ZKH Group Limited Sponsored ADR (ZKH)
NYSE:ZKH
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ZKH Group Limited Sponsored ADR
(NYSE:ZKH)
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Rating:55Neutral
Price Target:
$3.50
▼(-4.89% Downside)
Action:ReiteratedDate:01/07/26
Overall score reflects meaningful operational and profitability trajectory improvements highlighted on the earnings call, alongside improving cash flow and low leverage. These positives are tempered by still-negative profitability in the financial statements, a weaker technical setup, and limited valuation support due to a negative P/E and no dividend yield data.
Positive Factors
Improved Cash Generation
Turning operating cash positive provides durable financial flexibility: it funds working capital and investments without heavy external financing, reduces solvency risk, and supports the company’s path from loss to sustained profitability if cash generation is maintained.
Negative Factors
Ongoing Losses
Despite large improvements, continued operating and net losses mean profitability is not yet entrenched. If losses re-emerge or cash conversion stalls, the company may need additional capital or further cost cuts, affecting long-term strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
Turning operating cash positive provides durable financial flexibility: it funds working capital and investments without heavy external financing, reduces solvency risk, and supports the company’s path from loss to sustained profitability if cash generation is maintained.
Read all positive factors
ZKH Group Limited Sponsored ADR (ZKH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$501.44M
Dividend YieldN/A
Average Volume (3M)22.12K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth-0.43%
EPS Growth42.08%
CountryUS
Employees3,476
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)<0.01
Shares Outstanding130,270,450
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 Cap5.50
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit1.86
Enterprise Value/Ebitda-13.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.13
Revenue Forecast (FY)$9.66B
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 ...
ZKH Group Limited Sponsored ADR Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The call emphasized a clear operational inflection in H2 2025 with a strong Q4 recovery: sequential and year-over-year top-line acceleration in the quarter, return to profitability in Q4, positive operating cash flow, substantial customer and SKU expansion, and measurable efficiency gains from AI and fulfillment optimization. These positives are tempered by full-year GMV decline, YoY gross margin compression driven by product mix and commodity-price headwinds, and a full-year adjusted net loss that, while significantly narrowed, remains negative. Management provided a forward-looking plan to drive private-label growth, deepen SME and international expansion, and achieve full-year profitability in 2026.Positive Updates
Return to Profitability in Q4 2025
Adjusted net profit of approximately RMB 14.8–14.9 million in Q4 2025, a turnaround from a non-GAAP adjusted net loss of RMB 15 million year-over-year. Non-GAAP EBITDA turned positive at RMB 19.7 million in Q4. The company also achieved half-year breakeven for the first time and narrowed operating loss (Q4 operating loss narrowed 13.4% YoY).
Negative Updates
Full-Year GMV Decline
GMV for the full year 2025 declined 3.3% year-over-year to RMB 10.1 billion, primarily due to strategic optimization measures that weighed on the business during the first half of the year.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Profitability in Q4 2025
Adjusted net profit of approximately RMB 14.8–14.9 million in Q4 2025, a turnaround from a non-GAAP adjusted net loss of RMB 15 million year-over-year. Non-GAAP EBITDA turned positive at RMB 19.7 million in Q4. The company also achieved half-year breakeven for the first time and narrowed operating loss (Q4 operating loss narrowed 13.4% YoY).
Read all positive updates
Company Guidance
Management guided to achieve full‑year profitability in 2026 and expects GMV growth to accelerate into double digits in Q1 (after Q4 GMV of RMB 2.92 billion, +8.5% YoY, +11.3% QoQ), targets ~30% private‑label GMV growth over time with a 2026 private‑label GMV increase of ~30% to roughly 10% of GMV (up from 8.3% in 2025) on a path to a long‑term 30% share, plans to scale AI aggressively (monthly token use >80 billion today and expected to rise at least 10x in 2–3 years; launched H‑Nimble; RPA digital employees >5,000 saving nearly 1 million man‑hours; AI Workbench executed >520,000 operations), will deepen international expansion beyond the current 17 countries and 30 DC/100 transit warehouse/200+ vehicle fulfillment footprint, and expects continued margin and cost improvement (through‑warehouse fulfillment cost down ~13% YoY in Q4, Q4 gross margin 15.5% with ongoing procurement, SME and private‑label mix gains) supported by strengthened cash (RMB 1.92 billion) and positive operating cash flow momentum (Q4 operating cash inflow RMB 116.1 million).ZKH Group Limited Sponsored ADR Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
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
Negative
3.68
Price Trends
3.32
Negative
3.33
Negative
3.15
Negative
Market Momentum
-0.06
Negative
46.99
Neutral
78.47
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 3.68 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 3.32, and above the 200-day MA of 3.15, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 78.47 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 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $682.52M | 0.38 | 87.45% | 8.47% | -7.03% | 1.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $334.27M | 98.91 | 2.37% | ― | -8.47% | ― | |
55 Neutral | $501.44M | -30.75 | -4.69% | ― | -0.43% | 42.08% | |
55 Neutral | $328.42M | -3.08 | -8.63% | ― | 3.89% | ― | |
49 Neutral | $603.25M | 22.62 | 6.23% | 2.59% | -12.61% | -27.22% | |
46 Neutral | $339.50M | -3.93 | -48.74% | ― | -27.23% | 62.19% |
* Consumer Cyclical Sector Average
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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 ...
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.