Zhongzheng International Company Limited (0943) AI Stock Analysis

• Market Cap: HK$383.27M
• Dividend Yield: N/A
• Average Volume (3M): 224.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -21.01%
• EPS Growth: 79.78%
• Country: HK
• Employees: 561
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): N/A
• Shares Outstanding: 1,718,697,500
• 10 Day Avg. Volume: 28,951
• 30 Day Avg. Volume: 224,177
• PEG Ratio: 0.02
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.76
• P/FCF Ratio: -6.90
• 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: 48 Neutral
• Price Target: HK$0.21 ▼(-4.55% Downside)

Overall score is held back primarily by very weak financial performance (sharp revenue decline, substantial losses, high leverage, and declining free cash flow). Technical indicators are moderately supportive with price above key moving averages and a positive MACD, but momentum looks stretched. Valuation remains unattractive/unclear due to negative earnings and no dividend yield data.

Positive Factors

Diversified business model and global presence

A multi‑sector footprint reduces dependence on any single end market, smoothing revenue volatility and demand cycles. Geographic reach and product breadth support resource reallocation and cross‑selling, improving resilience and strategic optionality over a 2–6 month horizon.

Strategic supplier and distributor partnerships

Established supplier and distribution relationships bolster sourcing reliability and lower procurement costs, supporting gross margin stability. Strong channel partnerships accelerate product rollouts and market share gains, a durable operational advantage during supply disruptions and scaling phases.

Investment in R&D and sustainability focus

Ongoing R&D investment fosters product differentiation and supports entry into higher‑value niches, enhancing long‑term margin potential. Sustainability positioning can secure customer contracts and regulatory alignment, creating a structural moat that supports revenue quality over months.

Negative Factors

Sharp revenue decline and deep losses

A >20% revenue drop combined with extreme negative net margins signals structural demand weakness or pricing pressure and persistent unprofitability. This erodes retained earnings and constrains reinvestment capacity, threatening medium‑term operational viability without sustained recovery.

High leverage and negative returns on equity

Elevated leverage increases interest burden and insolvency risk, limiting financial flexibility for capex or working capital. Negative ROE shows shareholder capital is not generating returns, which can force deleveraging or asset sales and impair growth options over 2–6 months.

Deteriorating cash generation and cash flow quality

Substantial decline in free cash flow and negative operating cash flow relative to net income indicate weak cash conversion and earnings quality. This constrains debt servicing, R&D funding and working capital, increasing refinancing risk and limiting strategic investments in the medium term.

Zhongzheng International Company Limited Business Overview & Revenue Model

Company Description

Zhongzheng International Company Limited, an investment holding company, manufactures, trades in, and sells healthcare and household products. The company is also involved in the money lending, trademark holding, and land development businesses; and provision of fund management, as well as management services. In addition, it owns a coal mining concession. The company operates in the United States, the People's Republic of China, Germany, France, the United Kingdom, Japan, Hong Kong, and internationally. The company was formerly known as eForce Holdings Limited and changed its name to Zhongzheng International Company Limited in August 2020. Zhongzheng International Company Limited is headquartered in Central, Hong Kong.

How the Company Makes Money

Zhongzheng International Company Limited generates revenue through multiple streams, primarily from the sale of its industrial products, which include electronic components and machinery. The company also earns income from providing maintenance and support services to its products, ensuring customer satisfaction and fostering long-term relationships. Additionally, significant partnerships with key suppliers and distributors enhance its supply chain efficiency and market penetration, contributing to its financial performance. The company strategically invests in research and development to innovate and expand its product lines, further driving sales and profitability.

Zhongzheng International Company Limited Financial Statement Overview

Summary

Zhongzheng International Company Limited is facing significant financial challenges. The income statement reveals declining revenues and substantial losses, while the balance sheet shows high leverage and negative returns on equity. Cash flow analysis indicates declining cash generation and operational cash flow issues. The company needs to address these issues to improve financial stability and performance.

Income Statement

The company has experienced significant revenue decline with a negative revenue growth rate of -21.01% in the latest period. Gross profit margin has decreased to 19.33%, indicating reduced efficiency in production. The net profit margin is deeply negative at -125.07%, reflecting substantial losses. EBIT and EBITDA margins are also negative, indicating operational challenges.

Balance Sheet

The debt-to-equity ratio of 1.38 suggests high leverage, which poses financial risk. Return on equity is negative, indicating that the company is not generating profit from shareholders' equity. The equity ratio is relatively low, showing limited equity financing compared to assets.

