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

• Market Cap: HK$778.66M
• Dividend Yield: 20.87%
• Average Volume (3M): 7.17M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.63
• Revenue Growth: 7.08%
• EPS Growth: 190.74%
• Country: HK
• Employees: 2,200
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.02
• Shares Outstanding: 2,249,457,000
• 10 Day Avg. Volume: 11,808,900
• 30 Day Avg. Volume: 7,168,066
• PEG Ratio: 0.13
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.99
• 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: 73 Outperform
• Price Target: HK$0.50 ▲(38.89%Upside)

Cosmo Lady's stock is bolstered by its attractive valuation and strong technical indicators, making it appealing for value and income investors. However, the company faces challenges with revenue growth and cash flow generation, which could impact long-term prospects. Short-term caution is advised due to overbought technical conditions.

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 (China) Holdings Co. Ltd. generates revenue primarily through the sale of its intimate wear products, including lingerie, sportswear, and homewear. The company employs a multi-channel retail strategy, operating both self-owned retail stores and franchised outlets to reach a broad customer base. Revenue streams are bolstered by a strong brand presence and product diversification, catering to various consumer preferences. Additionally, Cosmo Lady benefits from economies of scale and an efficient supply chain, optimizing production costs and enhancing profitability. Strategic marketing initiatives and partnerships with fashion designers and influencers further boost brand visibility and sales.

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

Summary

Cosmo Lady exhibits strengths in profitability and equity management, with improvements in net income and a solid equity ratio. However, challenges remain with revenue growth and cash flow generation, which may hinder long-term sustainability and expansion.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.01B	2.76B	3.01B	3.36B	3.06B
Gross Profit	1.38B	1.31B	1.40B	1.41B	1.49B
EBITDA	288.60M	360.68M	400.79M	12.09M	387.79M
Net Income	126.16M	42.48M	24.02M	-496.06M	-116.33M
Balance Sheet
Total Assets	3.70B	3.82B	3.48B	4.05B	4.50B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.03B	554.08M	519.08M	719.19M
Total Debt	657.63M	713.68M	608.25M	680.12M	968.04M
Total Liabilities	1.68B	1.89B	1.57B	2.15B	2.09B
Stockholders Equity	2.03B	1.93B	1.90B	1.87B	2.39B
Cash Flow
Free Cash Flow	236.97M	38.01M	146.64M	58.10M	414.36M
Operating Cash Flow	323.87M	383.32M	230.53M	167.23M	555.43M
Investing Cash Flow	-50.19M	-225.74M	35.81M	61.81M	-118.00M
Financing Cash Flow	-243.65M	-204.40M	-216.20M	-417.86M	-572.27M

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

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2298, the sentiment is Positive. The current price of 0.36 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.24, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 94.50 is Negative, neither overbought nor oversold. The STOCH value of 86.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2298	73 Outperform	HK$778.66M	5.25	6.38%	20.87%	7.08%	190.74%
1749	70 Outperform	HK$129.40M	3.67	12.55%	7.83%	-6.75%	3.61%
Sector *	67 Neutral	¥269.51B	13.47	6.45%	2.58%	5.22%	-11.97%
0333	58 Neutral	HK$96.34M	―	-1.92%	―	20.02%	90.55%
1906	45 Neutral	HK$522.25M	―	-5.04%	―	46.93%	63.40%
1388	44 Neutral	HK$190.09M	―	-19.24%	―	-10.08%	-417.56%
2668	41 Neutral	HK$1.26B	―	-47.70%	―	59.71%	3.93%

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

Cosmo Lady Announces Board of Directors and Committee Roles

Cosmo Lady (China) Holdings Co. Ltd. has announced the list of its board of directors and their roles within the company. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Zheng Yaonan serving as the Chairman and CEO. The announcement also details the composition of four board committees, highlighting the involvement of various directors in these committees. This organizational update reflects the company’s governance structure, which is crucial for maintaining transparency and accountability to its stakeholders.

Cosmo Lady Announces Nomination Committee Changes

Cosmo Lady (China) Holdings Co. Ltd. announced a change in the composition of its Nomination Committee, with Mr. Zheng Yaonan resigning and Ms. Wu Xiaoli being appointed as a member, effective 1 July 2025. This change aligns with the updated Corporate Governance Code, ensuring gender diversity and maintaining a majority of independent non-executive directors, which could enhance the company’s governance practices and stakeholder confidence.

Cosmo Lady Announces Successful AGM Resolutions and Board Changes

Cosmo Lady (China) Holdings Co. Ltd. announced the successful passing of all resolutions at its Annual General Meeting held on May 30, 2025. The meeting included the retirement of a director and changes in the composition of board committees. The resolutions passed include the approval of financial statements, declaration of dividends, re-election of directors, and authorization for the board to manage remuneration and share issuance. This indicates a stable governance structure and potential for strategic growth, impacting stakeholders positively.

Cosmo Lady Announces Board Composition and Roles

Cosmo Lady (China) Holdings Co. Ltd. has announced the composition of its board of directors and their respective roles within the company. The board includes a mix of executive, non-executive, and independent non-executive directors, with various members serving on key committees such as audit, remuneration, nomination, and risk management. This announcement provides clarity on the governance structure of the company, which is crucial for maintaining transparency and effective management, potentially impacting stakeholders’ confidence and the company’s strategic direction.

Cosmo Lady Announces 2025 AGM with Key Financial Resolutions

Cosmo Lady (China) Holdings Co. Ltd. has announced its Annual General Meeting to be held on May 30, 2025, where key agenda items include reviewing the company’s financial statements for the year ended December 31, 2024, declaring a final dividend, re-electing directors, and re-appointing the auditor. Additionally, the company seeks approval to authorize its directors to manage share allotments and related financial activities, potentially impacting its capital structure and shareholder value.

Cosmo Lady Proposes Amendments to Align with New Listing Rules

Cosmo Lady (China) Holdings Co. Ltd. has announced proposed amendments to its memorandum and articles of association to align with recent changes in the Hong Kong Stock Exchange Listing Rules. These amendments aim to provide flexibility in holding treasury shares, facilitate electronic communication and virtual shareholder meetings, and update shareholder protection standards, reflecting regulatory changes and enhancing operational efficiency.