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2298

Cosmo Lady (China) Holdings SEHK:2298 Stock Report

Last Price

HK$0.40

Market Cap

HK$866.4m

7D

6.8%

1Y

-66.8%

Updated

28 Jun, 2022

Data

Company Financials +
2298 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends0/6

2298 Stock Overview

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.

Rewards

Earnings are forecast to grow 138.71% per year

Risk Analysis

No risks detected for 2298 from our risk checks.

Cosmo Lady (China) Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cosmo Lady (China) Holdings
Historical stock prices
Current Share PriceHK$0.40
52 Week HighHK$1.21
52 Week LowHK$0.33
Beta-0.31
1 Month Change1.28%
3 Month Change-3.66%
1 Year Change-66.81%
3 Year Change-75.31%
5 Year Change-87.70%
Change since IPO-88.87%

Recent News & Updates

Apr 14
Is Cosmo Lady (China) Holdings (HKG:2298) A Risky Investment?

Is Cosmo Lady (China) Holdings (HKG:2298) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

2298HK LuxuryHK Market
7D6.8%8.1%3.5%
1Y-66.8%-35.0%-20.1%

Return vs Industry: 2298 underperformed the Hong Kong Luxury industry which returned -36.2% over the past year.

Return vs Market: 2298 underperformed the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 2298's price volatile compared to industry and market?
2298 volatility
2298 Average Weekly Movement8.0%
Luxury Industry Average Movement6.5%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.6%
10% least volatile stocks in HK Market3.4%

Stable Share Price: 2298 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 2298's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19983,300Yaonan Zhenghttps://www.cosmo-lady.com.hk

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.

Cosmo Lady (China) Holdings Fundamentals Summary

How do Cosmo Lady (China) Holdings's earnings and revenue compare to its market cap?
2298 fundamental statistics
Market CapCN¥739.00m
Earnings (TTM)-CN¥493.99m
Revenue (TTM)CN¥3.36b

0.2x

P/S Ratio

-1.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2298 income statement (TTM)
RevenueCN¥3.36b
Cost of RevenueCN¥1.94b
Gross ProfitCN¥1.41b
Other ExpensesCN¥1.91b
Earnings-CN¥493.99m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.23
Gross Margin42.10%
Net Profit Margin-14.72%
Debt/Equity Ratio19.5%

How did 2298 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 2298 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2298?

Other financial metrics that can be useful for relative valuation.

2298 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.09x
Enterprise Value/EBITDA-1.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 2298's PS Ratio compare to its peers?

2298 PS Ratio vs Peers
The above table shows the PS ratio for 2298 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.2x
3398 China Ting Group Holdings
0.5xn/aHK$724.4m
2033 Time Watch Investments
0.6xn/aHK$1.0b
1731 Prosperous Industrial (Holdings)
1xn/aHK$1.1b
2399 China Fordoo Holdings
2.6xn/aHK$1.2b
2298 Cosmo Lady (China) Holdings
0.2x9.8%HK$866.4m

Price-To-Sales vs Peers: 2298 is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.2x).


Price to Earnings Ratio vs Industry

How does 2298's PE Ratio compare vs other companies in the HK Luxury Industry?

Price-To-Sales vs Industry: 2298 is good value based on its Price-To-Sales Ratio (0.2x) compared to the Hong Kong Luxury industry average (0.8x)


Price to Sales Ratio vs Fair Ratio

What is 2298's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2298 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: 2298 is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).


Share Price vs Fair Value

What is the Fair Price of 2298 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 2298's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 2298's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2298's PEG Ratio to determine if it is good value.


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Future Growth

How is Cosmo Lady (China) Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


138.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2298 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 2298 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2298 is expected to become profitable in the next 3 years.

Revenue vs Market: 2298's revenue (9.8% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 2298's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2298's Return on Equity is forecast to be low in 3 years time (6.3%).


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Past Performance

How has Cosmo Lady (China) Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-45.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2298 is currently unprofitable.

Growing Profit Margin: 2298 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2298 is unprofitable, and losses have increased over the past 5 years at a rate of 45.4% per year.

Accelerating Growth: Unable to compare 2298's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2298 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (40.6%).


Return on Equity

High ROE: 2298 has a negative Return on Equity (-26.19%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Cosmo Lady (China) Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 2298's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥2.0B).

Long Term Liabilities: 2298's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥200.0M).


Debt to Equity History and Analysis

Debt Level: 2298 has more cash than its total debt.

Reducing Debt: 2298's debt to equity ratio has increased from 7.4% to 19.5% over the past 5 years.


Balance Sheet


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: Whilst unprofitable 2298 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2298 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.1% per year.


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Dividend

What is Cosmo Lady (China) Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2298's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2298's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2298's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2298's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 2298 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2298 has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Yaonan Zheng (46 yo)

0.58

Tenure

CN¥749,000

Compensation

Mr. Yaonan Zheng has been Chief Executive Officer of Cosmo Lady (China) Holdings Company Limited since November 30, 2021. He has been Executive Chairman at Cosmo Lady (China) Holdings Company Limited since...


CEO Compensation Analysis

Compensation vs Market: Yaonan's total compensation ($USD111.93K) is below average for companies of similar size in the Hong Kong market ($USD232.95K).

Compensation vs Earnings: Yaonan's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: 2298's management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: 2298's board of directors are considered experienced (8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cosmo Lady (China) Holdings Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Cosmo Lady (China) Holdings Company Limited
  • Ticker: 2298
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Implied Market Cap: HK$866.401m
  • Shares outstanding: 2.19b
  • Website: https://www.cosmo-lady.com.hk

Number of Employees


Location

  • Cosmo Lady (China) Holdings Company Limited
  • Building N1
  • Fenggang Tianan Digital City
  • Dongguan
  • Guangdong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.