Zibuyu Group Limited (2420) AI Stock Analysis

• Market Cap: HK$1.63B
• Dividend Yield: 3.87%
• Average Volume (3M): 104.97K
• Price to Earnings (P/E): 8.9
• Beta (1Y): -0.05
• Revenue Growth: 23.59%
• EPS Growth: N/A
• Country: HK
• Employees: 1,025
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.24
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 274,650
• 30 Day Avg. Volume: 104,966
• PEG Ratio: -0.09
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 8.71
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$4.00 ▲(24.22% Upside)

Zibuyu Group Limited's overall stock score is driven primarily by its strong financial performance, characterized by revenue growth and robust cash flow generation. The valuation is reasonable with a solid dividend yield, adding to its attractiveness. Technical analysis presents mixed signals, with neutral RSI and bearish MACD, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and debt management, supporting sustainable growth.

Gross Profit Margin

High gross profit margin reflects efficient cost management and pricing power, contributing to profitability and competitive advantage.

Negative Factors

Moderate Asset Growth

Moderate asset growth may limit the company's ability to quickly scale operations, potentially affecting market competitiveness and expansion.

Net Profit Margin Recovery

While recovering, the net profit margin remains relatively low, indicating potential challenges in achieving higher profitability levels.

Free Cash Flow Sustainability

Concerns about the sustainability of free cash flow growth could impact long-term investment capacity and financial health.

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 generates revenue through multiple streams, primarily from transaction fees on its e-commerce platform, which charges vendors a percentage of sales made through its marketplace. Additionally, the company earns income from subscription fees for its logistics and supply chain management software, which businesses utilize to streamline their operations. Digital marketing services also contribute to revenue, as clients pay for advertising placements and promotional campaigns on the platform. The company has established significant partnerships with various logistics providers and technology firms, which enhance its service offerings and expand its market reach, further contributing to its earnings.

Zibuyu Group Limited Financial Statement Overview

Summary

Zibuyu Group Limited demonstrates strong financial performance with consistent revenue growth, impressive gross profit margin, and a significant recovery in net profit margin. The balance sheet is healthy with conservative leverage and strong capital base, while cash flow generation is robust, indicating efficient earnings translation into cash.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.82B	3.33B	3.00B	3.07B	2.35B	1.90B
Gross Profit	2.86B	2.47B	1.96B	2.35B	1.77B	1.38B
EBITDA	152.53M	139.78M	-204.72M	169.65M	283.47M	161.57M
Net Income	165.32M	150.78M	-265.79M	110.69M	200.51M	113.96M
Balance Sheet
Total Assets	1.25B	1.08B	893.41M	1.36B	1.02B	642.51M
Cash, Cash Equivalents and Short-Term Investments	347.95M	447.72M	278.88M	294.54M	80.86M	88.80M
Total Debt	195.59M	154.04M	193.38M	239.59M	250.08M	91.75M
Total Liabilities	610.60M	479.32M	409.67M	573.39M	646.70M	470.05M
Stockholders Equity	644.36M	600.27M	483.74M	787.32M	372.98M	172.47M
Cash Flow
Free Cash Flow	65.25M	257.76M	70.38M	79.47M	-214.20M	111.66M
Operating Cash Flow	69.47M	261.87M	76.73M	92.08M	-207.05M	114.12M
Investing Cash Flow	-6.04M	-3.67M	-10.06M	-12.60M	-764.00K	-8.00M
Financing Cash Flow	-89.58M	-92.56M	-87.35M	129.86M	207.00M	-48.07M

Zibuyu Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2420, the sentiment is Negative. The current price of 3.22 is above the 20-day moving average (MA) of 3.22, below the 50-day MA of 3.37, and below the 200-day MA of 3.66, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 21.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.63B	8.89	27.30%	3.87%	23.59%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2209	61 Neutral	HK$1.72B	9.82	41.54%	1.83%	55.02%	25.22%
0178	56 Neutral	HK$1.92B	25.00	8.44%	4.75%	-3.18%	-36.46%
9991	44 Neutral	HK$1.48B	-7.31	-5.29%	―	5.91%	9.24%
1939	44 Neutral	HK$4.19B	-215.42	-7.74%	―	85.29%	39.63%
0493	41 Neutral	HK$745.74M	―	―	―	49.53%	22.07%

Zibuyu Group Limited Corporate Events

Zibuyu Group Limited Announces Leadership and Committee Changes

Zibuyu Group Limited has announced several key changes in its leadership and committee compositions. Dr. Lau Kin Shing Charles has resigned from his roles, including as an independent non-executive director and chairman of the ESG Committee, to focus on personal affairs. The company has appointed Mr. Yu Kefei as the new chairman of the ESG Committee and Mr. Au Kai Yin as the joint company secretary and authorized representative. These changes are expected to impact the company’s governance and operational dynamics positively.

Zibuyu Group Limited Announces Board Composition and Committee Roles

Zibuyu Group Limited has announced the composition of its board of directors and their respective roles within the company. The board comprises both executive and independent non-executive directors, with the establishment of four committees to oversee various aspects of the company’s governance, including audit, remuneration, nomination, and ESG matters. This structured governance approach is likely to enhance the company’s operational oversight and strategic direction.