Zensun Enterprises Limited (0185) AI Stock Analysis

• Market Cap: €227.69M
• Dividend Yield: N/A
• Average Volume (3M): 260.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$0.12 ▲(4.55% Upside)

Zensun Enterprises Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. Technical analysis provides some short-term stability, but the lack of strong momentum and poor valuation metrics further weigh down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Generation Ability

Positive operating cash flow indicates the company's ability to generate cash from its core operations, which is crucial for sustaining business activities and funding potential growth opportunities.

Strategic Partnerships

Strategic partnerships can enhance market reach and operational efficiency, providing a competitive edge and supporting revenue growth through expanded distribution channels and collaborative innovation.

Revenue Model Diversification

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

Negative Factors

Declining Revenue

A declining revenue trend indicates potential challenges in market demand or competitive positioning, which could hinder the company's ability to invest in growth and maintain profitability.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and increasing vulnerability to economic downturns, which could impact long-term stability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and cost management issues, which can undermine financial health and limit the company's ability to generate shareholder value over time.

Zensun Enterprises Limited Business Overview & Revenue Model

Company Description

Zensun Enterprises Limited (0185) is a diversified company primarily engaged in the manufacturing and distribution of electronic products and components. The company operates in various sectors, including consumer electronics and industrial equipment, focusing on delivering innovative and high-quality solutions to its clientele. Zensun is known for its commitment to technology and customer satisfaction, offering a range of products that cater to both individual consumers and businesses.

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: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0185, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.35 is Neutral, neither overbought nor oversold. The STOCH value of 6.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	53 Neutral	HK$243.22M	―	―	―	-62.34%	70.06%
0185	44 Neutral	€227.69M	-0.19	-157.74%	―	-14.64%	69.18%
0075	44 Neutral	HK$131.13M	―	-8.43%	―	-65.67%	-183.81%
3639	41 Neutral	€139.53M	―	-35.96%	―	-5.63%	-36.30%
6968	41 Neutral	HK$121.63M	―	-26.32%	―	-70.72%	-667.17%
2699	39 Underperform	HK$30.06M	-0.03	―	―	-84.06%	60.63%

Zensun Enterprises Limited Corporate Events

Zensun Enterprises Updates on Financial Action Plans Amid Auditor Concerns

Zensun Enterprises Limited has provided an update on its action plans to address a Disclaimer of Opinion issued by its auditors concerning the company’s financial statements. The company is negotiating with noteholders for repayment extensions, reviewing its debt structure to improve liquidity, and has achieved RMB2.8 billion in contracted sales by enhancing property sales measures. Additionally, Zensun is optimizing its organizational structure to control costs and is in discussions with contractors regarding payment terms, having settled RMB383.0 million in construction fees. These measures aim to resolve going concern uncertainties and strengthen the company’s financial standing.

Zensun Enterprises Faces Liquidity Challenges Amid Note Delisting

Zensun Enterprises Limited announced the delisting of its 7.0% senior notes due 2025 from the Hong Kong Stock Exchange following their maturity. The company has been unable to meet its payment obligations for these notes due to ongoing liquidity pressures exacerbated by the challenging conditions in the Chinese real estate market. Despite these difficulties, Zensun remains committed to maintaining normal business operations and is actively working to improve its financial position through property sales and other measures.

Zensun Enterprises Reports Revenue Surge Amid Reduced Losses in H1 2025

Zensun Enterprises Limited reported a significant increase in revenue for the first half of 2025, amounting to approximately RMB2,624.1 million, a 1,326.8% rise compared to the same period in 2024. Despite this revenue growth, the company still faced a loss of approximately RMB502.2 million, though this represents a 68.6% improvement from the previous year’s loss. The financial results indicate a positive trend in reducing losses, which could impact the company’s financial stability and investor confidence.

Zensun Enterprises Reports Reduced Losses for H1 2025

Zensun Enterprises Limited announced a significant reduction in its net loss for the first half of 2025, with expected losses ranging from RMB460 million to RMB620 million, compared to RMB1.6 billion in the same period of 2024. This improvement is attributed to an accelerated pace of project completion and delivery, leading to increased revenue, and a reduction in impairment provisions for property projects. The final financial results are yet to be confirmed, and stakeholders are advised to exercise caution.

Zensun Enterprises Schedules Board Meeting for Interim Results

Zensun Enterprises Limited has announced a board meeting scheduled for August 29, 2025, to approve and publish the interim results for the six-month period ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.