Reported Earnings • Mar 27
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: CN¥0.71 loss per share (down from CN¥1.35 profit in FY 2024). Revenue: CN¥164.4b (down 2.2% from FY 2024). Net loss: CN¥1.67b (down 152% from profit in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Revenue is forecast to stay flat during the next 3 years compared to a 10% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 39% per year, which means it has not declined as severely as earnings. Announcement • Mar 26
Zhongsheng Group Holdings Limited, Annual General Meeting, Jun 17, 2026 Zhongsheng Group Holdings Limited, Annual General Meeting, Jun 17, 2026. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to HK$7.88, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 9x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 75% over the past three years. Major Estimate Revision • Mar 17
Consensus EPS estimates fall from profit to CN¥0.82 loss The consensus outlook for fiscal year 2025 has been updated. Expected to report loss instead of -CN¥0.818 instead of CN¥1.09 per share profit previously forecast. Revenue forecast unchanged at CN¥162.9b Specialty Retail industry in Hong Kong expected to see average net income growth of 33% next year. Consensus price target down from HK$18.31 to HK$17.62. Share price fell 15% to HK$8.36 over the past week. Announcement • Mar 16
Zhongsheng Group Holdings Limited to Report Fiscal Year 2025 Results on Mar 26, 2026 Zhongsheng Group Holdings Limited announced that they will report fiscal year 2025 results at 12:30 PM, China Standard Time on Mar 26, 2026 Announcement • Mar 14
Zhongsheng Group Holdings Limited Provides Consolidated Earnings Guidance for the Year Ended December 31, 2025 Zhongsheng Group Holdings Limited provided consolidated earnings guidance for the year ended December 31, 2025. For the period, the Company will record a loss attributable to owners of the parent of the Company of no more than RMB 2.0 billion for the year ended 31 December 2025 ("Year 2025"), as compared to a profit attributable to owners of the parent of the Company of RMB 3.2 billion for the year ended 31 December 2024 ("Year 2024"). Based on the information currently available, the Board considers that the loss attributable to owners of the parent of the Company for Year 2025 is primarily due to, among other factors, the following reasons: the Group's automobile business continued to record gross loss due to the impact of persistently weak domestic consumer spending, an imbalance between supply and demand in the passenger vehicle market, and intensified competition in the automobile industry. For Year 2025, the gross loss from the Group's automobile business (including new and pre-owned automobiles) increased by no more than 70%, as compared to that of Year 2024; the commissions from automobile financing declined due to the impact of industry policies. For Year 2025, the income recorded by the Group for commissions from automobile financing decreased by no more than 50%, as compared to that of Year 2024; and taking into account the above macroeconomic factors, industry factors, and the impact of the Group's store adjustments made in response to market changes, the Group conducted an impairment assessment and recognised a non-cash impairment of goodwill and intangible assets in Year 2025 from certain underperforming cash-generating units of no more than RMB 2.5 billion. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to HK$9.97, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 69% over the past three years. Announcement • Jan 23
Zhongsheng Group Holdings Limited Announces Resignation of Sun Yanjun as Non-Executive Director, Effective January 23, 2026 Zhongsheng Group Holdings Limited announced that Mr. Sun Yanjun has resigned as a non-executive director of the Company with effect from January 23, 2026 due to retirement and plans to devote more time to his personal matters. Announcement • Dec 20
Zhongsheng Group Holdings Limited Announces Board and Committee Changes, Effective December 19, 2025 The board of directors (the "Board") of Zhongsheng Group Holdings Limited announced that Mr. Ying Wei ("Mr. Ying"), who has served on the Board for more than nine years, has resigned as an independent non-executive director and the chairman of the audit committee of the Company with effect from 19 December 2025. The Board announce that Mr. Bai Fengjiu ("Mr. Bai") has been appointed as an independent non-executive director and the chairman of the audit committee of the Company with effect from 19 December 2025. Mr. BAI Fengjiu, aged 55, worked at the Dalian Municipal Office of the State Administration of Taxation from August 1993 to June 2007. He then worked in the tax advisory division of PricewaterhouseCoopers as manager and senior manager from July 2007 to December 2010. Mr. Bai subsequently joined Deloitte and served as director and partner in the tax advisory division from January 2011 to September 2025. Mr. Bai obtained a diploma in taxation from Liaoning Taxation College in 1993 and a bachelor degree in taxation from Changchun School of Taxation (currently known as Jilin University of Finance and Economics in 1999. Reported Earnings • Sep 30
