Zhengye International Holdings Co., Ltd. (3363) AI Stock Analysis

• Market Cap: HK$200.00M
• Dividend Yield: 5.5%
• Average Volume (3M): 2.93K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.10
• Revenue Growth: -0.02%
• EPS Growth: N/A
• Country: HK
• Employees: 2,705
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.08
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 6,600
• 30 Day Avg. Volume: 2,933
• PEG Ratio: 0.03
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.49
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ―

The overall score of 57.9 reflects Zhengye International Holdings Co., Ltd.'s struggles with revenue growth and operational efficiency, impacting financial performance. While the technical analysis suggests limited immediate upward momentum, the stock's low valuation and reasonable dividend yield provide a cushion, making it somewhat appealing for value-focused investors. However, the volatility in cash flows and operational challenges remain significant risks.

Zhengye International Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Zhengye International Holdings Co., Ltd. (3363) is a company that operates primarily in the packaging industry, offering a range of paper-based packaging products. The company is involved in the design, production, and distribution of corrugated paper products and other packaging materials. Zhengye International serves various sectors including food and beverage, electronics, and consumer goods, providing customized packaging solutions to meet the diverse needs of its clients.

How the Company Makes Money

Zhengye International Holdings Co., Ltd. generates revenue through the manufacturing and sale of corrugated paper products and packaging solutions. The company earns money by supplying its products to a wide array of industries that require reliable and sustainable packaging solutions. Key revenue streams include sales contracts with companies in the food and beverage, electronics, and consumer goods sectors. Additionally, the company may engage in partnerships or collaborations with other firms to expand its product offerings and market reach. Factors such as production efficiency, scale of operations, and material sourcing contribute to its earnings, by optimizing costs and enhancing profitability.

Zhengye International Holdings Co., Ltd. Financial Statement Overview

Summary

Zhengye International Holdings Co., Ltd. faces challenges in maintaining revenue growth and operational profitability. Despite a stable balance sheet with moderate leverage, the volatility in cash flows underscores potential issues in liquidity management. The company must address operational inefficiencies and enhance cash flow generation to improve its financial stability.

Income Statement

The company experienced a decline in revenue from 2021 to 2024, with a revenue drop of approximately 31.6% since 2021. Gross profit margins have decreased over time, from a high of 19% in 2019 to 12% in 2024. Net profit margin in 2024 showed improvement with a positive 1.5%, up from a negative margin in 2023. However, EBIT margins have been negative since 2023, indicating struggles in operational efficiency.

Balance Sheet

The debt-to-equity ratio is relatively stable, around 0.95 in 2024, indicating moderate leverage. The equity ratio is reasonably healthy at 39%, providing a cushion against liabilities. However, the consistent reduction in stockholders' equity from 2019 to 2024 suggests potential challenges in maintaining asset growth relative to liabilities.

Cash Flow

The cash flow statement reveals volatility, with operating cash flow dropping to zero in 2024 from positive figures in previous years. Free cash flow has been inconsistent, with a significant decline in 2024. The lack of positive free cash flow growth and operating cash flow to net income ratio raises concerns about the company's cash generation capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.44B	2.39B	3.01B	3.56B	2.49B
Gross Profit	293.88M	270.00M	341.73M	676.97M	390.87M
EBITDA	92.34M	156.94M	263.18M	441.28M	225.89M
Net Income	36.39M	-17.55M	68.60M	160.84M	54.77M
Balance Sheet
Total Assets	2.88B	2.99B	2.98B	3.03B	2.68B
Cash, Cash Equivalents and Short-Term Investments	187.38M	253.91M	279.84M	229.58M	185.37M
Total Debt	1.06B	1.05B	1.09B	1.24B	1.16B
Total Liabilities	1.47B	1.62B	1.58B	1.65B	1.49B
Stockholders Equity	1.12B	1.09B	1.11B	1.11B	965.68M
Cash Flow
Free Cash Flow	0.00	167.83M	-36.21M	-431.27M	-366.57M
Operating Cash Flow	0.00	297.80M	148.76M	-194.98M	-202.31M
Investing Cash Flow	0.00	-150.04M	-233.72M	-197.43M	-138.90M
Financing Cash Flow	0.00	244.89M	135.22M	436.63M	295.49M

Zhengye International Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3363, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.38, and above the 200-day MA of 0.37, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3363.

Zhengye International Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2314	71 Outperform	$10.01B	7.62	4.75%	3.86%	4.24%	25.30%
3838	71 Outperform	HK$1.15B	2.20	12.45%	5.08%	-5.08%	359.16%
2382	65 Neutral	HK$75.26B	25.61	11.45%	0.77%	18.80%	142.93%
Sector *	58 Neutral	HK$17.25B	4.63	-6.43%	5.11%	-3.18%	-62.89%
3363	58 Neutral	HK$200.00M	5.07	3.30%	5.50%	-0.02%	―
2689	56 Neutral	$16.14B	16.04	2.05%	―	9.33%	―
1432	53 Neutral	€2.14B	―	-1.61%	0.90%	-9.24%	-177.19%

Zhengye International Holdings Co., Ltd. Corporate Events

Zhengye International Holdings Announces Annual General Meeting

Zhengye International Holdings Co., Ltd. has announced its annual general meeting to be held on June 13, 2025, in Hong Kong. The meeting will cover ordinary business such as approving financial statements, declaring a final dividend, re-electing directors, and re-appointing auditors. Additionally, a special resolution will be considered to authorize the directors to allot, issue, and deal with unissued shares, subject to specific conditions. This meeting is crucial for stakeholders as it addresses key governance and financial decisions impacting the company’s future operations and market strategy.

Zhengye International Holdings Reports Positive Financial Turnaround in 2024

Zhengye International Holdings Co., Ltd. reported its annual financial results for the year ending December 31, 2024, showing a revenue increase to RMB 2,435,830,000 from RMB 2,390,517,000 in 2023. The company achieved a gross profit margin of 12.06% and an EBITDA of RMB 203,168,000, with a notable turnaround in profit attributable to owners at RMB 36,392,000 compared to a loss in the previous year. The board recommended a final dividend of HKD 2.20 cents per share, reflecting an increase from the previous year’s dividend. This financial performance indicates a positive shift in the company’s profitability and shareholder returns.

Zhengye International Announces Final Dividend for 2024

Zhengye International Holdings Co., Ltd. has announced a final cash dividend of RMB 0.02 per share for the financial year ending December 31, 2024, which will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.08. The announcement reflects the company’s financial performance over the past year and indicates a stable return for shareholders, with the payment date set for July 11, 2025, following shareholder approval on June 13, 2025.

Zhengye International Holdings Expects Significant Profit Turnaround in 2024

Zhengye International Holdings Co., Ltd. has announced a positive profit alert, expecting a profit of RMB33 million to RMB38 million for the year ended December 31, 2024, compared to a loss of RMB17 million the previous year. This turnaround is attributed to increased market demand for packaging paper, improved internal management, cost control measures, and profits from property sales, enhancing the company’s gross profit margin.

Zhengye International Announces Board Meeting for Annual Results and Dividend Consideration

Zhengye International Holdings Company Limited has announced that its board of directors will meet on March 28, 2025, to review and approve the company’s annual financial results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend payment, which could impact shareholder returns and the company’s financial strategy.