Zhenro Properties Group Limited (6158) AI Stock Analysis

• Market Cap: HK$131.03M
• Dividend Yield: N/A
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.91
• Revenue Growth: -70.13%
• EPS Growth: -16.86%
• Country: HK
• Employees: 927
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -1.59
• Shares Outstanding: 4,367,756,000
• 10 Day Avg. Volume: 744,600
• 30 Day Avg. Volume: 2,392,600
• PEG Ratio: <0.01
• Price to Book (P/B): -0.02
• Price to Sales (P/S): 0.00822
• P/FCF Ratio: 0.78
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.03 ▼(-6.67% Downside)

The score is driven primarily by very weak financial performance (losses, negative equity, and lack of operating/free cash flow), which dominates the risk profile. Technicals are mildly negative with a weak longer-term trend and high volatility, while valuation is constrained by a negative P/E and no dividend yield support.

Positive Factors

Market Position

Concentration in first- and second-tier Chinese cities gives Zhenro structurally stronger demand, pricing resilience and deeper buyer pools versus lower-tier exposure. This supports steadier sales cycles and land-value capture over medium term, aiding revenue stability.

Recurring Revenue Stream

Ownership of property management operations creates recurring, less cyclical fee income and tenant/customer touchpoints. This diversifies revenue away from one-off presales, supports customer retention, and can improve long-term cash conversion and margin stability.

Strategic Partnerships

Established ties with governments and banks help secure land parcels and project financing in China’s capital-intensive sector. Such relationships can lower execution risk and preserve pipeline access during tighter credit cycles, supporting project continuity and long-term growth.

Negative Factors

Negative Equity

Technically negative equity signals deep balance-sheet strain, limiting the firm's ability to raise debt or equity and increasing refinancing, covenant, and counterparty risks. Over months this can force asset sales, project delays, or restructuring, impairing competitive stance and execution.

No Operating Cash Flow

Lack of operating cash generation and zero free cash flow undermines the firm’s capacity to finance construction, complete projects, and service liabilities internally. Persisting cash deficits increase reliance on external funding, raising refinancing risk and potential project execution delays.

Declining Profitability

Sustained revenue declines and negative gross/NET/EBITDA margins indicate weakening core operations and margin compression. Over months, this erodes retained earnings needed to rebuild equity, reduces reinvestment capacity, and weakens competitiveness versus better-capitalized peers.

Zhenro Properties Group Limited Business Overview & Revenue Model

Company Description

Zhenro Properties Group Limited, an investment holding company, engages in the property development, property leasing, and commercial property management business in the People's Republic of China. It develops residential properties; and develops, operates, and manages commercial and mixed-use properties. In addition, the company is involved in design consultation services. The company was founded in 1998 and is headquartered in Shanghai, China. Zhenro Properties Group Limited is a subsidiary of RoYue Limited.

How the Company Makes Money

Zhenro Properties Group Limited generates revenue primarily through the sale of residential properties. The company constructs and sells apartments and homes, which constitute its core revenue stream. Additionally, Zhenro earns income from property management services provided to homeowners and residents in its developed properties. The company's revenue model is bolstered by strategic partnerships with local governments and financial institutions, allowing for access to financing and land acquisition opportunities. Furthermore, Zhenro's focus on urban development and sustainability attracts buyers looking for modern living solutions, contributing to steady sales and revenue growth over time.

Zhenro Properties Group Limited Financial Statement Overview

Summary

Financials indicate severe distress: revenues declined (-13.82% YoY), margins and profitability are negative, the balance sheet shows negative equity (technical insolvency risk), and cash generation is extremely weak (no operating cash flow and free cash flow at zero).

Income Statement

The income statement reveals a concerning trend of declining revenues and escalating losses. Gross profit and net profit margins have turned negative, with EBIT and EBITDA margins also deteriorating significantly. Revenue has decreased by 13.82% from the previous year. These figures highlight substantial operational challenges and a lack of profitability.

Balance Sheet

The balance sheet is under significant stress, characterized by negative stockholders' equity indicating technical insolvency. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative as well. This suggests a high level of financial risk and vulnerability.

Cash Flow

The cash flow statement indicates severe liquidity issues, with free cash flow dropping to zero and no operating cash flow. This lack of cash generation raises concerns about the company's ability to sustain operations and meet financial obligations in the short term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.40B	33.42B	38.77B	25.90B	36.99B	36.13B
Gross Profit	-2.32B	-364.31M	2.18B	-6.65B	4.22B	6.82B
EBITDA	-5.56B	-2.47B	-6.36B	-11.40B	1.72B	4.50B
Net Income	-10.95B	-6.83B	-8.47B	-12.88B	809.00M	2.65B
Balance Sheet
Total Assets	101.70B	113.38B	153.19B	194.47B	253.84B	221.39B
Cash, Cash Equivalents and Short-Term Investments	467.62M	2.19B	1.72B	6.26B	39.77B	36.42B
Total Debt	58.21B	60.17B	59.53B	63.65B	74.25B	67.39B
Total Liabilities	110.12B	115.66B	147.04B	176.99B	212.90B	183.78B
Stockholders Equity	-17.19B	-11.21B	-3.89B	4.76B	19.35B	19.58B
Cash Flow
Free Cash Flow	500.88M	350.60M	2.19B	767.62M	11.71B	1.86B
Operating Cash Flow	500.90M	350.64M	2.19B	849.20M	11.73B	1.90B
Investing Cash Flow	13.83M	14.99M	129.47M	2.50B	-7.51B	-2.00B
Financing Cash Flow	-536.02M	-868.27M	-3.87B	-14.85B	-24.87B	7.68B

Zhenro Properties Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 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:6158, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6158.

