Zhengwei Group Holdings Company Limited (2147) AI Stock Analysis

• Market Cap: HK$59.36M
• Dividend Yield: N/A
• Average Volume (3M): 11.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 56.39%
• EPS Growth: -81.41%
• Country: HK
• Employees: 123
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.05
• Shares Outstanding: 1,120,000,000
• 10 Day Avg. Volume: 6,402,800
• 30 Day Avg. Volume: 11,025,066
• PEG Ratio: <0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.57
• 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

• Rating: 56 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 56 reflects a mixed outlook. The technical analysis is the most positive aspect, showing strong market momentum and bullish trends. However, financial performance and valuation present significant challenges, with profitability and cash flow issues, and a negative P/E ratio. These factors weigh heavily on the stock's attractiveness.

Zhengwei Group Holdings Company Limited Business Overview & Revenue Model

Company Description

Zhengwei Group Holdings Company Limited (2147) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and sale of plastic products. The company operates in various sectors, including manufacturing, trading, and distribution of plastic materials, as well as providing related services. Its core products encompass a wide range of plastic components used in various industries, contributing to its position in the competitive market.

How the Company Makes Money

Zhengwei Group generates revenue through the production and sale of its plastic products to various industries, including construction, automotive, and consumer goods. The company's revenue model is primarily based on direct sales to clients, which may include manufacturers and distributors. Key revenue streams include bulk orders and contracts with businesses requiring custom plastic solutions. Additionally, partnerships with other companies in related sectors enhance its market reach and contribute to its profitability. Fluctuations in raw material prices and demand in the manufacturing sector can significantly impact its earnings.

Zhengwei Group Holdings Company Limited Financial Statement Overview

Summary

Zhengwei Group Holdings Company Limited shows a mixed financial performance. The balance sheet is relatively strong with a high equity ratio and low debt-to-equity ratio, indicating financial stability. However, significant challenges in profitability and cash management are evident, with negative net income, EBIT, and cash flows.

Income Statement

The company experienced a significant decline in profitability with a negative net income and EBIT in the latest year. Gross profit margin decreased sharply, indicating pressure on cost management. Revenue growth was strong in the previous years but showed a decline in the most recent period, reflecting potential market challenges.

Balance Sheet

The balance sheet remains strong with a high equity ratio and low debt-to-equity ratio, indicating financial stability. However, the decrease in stockholders' equity and total assets over the past year suggests some weakening in financial position.

Cash Flow

The company faced negative free cash flow and operating cash flow in the latest year, indicating cash management issues. The free cash flow to net income ratio is unfavorable, highlighting potential liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	598.06M	445.21M	356.85M	342.00M	282.89M
Gross Profit	9.45M	147.26M	119.26M	108.48M	90.59M
EBITDA	-15.74M	86.17M	60.38M	68.36M	57.99M
Net Income	-53.57M	67.52M	46.70M	48.29M	40.94M
Balance Sheet
Total Assets	487.55M	522.78M	376.79M	365.36M	356.40M
Cash, Cash Equivalents and Short-Term Investments	150.54M	199.41M	156.83M	127.32M	142.34M
Total Debt	84.00K	18.28M	46.16M	90.74M	120.61M
Total Liabilities	71.37M	85.66M	118.34M	153.73M	193.27M
Stockholders Equity	416.18M	437.11M	258.44M	211.64M	163.13M
Cash Flow
Free Cash Flow	-59.83M	-44.01M	79.56M	17.58M	83.18M
Operating Cash Flow	-59.79M	36.59M	82.41M	27.07M	86.56M
Investing Cash Flow	1.17M	-79.91M	-2.47M	-7.19M	-3.10M
Financing Cash Flow	9.98M	85.67M	-50.43M	-34.90M	17.75M

Zhengwei Group Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 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:2147, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 74.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2147.

Zhengwei Group Holdings 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%
1695	58 Neutral	HK$104.76M	4.16	11.24%	―	37.73%	150.54%
2147	56 Neutral	HK$59.36M	-0.45	-28.48%	―	56.39%	-81.41%
8179	45 Neutral	HK$22.89M	―	-7.07%	―	1.85%	-18.52%
0841	45 Neutral	HK$67.24M	-0.51	-23.44%	―	-18.03%	-17.44%
8241	44 Neutral	HK$47.01M	―	―	―	-10.78%	-15.02%
1676	43 Neutral	HK$122.78M	-0.88	-70.35%	―	22.31%	2.36%

Zhengwei Group Holdings Company Limited Corporate Events

Zhengwei Group Reports Revenue Growth but Faces Financial Losses

Zhengwei Group Holdings Company Limited announced its financial results for the eighteen months ending June 30, 2025. The company reported a significant increase in revenue to RMB 938,123,000 compared to RMB 445,214,000 for the year ending December 31, 2023. However, the company also reported a gross loss of RMB 12,215,000 and a net loss of RMB 108,752,000 for the period, indicating financial challenges despite the revenue growth.

Zhengwei Group Issues Profit Warning Amid Rising Costs

Zhengwei Group Holdings Company Limited has issued a profit warning, indicating a significant downturn in its financial performance. The company expects to report a consolidated net loss of at least RMB108.0 million for the eighteen months ending June 30, 2025, compared to a net profit of RMB67.5 million for the year ending December 31, 2023. This decline is attributed primarily to a substantial increase in direct material costs, which has led to higher cost of sales and a consolidated gross loss. The company’s annual results are still being finalized and are expected to be published by September 30, 2025.

Zhengwei Group to Review Annual Results and Dividend Proposal

Zhengwei Group Holdings Company Limited has announced that its Board of Directors will meet on September 30, 2025, to review and approve the company’s annual results for the eighteen months ending June 30, 2025. The meeting will also consider the recommendation for the payment of a final dividend, which could have implications for the company’s financial strategy and shareholder returns.