First half 2025 earnings released: EPS: CN¥0.43 (vs CN¥0.66 in 1H 2024) First half 2025 results: EPS: CN¥0.43 (down from CN¥0.66 in 1H 2024). Revenue: CN¥77.3b (down 6.2% from 1H 2024). Net income: CN¥1.01b (down 36% from 1H 2024). Profit margin: 1.3% (down from 1.9% in 1H 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 16% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Sep 04
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥171.4b to CN¥166.4b. EPS estimate also fell from CN¥1.65 per share to CN¥1.39 per share. Net income forecast to grow 43% next year vs 37% growth forecast for Specialty Retail industry in Hong Kong. Consensus price target broadly unchanged at HK$18.73. Share price rose 3.3% to HK$15.76 over the past week. Reported Earnings • Aug 29
First half 2025 earnings released: EPS: CN¥0.43 (vs CN¥0.66 in 1H 2024) First half 2025 results: EPS: CN¥0.43 (down from CN¥0.66 in 1H 2024). Revenue: CN¥77.3b (down 6.2% from 1H 2024). Net income: CN¥1.01b (down 36% from 1H 2024). Profit margin: 1.3% (down from 1.9% in 1H 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 17% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Announcement • Aug 18
Zhongsheng Group Holdings Limited to Report First Half, 2025 Results on Aug 28, 2025 Zhongsheng Group Holdings Limited announced that they will report first half, 2025 results on Aug 28, 2025 Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$13.66, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 65% over the past three years. Announcement • Jun 20
Zhongsheng Group Holdings Limited Approves to Declare Final Dividend for the Year Ended 31 December 2024, Payable on 11 July 2025 Zhongsheng Group Holdings Limited at its AGM held on 20 June 2025, approved to declare a final dividend of HKD 0.678 per share for the year ended 31 December 2024 to Shareholders whose names are listed in the register of members of the Company (excluding holders of treasury shares, if any) on 2 July 2025, being the record date. For determining the entitlement to the Final Dividend, the register of members of the Company will be closed from 27 June 2025 to 2 July 2025, both days inclusive, and the Final Dividend will be distributed on 11 July 2025. Upcoming Dividend • Jun 18
Upcoming dividend of HK$0.68 per share Eligible shareholders must have bought the stock before 25 June 2025. Payment date: 11 July 2025. Payout ratio is a comfortable 47% but the company is paying out more than the cash it is generating. Trailing yield: 5.6%. Lower than top quartile of Hong Kong dividend payers (7.4%). Higher than average of industry peers (2.2%). Reported Earnings • May 01
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: CN¥1.35 (down from CN¥2.09 in FY 2023). Revenue: CN¥168.1b (down 6.2% from FY 2023). Net income: CN¥3.21b (down 36% from FY 2023). Profit margin: 1.9% (down from 2.8% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) exceeded analyst estimates by 4.1%. Revenue is forecast to stay flat during the next 3 years compared to a 19% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has fallen by 39% per year, which means it is performing significantly worse than earnings. Announcement • Apr 08
Zhongsheng Group Holdings Limited Announces Board and Committee Changes The board of directors of Zhongsheng Group Holdings Limited announced that Mr. Shen Jinjun (``Mr. Shen'') has resigned as an independent non-executive director of the Company, member of the audit committee and the remuneration committee and chairman of the nomination committee of the Company with effect from 8 April 2025, as he intended to devote more time to his other commitments. The Board announced that Ms. Cheng Po Chuen (``Ms. Cheng'') has been appointed as an independent non-executive director of the Company, member of the audit committee and the remuneration committee and chairman of the nomination committee of the Company with effect from 8 April 2025. Ms. Cheng Po Chuen, aged 53, served as a consultant in the business consulting division of Arthur Andersen & Co from September 1994 to May 1997. She worked in the investment banking arms of DBS Asia Capital Limited, The Hongkong and Shanghai Banking Corporation Limited and Macquarie Group from May 1997 to August 2010, with her last position as a division director in Macquarie Capital Securities Limited. Ms. Cheng joined the global wealth management division of UBS AG as head of corporate advisory group in Hong Kong in September 2010, and subsequently had served there until January 2020 with her last position as a managing director. Ms. Cheng served as the chief financial officer since January 2020 and an executive director since April 2020 in Crazy Sports Group Limited until November 2023. Ms. Cheng has served as the director of development of The Hong Kong Philharmonic Society Limited since August 2024. Ms. Cheng has served as an independent non-executive director of China Resources Beverage (Holdings) Company Limited since October 2024. Ms. Cheng is a member of American Institute of Certified Public Accountants. She holds a bachelor degree in business administration from The University of Hong Kong. Major Estimate Revision • Apr 07
