ZJLD Group, Inc. (6979) AI Stock Analysis

• Market Cap: HK$30.94B
• Dividend Yield: 2.41%
• Average Volume (3M): 9.32M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.22
• Revenue Growth: -29.11%
• EPS Growth: -25.20%
• Country: HK
• Employees: 11,380
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.20
• Shares Outstanding: 3,388,623,500
• 10 Day Avg. Volume: 7,376,058
• 30 Day Avg. Volume: 9,322,827
• PEG Ratio: -0.33
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.99
• P/FCF Ratio: -71.47
• 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$9.69
• Price Target Upside: 11.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: HK$9.50 ▲(8.94% Upside)

ZJLD Group, Inc.'s overall stock score is driven by strong financial performance, particularly in revenue growth and equity improvement. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. The absence of earnings call insights and corporate events limits further analysis.

ZJLD Group, Inc. Business Overview & Revenue Model

Company Description

ZJLD Group Inc engages in the production and sale of distilled liquor in China. The company sells its products under the Zhen Jiu, Li Du, Xiang Jiao, Kai Kou Xiao, Shao Yang, and other brands. The company was incorporated in 2021 and is headquartered in Beijing, China. As of April 17, 2023, ZJLD Group Inc operates as a subsidiary of Zhenjiu Holding limited.

How the Company Makes Money

ZJLD Group, Inc. generates revenue primarily through the production and sale of its baijiu products. The company's business model revolves around leveraging its well-established brand recognition and distribution network to penetrate different market segments. Key revenue streams include direct sales to retailers and wholesalers, as well as strategic partnerships with distributors to enhance market reach. Additionally, the company capitalizes on its premium product lines to achieve higher profit margins. Factors contributing to its earnings include brand loyalty, product innovation, and expanding its presence in international markets.

ZJLD Group, Inc. Financial Statement Overview

Summary

ZJLD Group, Inc. demonstrates strong revenue growth and improved equity position, reflecting strategic financial management. However, the decline in net profit margins and fluctuating cash flows suggest areas for improvement. The company should focus on stabilizing its cash flow while maintaining efficient cost management to enhance profitability and ensure sustainable growth.

Income Statement

ZJLD Group, Inc. has shown strong revenue growth over the years with a significant increase from 2020 to 2024. The gross profit margin remains robust at 58.6% in 2024, indicating efficient cost management. However, the net profit margin decreased from 33.1% in 2023 to 18.7% in 2024, suggesting increased expenses or reduced operational efficiency. The EBIT and EBITDA margins are healthy at 27% and 27% respectively, though they have slightly declined compared to the previous year.

Balance Sheet

The company's financial leverage has improved significantly from a negative equity position in 2022 to a strong equity base by 2024, indicating successful debt management and equity growth. The debt-to-equity ratio has improved, and the equity ratio stands at 71.2% in 2024. However, the company should remain cautious of any potential risks related to its liabilities, despite the improvements.

Cash Flow

ZJLD Group, Inc. has shown volatility in its free cash flow, with a negative free cash flow in 2023, but the cash reserves have increased significantly by 2024. The operating cash flow has fluctuated, indicating potential instability in operational cash generation. The absence of detailed cash flow metrics for 2024 limits further analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.43B	7.07B	7.03B	5.86B	5.10B	2.40B
Gross Profit	3.19B	4.14B	4.08B	3.24B	3.52B	1.63B
EBITDA	1.62B	1.91B	2.17B	1.71B	1.52B	782.22M
Net Income	1.15B	1.32B	2.33B	1.03B	1.03B	520.09M
Balance Sheet
Total Assets	19.17B	19.61B	17.58B	11.06B	7.64B	4.65B
Cash, Cash Equivalents and Short-Term Investments	5.29B	5.65B	6.05B	1.68B	1.55B	314.57M
Total Debt	666.50M	539.83M	75.71M	10.36B	9.72B	996.63M
Total Liabilities	5.29B	5.65B	4.90B	14.87B	14.46B	3.52B
Stockholders Equity	13.87B	13.95B	12.68B	-3.82B	-6.81B	1.13B
Cash Flow
Free Cash Flow	-768.33M	-295.26M	-497.04M	-1.78B	333.19M	1.32B
Operating Cash Flow	-116.16M	781.00M	361.23M	-710.62M	969.02M	1.52B
Investing Cash Flow	-430.45M	-767.48M	-840.37M	-1.39B	-1.38B	-255.69M
Financing Cash Flow	-832.89M	-215.99M	4.49B	2.22B	1.67B	-1.07B

