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Zhihu, Inc. Class A (HK:2390)
:2390
Hong Kong Market
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Zhihu, Inc. Class A (2390) AI Stock Analysis

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HK:2390

Zhihu, Inc. Class A

(2390)

Rating:58Neutral
Price Target:
HK$12.50
▲(3.48%Upside)
Zhihu's strong revenue growth and improved user engagement are promising, but ongoing profitability and cash flow challenges weigh heavily on its financial performance. The positive technical indicators suggest short-term momentum, yet valuation concerns with a negative P/E ratio reflect underlying financial difficulties. The mixed results from the earnings call highlight both progress and ongoing challenges.

Zhihu, Inc. Class A (2390) vs. iShares MSCI Hong Kong ETF (EWH)

Zhihu, Inc. Class A Business Overview & Revenue Model

Company DescriptionZhihu, Inc. Class A (2390) operates an online question-and-answer platform in China known as Zhihu. The platform enables users to seek knowledge, share experiences, and engage in discussions across a wide range of topics. Zhihu has evolved into a comprehensive online community offering a mix of user-generated content, expert insights, and commercial offerings, making it a leading knowledge-sharing platform in China.
How the Company Makes MoneyZhihu generates revenue primarily through advertising services, content monetization, and membership services. Advertising services include display ads, native ads, and performance-based ads that leverage Zhihu's large user base. Content monetization involves revenue-sharing arrangements with content creators, where Zhihu takes a percentage of the earnings from paid content such as live courses and premium articles. Membership services provide users with subscription-based access to exclusive content and features. Additionally, Zhihu benefits from partnerships with educational institutions, enterprises, and other entities seeking to utilize its platform for knowledge dissemination and community engagement.

Zhihu, Inc. Class A Earnings Call Summary

Earnings Call Date:May 27, 2025
(Q1-2025)
|
% Change Since: 16.83%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. Highlights included achieving non-GAAP profitability for the quarter, improvements in user engagement, and strategic advancements in AI-related content. However, these were counterbalanced by declines in total revenue, particularly in marketing services and vocational training sectors, reflecting ongoing business model adjustments.
Q1-2025 Updates
Positive Updates
First Quarter Non-GAAP Net Income Achievement
Zhihu reported a non-GAAP net income of RMB6.9 million, compared to an adjusted net loss of RMB135.7 million in the same period last year. This marks the first time since IPO that Zhihu achieved a non-GAAP net profit in the first quarter.
Improvement in User Engagement Metrics
Average daily user time reached nearly 38 minutes, up 17.6% year-over-year. Core user retention rate improved both sequentially and year-over-year.
Growth in AI-Related Professional Content
AI-related professional content grew by 46% year-over-year, and Zhihu was cited 62.4% of the time by AI assistants in professional domains.
Positive Shareholder Return Program
Zhihu announced a new share repurchase program, authorizing the repurchase of up to 10% of issued shares, demonstrating confidence in long-term success.
Negative Updates
Decline in Total Revenue
Total revenue for the quarter was RMB729.7 million, down from RMB960.9 million in the same period of 2024, a decrease due to adjustments in business focus and revenue quality.
Significant Drop in Marketing Services Revenue
Revenue from marketing services was RMB197 million, a 40.4% year-over-year decline, attributed to the adoption of a trustworthy content model and client mix optimization.
Decrease in Vocational Training Revenue
Vocational training business revenue was RMB94.5 million, down 35% year-over-year, due to strategic transformation and shift in business model.
Company Guidance
During the Zhihu Inc. First Quarter 2025 Financial Results Conference Call, the company provided several key metrics and guidance for the future. Zhihu achieved a non-GAAP net income of RMB6.9 million, marking a significant improvement from a net loss of RMB135.7 million in the same period last year. Average daily user time spent increased by 17.6% year-over-year, reaching nearly 38 minutes. The company's total revenue for the quarter was RMB729.7 million, reflecting a decrease from the previous year, with marketing services revenue at RMB197 million and paid membership revenue at RMB417.9 million. The gross margin expanded to 61.8%, up by 5.2 percentage points year-over-year, while total operating expenses declined by 34.4%. Zhihu also announced a new 2025 share repurchase program, allowing for the buyback of up to 10% of its total issued shares. The company emphasized its commitment to integrating AI with its platform to enhance content quality and user engagement, expecting AI to be a catalyst for rapid growth.

