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

Cosmo Lady (China) Holdings Co. Ltd.

(HKEX:2298)

Select Model

Rating:47Neutral

Price Target:HKD 0.27▲(6.27% Upside)

Action:reiterated

Date:10/28/26

The score is primarily constrained by deteriorating profitability and cash generation, with technical weakness reinforcing the risk. The low P/E ratio and high dividend yield provide meaningful support but are insufficient to offset the company’s declining operating performance.

Positive Factors

Earnings recoveryThe return to sustained profitability after losses in 2020–2021 indicates that the business has regained operating stability. Continued positive earnings provide internal funding for operations and reinvestment, while the recurring margin profile offers a more durable base than a single-period recovery.

Negative Factors

Uneven revenue growthThe reversal from revenue improvement in 2024 to decline in 2025 suggests that demand and sales-channel momentum are not yet consistently expanding. Persistent unevenness could restrict operating leverage, weaken scale benefits, and make future earnings growth more dependent on cost control.

Cosmo Lady (China) Holdings Co. Ltd. (2298) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 555.74M
Dividend Yield: 6.27%
Average Volume (3M): 670.96K
Price to Earnings (P/E): 3.8
Beta (1Y): 0.54
Revenue Growth: -1.84%
EPS Growth: 29.22%
Country: Hong Kong
Employees: 1,700
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Manufacturers

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

Company Description

Cosmo Lady (China) Holdings Company Limited functions as an investment holding firm primarily involved in the design, development, research, and distribution of branded intimate apparel goods across the People's Republic of China. Its diverse product...

How the Company Makes Money

Cosmo Lady primarily makes money by selling women’s intimate apparel under its brands, generating revenue from the sale of finished products to end customers and/or channel partners. Key revenue streams include (1) retail sales through company-operat...

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

Summary

Financial performance is weak overall: declining revenue and margins, sharply lower net income, and a 51% operating cash-flow decline outweigh the conservative balance sheet and moderate leverage.

Income Statement

42Neutral

Balance Sheet

58Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.77B	2.95B	3.01B	2.76B	3.01B	3.36B
Gross Profit	1.36B	1.38B	1.38B	1.31B	1.40B	1.41B
EBITDA	414.94M	432.50M	459.98M	360.68M	379.51M	12.09M
Net Income	125.98M	123.41M	126.16M	42.48M	33.02M	-496.06M
Balance Sheet
Total Assets	3.51B	3.62B	3.70B	3.82B	3.48B	4.05B
Cash, Cash Equivalents and Short-Term Investments	523.07M	614.40M	1.09B	1.03B	1.07B	519.08M
Total Debt	662.19M	771.09M	657.63M	713.68M	608.25M	680.12M
Total Liabilities	1.36B	1.50B	1.68B	1.89B	1.57B	2.15B
Stockholders Equity	2.18B	2.14B	2.03B	1.93B	1.90B	1.87B
Cash Flow
Free Cash Flow	64.68M	97.88M	236.97M	38.01M	146.64M	58.10M
Operating Cash Flow	205.43M	157.29M	323.87M	383.32M	230.53M	167.23M
Investing Cash Flow	-26.76M	-11.90M	-50.19M	-225.74M	35.81M	61.81M
Financing Cash Flow	-248.64M	-151.23M	-243.65M	-204.40M	-216.20M	-417.86M

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

Technical Analysis SentimentNeutral

Last Price0.26

Price Trends

50DMA0.27Negative

100DMA0.29Negative

200DMA0.32Negative

Market Momentum

MACD-0.00Negative

RSI51.60Neutral

STOCH53.32Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2298, the sentiment is Neutral. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.27, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 53.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2298.

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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:2298 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HK:2199	61Neutral	HKD 3.14B	11.15	9.33%	6.24%	-1.56%	53.99%
HK:3322	50Neutral	HKD 244.04M	-1.80	-10.95%	―	-16.20%	-324.90%
HK:2298	47Neutral	HKD 559.32M	3.81	5.83%	6.27%	-1.84%	29.22%
HK:0333	41Neutral	HKD 56.90M	-0.71	-30.80%	―	-17.26%	-176.64%
HK:0608	41Neutral	HKD 360.63M	8.06	1.35%	5.06%	-1.14%	-44.16%
HK:1388	37Underperform	HKD 99.27M	-0.41	-15.72%	―	5.51%	30.14%

* Consumer Cyclical Sector Average

Performance Comparison

HK:2298 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2298	Cosmo Lady (China) Holdings Co. Ltd.	0.26	-0.08	-23.65%
HK:3322	Win Hanverky Holdings Limited	0.19	-0.01	-5.00%
HK:1388	Embry Holdings Limited	0.23	-0.15	-38.16%
HK:0608	High Fashion International Limited	1.18	-0.22	-15.83%
HK:2199	Regina Miracle International (Holdings) Limited	2.56	0.67	35.57%
HK:0333	Top Form International Limited	0.19	-0.13	-40.94%

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

Cosmo Lady Director Boosts Stake in Sign of Confidence

Oct 26, 2026

Cosmo Lady (China) Holdings announced that executive director Wu Xiaoli has bought 1,220,000 shares in the company on the market between 21 and 26 October 2026 at an average price of about HK$0.2439 per share, lifting her stake by around 0.05% of the...

Cosmo Lady Lifts Interim Profit Despite Revenue Decline

Aug 28, 2026

Cosmo Lady reported interim results for the six months ended 30 June 2026 showing modest profit growth despite lower revenue. Group revenue fell to RMB1,267.0 million from RMB1,435.9 million a year earlier, but profit attributable to owners rose to R...

Cosmo Lady Sets Board Meeting to Approve Interim Results and Consider Dividend

Aug 18, 2026

Cosmo Lady (China) Holdings Company Limited, a Hong Kong-listed apparel group incorporated in the Cayman Islands under stock code 2298, operates through multiple subsidiaries and is governed by a board of executive, non-executive and independent non-...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

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