Cash Flow

The company has negative free cash flow growth of -41.85%, indicating declining cash generation. The operating cash flow to net income ratio is negative, suggesting cash flow issues. However, the free cash flow to net income ratio is slightly above 1, indicating that free cash flow is slightly better than net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.30M	117.30M	148.50M	872.91M	139.33M	154.69M
Gross Profit	22.67M	22.67M	22.99M	253.69M	36.61M	44.77M
EBITDA	-26.91M	-26.91M	-696.29M	142.65M	-75.91M	-55.13M
Net Income	-146.70M	-146.70M	-699.35M	69.13M	-231.68M	-53.79M
Balance Sheet
Total Assets	744.97M	744.97M	2.29B	3.03B	4.12B	3.72B
Cash, Cash Equivalents and Short-Term Investments	11.35M	11.35M	20.14M	41.43M	167.45M	177.09M
Total Debt	356.29M	356.29M	1.35B	1.37B	1.77B	1.65B
Total Liabilities	485.87M	485.87M	2.18B	2.06B	3.11B	2.29B
Stockholders Equity	259.09M	259.09M	293.07M	974.13M	989.95M	1.38B
Cash Flow
Free Cash Flow	-29.96M	-29.96M	-21.12M	-69.58M	124.79M	-47.52M
Operating Cash Flow	-29.77M	-29.77M	-21.12M	-67.55M	126.86M	-44.78M
Investing Cash Flow	-16.31M	-16.31M	-2.17M	26.93M	-122.91M	-87.09M
Financing Cash Flow	40.18M	38.76M	1.94M	-83.55M	5.57M	104.55M

Zhongzheng International Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 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:0943, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.19, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 59.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0943.

Zhongzheng International Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1338	56 Neutral	HK$113.85M	40.00	1.83%	―	5.99%	-74.29%
8436	55 Neutral	HK$86.40M	18.78	1.89%	―	-20.10%	-74.16%
6893	49 Neutral	HK$305.70M	-7.63	-23.55%	―	10.42%	11.14%
0943	48 Neutral	HK$383.27M	-1.00	-34.23%	―	-21.01%	79.78%
1667	47 Neutral	HK$480.00M	-8.52	-346.03%	―	-24.25%	49.22%
1323	45 Neutral	HK$88.41M	-0.93	-10.67%	―	-28.42%	-47.07%

Zhongzheng International Company Limited Corporate Events

Zhongzheng International to Buy Beauty-Tech Software Firm via HK$62.5 Million Share Deal

Zhongzheng International Company Limited has agreed to acquire the entire equity interest and shareholder’s loan of a target company that will wholly own YS Tech, a software developer focused on digital empowerment and SaaS applications for the beauty sector in Guangdong, for a total consideration of HK$62.5 million. The deal will be settled entirely through the issuance of 341,903,719 new shares, representing about 16.6% of the enlarged share capital, under the company’s general mandate, subject to listing approval in Hong Kong, and is classified as a discloseable transaction under the Listing Rules. Upon completion, the vendor will become a substantial shareholder and connected person, and the ongoing provision of IT services by the Target Group to YS Tech Holdco’s branches and the provision of office space by YS Tech Holdco to the Target Group will be treated as de minimis continuing connected transactions, fully exempt from shareholder approval, annual review and disclosure requirements, signalling manageable regulatory impact while broadening Zhongzheng International’s footprint in technology services for the beauty industry.

The most recent analyst rating on (HK:0943) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on Zhongzheng International Company Limited stock, see the HK:0943 Stock Forecast page.

Zhongzheng International Halts Trading Pending Major Share-Issuance Deal

Zhongzheng International Company Limited, a Bermuda-incorporated company listed on Hong Kong’s Main Board (stock code 943), operates under a board structure that includes executive, non-executive and independent non-executive directors, in line with standard governance practices for listed issuers in the market. The company has requested a trading halt in its shares from 9:00 a.m. on 2 January 2026, pending an announcement regarding a discloseable transaction that will involve issuing new shares as consideration, which the board has classified as inside information; the move signals a potentially significant corporate action that could affect the company’s capital structure and is material enough to warrant a temporary suspension to ensure orderly trading once full details are disclosed.

The most recent analyst rating on (HK:0943) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on Zhongzheng International Company Limited stock, see the HK:0943 Stock Forecast page.

Zhongzheng International Restructures Coal Mining Operations with New Contractor

Zhongzheng International Company Limited has announced the termination of its cooperation agreement with PT Nusantara Energi Thermal due to the latter’s inability to resume mining operations at the PT Bara Mine. The company has now entered into an exclusive agreement with PT Barindo Multi Sejahtera to carry out all production activities at the mine, aiming to sustain and potentially enhance its mining operations following a period of market challenges and operational suspensions.

The most recent analyst rating on (HK:0943) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on Zhongzheng International Company Limited stock, see the HK:0943 Stock Forecast page.

Zhongzheng International Passes All Resolutions at AGM

Zhongzheng International Company Limited, incorporated in Bermuda, held its Annual General Meeting on October 31, 2025, where all proposed resolutions were passed unanimously. The resolutions included the adoption of financial statements, re-election of directors, authorization of directors’ remuneration, re-appointment of the auditor, and granting the board a mandate to repurchase shares. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued governance and operational stability.