Zhihu, Inc. Class A Financial Statement Overview

Summary
Zhihu, Inc. shows strong revenue growth and a solid equity base, but struggles with achieving profitability and positive cash flows. The company exhibits financial stability with low leverage but faces challenges in converting revenue growth into net income and cash flow, which are critical for long-term sustainability and growth.
Income Statement
60
Neutral
The company shows a consistent pattern of revenue growth, with a notable 210% increase in total revenue from 2019 to 2024. However, profitability remains a challenge, as indicated by negative net income and EBIT margins over the years. The gross profit margin has improved, yet the net profit margin is still negative, reflecting ongoing operational challenges.
Balance Sheet
55
Neutral
The balance sheet highlights a strong equity position with an equity ratio of 72% in 2024, indicating financial stability. However, the company has a history of negative net income, affecting the return on equity. The debt-to-equity ratio is low, suggesting minimal financial leverage, which can be both a strength and an area for potential growth through strategic borrowing.
Cash Flow
50
Neutral
Cash flow analysis reveals persistent negative operating and free cash flows, posing liquidity challenges. Despite significant investing cash inflows in 2022 and 2024, the company has yet to achieve positive free cash flow growth, indicating difficulty in generating cash from its core operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.60B4.20B3.60B2.96B1.35B
Gross Profit2.18B2.30B1.81B1.55B757.80M
EBITDA-456.19M-1.05B-1.58B-1.37B-583.27M
Net Income-171.80M-843.64M-1.58B-1.30B-517.55M
Balance Sheet
Total Assets5.73B6.80B7.66B8.81B3.76B
Cash, Cash Equivalents and Short-Term Investments4.86B5.46B6.26B7.21B3.10B
Total Debt19.13M45.73M96.56M40.52M2.89M
Total Liabilities1.54B2.09B1.96B2.07B1.01B
Stockholders Equity4.14B4.60B5.65B6.74B2.75B
Cash Flow
Free Cash Flow-282.92M-424.40M-1.12B-447.67M-246.37M
Operating Cash Flow-280.19M-415.53M-1.11B-440.23M-244.42M
Investing Cash Flow2.56B-1.68B3.49B-3.14B430.11M
Financing Cash Flow-403.86M-365.06M-108.35M4.88B9.29M

Zhihu, Inc. Class A Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price12.08
Price Trends
50DMA
11.06
Positive
100DMA
11.17
Positive
200DMA
10.52
Positive
Market Momentum
MACD
0.35
Positive
RSI
45.55
Neutral
STOCH
10.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2390, the sentiment is Neutral. The current price of 12.08 is below the 20-day moving average (MA) of 12.28, above the 50-day MA of 11.06, and above the 200-day MA of 10.52, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 10.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2390.

Zhihu, Inc. Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$243.41B25.9014.34%0.84%4.16%82.42%
78
Outperform
HK$244.72B8.709.84%-1.73%32.35%
78
Outperform
HK$311.56B18.9625.82%9.42%33.34%
74
Outperform
HK$19.58B7.6010.79%8.03%0.43%21.65%
66
Neutral
HK$31.76B27.55-1.14%13.74%-125.64%
58
Neutral
HK$3.20B-0.40%-19.99%98.97%
55
Neutral
HK$68.46B-1.62-3.62%5.57%-4.09%-17.08%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2390
Zhihu, Inc. Class A
11.58
3.28
39.52%
HK:1698
Tencent Music Entertainment Group Class A
85.35
34.75
68.68%
HK:1024
Kuaishou Technology Class B
72.40
29.40
68.37%
HK:9888
Baidu, Inc. Class A
85.50
2.00
2.40%
HK:9898
Weibo Corp Class A
79.75
26.31
49.23%
HK:0772
China Literature
31.35
7.20
29.81%

Zhihu, Inc. Class A Corporate Events

Zhihu Inc. Schedules Board Meeting to Review Financial Results
Jul 30, 2025

Zhihu Inc. announced that its board of directors will meet on August 27, 2025, to review and approve the company’s unaudited quarterly and interim financial results for the period ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations. An earnings conference call will be held on the same day to discuss these results, allowing stakeholders to gain further understanding of the company’s performance.

