ZHONGTAI FUTURES Company Limited Class H (1461) AI Stock Analysis

• Market Cap: HK$661.25M
• Dividend Yield: 2.32%
• Average Volume (3M): 297.90K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.33
• Revenue Growth: -18.71%
• EPS Growth: -45.10%
• Country: HK
• Employees: 758
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.04
• Shares Outstanding: 277,090,000
• 10 Day Avg. Volume: 272,800
• 30 Day Avg. Volume: 297,900
• PEG Ratio: -1.28
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 0.30
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$0.67 ▲(1.52% Upside)

ZHONGTAI FUTURES faces significant challenges with declining revenue and profitability margins, reflected in a financial performance score of 66. Technical analysis indicates bearish momentum, contributing to a lower score of 45. Valuation metrics are moderate, with a score of 60, but do not strongly support investment. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt enhances financial stability and provides flexibility for future investments or downturns.

Cash Flow Generation

Robust operating cash flow supports ongoing operations and potential reinvestment into growth initiatives without needing external funding.

Stable Gross Profit Margin

Maintaining a stable gross profit margin suggests effective cost management and pricing strategies, supporting long-term profitability.

Negative Factors

Declining Revenue

A declining revenue trend can indicate weakening market position or demand, challenging long-term growth and profitability.

Decreased Net Profit Margin

A reduced net profit margin suggests operational inefficiencies or increased competition, impacting overall profitability and shareholder returns.

Reduced Free Cash Flow

Decreased Free Cash Flow limits the company's ability to invest in growth opportunities or return capital to shareholders without external funding.

ZHONGTAI FUTURES Company Limited Class H Business Overview & Revenue Model

Company Description

ZHONGTAI FUTURES Company Limited provides brokerage services for commodity and financial futures in the People's Republic of China. The company operates through Futures Brokerage, Commodity Trading and Risk Management, Futures Asset Management, and Treasury and Others segments. The Futures Brokerage segment offers futures brokerage and financial futures brokering services. The Commodity Trading and Risk Management segment provides physical commodity trading, futures trading, and over-the-counter derivatives trading services. The Futures Asset Management segment offers portfolio management and maintenance, investment advisory, and transaction execution services. The Treasury and Others segment is involved in the treasury operations. The company also engages in the sale and wholesale of agricultural and metal products, metallurgical materials, mineral products, precious metals, chemical products, and edible oils, as well as electronic products, office automation equipment, computers, cultural office machinery, control equipment, and machine room equipment; import and export activities; and provision of technical consultation, investment consultancy, investment planning, enterprise management consulting, technical services of computer network products and software, and capital risk management services. In addition, it provides software development, computer information system integration, and information technology services, as well as electronic engineering design and construction services. The company was formerly known as LUZHENG FUTURES Company Limited and changed its name to ZHONGTAI FUTURES Company Limited in May 2022. The company was founded in 1995 and is headquartered in Jinan, the People's Republic of China. ZHONGTAI FUTURES Company Limited is a subsidiary of Zhongtai Securities Co., Ltd.

How the Company Makes Money

ZHONGTAI FUTURES generates revenue through multiple key streams. Primarily, the company earns commissions and fees from facilitating futures trading for clients, which includes both retail and institutional investors. Additionally, it derives income from proprietary trading activities, where the firm trades its own capital to capitalize on market movements. The company may also generate revenue through advisory services, helping clients with risk management and market strategies. Strategic partnerships with other financial institutions enhance ZHONGTAI's market reach and can contribute to revenue growth through collaborative trading initiatives and joint investment ventures.

ZHONGTAI FUTURES Company Limited Class H Financial Statement Overview

Summary

ZHONGTAI FUTURES demonstrates a mixed financial performance. The balance sheet is strong with zero debt, but the income statement shows declining revenue and profitability margins. Cash flow generation is healthy, but reduced Free Cash Flow could impact future growth investments.

Income Statement

ZHONGTAI FUTURES shows a declining trend in revenue with recent figures falling from past highs. The Gross Profit Margin has remained stable, but the Net Profit Margin has decreased significantly, indicating challenges in controlling costs or increasing revenue. The EBIT Margin has notably decreased, signaling reduced operational profitability.

Balance Sheet

The company's balance sheet is strong with zero total debt in the latest year, resulting in a favorable debt-to-equity ratio. Stockholders' equity has been stable, supporting a solid equity ratio. However, the decline in total assets could be a concern if it continues.

Cash Flow

Operating cash flow remains robust, but there is a noticeable decrease in Free Cash Flow compared to prior years, affecting the company's ability to finance growth without external funding. The Operating Cash Flow to Net Income ratio remains strong, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.85B	2.15B	2.45B	2.25B	488.82M
Gross Profit	1.43B	1.85B	2.15B	2.45B	2.25B	488.82M
EBITDA	30.28M	50.58M	207.18M	246.75M	272.24M	117.10M
Net Income	36.52M	4.53M	133.72M	166.10M	188.57M	56.83M
Balance Sheet
Total Assets	33.54B	33.76B	30.13B	28.86B	20.68B	12.93B
Cash, Cash Equivalents and Short-Term Investments	0.00	1.24B	18.82B	16.47B	10.37B	684.95M
Total Debt	0.00	147.16M	50.11M	60.28M	19.07M	20.08M
Total Liabilities	30.95B	31.21B	27.57B	26.42B	18.40B	10.69B
Stockholders Equity	2.58B	2.55B	2.56B	2.44B	2.28B	2.24B
Cash Flow
Free Cash Flow	-1.74B	1.86B	2.83B	5.88B	4.96B	-231.03M
Operating Cash Flow	-1.73B	1.88B	2.85B	5.89B	4.98B	-223.45M
Investing Cash Flow	-4.67M	-19.56M	-21.31M	-4.01M	-296.38M	9.13M
Financing Cash Flow	8.42M	49.87M	-240.12M	170.99M	-33.29M	-9.43M