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥184.9b to CN¥172.5b. EPS estimate also fell from CN¥1.87 per share to CN¥1.68 per share. Net income forecast to grow 27% next year vs 22% growth forecast for Specialty Retail industry in Hong Kong. Consensus price target broadly unchanged at HK$18.35. Share price fell 19% to HK$11.06 over the past week. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to HK$11.06, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 10x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 76% over the past three years. Declared Dividend • Mar 31
Dividend of HK$0.68 announced Shareholders will receive a dividend of HK$0.68. Ex-date: 25th June 2025 Payment date: 11th July 2025 Dividend yield will be 5.0%, which is lower than the industry average of 5.5%. Sustainability & Growth Dividend is well covered by both earnings (47% earnings payout ratio) and cash flows (44% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 53% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 30
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: CN¥1.35 (down from CN¥2.09 in FY 2023). Revenue: CN¥168.1b (down 6.2% from FY 2023). Net income: CN¥3.21b (down 36% from FY 2023). Profit margin: 1.9% (down from 2.8% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) exceeded analyst estimates by 4.1%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 32% per year whereas the company’s share price has fallen by 36% per year. Announcement • Mar 18
Zhongsheng Group Holdings Limited to Report Fiscal Year 2024 Results on Mar 28, 2025 Zhongsheng Group Holdings Limited announced that they will report fiscal year 2024 results on Mar 28, 2025 New Risk • Nov 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (13% average weekly change). Profit margins are more than 30% lower than last year (2.0% net profit margin). Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to HK$15.60, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 74% over the past three years. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$12.38, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 9x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 80% over the past three years. Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to HK$11.08, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 9x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 80% over the past three years. Buy Or Sell Opportunity • Sep 10
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 32% to HK$8.76. The fair value is estimated to be HK$10.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 22%. For the next 3 years, revenue is forecast to decline by 1.9% per annum. Earnings are forecast to grow by 12% per annum over the same time period. Major Estimate Revision • Sep 06
Consensus EPS estimates fall by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥179.1b to CN¥174.4b. EPS estimate also fell from CN¥2.12 per share to CN¥1.55 per share. Net income forecast to grow 12% next year vs 13% growth forecast for Specialty Retail industry in Hong Kong. Consensus price target down from HK$18.07 to HK$14.47. Share price rose 3.5% to HK$9.26 over the past week. Reported Earnings • Aug 31
First half 2024 earnings released: EPS: CN¥0.66 (vs CN¥1.25 in 1H 2023) First half 2024 results: EPS: CN¥0.66 (down from CN¥1.25 in 1H 2023). Revenue: CN¥82.4b (flat on 1H 2023). Net income: CN¥1.58b (down 48% from 1H 2023). Profit margin: 1.9% (down from 3.7% in 1H 2023). Revenue is forecast to stay flat during the next 3 years compared to a 9.6% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has fallen by 48% per year, which means it is performing significantly worse than earnings. Announcement • Aug 20
Zhongsheng Group Holdings Limited to Report First Half, 2024 Results on Aug 30, 2024 Zhongsheng Group Holdings Limited announced that they will report first half, 2024 results on Aug 30, 2024 Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$10.96, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 7x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 82% over the past three years. Announcement • Jul 22
Zhongsheng Group Holdings Limited (SEHK:881) agreed to acquire Suzhou Sunfonda Toyota Automobile Sales Services Co., Ltd. from Shaanxi Sunfonda Automobile Co Ltd. and Shaanxi Sunfonda Automobile Technology Development Co., Ltd. for CNY 18 million. Zhongsheng Group Holdings Limited (SEHK:881) agreed to acquire Suzhou Sunfonda Toyota Automobile Sales Services Co., Ltd. from Shaanxi Sunfonda Automobile Co Ltd. and Shaanxi Sunfonda Automobile Technology Development Co., Ltd. for CNY 18 million on July 20, 2024. A cash consideration of CNY 16 million will be paid by Zhongsheng Group Holdings Limited. Zhongsheng Group Holdings Limited will pay an earnout/contingent payment of CNY 2 million cash. As part of consideration, CNY 18 million is paid towards common equity of Suzhou Sunfonda Toyota Automobile Sales Services Co., Ltd.
