ZJLD Group, Inc. (6979) AI Stock Analysis

• Market Cap: HK$33.11B
• Dividend Yield: 2.19%
• Average Volume (3M): 22.50M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.26
• Revenue Growth: -29.11%
• EPS Growth: -25.20%
• Country: HK
• Employees: 11,380
• Sector: Industrials
• Sector Strength: 78
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.20
• Shares Outstanding: 3,388,623,500
• 10 Day Avg. Volume: 36,543,339
• 30 Day Avg. Volume: 22,499,702
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$6.00
• Price Target Upside: -37.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: HK$9.50 ▼(-0.94% Downside)

ZJLD Group, Inc. scores well due to strong financial performance and bullish technical indicators. The company's strategic financial management is evident in revenue growth and equity improvements. However, the overbought technical indicators and moderate valuation suggest caution. The absence of earnings call and corporate events data limits further insights.

ZJLD Group, Inc. Business Overview & Revenue Model

Company Description

ZJLD Group, Inc. (6979) is a prominent player in the Chinese alcoholic beverage industry, specializing in the production and distribution of premium baijiu, a traditional Chinese spirit. The company prides itself on a rich heritage of craftsmanship and utilizes high-quality ingredients to cater to both domestic and international markets. With a diverse portfolio of brands, ZJLD Group aims to capture various consumer segments ranging from high-end connoisseurs to everyday consumers.

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

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.07B	7.03B	5.86B	5.10B	2.40B
Gross Profit	4.14B	4.08B	3.24B	3.52B	1.63B
EBITDA	1.91B	2.17B	1.71B	1.52B	782.22M
Net Income	1.32B	2.33B	1.03B	1.03B	520.09M
Balance Sheet
Total Assets	19.61B	17.58B	11.06B	7.64B	4.65B
Cash, Cash Equivalents and Short-Term Investments	5.65B	6.05B	1.68B	1.55B	314.57M
Total Debt	539.83M	75.71M	10.29B	9.65B	952.10M
Total Liabilities	5.65B	4.90B	14.87B	14.46B	3.52B
Stockholders Equity	13.95B	12.68B	-3.82B	-6.81B	1.13B
Cash Flow
Free Cash Flow	-295.26M	-497.04M	-1.78B	333.19M	1.32B
Operating Cash Flow	781.00M	361.23M	-710.62M	969.02M	1.52B
Investing Cash Flow	-767.48M	-840.37M	-1.39B	-1.38B	-255.69M
Financing Cash Flow	-215.99M	4.49B	2.22B	1.67B	-1.07B

ZJLD Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.59
• 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:6979, the sentiment is Positive. The current price of 9.59 is above the 20-day moving average (MA) of 8.53, above the 50-day MA of 7.31, and above the 200-day MA of 6.82, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 45.98 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6979	75 Outperform	HK$33.11B	26.43	8.43%	2.19%	-29.11%	-25.20%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
CATWF	―	$16.65M	―	-50.46%	―	―	―
CP2	―	€58.82M	―	-2.94%	―	―	―
8509	72 Outperform	HK$288.00M	7.24	12.59%	―	72.70%	27.44%
0828	63 Neutral	HK$415.48M	12.66	11.24%	1.19%	3.26%	46.30%
8146	47 Neutral	HK$102.48M	115.29	-23.19%	―	-18.68%	-3500.00%

ZJLD Group, Inc. Corporate Events

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.

ZJLD Group Inc Announces Change in Hong Kong Representative

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.