Zibuyu Group Limited (2420) AI Stock Analysis

• Market Cap: HK$1.63B
• Dividend Yield: 3.81%
• 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: 67 Neutral
• Price Target: HK$3.50 ▲(11.11% Upside)

Zibuyu Group Limited's overall stock score is driven by strong financial performance and attractive valuation. However, technical analysis indicates bearish momentum, which could pose short-term risks. The absence of earnings call and corporate events data limits further insights.

Zibuyu Group Limited Business Overview & Revenue Model

Company Description

Zibuyu Group Limited (2420) is a diversified company primarily engaged in the provision of technology-driven solutions in various sectors, including e-commerce, logistics, and digital marketing. The company focuses on leveraging innovative technologies to enhance operational efficiencies and improve customer experiences. Its core products and services include an online marketplace platform, supply chain management solutions, and digital advertising services aimed at optimizing sales and marketing for businesses.

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: 3.15
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3.15 is below the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.39, and below the 200-day MA of 3.72, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, 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	67 Neutral	HK$1.63B	8.89	27.30%	3.81%	23.59%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2209	61 Neutral	HK$1.99B	11.34	41.54%	1.64%	55.02%	25.22%
0178	56 Neutral	HK$1.92B	25.00	6.39%	4.02%	-9.75%	-64.87%
1939	45 Neutral	HK$4.19B	-215.42	-8.52%	―	7.26%	27.70%
9991	44 Neutral	HK$1.48B	-7.31	-4.71%	―	7.51%	30.41%
0493	41 Neutral	HK$792.35M	―	―	―	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.

The most recent analyst rating on (HK:2420) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on Zibuyu Group Limited stock, see the HK:2420 Stock Forecast page.

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.

The most recent analyst rating on (HK:2420) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on Zibuyu Group Limited stock, see the HK:2420 Stock Forecast page.

Zibuyu Group Limited Redirects IPO Proceeds to Boost Sales and Branding

Zibuyu Group Limited announced a change in the use of unutilized proceeds from its initial public offering. The company plans to redirect HK$19.2 million to enhance sales and branding capabilities, particularly through Amazon advertising solutions, by the end of 2025. This strategic shift aims to strengthen the company’s market position and improve operational efficiency.

The most recent analyst rating on (HK:2420) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on Zibuyu Group Limited stock, see the HK:2420 Stock Forecast page.

Zibuyu Group Limited Releases Interim Results for First Half of 2025

Zibuyu Group Limited has announced its unaudited consolidated interim results for the six months ending June 30, 2025. The announcement, reviewed by the company’s audit committee and management, complies with the disclosure requirements of the Hong Kong Stock Exchange. The interim report will be accessible on the company’s and the stock exchange’s websites by the end of September 2025.

The most recent analyst rating on (HK:2420) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on Zibuyu Group Limited stock, see the HK:2420 Stock Forecast page.