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Cosmos Machinery Enterprises Limited (0118) Fair Value & Analysis

Industrials · HK · Market cap HK$173M

CM Cosmos Machinery Enterprises Limited 0118 · HK
PriceHK$0.1880
Fair ValueHK$0.2600
Upside+38.3%
Quality59/100
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Mixed Growth
Thin margins · 0.7% net margin
Low debt · generates free cash flow
Ranks above peers (8/12)
Narrow moat 19/100
Evidence: High Range HK$0.2000 – HK$0.3300 Share as image

Fair value as of: Aug 2, 2026

From 12 valuation models · updated 8 days ago

Share price −8.3% over the past month.

A solid business, screening 38% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$0.2000). The market is more pessimistic than our downside scenario.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$0.5300 HK$0.1620 Fair Value HK$0.2600 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$0.1620 – HK$0.5300 · fair‑value band HK$0.2000 – HK$0.3300 · the HK$0.1880 price screens below the HK$0.2600 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Cosmos Machinery Enterprises Limited (0118) currently trades at HK$0.1880, while our model-based Fair Value estimate is HK$0.2600, implying the stock looks roughly 38.3% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Cosmos Machinery Enterprises Limited generated revenue of HK$2.1B at a net margin of 0.7%. Revenue grew 11.6% year over year. It earns a return on equity of 1.6%. The balance sheet holds a net cash position of HK$422M. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$0.2000 (bear case) to HK$0.3300 (bull case); at HK$0.1880, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 64% below its 52-week high and 11% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at 38%, 0118 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$0.9200 HK$0.9800 HK$1.06 80
Residual Income HK$0.9000 HK$0.8300 HK$0.5200 76
Rev-Margin DCF HK$1.00 HK$1.16 HK$1.37 74
All 12 models by family
DCF Models
Owner Earnings HK$0.9900 HK$1.08 HK$1.21 31
5Y P/E Exit HK$0.8900 HK$0.9800 HK$1.08 38
10Y P/E Exit HK$0.9000 HK$0.9600 HK$1.01 35
Earnings-Based
Graham-Dodd HK$0.1100 HK$0.1400 HK$0.1600 54
Dividend Discount
Gordon GGM HK$0.1400 HK$0.1500 HK$0.1600 70
DDM Multi-Stage HK$0.1400 HK$0.1600 HK$0.1900 61
Multiples
P/E Multiple HK$0.2400 HK$0.3300 HK$0.4100 63
P/B Multiple HK$0.2000 HK$0.2600 HK$0.3300 55
Asset-Based
NCAV (Graham) HK$0.7200 HK$0.9700 HK$1.45 50
Growth DCF
Growth DCF HK$0.9200 HK$0.9800 HK$1.06 80
Rev-Margin DCF HK$1.00 HK$1.16 HK$1.37 74
Economic Profit
Residual Income HK$0.9000 HK$0.8300 HK$0.5200 76

Widest divergence: DCF Models (HK$0.9800) versus Earnings-Based (HK$0.1400). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$2.1B
Revenue growth (YoY) +11.6%
Net margin 0.7%
Return on equity 1.6%
Free cash flow HK$29.1M FY2025
P/E ratio 10.1
More key figures
Operating margin 3.1%
EPS growth (YoY) -58.7%
Net cash HK$422M FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 58 · Market factors (momentum, volatility) 35

Profitability 30
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 16
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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. It operates in four segments: Trading of Industrial Consumables; Processing and Manufacturing of Plastic Products; Manufacturing of Machinery; and Machinery Leasing.

Full company description

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. It operates in four segments: Trading of Industrial Consumables; Processing and Manufacturing of Plastic Products; Manufacturing of Machinery; and Machinery Leasing. The company manufactures and sells injection molding, extrusion line, rubber injection molding, and hydraulic press machines that are used in various applications, such as automobile, construction, telecommunications, food packaging, and household appliances. It is also involved in processing of plastic food packaging; processing of plastic components for home appliances; and manufacturing of mannequins and display items. Cosmos Machinery Enterprises Limited was founded in 1958 and is headquartered in Cheung Sha Wan, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Cosmos Machinery Enterprises Limited reported revenue of HK$2.1B in FY2025 versus HK$3.1B in FY2021, a compound −9.5%/yr. Reported net income was HK$13.4M in FY2025, compounding −37.8%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$2.1B
Latest YoY
+10.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.2%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.0%
Revenue −9.5%/yr
FY21 HK$3.1B
FY22 HK$2.3B
FY23 HK$2.2B
FY24 HK$1.9B
FY25 HK$2.1B
Net income −37.8%/yr
FY21 HK$89.7M
FY22 HK$24.4M
FY23 −HK$43.8M
FY24 HK$7.9M
FY25 HK$13.4M

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Cite: Fair Value Calculator (2026). "Cosmos Machinery Enterprises Limited Fair Value". https://www.fairvalue-calculator.com/stock/0118

Peer Group

Conglomerates · 369 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Top 25%
Fair Value upside +38% · Above median
Return on equity (TTM) 2% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 12% · Above median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 10.1× · Cheaper than median
P/B 0.14× · Cheaper than 75% of peers
P/S (TTM) 0.08× · Cheaper than 75% of peers
P/FCF 0.8× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 84 · sector 20
FUTURE 58 · sector 16
PAST 6 · sector 20
HEALTH 100 · sector 88
DIVIDEND 0 · sector 39

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Cosmos Machinery Enterprises Limited (0118) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$0.2600 versus a price of HK$0.1880, about +38% (undervalued).
What is the fair value of 0118?
Our model-based fair value for Cosmos Machinery Enterprises Limited is HK$0.2600 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$0.1880.
What is the quality score of 0118?
Cosmos Machinery Enterprises Limited has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Cosmos Machinery Enterprises Limited (0118)?
Cosmos Machinery Enterprises Limited reported trailing-twelve-month revenue of about HK$2.1B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0118?
The net profit margin of Cosmos Machinery Enterprises Limited is about 0.7%, meaning it keeps roughly 0.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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