Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H (0564) AI Stock Analysis

• Market Cap: HK$43.18B
• Dividend Yield: 5.67%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.75
• Revenue Growth: 2.23%
• EPS Growth: 13.60%
• Country: HK
• Employees: 16,840
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.71
• Shares Outstanding: 243,234,200
• 10 Day Avg. Volume: 1,971,955
• 30 Day Avg. Volume: 2,724,395
• PEG Ratio: 0.22
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 8.74
• 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: 75 Outperform
• Price Target: HK$24.50 ▲(17.68% Upside)

Zhengzhou Coal Mining Machinery Group demonstrates strong financial performance with consistent revenue growth and profitability, supported by a robust balance sheet. The stock's valuation is attractive, with a low P/E ratio and high dividend yield. Technical indicators suggest moderate bullish momentum, although the stock is not currently overbought. These factors contribute to a solid overall stock score.

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H (0564) is a leading Chinese manufacturer specializing in the production of mining machinery and equipment. Founded in 1955, the company operates primarily in the coal mining sector, offering a wide range of products including coal mining machinery, hydraulic supports, and other related equipment. Zhengzhou Coal Mining Machinery Group also engages in research and development to innovate and improve its product offerings, catering to both domestic and international markets.

How the Company Makes Money

The company generates revenue primarily through the sale of mining machinery and equipment, with significant emphasis on coal mining-related products. Key revenue streams include the sales of hydraulic supports, mining excavators, and other specialized machinery designed for underground coal mining operations. In addition to direct sales, the company benefits from service contracts and maintenance agreements with its clients, which provide ongoing revenue. Strategic partnerships with coal mining companies and other industrial players enhance its market presence and sales opportunities. Furthermore, Zhengzhou Coal Mining Machinery Group's investment in research and development allows it to introduce innovative products, potentially expanding its market share and revenue base.

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Financial Statement Overview

Summary

Zhengzhou Coal Mining Machinery Group displays strong financial health, with consistent revenue growth and profitability. The income statement shows robust net profit and operating margins. The balance sheet is solid, with low leverage and strong equity returns. However, cash flow shows slightly negative free cash flow growth, though overall cash conversion is strong.

Income Statement

The income statement showcases strong growth and profitability. The gross profit margin for 2024 is approximately 24.05%, reflecting solid profitability in operations. Net profit margin is robust at approximately 10.62%, indicating efficient cost management. Revenue growth rate is notable, with a 1.73% increase from 2023 to 2024, following a consistent upward trajectory over the years. The EBIT margin stands at 14.08%, and EBITDA margin at 17.82%, both reflecting strong operating performance.

Balance Sheet

The balance sheet indicates a healthy financial position with a debt-to-equity ratio of 0.23, suggesting low leverage and strong equity base. The return on equity is impressive at 17.92%, showcasing effective use of shareholder's equity. The equity ratio is approximately 45.20%, indicating a balanced capital structure with substantial asset backing.

Cash Flow

Cash flow analysis reveals stable cash generation capabilities. Free cash flow growth is slightly negative, but the operating cash flow to net income ratio is favorable at 1.00, indicating strong cash conversion. Free cash flow to net income ratio is approximately 0.50, suggesting a moderate level of free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.08B	37.05B	36.42B	32.04B	29.29B	26.52B
Gross Profit	9.05B	8.91B	7.99B	6.63B	6.41B	6.85B
EBITDA	5.64B	6.60B	5.53B	4.30B	3.94B	3.33B
Net Income	4.29B	3.93B	3.27B	2.54B	1.95B	1.24B
Balance Sheet
Total Assets	49.33B	48.57B	49.17B	44.30B	36.65B	33.71B
Cash, Cash Equivalents and Short-Term Investments	10.84B	10.67B	12.19B	10.56B	7.28B	6.80B
Total Debt	4.88B	5.09B	8.03B	8.97B	7.05B	6.82B
Total Liabilities	26.61B	25.82B	27.29B	25.66B	21.00B	19.68B
Stockholders Equity	22.01B	21.95B	20.38B	17.81B	14.80B	13.06B
Cash Flow
Free Cash Flow	2.17B	1.97B	1.97B	1.14B	2.08B	1.48B
Operating Cash Flow	1.27B	3.94B	3.06B	2.26B	2.96B	2.41B
Investing Cash Flow	-119.89M	-634.54M	-1.31B	―	―	―
Financing Cash Flow	-775.78M	-4.78B	-946.63M	1.63B	―	739.14M

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0564, the sentiment is Positive. The current price of 20.82 is below the 20-day moving average (MA) of 21.60, below the 50-day MA of 21.37, and above the 200-day MA of 14.97, indicating a bullish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 31.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0564.

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0425	76 Outperform	$44.64B	15.99	12.26%	1.14%	11.06%	22.10%
0564	75 Outperform	HK$43.18B	7.79	19.86%	5.67%	2.23%	13.60%
1316	73 Outperform	$16.87B	19.77	5.45%	1.00%	4.73%	492.16%
0179	66 Neutral	HK$31.66B	15.43	10.07%	1.68%	-4.75%	14.34%
1057	65 Neutral	HK$10.29B	19.39	9.59%	1.36%	35.32%	24.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0666	45 Neutral	HK$31.33B	-36.80	-7.40%	―	33.20%	34.66%

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Corporate Events

ZMJ Group Announces Director Resignation and Plans for Board Recomposition

Zhengzhou Coal Mining Machinery Group Co., Ltd. has announced the resignation of Mr. Cheng Jinglei, who has served as an independent non-executive director since October 2019. His resignation complies with regulatory requirements that limit the tenure of independent directors to six years. The company assures stakeholders that this change will not disrupt its board operations, although it temporarily affects the composition of the Nomination Committee. The company plans to address this by electing new committee members within three months.

