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ZJLD Group, Inc. (HK:6979)
:6979
Hong Kong Market
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ZJLD Group, Inc. (6979) AI Stock Analysis

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HK

ZJLD Group, Inc.

(6979)

Rating:73Outperform
Price Target:
HK$7.50
▲(14.50%Upside)
ZJLD Group, Inc.'s overall stock score reflects a strong financial performance driven by revenue growth and improved equity management. Technical analysis indicates moderate bullish momentum, supporting a positive outlook in the short term. A fair valuation with a decent dividend yield adds to the investment appeal. However, caution is advised due to declining profit margins and cash flow volatility.

ZJLD Group, Inc. (6979) vs. iShares MSCI Hong Kong ETF (EWH)

ZJLD Group, Inc. Business Overview & Revenue Model

Company DescriptionZJLD 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 MoneyZJLD Group, Inc. generates revenue primarily through the sale of its alcoholic beverages, with baijiu being its flagship product. The company's revenue model is centered around distributing its spirits through a network of wholesalers, retailers, and direct-to-consumer channels. Key revenue streams include domestic sales within China, where baijiu enjoys immense popularity, and international sales as the company expands its presence in overseas markets. Additionally, ZJLD Group may enter into strategic partnerships with distributors and retailers to enhance its market reach and optimize its supply chain. The company's earnings are significantly influenced by its brand reputation, product quality, and the effective execution of its marketing and distribution strategies.

ZJLD Group, Inc. Financial Statement Overview

Summary
Strong revenue growth and improved equity position indicate strategic financial management. However, the decline in net profit margins and fluctuating cash flows highlight areas needing improvement.
Income Statement
85
Very Positive
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
72
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.07B7.03B5.86B5.10B2.40B
Gross Profit4.14B4.08B3.24B3.52B1.63B
EBITDA1.91B2.17B1.71B1.52B782.22M
Net Income1.32B2.33B1.03B1.03B520.09M
Balance Sheet
Total Assets19.61B17.58B11.06B7.64B4.65B
Cash, Cash Equivalents and Short-Term Investments5.65B6.05B1.68B1.55B314.57M
Total Debt539.83M75.71M10.29B9.65B952.10M
Total Liabilities5.65B4.90B14.87B14.46B3.52B
Stockholders Equity13.95B12.68B-3.82B-6.81B1.13B
Cash Flow
Free Cash Flow-295.26M-497.04M-1.78B333.19M1.32B
Operating Cash Flow781.00M361.23M-710.62M969.02M1.52B
Investing Cash Flow-767.48M-840.37M-1.39B-1.38B-255.69M
Financing Cash Flow-215.99M4.49B2.22B1.67B-1.07B

ZJLD Group, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.55
Price Trends
50DMA
6.41
Positive
100DMA
6.61
Negative
200DMA
6.77
Negative
Market Momentum
MACD
0.05
Negative
RSI
60.10
Neutral
STOCH
67.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6979, the sentiment is Positive. The current price of 6.55 is above the 20-day moving average (MA) of 6.32, above the 50-day MA of 6.41, and below the 200-day MA of 6.77, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 67.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6979.

ZJLD Group, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$22.30B15.039.96%3.21%-1.44%-45.51%
67
Neutral
$2.63B13.719.94%4.03%-2.21%31.01%
$16.52M-128.01%
DECP2
€68.54M-2.94%
70
Outperform
HK$256.00M6.4412.59%69.22%115.70%
62
Neutral
HK$436.61M13.0811.24%1.13%3.26%46.30%
44
Neutral
HK$98.47M115.29-16.65%-48.00%-494.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6979
ZJLD Group, Inc.
6.58
-0.94
-12.50%
CATWF
China Tontine Wines Group
0.07
0.00
0.00%
DE:CP2
New Silkroad Culturaltainment Ltd.
0.02
0.01
100.00%
HK:8146
Grace Wine Holdings Limited
0.12
0.06
100.00%
HK:0828
Dynasty Fine Wines Group Limited
0.30
0.02
7.14%
HK:8509
Wine's Link International Holdings Limited
0.61
0.23
60.53%

ZJLD Group, Inc. Corporate Events

ZJLD Group Inc Announces Change in Hong Kong Representative
Jun 4, 2025

ZJLD Group Inc, incorporated in the Cayman Islands, has announced a change in its authorized representative for service of process and notices in Hong Kong. Mr. Wang Lianbo has been appointed to replace Mr. Ng Kwong Chue Paul, effective June 4, 2025. This change is part of the company’s compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Companies Ordinance. The announcement reflects the company’s ongoing efforts to maintain regulatory compliance and streamline its operations in Hong Kong.

The most recent analyst rating on (HK:6979) stock is a Buy with a HK$7.60 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 Key Resolutions from AGM
May 9, 2025

ZJLD Group Inc, incorporated in the Cayman Islands, held its Annual General Meeting on May 9, 2025, where several key resolutions were passed. These included the adoption of the company’s audited financial statements for 2024, the declaration of a final dividend of HKD0.21 per share, and the re-election and appointment of directors. Additionally, KPMG was re-appointed as the company’s auditor, and mandates were given to the directors for share repurchase and issuance. These decisions reflect the company’s strategic focus on financial stability and governance, potentially impacting shareholder value positively.

ZJLD Group Inc Announces Board Composition and Committee Roles
May 9, 2025

ZJLD Group Inc has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board has established three committees: Audit, Remuneration, and Nomination, with specific directors assigned as chairmen and members, reflecting the company’s commitment to structured governance and oversight.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025