Zall Smart Commerce Group Ltd. (2098) AI Stock Analysis

• Market Cap: HK$1.40B
• Dividend Yield: N/A
• Average Volume (3M): 6.32M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.32
• Revenue Growth: 33.14%
• EPS Growth: 125.33%
• Country: HK
• Employees: 1,575
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): <0.01
• Shares Outstanding: 12,399,506,000
• 10 Day Avg. Volume: 3,011,700
• 30 Day Avg. Volume: 6,319,066
• PEG Ratio: 0.18
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.02
• P/FCF Ratio: -10.29
• 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: 54 Neutral
• Price Target: HK$0.11 ▼(-18.46% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

The overall stock score of 54 reflects a mix of strengths and challenges. Financial performance shows recovery in profitability, but high leverage and cash flow issues are significant risks. Technical indicators suggest bearish momentum, while valuation indicates potential undervaluation.

Positive Factors

Revenue Growth

Consistent revenue growth highlights the company's expanding market presence and product demand, supporting long-term business sustainability.

Operational Efficiency

Improved operational efficiency indicates better cost management and productivity, which can enhance profitability and competitive positioning.

Profitability Recovery

The recovery in profitability demonstrates the company's ability to overcome past challenges and improve financial health, supporting future growth.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Zero free cash flow indicates potential issues in cash generation, which could affect the company's ability to fund operations and growth initiatives.

Decreasing Gross Profit Margin

A declining gross profit margin suggests increasing costs, which can pressure profitability and require strategic cost management to maintain competitiveness.

Zall Smart Commerce Group Ltd. Business Overview & Revenue Model

Company Description

Zall Smart Commerce Group Ltd., an investment holding company, engages in the supply chain management and trading activities in the People's Republic of China, Singapore, and internationally. It operates through two segments, Property Development and Related Services; and Supply Chain Management and Trading. The company develops, sells, and operates properties. Its properties comprise retail units, residences, warehousing and logistic units, e-commerce malls, and wholesale shopping malls. The company also trades in agricultural products, chemical materials, plastic raw materials, consumer goods, black and non-ferrous metals, etc., as well as provides financial services, and trading related supply chain finance services. In addition, it engages in provision of e-commerce services, as well as warehousing and logistics services for the online and offline customers. The company was formerly known as Zall Group Ltd. and changed its name to Zall Smart Commerce Group Ltd. in June 2018. The company was founded in 1996 and is headquartered in Wuhan, the People's Republic of China. Zall Smart Commerce Group Ltd. is a subsidiary of Zall Development Investment Company Limited.

How the Company Makes Money

Zall Smart Commerce generates revenue through multiple streams, including e-commerce sales, logistics services, and supply chain management solutions. The company's primary revenue source comes from its online retail operations, where it sells a diverse array of consumer goods. Additionally, Zall earns income from providing logistics and warehousing services to third-party clients, facilitating their supply chain needs. Strategic partnerships with manufacturers and suppliers also enhance its revenue capabilities, enabling bulk purchasing and lower operational costs. The efficiency of its technology-driven platforms further contributes to cost savings and improved profit margins.

Zall Smart Commerce Group Ltd. Financial Statement Overview

Summary

Zall Smart Commerce Group Ltd. shows revenue and profit margin improvements, indicating a recovery in profitability. However, high leverage and recent cash flow issues pose significant risks, necessitating careful cash management and operational efficiency monitoring.

Income Statement

Zall Smart Commerce Group Ltd. has shown a consistent revenue growth from 2020 to 2024, with a notable increase in 2024. The gross profit margin, however, has decreased significantly over the years, indicating rising cost concerns. Net profit margin improved considerably in 2024, turning positive after several years of negative figures, which is a strong recovery sign. EBIT margin has also improved from negative to positive, suggesting enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio remains relatively high, indicating significant leverage which could pose financial risks. Despite this, the equity ratio has been fairly stable. Return on equity has improved to positive in 2024, reflecting better profitability and shareholder equity utilization. The balance sheet shows a consistent increase in total assets, which is positive for growth potential.