ZMJ Group Announces Board Meeting for Quarterly Results

Zhengzhou Coal Mining Machinery Group Co., Ltd. has announced a board meeting scheduled for October 27, 2025, to review and approve its third quarterly results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and industry positioning.

Zhengzhou Coal Mining Machinery Group Approves Key Resolutions at EGM

Zhengzhou Coal Mining Machinery Group Co., Ltd. held its third extraordinary general meeting on September 26, 2025, where shareholders approved two key resolutions. The special resolution to change the company’s English name, stock abbreviation, and amend the Articles of Association was passed with overwhelming support, as was the ordinary resolution to adjust the guarantee scheme for financing lease repurchase and buyer’s credit guarantee for customers. These decisions are expected to impact the company’s operational framework and market identity positively.

Zhengzhou Coal Mining Machinery Group Acquires Stake in Hongkai Fund

Zhengzhou Coal Mining Machinery Group Co., Ltd. has entered into a Fund Unit Transfer Agreement with Henan Asset Management Co., Ltd. to acquire RMB202,000,000 worth of limited partnership units in Hongkai Fund, representing a 25.0935% stake. This transaction is classified as a connected transaction under Hong Kong Listing Rules due to Henan Asset’s substantial shareholding in the company, requiring reporting and announcement but exempt from independent shareholders’ approval.

ZMJ Group Announces Third Extraordinary General Meeting for 2025

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H (ZMJ Group) has announced the convening of its third extraordinary general meeting (EGM) of 2025. The meeting, scheduled for September 26, 2025, will address resolutions including a change to the company’s English name and stock short name, as well as amendments to the Articles of Association. Additionally, there will be a resolution on adjusting the guarantee scheme for financing lease repurchase and buyer’s credit guarantee for customers. The closure of the register of members will occur from September 23 to September 26, 2025, to determine eligible shareholders for the meeting. This meeting could potentially impact the company’s operational strategies and shareholder relations.

ZMJ Group Releases 2025 Interim Results

ZMJ Group Company Limited announced its unaudited interim results for the six months ending June 30, 2025. The results, reviewed by the company’s audit committee, are set to be published on the Hong Kong Stock Exchange and the company’s website. This announcement reflects the company’s ongoing commitment to transparency and its strategic positioning in both the coal mining machinery and auto parts markets, potentially impacting stakeholders by affirming its market leadership and operational stability.

ZMJ Group Announces Rebranding to ZCZL Industrial Technology

ZMJ Group Company Limited has announced a proposed change of its English name to ZCZL Industrial Technology Group Company Limited, along with a change in its English stock short name from ‘ZMJ’ to ‘ZCZL’. These changes are part of an effort to rationalize the company’s governance structure and align its brand image. The amendments to the Articles of Association will reflect these changes, pending approval at the shareholders’ meeting. This rebranding initiative is expected to impact the company’s market presence and stakeholder perception, with the ‘ZMJ’ brand continuing under a wholly-owned subsidiary.

Zhengzhou Coal Mining Machinery Group Revises Annual Caps for Transactions with Ansteel Group

Zhengzhou Coal Mining Machinery Group Co., Ltd. has announced a revision to the annual caps of its existing continuing connected transactions with Anyang Iron & Steel Group Co., Ltd. under the Commodities and Services Framework Agreement. This revision, approved by the board, adjusts the total amount of commodities purchased by Ansteel Group from the company for the year ending December 31, 2025. The agreement involves the exchange of steel products and industrial gases, with pricing determined through open tenders and comparisons with independent third-party suppliers. This adjustment reflects the company’s strategic management of its supply chain and pricing policies, potentially impacting its operational efficiencies and market positioning.

ZMJ Group Enhances Audit and Risk Management Committee Rules

Zhengzhou Coal Mining Machinery Group Co., Ltd. has revised the implementation rules for its Audit and Risk Management Committee to enhance decision-making and corporate governance. The committee, composed mainly of independent non-executive directors, is tasked with overseeing internal and external audits and managing risk, reflecting the company’s commitment to robust governance practices.

ZMJ Group Enhances Corporate Governance with New Committee

Zhengzhou Coal Mining Machinery Group Co., Ltd. has established a Remuneration and Appraisal Committee under its Board of Directors to enhance its corporate governance structure. This committee is tasked with formulating assessment standards and remuneration policies for directors and senior management, ensuring compliance with relevant laws and regulations. The committee’s composition includes a majority of independent non-executive directors, highlighting the company’s commitment to transparency and accountability in its governance practices.

ZMJ Group Enhances Governance with Revised Nomination Committee Rules

Zhengzhou Coal Mining Machinery Group Co., Ltd. has revised its Nomination Committee rules to enhance corporate governance by standardizing the selection and appointment process for directors and senior management. The updated rules emphasize the importance of independent non-executive directors in the committee and outline the nomination and election procedures, aiming to strengthen the company’s governance structure and ensure compliance with relevant laws and regulations.

ZMJ Group Announces Board Meeting to Review Interim Results and Dividend

ZMJ Group Company Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the unaudited interim results for the first half of 2025. This meeting will also consider the declaration and payment of an interim dividend, reflecting the company’s ongoing commitment to shareholder returns and financial transparency.

ZMJ Group Announces Official Name Change and Rebranding

ZMJ Group Company Limited has officially changed its company name from Zhengzhou Coal Mining Machinery Group Company Limited to ZMJ Group Company Limited, effective from July 7, 2025. The change includes the adoption of a new company logo and a new Chinese stock short name for its H shares traded on the Hong Kong Stock Exchange, while the English short name and stock code remain unchanged. This rebranding effort aims to reflect the company’s updated corporate identity without affecting shareholder rights or the validity of existing share certificates.