ZJLD Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6979, the sentiment is Neutral. The current price of 8.72 is below the 20-day moving average (MA) of 8.91, below the 50-day MA of 9.34, and above the 200-day MA of 7.36, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 14.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6979.

ZJLD Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8509	―	HK$312.00M	7.85	12.59%	―	72.70%	27.44%
6979	―	HK$30.94B	24.70	8.43%	2.41%	-29.11%	-25.20%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0828	―	HK$401.40M	17.38	7.46%	1.25%	-4.14%	-21.15%
8146	―	HK$82.46M	-1.89	-23.19%	―	-18.68%	-3305.88%
0472	―	€529.25M	-3.08	-2.94%	―	-41.07%	-41.05%

ZJLD Group, Inc. Corporate Events

ZJLD Group Inc Announces Leadership Change with New CEO Appointment

ZJLD Group Inc has announced a change in its leadership, with Mr. Yan Tao stepping down as Chief Executive Officer to become an executive Director and vice chairman of the Board. Mr. Tang Xiangyang has been appointed as the new CEO, bringing extensive experience in wine production and management. This leadership transition is expected to influence the company’s strategic direction and operational management, potentially impacting its market position and stakeholder relations.

The most recent analyst rating on (HK:6979) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on ZJLD Group, Inc. stock, see the HK:6979 Stock Forecast page.

ZJLD Group Launches Retailer Incentive Plan for Sustainable Growth

ZJLD Group Inc., through its subsidiary Zhenjiu Commercial Trading, has introduced the Alliance Retailers Benefits Plan to incentivize eligible retailers for the company’s long-term growth. The plan, effective for five years, utilizes existing shares to provide economic benefits without issuing new shares, aiming to enhance retailer performance and compliance, thereby strengthening the company’s market position.

The most recent analyst rating on (HK:6979) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on ZJLD Group, Inc. stock, see the HK:6979 Stock Forecast page.

ZJLD Group Inc. Reports Significant Revenue Decline in H1 2025

ZJLD Group Inc. reported a significant decline in its financial performance for the first half of 2025 compared to the same period in 2024. The company’s revenue decreased by 39.6%, gross profit dropped by 39.3%, and profit attributable to equity shareholders fell by 23.5%. Despite these declines, the gross profit margin slightly improved to 59.0% from 58.8%, and the net profit margin increased to 23.0% from 18.2%, indicating some efficiency improvements in operations.

The most recent analyst rating on (HK:6979) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on ZJLD Group, Inc. stock, see the HK:6979 Stock Forecast page.

ZJLD Group Inc Announces Upcoming Board Meeting to Review Interim Results

ZJLD Group Inc, a company incorporated in the Cayman Islands, has announced that its board of directors will hold a meeting on August 22, 2025. The meeting’s agenda includes the consideration and approval of the interim results for the six months ending June 30, 2025, and the publication of these results, which may impact the company’s operations and stakeholder interests.

The most recent analyst rating on (HK:6979) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on ZJLD Group, Inc. stock, see the HK:6979 Stock Forecast page.

ZJLD Group Issues Profit Warning Amid Declining Baijiu Demand

ZJLD Group Inc has issued a profit warning, anticipating a significant decline in revenue and net profit for the first half of 2025 compared to the same period in 2024. The company attributes this downturn to economic uncertainty and recent policies affecting baijiu consumption, particularly in business and social settings. In response, ZJLD Group is launching a new flagship product under the Zhen Jiu brand and enhancing its existing product strategies to stabilize its market position and capture emerging consumer trends.

The most recent analyst rating on (HK:6979) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on ZJLD Group, Inc. stock, see the HK:6979 Stock Forecast page.