ZJLD Group, Inc. (6979) AI Stock Analysis

• Market Cap: HK$27.89B
• Dividend Yield: 2.42%
• Average Volume (3M): 9.32M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.16
• 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$7.70
• Price Target Upside: -11.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$9.50 ▲(9.32% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market strategies and product demand, supporting long-term business expansion and stability.

Equity Improvement

Strengthened equity base enhances financial stability and reduces risk, providing a solid foundation for future investments and growth.

Gross Profit Margin

High gross profit margin reflects efficient cost management and pricing power, contributing to sustained profitability and competitive advantage.

Negative Factors

Net Profit Margin Decline

Declining net profit margin suggests rising expenses or inefficiencies, which could impact long-term profitability if not addressed.

Cash Flow Volatility

Fluctuating cash flow indicates potential instability in cash generation, which could hinder operational flexibility and investment capacity.

Operational Cash Flow Fluctuation

Inconsistent operating cash flow may challenge the company's ability to fund operations and growth initiatives, affecting financial health.

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 generates revenue primarily through the sale of its alcoholic beverages, which includes a diverse range of spirits and wines. The company benefits from multiple revenue streams, including direct sales to consumers through retail channels, distribution partnerships with wholesalers, and exports to international markets. Additionally, ZJLD Group may engage in collaborations with other beverage companies or suppliers, enhancing its distribution network and product variety. The company's focus on premium and high-quality products allows it to command higher price points, contributing significantly to its overall profitability.

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: Negative
• Last Price: 8.69
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 8.69 is above the 20-day moving average (MA) of 8.27, above the 50-day MA of 8.53, and above the 200-day MA of 7.80, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 12.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6979.

ZJLD Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6979	64 Neutral	HK$27.89B	22.27	8.43%	2.42%	-29.11%	-25.20%
8509	63 Neutral	HK$190.00M	5.00	11.66%	―	15.66%	-1.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0828	54 Neutral	HK$366.19M	15.85	7.46%	1.30%	-4.14%	-21.15%
8146	49 Neutral	HK$296.22M	-6.79	-23.19%	―	-18.68%	-3305.88%
0389	40 Underperform	HK$129.67M	-1.98	-50.46%	―	―	―

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.