Cash Flow

Cash flow analysis reveals a challenging situation with zero free cash flow reported in 2024, after positive figures in previous years. The operating cash flow has also dropped to zero from positive values, indicating potential issues in cash generation from operations. The company's ability to maintain positive cash flow will be critical moving forward.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.00B	162.36B	125.29B	110.91B	104.55B	72.77B
Gross Profit	612.48M	698.97M	846.64M	587.42M	885.75M	1.23B
EBITDA	61.65M	669.06M	717.13M	-2.50B	-797.98M	-458.94M
Net Income	176.19M	128.95M	50.91M	-3.04B	-1.33B	-1.26B
Balance Sheet
Total Assets	69.78B	69.48B	63.78B	60.36B	59.28B	62.13B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.58B	1.80B	1.47B	1.23B	1.36B
Total Debt	13.71B	16.38B	15.30B	18.27B	17.73B	20.71B
Total Liabilities	55.40B	55.14B	49.57B	46.21B	42.50B	43.79B
Stockholders Equity	14.02B	13.95B	13.80B	13.75B	16.45B	17.87B
Cash Flow
Free Cash Flow	1.83B	-350.86M	1.93B	805.96M	647.26M	-384.32M
Operating Cash Flow	1.89B	-269.47M	2.02B	858.74M	721.57M	-185.36M
Investing Cash Flow	-1.34B	142.71M	866.66M	709.20M	2.26B	-502.07M
Financing Cash Flow	-1.03B	-128.06M	-2.45B	-1.33B	-3.07B	634.87M

Zall Smart Commerce Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2098, the sentiment is Positive. The current price of 0.13 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.17 is Neutral, neither overbought nor oversold. The STOCH value of 72.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2098.

Zall Smart Commerce Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0400	60 Neutral	HK$4.56B	3.95	5.16%	―	33.59%	-15.98%
2098	54 Neutral	HK$1.40B	5.68	1.26%	―	33.14%	125.33%
1782	52 Neutral	HK$3.74B	-18.85	-42.15%	―	-16.86%	-7.51%
2121	49 Neutral	HK$2.56B	-13.35	-27.20%	―	-3.78%	20.83%
2436	48 Neutral	HK$4.38B	35.82	-1.60%	―	32.83%	90.24%
3680	39 Underperform	HK$2.07B	4.07	4.78%	―	-25.92%	―

Zall Smart Commerce Group Ltd. Corporate Events

Zall Smart Commerce Expands Nomination Committee With New Board Appointments

Zall Smart Commerce Group Ltd. has announced changes to its board committee structure, underscoring continued attention to corporate governance and board oversight as the company manages its smart commerce business. Effective 1 January 2026, executive director Ms. Fan Xiaolan and independent non-executive director Mr. Zhu Zhengfu have been appointed as members of the nomination committee, expanding it to five members and maintaining a mix of executive and independent directors under the chairmanship of Mr. Wu Ying, a move that may enhance board diversity and strengthen the company’s nomination and succession processes for key governance roles.

The most recent analyst rating on (HK:2098) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Zall Smart Commerce Group Ltd. stock, see the HK:2098 Stock Forecast page.

Zall Smart Commerce Announces 2026 Board and Committee Structure

Zall Smart Commerce Group Ltd. has announced the composition of its board of directors and the allocation of roles across its key governance committees, effective 1 January 2026. The board will comprise five executive directors, including chairman and co-chief executive officer Yan Zhi and co-chief executive officer Qi Zhiping, as well as three independent non-executive directors who will chair and populate the audit, nomination, remuneration and risk management committees, reinforcing the company’s corporate governance structure and delineating oversight responsibilities for risk, remuneration and board appointments.

The most recent analyst rating on (HK:2098) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on Zall Smart Commerce Group Ltd. stock, see the HK:2098 Stock Forecast page.

Zall Smart Commerce Announces Supplemental Disclosure on Loan Guarantee

Zall Smart Commerce Group Ltd., a company incorporated in the Cayman Islands, announced a supplemental disclosure regarding a guarantee related to a loan agreement. The announcement details a loan agreement entered by Hubei Digital Trade with ICBC Wuchang for RMB50 million, with a guarantee provided by Hubei Provincial Cereals Oils and Foodstuffs Import and Export Group Co., Ltd. The guarantee covers up to RMB153 million, and the credit limit granted to Hubei Digital Trade is RMB300 million, with RMB250 million still available.

Zall Smart Commerce Supports Hubei Digital Trade with RMB147 Million Guarantee

Zall Smart Commerce Group Ltd., through its subsidiary Sinoagri, has entered into a Maximum Guarantee Agreement with ICBC Wuchang, providing a guarantee for up to RMB147.0 million to support Hubei Digital Trade’s repayment obligations. This agreement, classified as a discloseable transaction under Hong Kong’s Listing Rules, highlights Zall Smart’s commitment to supporting its associate companies, potentially impacting its financial assistance strategies and stakeholder relations.