As of June 30, 2024, Suzhou Sunfonda Toyota Automobile Sales Services Co., Ltd. reported total assets of CNY 68.5 million and total common equity of CNY 18.15 million.
The expected completion of the transaction is July 21, 2024 to August 31, 2024. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$12.72, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 7x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 81% over the past three years. Announcement • Jun 23
Zhongsheng Group Holdings Limited Approves Final Dividend for the Year Ended 31 December 2023, to Be Distributed on 12 July 2024 Zhongsheng Group Holdings Limited at its annual general meeting held on June 21, 2024, approved the final dividend of HKD 0.797 per share for the year ended 31 December 2023. The Company will distribute a final dividend of to Shareholders whose names are listed in the register of members of the Company on 3 July 2024. For determining the entitlement to the final dividend, the register of members of the Company will be closed from 28 June 2024 to 3 July 2024, both days inclusive, and the final dividend will be distributed on 12 July 2024. Upcoming Dividend • Jun 19
Upcoming dividend of HK$0.80 per share Eligible shareholders must have bought the stock before 26 June 2024. Payment date: 12 July 2024. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 6.1%. Lower than top quartile of Hong Kong dividend payers (7.8%). In line with average of industry peers (5.6%). Reported Earnings • Apr 30
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥2.09 (down from CN¥2.77 in FY 2022). Revenue: CN¥179.3b (flat on FY 2022). Net income: CN¥5.02b (down 25% from FY 2022). Profit margin: 2.8% (down from 3.7% in FY 2022). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 4.0%. Revenue is forecast to stay flat during the next 3 years compared to a 10% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 37% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$12.86, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 7x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 75% over the past three years. Declared Dividend • Mar 29
Dividend of HK$0.80 announced Shareholders will receive a dividend of HK$0.80. Ex-date: 26th June 2024 Payment date: 12th July 2024 Dividend yield will be 5.9%, which is higher than the industry average of 5.5%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (37% cash payout ratio). The dividend has increased by an average of 25% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 18% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 28
Zhongsheng Group Holdings Limited, Annual General Meeting, Jun 21, 2024 Zhongsheng Group Holdings Limited, Annual General Meeting, Jun 21, 2024. Agenda: To consider the distribution of a final dividend of HKD 0.797 per Share for the year ended 31 December 2023. Reported Earnings • Mar 28
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥2.09 (down from CN¥2.77 in FY 2022). Revenue: CN¥179.3b (flat on FY 2022). Net income: CN¥5.02b (down 25% from FY 2022). Profit margin: 2.8% (down from 3.7% in FY 2022). Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) missed analyst estimates by 4.3%. Revenue is forecast to stay flat during the next 3 years compared to a 11% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 38% per year, which means it is performing significantly worse than earnings. Announcement • Mar 28
Zhongsheng Group Holdings Limited Proposes Final Dividend for the Year Ended 31 December 2023, Payable on 12 July 2024 Zhongsheng Group Holdings Limited Proposed the Final Dividend of HKD 0.797 per share for the Year Ended 31 December 2023, payable on 12 July 2024. Ex-dividend date is on 26 June 2024 with Record date on 03 July 2024. Date of shareholders' approval is on 21 June 2024. Announcement • Mar 16
Zhongsheng Group Holdings Limited to Report Fiscal Year 2023 Results on Mar 27, 2024 Zhongsheng Group Holdings Limited announced that they will report fiscal year 2023 results on Mar 27, 2024 Major Estimate Revision • Jan 30
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from CN¥2.62 to CN¥2.31 per share. Revenue forecast steady at CN¥177.4b. Net income forecast to shrink 3.8% next year vs 27% growth forecast for Specialty Retail industry in Hong Kong . Consensus price target down from HK$32.49 to HK$25.71. Share price fell 5.1% to HK$13.82 over the past week. Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$18.68, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 10x in the Specialty Retail industry in Hong Kong. Total loss to shareholders of 64% over the past three years. Major Estimate Revision • Sep 02
