveness.

Cosmo Lady (China) Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Cosmo Lady (China) Holdings Company Limited, an investment holding company, engages in the design, research, development, and sale of branded intimate wear products in the People's Republic of China. It offers bras, underpants, sleepwear and loungewear, and thermal clothes, as well as other products, such as leggings and tights, vests, hosiery, and accessories under the Cosmo Lady, Cosmo Elegance, Cosmo Blossom, Cosmo Esquire, Secret of City Beauty, Freeday, Rubii, Ilsée, Ordifen, and Ordifen+ brands. The company also provides logistics, warehousing, and distribution; property management; brand management; corporate consulting; and computer technology services. It offers its products through self-managed, franchised, and shopping mall stores, as well as e-commerce platform. The company was founded in 1998 and is headquartered in Dongguan, China.

How the Company Makes Money

Cosmo Lady generates revenue primarily through the sale of its intimate apparel products, which includes a wide range of bras, panties, and loungewear. The company operates a multi-channel distribution model, combining physical retail stores with a robust online presence, allowing it to reach a broader audience. Key revenue streams include direct sales from its branded stores, e-commerce platforms, and wholesale distribution to third-party retailers. Additionally, the company benefits from strategic partnerships with online marketplaces and collaborations with influencers to enhance brand visibility and drive sales. Seasonal collections, promotional campaigns, and loyalty programs also contribute to customer retention and revenue growth.

Cosmo Lady (China) Holdings Co. Ltd. Financial Statement Overview

Summary

Cosmo Lady shows strengths in profitability and equity management, with improvements in net income and a solid equity ratio. However, inconsistent revenue growth and challenges in cash flow generation pose risks to long-term sustainability.

Income Statement

Cosmo Lady has shown improvement in profitability, with a notable increase in net income from 2023 to 2024. The gross profit margin improved slightly, indicating better cost management. However, revenue growth has been inconsistent, with a decline in revenue in 2024 compared to previous years, highlighting potential demand challenges.

Balance Sheet

The balance sheet indicates a solid equity position, with a steady increase in stockholders' equity over recent years. The debt-to-equity ratio is manageable, suggesting low financial leverage. However, total assets have declined, which could impact future growth capabilities.

Cash Flow

The company faces challenges with cash flow generation, as seen in the absence of free cash flow in 2024. The operating cash flow was positive in previous years but has not translated into free cash flow, indicating potential issues in capital expenditure management or operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.93B	3.01B	2.76B	3.01B	3.36B	3.06B
Gross Profit	1.32B	1.38B	1.31B	1.40B	1.41B	1.49B
EBITDA	224.32M	288.60M	360.68M	379.51M	12.09M	387.79M
Net Income	101.56M	126.16M	42.48M	33.02M	-496.06M	-118.09M
Balance Sheet
Total Assets	3.60B	3.70B	3.82B	3.48B	4.05B	4.50B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.09B	1.03B	1.07B	519.08M	719.19M
Total Debt	842.40M	657.63M	713.68M	608.25M	680.12M	968.04M
Total Liabilities	1.54B	1.68B	1.89B	1.57B	2.15B	2.09B
Stockholders Equity	2.08B	2.03B	1.93B	1.90B	1.87B	2.39B
Cash Flow
Free Cash Flow	207.11M	236.97M	38.01M	146.64M	58.10M	414.36M
Operating Cash Flow	255.55M	323.87M	383.32M	230.53M	167.23M	555.43M
Investing Cash Flow	-25.21M	-50.19M	-225.74M	35.81M	61.81M	-118.00M
Financing Cash Flow	-272.79M	-243.65M	-204.40M	-216.20M	-417.86M	-572.27M

Cosmo Lady (China) Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2298, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.32, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 30.75 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2298.

Cosmo Lady (China) Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1749	65 Neutral	HK$102.72M	2.77	11.95%	11.34%	-7.88%	-4.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2298	60 Neutral	HK$636.09M	5.27	4.94%	5.52%	0.72%	2.24%
0333	58 Neutral	HK$73.76M	-2.26	-8.92%	―	7.57%	-1383.56%
1906	46 Neutral	HK$720.85M	-28.65	-6.24%	―	5.88%	16.82%
1388	45 Neutral	HK$160.52M	-0.46	-18.57%	―	-6.47%	-118.56%
2668	39 Underperform	HK$574.26M	-1.57	-74.13%	―	2.67%	-54.41%

Cosmo Lady (China) Holdings Co. Ltd. Corporate Events

Cosmo Lady Clarifies CEO Compensation in Recent Announcement

Cosmo Lady (China) Holdings Co. Ltd. has issued a supplemental announcement regarding the emoluments paid to Mr. Siu Ka Lok during his tenure as chief executive officer and executive director from 2019 to 2021. The announcement clarifies the details of Mr. Siu’s compensation, including wages, salaries, bonuses, and contributions to retirement schemes, with no changes to other information in the annual reports for those years.