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Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H (HK:0564)
:0564

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

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HK:0564

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

(0564)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
HK$24.50
▲(17.22% 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.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.
Balance Sheet Health
A low debt-to-equity ratio reflects financial prudence and stability, providing the company with flexibility to invest in growth opportunities.
Profitability
Strong net profit margins indicate efficient cost management and competitive pricing, enhancing the company's ability to generate sustainable profits.
Negative Factors
Free Cash Flow
Negative free cash flow growth could limit the company's ability to fund new projects or return capital to shareholders, impacting long-term growth.
Free Cash Flow to Net Income Ratio
A moderate free cash flow to net income ratio suggests potential constraints in liquidity, which may affect the company's operational flexibility.
Industry Dependence
Heavy reliance on the coal industry may expose the company to sector-specific risks, including regulatory changes and shifts towards renewable energy.

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H (0564) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionZCZL Industrial Technology Group Company Limited, together with its subsidiaries, manufactures and sells coal mining and excavating equipment for coal mining industry in the People's Republic of China, Germany, and internationally. It provides coal mining equipment, hydraulic supports and scrapers, and sells car parts. The company was formerly known as ZMJ Group Company Limited and changed its name to ZCZL Industrial Technology Group Company Limited in October 2025. The company was founded in 1958 and is headquartered in Zhengzhou, the People's Republic of China.
How the Company Makes MoneyThe company generates revenue primarily through the sale of its mining machinery and equipment, which are essential for coal extraction and production. Key revenue streams include direct sales to mining companies, as well as after-sales services and maintenance contracts, which provide ongoing income. Zhengzhou Coal Mining Machinery Group also benefits from partnerships with major coal mining enterprises, which can result in bulk orders and long-term contracts. Furthermore, the company invests in research and development to innovate and improve its product offerings, enhancing its market competitiveness and potentially leading to increased sales.

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 company maintains a robust balance sheet with low leverage and good equity returns. Cash flow generation remains stable, supporting financial operations effectively. Overall, the company shows solid financial performance with a positive outlook.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue38.08B37.05B36.42B32.04B29.29B26.52B
Gross Profit9.05B8.91B7.99B6.63B6.41B6.85B
EBITDA5.64B6.60B5.53B4.30B3.94B3.33B
Net Income4.29B3.93B3.27B2.54B1.95B1.24B
Balance Sheet
Total Assets49.33B48.57B49.17B44.30B36.65B33.71B
Cash, Cash Equivalents and Short-Term Investments10.84B10.67B12.19B10.56B7.28B6.80B
Total Debt4.88B5.09B8.03B8.97B7.05B6.82B
Total Liabilities26.61B25.82B27.29B25.66B21.00B19.68B
Stockholders Equity22.01B21.95B20.38B17.81B14.80B13.06B
Cash Flow
Free Cash Flow2.17B1.97B1.97B1.14B2.08B1.48B
Operating Cash Flow1.27B3.94B3.06B2.26B2.96B2.41B
Investing Cash Flow-119.89M-634.54M-1.31B
Financing Cash Flow-775.78M-4.78B-946.63M1.63B739.14M

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

Technical Analysis Sentiment
Positive
Last Price20.90
Price Trends
50DMA
20.97
Negative
100DMA
20.70
Negative
200DMA
17.24
Positive
Market Momentum
MACD
-0.22
Negative
RSI
48.05
Neutral
STOCH
55.56
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 20.9 is above the 20-day moving average (MA) of 20.54, below the 50-day MA of 20.97, and above the 200-day MA of 17.24, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$45.83B8.0819.86%6.05%2.23%13.60%
71
Outperform
HK$36.47B13.0012.26%1.39%11.06%22.10%
68
Neutral
$17.82B20.895.45%1.02%4.73%492.16%
68
Neutral
HK$18.46B23.059.59%1.37%35.32%24.24%
64
Neutral
HK$27.54B13.259.85%2.03%-3.02%11.38%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
44
Neutral
HK$31.03B-35.52-7.40%33.20%34.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0564
Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H
21.12
12.16
135.71%
HK:0179
Johnson Electric Holdings
29.82
19.42
186.84%
HK:0425
Minth Group
31.16
17.33
125.37%
HK:1316
Nexteer Automotive Group
7.10
4.14
139.86%
HK:1057
Zhejiang Shibao Co. Ltd. Class H
5.66
2.99
111.59%
HK:0666
Rept Battero Energy Company Ltd Class H
13.28
3.14
30.97%

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

ZCZL Industrial Technology Group Raises Cap on 2026 Commodity Sales to Ansteel
Dec 22, 2025