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥192.7b to CN¥183.6b. EPS estimate also fell from CN¥3.03 per share to CN¥2.71 per share. Net income forecast to grow 12% next year vs 35% growth forecast for Specialty Retail industry in Hong Kong. Consensus price target down from HK$42.26 to HK$36.90. Share price was steady at HK$23.90 over the past week. Reported Earnings • Aug 24
First half 2023 earnings released: EPS: CN¥1.25 (vs CN¥1.42 in 1H 2022) First half 2023 results: EPS: CN¥1.25 (down from CN¥1.42 in 1H 2022). Revenue: CN¥81.9b (down 4.8% from 1H 2022). Net income: CN¥3.01b (down 12% from 1H 2022). Profit margin: 3.7% (down from 4.0% in 1H 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Specialty Retail industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Announcement • Aug 12
Zhongsheng Group Holdings Limited to Report First Half, 2023 Results on Aug 23, 2023 Zhongsheng Group Holdings Limited announced that they will report first half, 2023 results on Aug 23, 2023 Recent Insider Transactions • Jul 23
Co-Founder & Chairman recently bought HK$21m worth of stock On the 19th of July, Yi Huang bought around 800k shares on-market at roughly HK$26.63 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth HK$48m. Yi has been a buyer over the last 12 months, purchasing a net total of HK$31m worth in shares. Announcement • Jun 21
Zhongsheng Group Holdings Limited Approves Final Dividend for the Year Ended 31 December 2022, Payable on July 14, 2023 Zhongsheng Group Holdings Limited announced at the AGM held on June 19, 2023 that the company approved to declare a final dividend of HKD 1.09 per share for the year ended 31 December 2022 to Shareholders whose names are listed in the register of members of the Company on 29 June 2023. For determining the entitlement to the final dividend, the register of members of the Company will be closed from 27 June 2023 to 29 June 2023, both days inclusive, and the final dividend will be distributed on 14 July 2022. Upcoming Dividend • Jun 16
Upcoming dividend of HK$1.09 per share at 3.2% yield Eligible shareholders must have bought the stock before 23 June 2023. Payment date: 14 July 2023. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Hong Kong dividend payers (7.8%). Lower than average of industry peers (3.7%). Recent Insider Transactions • Jun 04
Co-Founder recently bought HK$48m worth of stock On the 29th of May, Guoqiang Li bought around 2m shares on-market at roughly HK$27.05 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Guoqiang's only on-market trade for the last 12 months. Reported Earnings • Mar 24
Full year 2022 earnings: Revenues miss analyst expectations Full year 2022 results: Revenue: CN¥179.9b (up 2.7% from FY 2021). Net income: CN¥6.67b (down 20% from FY 2021). Profit margin: 3.7% (down from 4.8% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.3%. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Specialty Retail industry in Hong Kong. Announcement • Feb 01
Zhongsheng Group Holdings Limited Appoints Daniel Zheng Zhou as Chief Strategy Officer, Effective February 1, 2023 The board of directors of Zhongsheng Group Holdings Limited announced that Mr. Daniel Zheng Zhou (Mr. Zhou') has been appointed as the chief strategy officer of the Company with effect from 1 February 2023. Mr. Zhou is responsible for the strategic and financial planning and control, as well as capital markets related matters (including investor relations and public relations), of the Company. Mr. Zhou has extensive experience in corporate finance and capital markets. Prior to joining the Company, Mr. Zhou had served as the chief financial officer of Minovate Inc., and the chief financial officer of VCREDIT Holdings Limited. He had also previously worked at various global financial institutions, including Credit Suisse, Goldman Sachs and Blackstone. Mr. Zhou obtained a bachelor degree in business administration (finance) from The Hong Kong University of Science and Technology and a master degree in business administration from the Sloan School of Management of the Massachusetts Institute of Technology. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improved over the past week After last week's 17% share price gain to HK$46.75, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Specialty Retail industry in Hong Kong. Total returns to shareholders of 52% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$77.64 per share. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improved over the past week After last week's 18% share price gain to HK$41.95, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 10x in the Specialty Retail industry in Hong Kong. Total returns to shareholders of 50% over the past three years. 
