ZKH Group Limited Sponsored ADR (ZKH) AI Stock Analysis

• Market Cap: $465.39M
• Dividend Yield: N/A
• Average Volume (3M): 32.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -0.55%
• EPS Growth: 45.29%
• Country: US
• Employees: 3,476
• Sector: General
• Sector Strength: N/A
• Industry: Specialty Retail
• EPS (TTM): -0.05
• Shares Outstanding: 130,030,820
• 10 Day Avg. Volume: 27,311
• 30 Day Avg. Volume: 32,429
• PEG Ratio: 1.23
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 28.75
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.21
• Enterprise Value/Ebitda: -1.46
• 1Y Price Target: $3.00
• Price Target Upside: 4.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $3.00 ▲(4.17% Upside)

ZKH's overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The company's stable revenue growth and improved cash flow are positive, but profitability challenges and a negative P/E ratio weigh heavily on the score. The lack of upward momentum in technical analysis further contributes to a cautious outlook.

ZKH Group Limited Sponsored ADR Business Overview & Revenue Model

Company Description

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of China. The company provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

ZKH Group Limited generates revenue through the sale of industrial products and by offering supply chain management services. The company earns money by distributing and retailing industrial supplies, including machinery components, tools, and safety equipment, to various businesses. Additionally, ZKH provides value-added services such as procurement management, inventory optimization, and logistics solutions. These services help clients reduce costs and improve productivity, thereby driving ZKH's revenue streams. The company may also have strategic partnerships with manufacturers and suppliers, which can provide exclusive distribution rights or competitive pricing advantages, contributing to its earnings.

ZKH Group Limited Sponsored ADR Financial Statement Overview

Summary

ZKH Group Limited Sponsored ADR exhibits a mixed financial performance. While revenue growth is stable and cash flow has improved significantly, profitability remains a challenge with negative net margins. The balance sheet is relatively strong with low leverage, but past negative equity raises concerns. Overall, the company shows potential for improvement but needs to address profitability issues to enhance financial health.

Income Statement

The company has shown a moderate revenue growth rate of 0.46% from 2023 to 2024, indicating stability in sales. However, the net profit margin remains negative, reflecting ongoing profitability challenges. The gross profit margin improved slightly to 17.24%, suggesting better cost management. EBIT and EBITDA margins are negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 0.18, indicating low leverage and a conservative capital structure. The equity ratio is 46.87%, reflecting a stable financial position. However, the company has experienced negative stockholders' equity in previous years, which poses a risk to financial stability.

Cash Flow

The company has shown significant improvement in free cash flow, turning positive in 2024, with a growth rate of 123.42%. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net income. However, the free cash flow to net income ratio remains low, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.84B	8.76B	8.72B	8.32B	7.65B	4.69B
Gross Profit	1.51B	1.51B	1.45B	1.32B	1.04B	680.27M
EBITDA	-215.24M	-265.30M	-211.90M	-561.34M	-1.03B	-353.94M
Net Income	-243.87M	-268.04M	-304.31M	-1.24B	-1.45B	-586.19M
Balance Sheet
Total Assets	6.12B	6.61B	7.39B	6.81B	5.94B	5.57B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.97B	1.96B	1.95B	538.00M	2.03B
Total Debt	371.96M	548.65M	831.35M	570.96M	1.15B	316.19M
Total Liabilities	3.08B	3.51B	4.18B	10.88B	8.71B	2.32B
Stockholders Equity	3.04B	3.10B	3.21B	-4.07B	-2.77B	3.24B
Cash Flow
Free Cash Flow	0.00	146.03M	-623.51M	-554.31M	-1.54B	-31.05M
Operating Cash Flow	0.00	229.07M	-567.95M	-504.20M	-1.38B	31.80M
Investing Cash Flow	0.00	277.48M	-908.30M	-37.04M	-94.39M	-57.91M
Financing Cash Flow	0.00	-255.28M	715.72M	1.30B	174.63M	1.83B

ZKH Group Limited Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZKH, the sentiment is Negative. The current price of 2.88 is below the 20-day moving average (MA) of 2.90, below the 50-day MA of 2.96, and below the 200-day MA of 3.21, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 43.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZKH.

ZKH Group Limited Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWMX	76 Outperform	491.09M	16.74	61.13%	9.42%	-8.56%	-57.78%
RERE	69 Neutral	1.03B	39.08	-0.22%	―	27.53%	―
TDUP	63 Neutral	1.17B	-18.75	-94.46%	―	-10.39%	14.92%
YSG	52 Neutral	845.57M	-11.31	-23.18%	―	11.67%	31.55%
ZKH	46 Neutral	$465.39M	―	-7.46%	―	-0.55%	45.29%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

ZKH Group Limited Sponsored ADR Corporate Events

ZKH Group Reports Q2 2025 Financial Results Amid Strategic Expansion

On August 22, 2025, ZKH Group Limited announced its unaudited financial results for the second quarter of 2025, ending June 30. The company reported a 3.7% year-over-year decline in net revenues, primarily due to a decrease in revenues from its marketplace model. Despite these challenges, ZKH achieved a 53.5% increase in the number of customers and enhanced its business quality and operational efficiency. The operational launch of its Taicang facility in China marked a significant milestone, boosting its capabilities in research, development, and production. The company also made strides in international expansion and reinforced its talent pipeline, although these strategic initiatives impacted short-term financial performance. ZKH remains committed to achieving high-quality revenue growth through targeted investments and cost management, aiming for long-term growth and value creation for shareholders.

ZKH Group Limited Announces Board and Management Changes

ZKH Group Limited, a company based in Shanghai, China, recently announced changes to its board and management team. On August 3, 2025, Mr. Junyu Li resigned from his position as a board member and vice president, with no disagreements cited regarding the company’s operations. Mr. Yunjie Han has been appointed as a new director, bringing extensive experience in human resources and corporate management. His expertise is expected to align with the company’s strategic priorities and enhance its operational excellence.