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ZEEKR Intelligent Technology Holding Limited Sponsored ADR (ZK)
:ZK
RESEARCH TOOLSreports
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ZEEKR Intelligent Technology Holding Limited Sponsored ADR
(NYSE:ZK)
46Neutral
Positive Factors
Financial Performance
4Q profit grew to Rmb147mn vs Rmb8mn, indicating strong financial performance improvement.
Model Pipeline
Analyst reiterates a Buy rating on Zeekr for its robust model pipeline and GPM improvement outlook.
Sales Growth
New products launch is set to achieve the sales target of 710k units in 2025, including sales in the overseas market.
Negative Factors
Net Loss
Factoring in 4Q24 results, the 2025 net loss estimate has been widened by 41%.
Operating Expenses
4Q24 net loss was higher than expected due to increased operating expenses.
R&D Expenses
R&D expenses grew 63% QoQ, which might indicate increased spending impacting short-term profitability.
ZEEKR Intelligent Technology Holding Limited Sponsored ADR (ZK) vs. S&P 500 (SPY)
Market Cap
$5.27B
Dividend YieldN/A
Average Volume (3M)790.44K
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth45.22%
EPS Growth25.35%
CountryUS
Employees17,439
SectorGeneral
Sector StrengthN/A
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-3.61
Shares Outstanding254,197,110
10 Day Avg. Volume721,406
30 Day Avg. Volume790,436
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.94
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.75Price Target Upside57.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
ZEEKR Intelligent Technology Holding Limited Sponsored ADR Business Overview & Revenue Model
Company DescriptionZEEKR Intelligent Technology Holding Limited Sponsored ADR (ZK) is a company operating in the automotive sector, focusing on the development, production, and sale of electric vehicles (EVs). The company is dedicated to providing sustainable mobility solutions through advanced technology and innovative design. ZEEKR aims to redefine the automotive experience with its range of high-performance, energy-efficient electric cars tailored for a global market, emphasizing both luxury and practicality.
How the Company Makes MoneyZEEKR Intelligent Technology Holding Limited generates revenue primarily through the sale of its electric vehicles. The company designs, manufactures, and markets a variety of EV models, which are sold to consumers and businesses. Revenue is derived from direct vehicle sales, as well as through financing and leasing options offered to customers. Additionally, ZEEKR may earn income from after-sales services, which include vehicle maintenance, repairs, and the sale of spare parts. Strategic partnerships with technology firms and suppliers can also contribute to its earnings by enabling cost efficiencies and technological advancements. The company's strong focus on research and development helps in creating cutting-edge vehicles that attract a premium market segment, further boosting its revenue potential.
ZEEKR Intelligent Technology Holding Limited Sponsored ADR Financial Statement Overview
Summary
ZEEKR shows strong revenue growth, but profitability remains a concern with negative EBIT and net income margins. The balance sheet indicates financial instability due to a high debt-to-equity ratio and negative equity. However, there are improvements in cash flow management.Income Statement
ZEEKR shows strong revenue growth, with a 47% increase from 2023 to 2024. However, profitability is a concern, as evidenced by negative EBIT and net income margins. The net profit margin remains negative, indicating ongoing challenges in achieving profitability.45
Neutral
Balance Sheet
The balance sheet presents a high debt-to-equity ratio due to negative equity, highlighting financial instability. The company shows a negative equity ratio, suggesting more liabilities than assets, which is a risk factor for financial health.30
Negative
Cash Flow
Cash flow statements show positive operating cash flow and an increase in free cash flow, indicating improved cash management. However, the free cash flow to net income ratio is not favorable due to persistent net losses.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 69.32B | 75.91B | 51.67B | 4.74B | 1.01B | 461.45M | Gross Profit |
| 10.43B | 12.45B | 6.85B | 367.12M | 160.97M | 123.18M | EBIT |
| -18.85B | -6.46B | -8.18B | -1.07B | -670.17M | 3.49M | EBITDA |
| -17.46B | -4.60B | -7.33B | -7.01B | -4.39B | 13.52M | Net Income Common Stockholders |
| -8.38B | -6.42B | -8.35B | -1.18B | -676.43M | 15.01M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.79B | 7.78B | 3.26B | 540.14M | 611.60M | 21.70M | Total Assets |
| 28.54B | 32.67B | 27.12B | 2.80B | 1.87B | 1.15B | Total Debt |
| 11.62B | 15.60B | 7.98B | 1.38B | 260.63M | 186.36M | Net Debt |
| 7.82B | 7.81B | 4.72B | 838.52M | -350.98M | 164.65M | Total Liabilities |
| 39.28B | 42.82B | 35.80B | 3.66B | 1.73B | 638.01M | Stockholders Equity |
| -11.69B | -11.74B | -9.63B | -984.34M | 53.04M | 516.83M |
| Cash Flow | Free Cash Flow | ||||
| -812.11M | 1.48B | 361.93M | -1.04B | -97.93M | -59.23M | Operating Cash Flow |
| -33.94M | 3.20B | 2.28B | -907.36M | 19.11M | 63.56M | Investing Cash Flow |
| -774.04M | -923.89M | -1.96B | -298.04M | 58.85M | -145.77M | Financing Cash Flow |
| 0.00 | 2.62B | -2.68M | 1.18B | 510.43M | 28.60M |
ZEEKR Intelligent Technology Holding Limited Sponsored ADR Technical Analysis
Negative
20.83
Price Trends
25.69
Negative
25.94
Negative
22.82
Negative
Market Momentum
-1.84
Positive
36.24
Neutral
34.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZK, the sentiment is Negative. The current price of 20.83 is below the 20-day moving average (MA) of 24.25, below the 50-day MA of 25.69, and below the 200-day MA of 22.82, indicating a bearish trend. The MACD of -1.84 indicates Positive momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 34.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZK.