Zhihu, Inc. Grants 6.38 Million RSUs to Employees Under Incentive Plan
Jul 11, 2025

Zhihu, Inc. announced the grant of 6,380,763 Restricted Share Units (RSUs) to 48 eligible employees under its 2022 Share Incentive Plan. This initiative aims to align the interests of employees with shareholders and enhance company value by incentivizing outstanding performance. The RSUs have a vesting period of 36 to 48 months, subject to performance targets, and include a clawback mechanism for termination due to misconduct. This move is designed to motivate, attract, and retain key personnel crucial to the company’s success.

Zhihu Inc. Successfully Concludes Annual General Meeting with All Resolutions Passed
Jun 25, 2025

Zhihu Inc. announced that all resolutions proposed at its Annual General Meeting held on June 25, 2025, were duly passed. The meeting involved voting on various resolutions, including the adoption of audited financial statements and the re-election of directors. The results indicate strong shareholder support, reflecting confidence in the company’s governance and strategic direction.

Zhihu Inc. Announces AGM with Key Resolutions
May 29, 2025

Zhihu Inc. has announced its upcoming Annual General Meeting (AGM) scheduled for June 25, 2025, in Beijing. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for the year ending December 31, 2024, the re-election of certain directors, and the authorization for directors to manage the issuance of additional Class A ordinary shares. These resolutions are significant for the company’s governance and strategic financial management, potentially impacting its market operations and shareholder interests.

Zhihu Inc. Announces Board of Directors and Their Roles
May 27, 2025

Zhihu Inc. has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement is significant as it outlines the governance structure of the company, which could impact its strategic direction and reassure stakeholders about its leadership stability.

Zhihu Inc. Announces Q1 2025 Financial Results
May 27, 2025

Zhihu Inc. has released its unaudited financial results for the first quarter of 2025, prepared in accordance with U.S. Generally Accepted Accounting Principles. The announcement, made on May 27, 2025, highlights the company’s financial performance for the period ending March 31, 2025, and advises shareholders and potential investors to exercise caution when dealing with the company’s securities.

Zhihu Inc. Announces Board Changes with New Independent Director Appointment
May 27, 2025

Zhihu Inc. announced a change in its board of directors, with Mr. Hanhui Sam Sun resigning as an independent non-executive director and chairman of several board committees, effective May 27, 2025, due to other professional commitments. The company has appointed Dr. Li-Lan Cheng as the new independent non-executive director, bringing extensive experience in financial management and corporate governance from his previous roles in various companies. This change is expected to bring fresh perspectives to Zhihu’s board, potentially impacting its strategic direction and governance practices.

Zhihu Inc. Schedules Board Meeting and Earnings Call for Q1 2025 Results
May 13, 2025

Zhihu Inc. has announced a board meeting scheduled for May 27, 2025, to review and approve the company’s unaudited financial results for the first quarter of 2025. The management will also hold an earnings conference call on the same day, indicating the company’s commitment to transparency and stakeholder engagement.

Zhihu Inc. Sets Record Date for Shareholder Meeting
May 8, 2025

Zhihu Inc. has announced the record date for determining the eligibility of shareholders to vote and attend its upcoming annual general meeting (AGM). The record date is set for May 23, 2025, for holders of Class A and Class B ordinary shares. Holders of American depositary shares (ADSs) will also be able to instruct the Depositary on how to vote their shares. This announcement is significant as it outlines the procedural steps for shareholder participation in the AGM, potentially impacting investor engagement and corporate governance practices.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025