Zhengwei Group Holdings Company Limited (2147) AI Stock Analysis

• Market Cap: HK$41.44M
• Dividend Yield: N/A
• Average Volume (3M): 6.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 32.15%
• EPS Growth: -171.32%
• Country: HK
• Employees: 123
• Sector: Industrials
• Sector Strength: 91
• Industry: Packaged Foods
• EPS (TTM): -0.07
• Shares Outstanding: 1,120,000,000
• 10 Day Avg. Volume: 4,414,000
• 30 Day Avg. Volume: 6,465,200
• PEG Ratio: -2.56
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.97
• 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: 51 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is primarily impacted by the financial performance challenges, including significant revenue declines and negative earnings. Technical analysis offers a neutral outlook, while valuation remains unattractive due to the negative P/E ratio. The absence of earnings call insights and notable corporate events means these areas did not affect the score.

Zhengwei Group Holdings Company Limited Business Overview & Revenue Model

Company Description

Zhengwei Group Holdings Company Limited (2147) is a diversified holding company primarily engaged in the manufacturing and sale of industrial products. The company operates in various sectors including metallurgy, advanced materials, and industrial components, providing a wide range of products and services to its clients across different industries. Zhengwei Group is known for its innovation in production processes and its commitment to quality and sustainability.

How the Company Makes Money

Zhengwei Group Holdings Company Limited generates revenue through the production and sale of industrial products, which include metallurgical products, advanced materials, and industrial components. The company leverages its extensive manufacturing capabilities and technological expertise to produce high-quality products that meet the needs of its diverse customer base. Revenue streams are primarily derived from direct sales to industrial clients and long-term supply agreements with key partners. The company's focus on technological innovation and sustainability also enhances its competitive advantage, allowing it to maintain strong market positions and drive profitability.

Zhengwei Group Holdings Company Limited Financial Statement Overview

Summary

Zhengwei Group Holdings faced a challenging financial year in 2024, marked by declining revenues and significant losses. While the balance sheet remains strong with low debt levels, the negative cash flow and income trends suggest operational and financial challenges.

Income Statement

The company experienced a significant decline in revenue and profitability in 2024. The gross profit margin fell sharply, and both EBIT and EBITDA turned negative, indicating operational challenges. Net profit margin also turned negative, reflecting substantial net losses. Revenue growth was strong in previous years, but the recent decline is concerning.

Balance Sheet

The balance sheet is relatively strong, with high stockholders' equity and low total debt, resulting in a low debt-to-equity ratio. However, the decline in equity from the previous year suggests potential issues with sustained financial health. The equity ratio remains high, indicating a solid financial structure.

Cash Flow

Cash flow performance has deteriorated, with operating cash flow turning negative in 2024. Free cash flow also declined significantly. The operating cash flow to net income ratio reflects cash flow strains. Historical growth in free cash flow was strong, but recent declines pose a risk to liquidity.

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: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 0.04 is below 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 neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 166.67 is Negative, 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
1695	69 Neutral	HK$92.88M	5.73	7.65%	―	33.75%	―
Sector *	58 Neutral	HK$14.16B	4.43	-3.01%	7.13%	3.67%	-54.16%
2147	51 Neutral	HK$41.44M	―	-12.63%	―	32.15%	-171.32%
0841	48 Neutral	HK$49.70M	―	-23.44%	―	-71.04%	-21.75%
8179	47 Neutral	HK$28.62M	1.52	0.32%	―	39.05%	―
8241	44 Neutral	HK$38.33M	―	-206.10%	―	-12.58%	-60.08%
1676	43 Neutral	HK$80.09M	―	-44.56%	―	-11.36%	24.75%

Zhengwei Group Holdings Company Limited Corporate Events

Zhengwei Group Holdings Announces Nomination Committee Changes

Zhengwei Group Holdings Company Limited has announced a change in the composition of its Nomination Committee. Ms. Lin Qiuyun, an executive director, will join the committee effective 1 July 2025, alongside Mr. Hu Ruiwo, Mr. Ye Sangzhi, and Mr. Yu Chi Kit. This change reflects the company’s ongoing efforts to strengthen its governance structure and enhance the diversity of its board, potentially impacting its strategic decision-making and stakeholder engagement.

Zhengwei Group Announces Board Restructuring

Zhengwei Group Holdings Company Limited has announced changes to its board of directors, effective July 1, 2025. The board will include Mr. Yang Shengyao as Chairman and CEO, Ms. Lin Qiuyun as an executive director, and three independent non-executive directors: Mr. Hu Ruiwo, Mr. Ye Sangzhi, and Mr. Yu Chi Kit. These changes reflect a strategic move to strengthen the company’s governance structure, potentially impacting its operational efficiency and stakeholder confidence.

Zhengwei Group Enhances Nomination Committee for Better Governance

Zhengwei Group Holdings Company Limited has announced new terms of reference for its Nomination Committee, emphasizing the importance of diversity and independent oversight. The committee will consist of at least three members, with a majority being independent non-executive directors, and will focus on maintaining a balanced and diverse board composition. This move aims to ensure effective governance and strategic alignment with the company’s corporate strategy, potentially enhancing stakeholder confidence and operational stability.

Zhengwei Group Settles Legal Dispute with Mediation Agreement

Zhengwei Group Holdings Company Limited announced a settlement of legal proceedings involving its subsidiary, Fujian Jiazhiwei Food Co., Ltd., which failed to fulfill a payment obligation for food supplies. A civil mediation agreement was reached, stipulating a repayment plan, but due to non-compliance, the plaintiff is entitled to auction the subsidiary’s equity interest. The company asserts that the deconsolidation of this subsidiary will not materially impact its financial position or operations.