Cosmos Machinery Enterprises
Market Cap
HK$275.8m
Last Updated
2020/02/16 12:40 UTC
Data Sources
Company Financials
Executive Summary
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.
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Adequate balance sheet and fair value.
Share Price & News
How has Cosmos Machinery Enterprises's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 118 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
10.3%
118
4.6%
HK Machinery
1.7%
HK Market
1 Year Return
-39.6%
118
24.7%
HK Machinery
-2.9%
HK Market
Return vs Industry: 118 underperformed the Hong Kong Machinery industry which returned 24.7% over the past year.
Return vs Market: 118 underperformed the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 118 | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.3% | 4.6% | 1.7% |
| 30 Day | -1.5% | -2.1% | -4.8% |
| 90 Day | 6.7% | 12.1% | 3.4% |
| 1 Year | -36.8%-39.6% | 28.4%24.7% | 0.7%-2.9% |
| 3 Year | -33.0%-36.0% | 63.5%53.1% | 15.3%3.6% |
| 5 Year | -42.3%-44.8% | 64.9%50.6% | 15.9%-3.5% |
Price Volatility Vs. Market
How volatile is Cosmos Machinery Enterprises's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Estimating The Intrinsic Value Of Cosmos Machinery Enterprises Limited (HKG:118)2 weeks ago | Simply Wall St
Is Cosmos Machinery Enterprises Limited (HKG:118) Investing Your Capital Efficiently?1 month ago | Simply Wall St
Is Cosmos Machinery Enterprises Limited (HKG:118) At Risk Of Cutting Its Dividend?Valuation
Is Cosmos Machinery Enterprises undervalued compared to its fair value and its price relative to the market?
8.58x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 118 (HK$0.32) is trading above our estimate of fair value (HK$0.24)
Significantly Below Fair Value: 118 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 118 is good value based on its PE Ratio (8.6x) compared to the Machinery industry average (10.1x).
PE vs Market: 118 is good value based on its PE Ratio (8.6x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 118's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 118 is good value based on its PB Ratio (0.2x) compared to the HK Machinery industry average (1x).
Next Steps
Future Growth
How is Cosmos Machinery Enterprises forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
13.6%
Forecasted Capital Goods industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cosmos Machinery Enterprises has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine whether Cosmos Machinery Enterprises is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Cosmos Machinery Enterprises competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
Past Performance
How has Cosmos Machinery Enterprises performed over the past 5 years?
10.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 118 has a large one-off gain of HK$24.6M impacting its June 30 2019 financial results.
Growing Profit Margin: 118's current net profit margins (1.3%) are lower than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: 118 has become profitable over the past 5 years, growing earnings by 10.6% per year.
Accelerating Growth: 118's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 118 had negative earnings growth (-63.4%) over the past year, making it difficult to compare to the Machinery industry average (7.3%).
Return on Equity
High ROE: 118's Return on Equity (2.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Cosmos Machinery Enterprises's financial position?
Financial Position Analysis
Short Term Liabilities: 118's short term assets (HK$1.9B) exceed its short term liabilities (HK$1.3B).
Long Term Liabilities: 118's short term assets (HK$1.9B) exceed its long term liabilities (HK$87.6M).
Debt to Equity History and Analysis
Debt Level: 118's debt to equity ratio (26.8%) is considered satisfactory.
Reducing Debt: 118's debt to equity ratio has reduced from 30.6% to 26.8% over the past 5 years.
Balance Sheet
Inventory Level: 118 has a high level of physical assets or inventory.
Debt Coverage by Assets: 118's debt is covered by short term assets (assets are 5x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: 118 is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: 118 is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Cosmos Machinery Enterprises's current dividend yield, its reliability and sustainability?
6.25%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 118's dividend (6.25%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 118's dividend (6.25%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).
Stability and Growth of Payments
Stable Dividend: 118 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 118's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (53.6%), 118's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Freeman Tang (41yo)
6.6yrs
Tenure
HK$4,445,000
Compensation
Mr. Yu Tang, also known as Freeman, has been the Chief Executive Officer of Cosmos Machinery Enterprises Ltd. since July 01, 2013. Mr. Tang has been an Executive Director of Cosmos Machinery Enterprises Lt ...
CEO Compensation Analysis
Compensation vs Market: Freeman's total compensation ($USD572.30K) is above average for companies of similar size in the Hong Kong market ($USD225.53K).
Compensation vs Earnings: Freeman's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman and Head of Policy Making & Significant Investments | 22.4yrs | HK$2.84m | 1% HK$2.8m | |
| CEO & Executive Director | 6.6yrs | HK$4.45m | no data | |
| Executive Vice Chairman | 5.1yrs | HK$10.15m | 1.1% HK$3.0m | |
| Executive Director | 1.5yrs | HK$1.62m | no data | |
| Consultant | 0.8yrs | no data | no data | |
| Company Secretary | 1.4yrs | no data | no data | |
| Managing Director of Shenzhen Gainbase Printed Circuit Board Limited | 0yrs | no data | no data | |
| Consultant | 3.8yrs | no data | no data |
2.6yrs
Average Tenure
63yo
Average Age
Experienced Management: 118's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman and Head of Policy Making & Significant Investments | 22.4yrs | HK$2.84m | 1% HK$2.8m | |
| CEO & Executive Director | 6.6yrs | HK$4.45m | no data | |
| Executive Vice Chairman | 5.1yrs | HK$10.15m | 1.1% HK$3.0m | |
| Executive Director | 1.5yrs | HK$1.62m | no data | |
| Non-Executive Director | 21.8yrs | HK$60.00k | 0.016% HK$43.6k | |
| Independent Non-Executive Director | 13.1yrs | HK$60.00k | 0.16% HK$449.9k | |
| Independent Non-Executive Director | 15.7yrs | HK$168.00k | no data | |
| Non-Executive Director | 13.4yrs | no data | no data | |
| Independent Non-Executive Director | 7.3yrs | no data | no data | |
| Independent Non-Executive Director | 9.2yrs | no data | no data |
11.1yrs
Average Tenure
63.5yo
Average Age
Experienced Board: 118's board of directors are seasoned and experienced ( 11.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.1%.
Top Shareholders
Company Information
Cosmos Machinery Enterprises Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cosmos Machinery Enterprises Limited
- Ticker: 118
- Exchange: SEHK
- Founded: 1958
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: HK$275.818m
- Shares outstanding: 861.93m
- Website: https://www.cosmel.com
Number of Employees
Location
- Cosmos Machinery Enterprises Limited
- Billion Plaza 2
- 10th Floor
- Cheung Sha Wan
- Kowloon
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 118 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
Biography
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 in four segments: Trading of Industrial Consumables, Manufacturing of Plastic Processing 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. The company was founded in 1958 and is headquartered in Cheung Sha Wan, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 12:40 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.