Zensun Enterprises Limited (0185) AI Stock Analysis

• Market Cap: HK$223.87M
• Dividend Yield: N/A
• Average Volume (3M): 260.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -14.64%
• EPS Growth: 69.18%
• Country: HK
• Employees: 310
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.28
• Shares Outstanding: 1,913,386,700
• 10 Day Avg. Volume: 421,417
• 30 Day Avg. Volume: 260,392
• PEG Ratio: 0.03
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 0.48
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$0.13 ▲(25.00% Upside)

Zensun Enterprises Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profit margins, and high leverage. Technical analysis provides some short-term positive signals, but the valuation remains a significant concern due to negative earnings and lack of dividends. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Cash Generation Ability

The company's ability to generate positive operating cash flow indicates operational strength, providing a buffer against financial instability and enabling reinvestment into growth opportunities.

Strategic Partnerships

Strategic partnerships expand market reach and operational efficiency, potentially boosting revenue growth and strengthening the company's competitive position.

Revenue Model Diversification

A diversified revenue model reduces dependency on a single income stream, enhancing resilience against market fluctuations and supporting long-term revenue stability.

Negative Factors

Declining Revenue

A declining revenue trend indicates potential market share loss and challenges in maintaining competitive positioning, which could impact long-term growth prospects.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth or weather economic downturns.

Negative Profit Margins

Consistently negative profit margins reflect operational inefficiencies and cost management issues, which hinder profitability and long-term financial health.

Zensun Enterprises Limited Business Overview & Revenue Model

Company Description

Zensun Enterprises Limited, an investment holding company, engages in the property development, property investment and management, and securities trading and investment businesses. It operates through five segments: Property Development, Project Management Services, Property Investment and Management, Property Investment, and Securities Trading and Investment. The company also offers loan financing services. It has operations in the People's Republic of China, the United States, Singapore, and Hong Kong. The company was formerly known as ZH International Holdings Limited and changed its name to Zensun Enterprises Limited in July 2019. The company was incorporated in 1965 and is headquartered in Central, Hong Kong. Zensun Enterprises Limited is a subsidiary of Joy Town Inc.

How the Company Makes Money

Zensun Enterprises Limited generates revenue through multiple streams, primarily from the sale of its electronic products and components to both retail and wholesale markets. The company's revenue model is built on a combination of direct sales, online retailing, and partnerships with distributors and retailers across different regions. Additionally, Zensun may engage in contract manufacturing services, providing tailored solutions to other businesses, which contributes to its earnings. Strategic partnerships with technology firms and suppliers enhance its market reach and operational efficiency, further driving revenue growth.

Zensun Enterprises Limited Financial Statement Overview

Summary

Zensun Enterprises Limited is facing significant financial challenges, with declining revenues, negative profit margins, and high leverage. The company's financial health is concerning, with potential risks related to debt levels and operational inefficiencies. While there are some positive cash flow aspects, the overall financial position is unstable.

Income Statement

Zensun Enterprises Limited has faced significant challenges in its income statement. The company has experienced a declining revenue trend, with a sharp drop from 2023 to 2024. Gross profit margins have been negative in recent years, indicating cost management issues. Net profit margins have also been negative, reflecting consistent net losses. The EBIT and EBITDA margins are negative, highlighting operational inefficiencies and potential difficulties in covering fixed costs.

Balance Sheet

The balance sheet of Zensun Enterprises Limited shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The equity ratio is low, suggesting limited shareholder equity relative to total assets. Return on equity has been negative, reflecting the company's inability to generate returns for shareholders. These factors point to financial instability and potential challenges in meeting long-term obligations.