ZHONGTAI FUTURES Company Limited Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.66
• 50DMA: Negative
• 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:1461, the sentiment is Neutral. The current price of 0.66 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.71, and above the 200-day MA of 0.66, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.64 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1461.

ZHONGTAI FUTURES Company Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6178	61 Neutral	HK$82.19B	13.22	5.22%	2.60%	30.38%	2.63%
3678	58 Neutral	HK$863.96M	207.19	0.82%	0.32%	-53.05%	-32.93%
1461	56 Neutral	HK$661.25M	16.84	1.41%	2.32%	-18.71%	-45.10%
1788	49 Neutral	HK$23.97B	34.19	4.78%	2.72%	32.03%	154.14%
0952	45 Neutral	HK$897.30M	-10.83	-4.03%	―	173.24%	-515.63%
0030	44 Neutral	HK$1.94B	91.07	―	―	―	―

ZHONGTAI FUTURES Company Limited Class H Corporate Events

ZHONGTAI FUTURES Completes Registered Address Change

ZHONGTAI FUTURES Company Limited has announced the completion of its registered address change to a new location in the High-Tech Zone of Jinan, Shandong Province. This move, approved by market supervision and administration authorities, may enhance the company’s operational efficiency and market presence in the region.

ZHONGTAI FUTURES Announces Key Governance Changes at EGM

ZHONGTAI FUTURES Company Limited held its second extraordinary general meeting of 2025 on November 26, where key resolutions were passed, including changes to the company’s registered address and amendments to the Articles of Association. The meeting also resulted in the abolition of the Supervisory Committee, reflecting a significant shift in the company’s governance structure. These changes are likely to impact the company’s operational efficiency and governance, potentially affecting stakeholder interests.

ZHONGTAI FUTURES Announces Key Proposals for Upcoming Extraordinary General Meeting

ZHONGTAI FUTURES Company Limited has announced an extraordinary general meeting scheduled for November 26, 2025, to discuss several key proposals. These include entering into various agreements with Shandong Energy Group Co., Ltd., such as asset management, risk management, and bulk commodities sale and purchase frameworks, as well as tenancy agreements with Qilu Zhongtai Property. Additionally, the meeting will address significant changes to the company’s governance structure, including amendments to the Articles of Association and the abolition of the Supervisory Committee. These decisions are poised to impact the company’s operational strategies and governance, potentially affecting stakeholders and market positioning.

ZHONGTAI FUTURES Announces Further Postponement of 2025 EGM

ZHONGTAI FUTURES Company Limited has announced a further postponement of its 2025 second extraordinary general meeting (EGM) to 26 November 2025, due to the need for coordination of work arrangements. The register of members closure period has also been extended to this new date, allowing shareholders listed by then to attend and vote at the meeting. This adjustment reflects the company’s efforts to ensure proper coordination and participation of its stakeholders in crucial decision-making processes.

ZHONGTAI FUTURES Proposes Governance Changes with Article Amendments

ZHONGTAI FUTURES Company Limited has announced amendments to its Articles of Association, primarily removing the supervisory committee and assigning its functions to the audit committee. This move aims to streamline corporate governance and align with updated regulatory frameworks, requiring shareholder approval at an extraordinary general meeting.

ZHONGTAI FUTURES Postpones 2025 Extraordinary General Meeting

ZHONGTAI FUTURES Company Limited has announced the postponement of its second extraordinary general meeting (EGM) of 2025, originally scheduled for October 20, to November 14, 2025, due to coordination of work arrangements. Consequently, the period for the closure of the register of members has also been extended to ensure shareholders entitled to attend and vote at the EGM are accurately recorded. This rescheduling may impact shareholder engagement and the company’s operational timelines, as stakeholders will need to adjust to the new meeting date and location.

ZHONGTAI FUTURES Secures New Office Space Through Tenancy Agreements

ZHONGTAI FUTURES Company Limited and its subsidiary, Zhongtai Huirong Capital, have entered into tenancy agreements with Qilu Zhongtai Property for office space in Jinan, Shandong Province. The agreements, which run from October 2025 to September 2026, involve a total rental payment of RMB18,786,700. These transactions are classified as discloseable and connected transactions under Hong Kong’s Listing Rules, requiring reporting and announcement but not shareholder approval. This strategic move may enhance the company’s operational capabilities by securing necessary office space, potentially impacting its market positioning positively.

ZHONGTAI FUTURES Proposes Change of Registered Address

ZHONGTAI FUTURES Company Limited has announced a proposal to change its registered address to a new location in the High-Tech Zone of Jinan, Shandong Province, to better align with its business development needs. This change is pending approval at an extraordinary general meeting and subsequent registration with the relevant authorities, indicating a strategic move to enhance operational efficiency and possibly improve its market positioning.