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ZKH Group Limited Sponsored ADR (ZKH)
NYSE:ZKH
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ZKH Group Limited Sponsored ADR
(NYSE:ZKH)
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Rating:57Neutral
Price Target:
$3.00
▼(-6.54% Downside)
ZKH's overall stock score is primarily driven by its financial performance and earnings call insights. The company shows potential for improvement with stable revenue growth and significant cash flow enhancement. Positive earnings call sentiment and operational efficiency gains further support the score. However, ongoing profitability challenges and a negative P/E ratio weigh down the valuation.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a stable market position and effective business strategies, supporting long-term expansion.
AI Integration
AI integration enhances productivity and efficiency, providing a competitive edge and supporting sustainable growth.
Product Expansion
Expanding product offerings strengthens market presence and diversifies revenue streams, aiding long-term growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues can hinder financial health and limit reinvestment capabilities, affecting long-term sustainability.
Negative Equity History
Historical negative equity raises concerns about financial resilience and may affect investor confidence over time.
Operating Losses
Continued operating losses suggest operational inefficiencies, which could impact long-term financial performance.
ZKH Group Limited Sponsored ADR (ZKH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$457.29M
Dividend YieldN/A
Average Volume (3M)22.12K
Price to Earnings (P/E)―
Beta (1Y)0.21
Revenue Growth-0.43%
EPS Growth42.08%
CountryUS
Employees3,476
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.02
Shares Outstanding130,030,820
10 Day Avg. Volume15,516
30 Day Avg. Volume22,119
Financial Highlights & Ratios
PEG Ratio1.45
Price to Book (P/B)1.36
Price to Sales (P/S)0.48
P/FCF Ratio28.75
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.21
Enterprise Value/Ebitda-1.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ZKH Group Limited Sponsored ADR Business Overview & Revenue Model
Company Description
How the Company Makes Money
ZKH Group Limited Sponsored ADR Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 24, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in customer base, profitability, and operational efficiency driven by AI integration, despite slight declines in GMV and gross margin. The company's strategic initiatives and recovery are promising, indicating a positive outlook.Q3-2025 Updates
Positive Updates
Increase in Transacting Customers
The number of transacting customers exceeded 70,000, reaching a new quarterly high, which strengthens the foundation for future growth.
Recovery in GMV and Revenue
GMV and revenue largely recovered to prior year levels, with GMV down 2.3% year-over-year to RMB 2.62 billion and revenues up 2.1% to RMB 2.33 billion.
Improved Profitability
Operating loss, net loss, and adjusted net loss all narrowed significantly. Adjusted net loss was down by approximately 78% year-over-year to just RMB 14 million.
Positive Cash Flow
Net cash of approximately RMB 100 million was generated from operating activities, primarily driven by the substantial narrowing of losses.
AI Integration and Efficiency
AI tools improved operational efficiency, with customer service productivity increasing by 42% and procurement productivity by 52% year-over-year.
Expansion of Product Offerings
Over 2.3 million sellable SKUs were added across various categories, bringing the total to more than 19 million, along with onboarding over 1,200 new suppliers.
Growth in Private Label Products
Private label GMV grew 16.7% year-over-year, outpacing the overall business and reaching 8.2% of total GMV.
Negative Updates
Slight Decline in GMV
GMV was down 2.3% year-over-year to RMB 2.62 billion.
Gross Margin Slightly Lower
Gross margin slightly decreased from 17% to 16.8% compared to the previous year.
Ongoing Losses
Despite improvements, the company still reported an operating loss of RMB 32.3 million.
