Zhengwei Group Holdings Company Limited (2147) AI Stock Analysis

• Market Cap: HK$41.44M
• Dividend Yield: N/A
• Average Volume (3M): 4.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 32.15%
• EPS Growth: -171.32%
• Country: HK
• Employees: 123
• Sector: Industrials
• Sector Strength: 84
• Industry: Packaged Foods
• EPS (TTM): -0.07
• Shares Outstanding: 1,120,000,000
• 10 Day Avg. Volume: 7,193,200
• 30 Day Avg. Volume: 4,965,733
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The most significant factor influencing the score is the company's challenging financial performance, characterized by declining revenues and substantial losses. Although the balance sheet remains strong, negative cash flow and income trends are concerning. Technical analysis shows stability but limited momentum. The negative P/E ratio and lack of dividend yield further detract from the stock's appeal.

Zhengwei Group Holdings Company Limited Business Overview & Revenue Model

Company Description

Zhengwei Group Holdings Company Limited, an investment holding company, engages in sourcing, processing, and trading snacks, dried delicacies, dried aquatic products, grains, seasonings, and others in the People's Republic of China. The company offers its products under the Shengyao and Gangweifang brands to retailers, such as supermarkets and grocery stores, corporate customers, and other individual customers, as well as through e-commerce channel on Tmall.com. It also purchases and sells dried candied fruits, nuts, and other products to retailers and corporate customers. The company was founded in 2002 and is headquartered in Nanchang, the People's Republic of China.

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
	EBIT
-30.99M	59.49M	56.24M	62.45M	55.02M
	EBITDA
-15.74M	86.17M	60.38M	68.36M	57.99M
	Net Income Common Stockholders
-53.57M	67.52M	46.70M	48.29M	40.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
150.54M	199.41M	156.83M	127.32M	142.34M
	Total Assets
487.55M	522.78M	376.79M	365.36M	356.40M
	Total Debt
84.00K	18.28M	46.16M	90.74M	120.61M
	Net Debt
-150.46M	-180.90M	-110.67M	-36.58M	-21.73M
	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: Negative
• MACD: Negative
• 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 above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 88.49 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
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
1695	57 Neutral	HK$97.20M	5.80	7.65%	―	33.75%	―
8179	50 Neutral	HK$32.43M	1.72	0.32%	―	39.05%	―
2147	49 Neutral	HK$41.44M	―	-12.63%	―	32.15%	-171.32%
0841	48 Neutral	HK$59.64M	―	-20.14%	―	-71.04%	-21.75%
8241	44 Neutral	HK$39.78M	―	-206.10%	―	-12.58%	-60.08%
1676	43 Neutral	HK$75.38M	―	-44.56%	―	-11.36%	24.75%

Zhengwei Group Holdings Company Limited Corporate Events

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.