ZEEKR Intelligent Technology Holding Limited Sponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $18.62B | ― | -17.11% | ― | 32.32% | 49.34% | |
53 Neutral | $3.91B | -17.68 | -15.99% | 6.44% | 25.52% | -80.16% | |
46 Neutral | $5.27B | ― | 86.66% | ― | 45.22% | 25.35% | |
44 Neutral | $6.97B | ― | -142.49% | ― | 16.99% | 12.99% | |
37 Underperform | $7.58B | ― | -54.15% | ― | 35.71% | 8.24% | |
33 Underperform | $2.13B | ― | 94.66% | ― | -29.25% | -114.69% | |
32 Underperform | $6.81B | ― | 36.15% | ― | ― | ― |
* General Sector Average
Performance Comparison
ZK
ZEEKR Intelligent Technology Holding Limited Sponsored ADR
20.83
-8.21
-28.27%
NIO
Nio
3.52
-0.37
-9.51%
XPEV
XPeng, Inc. ADR
20.00
12.80
177.78%
LCID
Lucid Group
2.50
0.07
2.88%
PSNY
Polestar Automotive Holding UK
1.04
-0.28
-21.21%
VFS
VinFast Auto
3.00
-0.26
-7.98%
ZEEKR Intelligent Technology Holding Limited Sponsored ADR Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -26.24% | Next Earnings Date: Jun 17, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook, with strong sales and revenue growth, improved gross margins, and strategic integration efforts. However, concerns about intense market competition and achieving future sales targets were noted.Highlights
Record Vehicle Sales and Revenue Growth
ZEEKR Group achieved a total sales of 500,000 vehicles in 2024, with Lynk & Co brand delivering 280,000 units, a nearly 30% year-over-year increase, and ZEEKR brand surpassing 222,000 vehicles, an 87% year-over-year increase. Total vehicle revenue reached RMB55.5 billion, with overall revenue at RMB75.9 billion.
Gross Margin Improvement
In the fourth quarter, vehicle gross margin reached 17.3%, while the full-year vehicle margin was 15.6%. This shows a strong improvement in profitability.
Strategic Integration and Global Expansion
ZEEKR and Lynk & Co successfully completed equity transaction, with a global user base over 1.82 million. The company aims to deliver 710,000 vehicles in 2025 and expand international sales to constitute 10% of total sales.
Launch of New Models
In 2025, ZEEKR brand plans to launch three new models, including ZEEKR 007GT and ZEEKR 9X, while Lynk & Co brand plans two new models. The new models feature advanced technologies, including super electric hybrid technology and Level 3 autonomous driving.
Lowlights
Intense Market Competition
There is significant competition in the Chinese and global new energy vehicle markets, which poses challenges to achieving sales targets and maintaining profitability.
Sales Volume Concerns
The management acknowledged that sales volume in the first quarter was not satisfactory, though it aligned with expectations. The company is under pressure to meet the ambitious target of 710,000 vehicle sales in 2025.
Company Guidance
During the call, ZEEKR Group provided guidance on several key metrics for 2025 and beyond. The company aims to deliver 710,000 vehicles in 2025, with the ZEEKR brand expected to reach 320,000 units and the Lynk & Co brand targeting 390,000 units. The company also projected a consolidated vehicle gross margin of around 15% for the full year of 2025, following the integration of Lynk & Co and ZEEKR. Additionally, ZEEKR Group is targeting a reduction in R&D expenses to around 6% of revenue over the next two years while aiming to reduce SG&A expenses to around 8% of revenue in the same timeframe. The company plans to expand its product portfolio, with new models being launched across both brands, and anticipates that over 10% of its sales in 2025 will come from international markets. ZEEKR Group is also strategizing to enhance its competitive edge by leveraging its full-stack AI capabilities, aiming for significant advancements in autonomous driving and intelligent features.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.