ZCZL Industrial Technology Group Company Limited has revised the 2026 annual cap for commodities sold to Anyang Iron & Steel Group Co., Ltd. under an existing Commodities and Services Framework Agreement, after board approval on 22 December 2025. The framework governs two-way transactions whereby ZCZL purchases steel products, industrial gases and transportation services from Ansteel Group and sells continuous casting billets and other steel products to Ansteel, all priced via tenders and arm’s length negotiations benchmarked against at least three independent suppliers. The adjustments to the 2026 cap for Ansteel’s purchases from ZCZL reflect rising transaction volumes, with purchases from Ansteel and sales to Ansteel already amounting to about RMB1.49 billion and RMB486 million, respectively, in the first ten months of 2025, indicating growing operational integration with a key industrial customer and supplier while maintaining pricing on normal commercial terms.

The most recent analyst rating on (HK:0564) stock is a Buy with a HK$24.50 price target. To see the full list of analyst forecasts on Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H stock, see the HK:0564 Stock Forecast page.

ZCZL Industrial Technology Group Updates Articles to Align with New Overseas Listing Rules
Dec 22, 2025

ZCZL Industrial Technology Group Company Limited has approved proposed amendments to its Articles of Association and the Rules of Procedure for Shareholders’ Meetings to align with the latest regulatory framework for overseas securities offerings by Chinese domestic enterprises, as issued by the China Securities Regulatory Commission. The revisions refine the company’s registered business scope—clarifying descriptions of machinery-related activities, specifying conditions on coal and coal product sales, and standardising terms around leasing, imports and exports, and software and technical services—and update provisions on share classes to comply with listing-place regulatory rules. These changes are intended to ensure regulatory compliance for its Hong Kong listing and provide a clearer, more flexible governance and business framework, which may facilitate future capital market activities and enhance transparency for shareholders and other stakeholders.

The most recent analyst rating on (HK:0564) stock is a Buy with a HK$24.50 price target. To see the full list of analyst forecasts on Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H stock, see the HK:0564 Stock Forecast page.

ZCZL Industrial Technology Group Announces Name Change
Nov 10, 2025

ZCZL Industrial Technology Group Company Limited has officially changed its English name from ZMJ Group Company Limited, effective 31 October 2025, as confirmed by the Hong Kong Companies Registry. The English stock short name on the Hong Kong Stock Exchange will change from ‘ZMJ’ to ‘ZCZL’ starting 14 November 2025. This change does not affect shareholder rights, and existing share certificates remain valid. The company’s website and Chinese stock short name remain unchanged.

The most recent analyst rating on (HK:0564) stock is a Buy with a HK$24.50 price target. To see the full list of analyst forecasts on Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H stock, see the HK:0564 Stock Forecast page.

ZMJ Group Strengthens Board Committees with New Elections
Oct 27, 2025

Zhengzhou Coal Mining Machinery Group Co., Ltd. has announced the election of new members to its board committees. The election of Mr. MENG Hechao, Mr. LI Kaishun, and Ms. YAO Yanqiu to the Strategy and Sustainable Development Committee, and Mr. JI Feng to the Nomination Committee, ensures compliance with Hong Kong Stock Exchange rules and strengthens the company’s governance structure.

The most recent analyst rating on (HK:0564) stock is a Buy with a HK$24.50 price target. To see the full list of analyst forecasts on Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H stock, see the HK:0564 Stock Forecast page.

ZMJ Group Announces Board Composition and Committee Roles
Oct 27, 2025

Zhengzhou Coal Mining Machinery Group Co., Ltd. has announced the composition of its board of directors and the roles each member will play within the organization. The board includes a mix of executive, non-executive, and independent non-executive directors, highlighting the company’s commitment to diverse governance. This announcement outlines the structure of the board’s committees, which focus on strategy, audit and risk management, nomination, and remuneration, indicating a comprehensive approach to corporate governance.

The most recent analyst rating on (HK:0564) stock is a Buy with a HK$24.50 price target. To see the full list of analyst forecasts on Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H stock, see the HK:0564 Stock Forecast page.

ZMJ Group Reports Strong Q3 2025 Financial Performance
Oct 27, 2025

ZMJ Group Company Limited has released its third quarterly report for 2025, highlighting a strong financial performance with significant increases in operating revenue and net profit. The company reported a 21.11% increase in operating revenue and a 25.93% rise in net profit attributable to shareholders compared to the same period last year, indicating robust growth and operational efficiency.

The most recent analyst rating on (HK:0564) stock is a Buy with a HK$24.50 price target. To see the full list of analyst forecasts on Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H stock, see the HK:0564 Stock Forecast page.

ZMJ Group Announces Director Resignation and Plans for Board Recomposition
Oct 20, 2025

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
Oct 15, 2025

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.

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 23, 2025