Zibuyu Group Limited (2420) AI Stock Analysis

• Market Cap: HK$1.67B
• Dividend Yield: 3.58%
• Average Volume (3M): 4.75K
• Price to Earnings (P/E): 10.1
• Beta (1Y): -0.08
• Revenue Growth: 8.89%
• EPS Growth: N/A
• Country: HK
• Employees: 1,025
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Specialty Retail
• EPS (TTM): 0.33
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 9,000
• 30 Day Avg. Volume: 4,750
• PEG Ratio: 0.06
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.58
• 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$4.00
• Price Target Upside: 19.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$3.50 ▲(4.48%Upside)

Zibuyu Group Limited's overall stock score reflects strong financial performance, particularly in profitability and cash flow generation, which are crucial strengths. The company's valuation is attractive given its low P/E ratio and reasonable dividend yield. However, the technical analysis indicates some bearish signals, which may pose risks to short-term price performance.

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 primarily through the sale of fashion and lifestyle products via online platforms. The company utilizes various e-commerce channels to market its products directly to consumers, cutting out traditional retail intermediaries. A significant portion of its revenue comes from its proprietary brands, which are sold on popular global marketplaces like Amazon and eBay. Zibuyu also engages in partnerships with other online retailers and platforms to expand its reach. The company's revenue model is bolstered by its ability to quickly adapt to fashion trends, ensuring a constant refresh of its product offerings, which attracts repeat customers and drives sales.

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: 3.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 3.35 is above the 20-day moving average (MA) of 3.23, below the 50-day MA of 3.57, and below the 200-day MA of 4.10, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, 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$1.67B	10.10	27.91%	3.58%	8.89%	―
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
GMELF	―	$124.70M	―		―	―	―
4CM	―	€268.24M	14.38	42.49%	1.26%	―	―
0178	72 Outperform	HK$1.86B	24.19	6.39%	5.00%	1.20%	-49.31%
9991	45 Neutral	HK$1.37B	―	-4.60%	―	5.61%	29.83%
1939	43 Neutral	HK$2.22B	―	-8.52%	―	-3.32%	-107.34%

Zibuyu Group Limited Corporate Events

Zibuyu Group Limited Announces 2025 AGM and Key Resolutions

Zibuyu Group Limited, incorporated in the Cayman Islands, has announced its upcoming Annual General Meeting (AGM) scheduled for May 6, 2025, in Hangzhou, Zhejiang Province. The meeting will address several resolutions, including the adoption of the company’s audited financial statements for 2024, re-election of directors, and re-appointment of auditors. Additionally, the board seeks authorization to manage share allotments and issue securities, which could impact the company’s capital structure and shareholder value.