Zhenro Properties Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0865	48 Neutral	HK$216.01M	-4.93	-5.13%	―	-76.39%	-1142.86%
6968	41 Neutral	HK$137.85M	-0.13	-26.32%	―	-70.72%	-667.17%
2329	41 Neutral	HK$506.66M	-0.35	-13.99%	―	-0.38%	-296.42%
2699	40 Underperform	HK$22.45M	-0.02	―	―	-84.06%	60.63%
6158	39 Underperform	HK$131.03M	-0.01	―	―	-70.13%	-16.86%
1996	39 Underperform	HK$112.71M	-0.02	-1347.47%	―	-59.30%	19.71%

Zhenro Properties Group Limited Corporate Events

Zhenro Properties Posts RMB4.3 Billion in Unaudited Contracted Sales for 2025

Zhenro Properties Group Limited reported unaudited operating statistics for December 2025, recording aggregated contracted sales of approximately RMB335 million and contracted gross floor area of about 24,592 square meters, translating into an average selling price of roughly RMB13,600 per square meter for the month. For the full year ended 31 December 2025, the group, together with its joint ventures and associates, achieved aggregated contracted sales of about RMB4.344 billion on 278,381 square meters of contracted gross floor area, with an average selling price of around RMB15,600 per square meter, while cautioning investors that these preliminary figures may differ from its forthcoming audited financial statements and should be used only as reference when assessing the company’s performance and making investment decisions.

The most recent analyst rating on (HK:6158) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Zhenro Properties Group Limited stock, see the HK:6158 Stock Forecast page.

Zhenro Properties Updates on Going-Concern Remedial Measures Amid Prolonged Market Slump

Zhenro Properties Group Limited has provided a quarterly update on its efforts to address a disclaimer of opinion issued on its 2024 financial statements, which highlighted material uncertainties over its ability to continue as a going concern. The company said all previously announced remedial measures remain in place, including ongoing negotiations with creditors over a holistic onshore and offshore restructuring plan, though it acknowledged that no significant progress has yet been made on that restructuring due to weak market conditions and constrained cash flow. From January to November 2025, Zhenro extended about RMB4.0 billion of onshore borrowings for up to five years with notable interest cost reductions, but it has not secured new loans or alternative financings in the period. The group is prioritizing preservation of property values over distressed sales, pursuing accelerated but non-fire-sale contracting, tightening cost controls and speeding up collection of sales proceeds, while also indicating it will continue to seek potential disposals of equity interests in project companies to bolster liquidity, although no such disposals have occurred so far. The update underscores that, despite some progress in liability extensions and expense savings, the company remains under significant financial pressure amid a prolonged downturn in China’s property sector, leaving stakeholders still exposed to uncertainty until a concrete restructuring plan is finalized.

The most recent analyst rating on (HK:6158) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Zhenro Properties Group Limited stock, see the HK:6158 Stock Forecast page.

Zhenro Properties Announces Company Secretary Resignation and New Authorised Representatives

Zhenro Properties Group Limited has announced forthcoming changes to its corporate governance and compliance roles, with joint company secretary and authorised representative Ms. Kwong Yin Ping, Yvonne set to resign from her positions effective 1 January 2026. The company emphasised that Ms. Kwong has no disagreement with the board and that there are no matters related to her departure requiring shareholder or regulator attention, while expressing gratitude for her contributions. Following her resignation, existing joint company secretary Mr. Chan King Tak will continue as company secretary, assume the role of authorised representative for service of process and notices in Hong Kong, and executive director Mr. Jin Mingjie will become one of the company’s authorised representatives under the Listing Rules from the same effective date, ensuring continuity in regulatory liaison and corporate compliance functions.

The most recent analyst rating on (HK:6158) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Zhenro Properties Group Limited stock, see the HK:6158 Stock Forecast page.

Zhenro Properties Reports November 2025 Sales Performance

Zhenro Properties Group Limited announced its unaudited operating statistics for November 2025, reporting aggregated contracted sales of approximately RMB269 million with a gross floor area of about 20,658 square meters sold. For the eleven months ending November 2025, the company achieved contracted sales of approximately RMB4.009 billion, with a total contracted gross floor area of 253,789 square meters. The announcement highlights the company’s ongoing sales performance, although the data is preliminary and subject to change in future audited reports. Investors are advised to consider this information cautiously.

The most recent analyst rating on (HK:6158) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Zhenro Properties Group Limited stock, see the HK:6158 Stock Forecast page.

Zhenro Properties Reports October 2025 Sales Figures

Zhenro Properties Group Limited announced its unaudited operating statistics for October 2025, reporting aggregated contracted sales of approximately RMB452 million and a contracted gross floor area of about 32,180 square meters. Over the first ten months of 2025, the company achieved aggregated contracted sales of approximately RMB3.740 billion. The announcement highlights the company’s ongoing sales performance, although it advises investors to exercise caution as the figures are preliminary and unaudited.