Company Guidance
During the third quarter of 2025, ZKH Group Limited reported significant improvements in key financial metrics following a period of business optimization. The company achieved a notable increase in the number of transacting customers, surpassing 70,000, and experienced growth in Gross Merchandise Volume (GMV) and revenue, which largely recovered to prior year levels. The average weekday order value increased by over 40% from approximately RMB 37 million in July to approximately RMB 52 million in November. Operating expenses decreased by 14% year-over-year to approximately RMB 420 million, contributing to a substantial narrowing of the adjusted net loss by approximately 78% to RMB 14 million, with an adjusted net loss margin improving to 0.6%. ZKH achieved monthly breakeven in September and is on track for quarterly profitability in the fourth quarter. The company generated net cash of approximately RMB 100 million from operating activities, driven by improved working capital management. Additionally, ZKH continued to expand its product offerings, adding over 2.3 million sellable SKUs and launching over 600 new private label SKUs, with private label GMV growing by 16.7% year-over-year. The company also emphasized advancements in AI technologies, which have significantly boosted productivity and operational efficiency.ZKH Group Limited Sponsored ADR Financial Statement Overview
Summary
ZKH Group Limited shows stable revenue growth and significant cash flow improvement, but profitability remains a challenge with negative net margins. The balance sheet is strong with low leverage, though past negative equity raises concerns.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.45
Neutral
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.50
Neutral
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.75B | 8.76B | 8.72B | 8.32B | 7.65B | 4.69B |
| Gross Profit | 1.48B | 1.51B | 1.45B | 1.32B | 1.04B | 680.27M |
| EBITDA | -199.04M | -265.30M | -211.90M | -561.34M | -1.03B | -353.94M |
| Net Income | -231.09M | -268.04M | -304.31M | -735.68M | -1.12B | -401.73M |
Balance Sheet | ||||||
| Total Assets | 6.26B | 6.61B | 7.39B | 6.81B | 5.94B | 5.57B |
| Cash, Cash Equivalents and Short-Term Investments | 1.75B | 1.97B | 1.96B | 1.95B | 538.00M | 2.03B |
| Total Debt | 535.38M | 548.65M | 831.35M | 570.96M | 666.49M | 412.43M |
| Total Liabilities | 3.27B | 3.51B | 4.18B | 10.88B | 8.71B | 2.32B |
| Stockholders Equity | 2.99B | 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 | 276.08M | -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
Positive
3.21
Price Trends
3.01
Positive
2.99
Positive
3.07
Positive
Market Momentum
0.09
Negative
54.82
Neutral
71.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZKH, the sentiment is Positive. The current price of 3.21 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 3.01, and above the 200-day MA of 3.07, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 71.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZKH.
ZKH Group Limited Sponsored ADR Risk Analysis
ZKH Group Limited Sponsored ADR disclosed 105 risk factors in its most recent earnings report. ZKH Group Limited Sponsored ADR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ZKH Group Limited Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $530.64M | 10.13 | 79.76% | 8.24% | -7.03% | 1.04% | |
72 Outperform | $498.32M | 56.96 | 4.94% | 2.45% | -12.61% | -27.22% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $503.83M | 88.91 | 2.66% | ― | -8.78% | ― | |
57 Neutral | $457.29M | -14.37 | -7.46% | ― | -0.43% | 42.08% | |
55 Neutral | $288.42M | 39.64 | 4.36% | ― | 3.89% | ― | |
45 Neutral | $435.12M | ― | -72.72% | ― | -27.23% | 62.19% |
* Consumer Cyclical Sector Average
ZKH
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ZKH Group Limited Sponsored ADR Corporate Events
ZKH Group Limited Reports Q3 2025 Financial Results with Strategic Growth Initiatives
Nov 20, 2025
On November 20, 2025, ZKH Group Limited announced its unaudited financial results for the third quarter ending September 30, 2025. The company reported a slight decrease in gross merchandise value (GMV) by 2.3% compared to the previous year, with a notable increase in its customer base by 48%. Despite a decline in marketplace GMV, the company saw a 3% increase in product sales and a 2.1% rise in net revenues. The company also achieved significant reductions in operating and net loss margins, supported by a robust cash inflow. ZKH’s strategic focus on AI integration, product expansion, and international market penetration, particularly in the U.S., positions it for future growth and enhanced shareholder value.
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.