Cash Flow

The cash flow statement shows some positive aspects, such as positive operating cash flow in recent years, which indicates the company's ability to generate cash from operations. However, free cash flow has been declining, and the free cash flow to net income ratio is concerning due to consistent net losses. The company has also faced challenges in maintaining stable free cash flow growth, which could impact its ability to invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.98B	9.54B	20.03B	9.66B	13.42B	8.07B
Gross Profit	-9.08M	-1.03B	-500.52M	827.04M	1.26B	1.75B
EBITDA	-198.78M	-1.22B	-764.60M	-2.61B	611.13M	1.21B
Net Income	-1.09B	-2.18B	-2.30B	-2.95B	399.47M	782.99M
Balance Sheet
Total Assets	37.81B	39.50B	46.40B	61.54B	68.24B	67.15B
Cash, Cash Equivalents and Short-Term Investments	945.64M	530.93M	825.27M	735.92M	2.26B	3.54B
Total Debt	15.23B	14.57B	15.18B	15.44B	20.00B	23.51B
Total Liabilities	37.66B	38.54B	43.28B	56.22B	60.04B	59.26B
Stockholders Equity	87.52M	897.81M	3.07B	5.32B	8.20B	7.87B
Cash Flow
Free Cash Flow	-680.25M	630.75M	2.05B	5.32B	5.48B	1.84B
Operating Cash Flow	-680.24M	630.76M	2.05B	5.33B	5.48B	1.84B
Investing Cash Flow	23.38M	24.78M	7.93M	2.68M	32.15M	649.52M
Financing Cash Flow	311.50M	-866.59M	-2.02B	-6.68B	-6.89B	-2.46B

Zensun Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0185, the sentiment is Positive. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and below the 200-day MA of 0.10, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 50.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0185.

Zensun Enterprises Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3366	48 Neutral	HK$284.38M	-1.61	―	―	-62.34%	70.06%
0075	44 Neutral	HK$117.53M	-1.40	-8.43%	―	-65.67%	-183.81%
0185	43 Neutral	HK$223.87M	-0.19	-157.74%	―	-14.64%	69.18%
6968	42 Neutral	HK$115.15M	-0.11	-26.32%	―	-70.72%	-667.17%
3639	41 Neutral	HK$129.20M	-0.04	-35.96%	―	-5.63%	-36.30%
2699	40 Underperform	HK$19.54M	-0.02	―	―	-84.06%	60.63%

Zensun Enterprises Limited Corporate Events

Zensun Enterprises Details Progress on Liquidity Measures to Address Audit Disclaimer

Zensun Enterprises Limited has issued a quarterly update on its efforts to address the disclaimer of opinion issued by its auditors on the 2024 consolidated financial statements, which stemmed from material uncertainties related to going concern. The company is negotiating repayment extensions with three noteholders, none of whom have demanded immediate repayment or initiated legal proceedings, and is actively restructuring its debt profile to improve liquidity, having secured about RMB286.4 million in new bank and other borrowings and repaid roughly RMB247.6 million between July and November 2025. Supported by enhanced property sales measures, Zensun recorded approximately RMB4.2 billion in cumulative contracted sales in the first eleven months of 2025, while simultaneously tightening cost controls by optimising its organisational structure and reducing administrative expenses. The company is also in talks with more than 600 contractors to reschedule or settle outstanding construction payables and has paid around RMB700.5 million to contractors over the period, steps that collectively aim to mitigate liquidity risk, support business continuity, and ultimately remove the auditors’ disclaimer of opinion, with further updates to be provided as implementation progresses.

The most recent analyst rating on (HK:0185) stock is a Hold with a HK$0.12 price target. To see the full list of analyst forecasts on Zensun Enterprises Limited stock, see the HK:0185 Stock Forecast page.

Zensun Enterprises Renews Key Property Management and Engineering Agreements

Zensun Enterprises Limited has announced the renewal of its continuing connected transactions through the 2025 Master Property Management Framework Agreement and the 2025 Master Property Engineering Framework Agreement. These agreements, involving Xingye Wulian, will commence on January 1, 2026, and last until December 31, 2028. The transactions are subject to compliance with reporting and announcement requirements but are exempt from independent shareholders’ approval under the Listing Rules, indicating a strategic move to maintain and potentially enhance its market position in property management and engineering services.