Zibuyu Group Limited (2420) AI Stock Analysis

• Market Cap: HK$1.95B
• Dividend Yield: 3.08%
• Average Volume (3M): 8.67K
• Price to Earnings (P/E): 11.8
• Beta (1Y): -0.08
• Revenue Growth: 8.89%
• EPS Growth: N/A
• Country: HK
• Employees: 1,025
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Specialty Retail
• EPS (TTM): 0.24
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 3,750
• 30 Day Avg. Volume: 8,666
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$4.50
• Price Target Upside: 15.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: HK$4.50 ▲(15.38% Upside)

Zibuyu Group Limited's overall stock score is driven primarily by its strong financial performance, characterized by revenue growth and improved profitability. The technical analysis indicates bullish momentum, though caution is warranted due to overbought signals. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield, making it a compelling investment in the specialty retail sector.

Zibuyu Group Limited Business Overview & Revenue Model

Company Description

Zibuyu Group Limited operates as a cross-border e-commerce company in China. The company focuses on the sale of a range of self-designed apparel, footwear, and other products. It sells its products to customers worldwide through a combination of third-party e-commerce platforms and self-operated online stores. The company was founded in 2011 and is headquartered in Hangzhou, China.

How the Company Makes Money

Zibuyu Group Limited makes money through a multi-channel e-commerce model, primarily selling apparel and footwear products online. The company generates revenue from both retail and wholesale sales across different e-commerce platforms, leveraging digital marketing and data analytics to optimize its product offerings and pricing strategies. Additionally, partnerships with various online marketplaces enhance its distribution network and customer reach. The company's earnings are influenced by its ability to adapt to fashion trends, manage supply chains efficiently, and expand its online presence globally.

Zibuyu Group Limited Financial Statement Overview

Summary

Zibuyu Group Limited demonstrates strong financial performance marked by consistent revenue growth, impressive gross profit margin of 74.3%, and a net profit margin recovery to 4.5%. The balance sheet shows conservative leverage with a debt-to-equity ratio of 0.26, and robust cash flow generation with significant increases in operating cash flow.

Income Statement

Zibuyu Group Limited demonstrates a strong financial performance with a consistent revenue growth trajectory, evidenced by a revenue increase from 3.0 billion to 3.3 billion HKD in the most recent year. The gross profit margin is impressive at 74.3%, indicating efficient cost management. The net profit margin shows a significant recovery from a negative position in the previous year to 4.5%, highlighting a turnaround in profitability. EBIT and EBITDA margins also reflect positive operational improvements.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.26, indicating conservative leverage. The equity ratio of 55.6% highlights a strong capital base. Return on equity stands at 25.1%, reflecting effective use of shareholder funds. However, the overall asset growth appears moderate, suggesting a balanced approach to expansion.

Cash Flow

Zibuyu Group has shown a robust cash flow position with a significant increase in operating cash flow to 261.9 million HKD. The free cash flow has also grown substantially, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is favorable, indicating efficient earnings translation into cash. However, the free cash flow growth rate, while positive, should be monitored for sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.33B	3.00B	3.07B	2.35B	1.90B
Gross Profit	2.47B	1.96B	2.35B	1.77B	1.38B
EBITDA	139.78M	-204.72M	169.65M	263.74M	161.57M
Net Income	150.78M	-265.79M	110.69M	200.51M	113.96M
Balance Sheet
Total Assets	1.08B	893.41M	1.36B	1.02B	642.51M
Cash, Cash Equivalents and Short-Term Investments	447.72M	278.88M	294.54M	80.86M	88.80M
Total Debt	154.04M	193.38M	195.93M	250.08M	91.75M
Total Liabilities	479.32M	409.67M	573.39M	646.70M	470.05M
Stockholders Equity	600.27M	483.74M	787.32M	372.98M	172.47M
Cash Flow
Free Cash Flow	257.76M	70.38M	79.47M	-214.20M	111.66M
Operating Cash Flow	261.87M	76.73M	92.08M	-207.05M	114.12M
Investing Cash Flow	-3.67M	-10.06M	-12.60M	-764.00K	-8.00M
Financing Cash Flow	-92.56M	-87.35M	129.86M	207.00M	-48.07M

Zibuyu Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2420, the sentiment is Neutral. The current price of 3.9 is above the 20-day moving average (MA) of 3.85, above the 50-day MA of 3.51, and below the 200-day MA of 4.06, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 13.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2420.

Zibuyu Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2420	74 Outperform	HK$1.95B	11.75	27.91%	3.08%	8.89%	―
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
GMELF	―	$118.78M	―		―	―	―
4CM	―	€237.15M	9.96	41.54%	―	―	―
0178	62 Neutral	HK$1.92B	25.40	6.39%	3.95%	-9.75%	-64.87%
1939	55 Neutral	HK$4.20B	―	-8.52%	―	7.26%	27.70%
9991	46 Neutral	HK$1.44B	―	-4.60%	―	5.61%	29.83%

Zibuyu Group Limited Corporate Events

Zibuyu Group Announces Significant Profit Growth for H1 2025

Zibuyu Group Limited has issued a positive profit alert, indicating an expected revenue increase of 30% to 40% and a net profit rise of 10% to 20% for the first half of 2025 compared to the same period in 2024. This growth is attributed to enhanced branding and channel development, as well as improved operational efficiency, signaling a strong market position and potential benefits for shareholders.