New Risk • May 13
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.6% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 4 highly experienced directors. Non-Employee Supervisor Huineng Wang was the last director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Buy Or Sell Opportunity • Apr 28
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to CN¥34.40. The fair value is estimated to be CN¥43.83, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.5% over the last 3 years, while earnings per share has been flat. Reported Earnings • Apr 24
Full year 2025 earnings released: EPS: CN¥0.92 (vs CN¥0.79 in FY 2024) Full year 2025 results: EPS: CN¥0.92 (up from CN¥0.79 in FY 2024). Revenue: CN¥2.13b (up 7.1% from FY 2024). Net income: CN¥214.7m (up 17% from FY 2024). Profit margin: 10% (in line with FY 2024). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Aankondiging • Apr 23
Zkteco Co., Ltd., Annual General Meeting, May 15, 2026 Zkteco Co., Ltd., Annual General Meeting, May 15, 2026, at 14:00 China Standard Time. Location: No. 32, Pingshan Gongye Avenue, Tangxia Town, Dongguan, Guangdong China Aankondiging • Apr 02
Zkteco Co., Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Zkteco Co., Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥32.50, the stock trades at a trailing P/E ratio of 39.9x. Average trailing P/E is 58x in the Electronic industry in China. Total returns to shareholders of 1.9% over the past three years. New Risk • Jan 05
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 Chinese stocks, typically moving 7.8% 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. This is currently the only risk that has been identified for the company. Aankondiging • Dec 31
Zkteco Co., Ltd. to Report Fiscal Year 2025 Results on Apr 23, 2026 Zkteco Co., Ltd. announced that they will report fiscal year 2025 results on Apr 23, 2026 Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥33.06, the stock trades at a trailing P/E ratio of 40.6x. Average trailing P/E is 57x in the Electronic industry in China. Total returns to shareholders of 61% over the past three years. Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.15 (vs CN¥0.18 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.15 (down from CN¥0.18 in 3Q 2024). Revenue: CN¥472.0m (down 7.0% from 3Q 2024). Net income: CN¥35.0m (down 17% from 3Q 2024). Profit margin: 7.4% (down from 8.3% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Aankondiging • Sep 30
Zkteco Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Zkteco Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 New Risk • Aug 28
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 Chinese stocks, typically moving 7.0% 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 Dividend is not well covered by cash flows (105% cash payout ratio). Share price has been volatile over the past 3 months (7.0% average weekly change). Valuation Update With 7 Day Price Move • Aug 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥35.85, the stock trades at a trailing P/E ratio of 44.8x. Average trailing P/E is 62x in the Electronic industry in China. Total returns to shareholders of 54% over the past three years. Aankondiging • Jul 02
Zkteco Co., Ltd. to Report First Half, 2025 Results on Aug 27, 2025 Zkteco Co., Ltd. announced that they will report first half, 2025 results on Aug 27, 2025 New Risk • Jun 17
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 Chinese stocks, typically moving 8.5% 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 Dividend is not well covered by cash flows (105% cash payout ratio). Share price has been volatile over the past 3 months (8.5% average weekly change). Declared Dividend • May 29
Dividend increased to CN¥0.50 Dividend of CN¥0.50 is 11% higher than last year. Ex-date: 4th June 2025 Payment date: 4th June 2025 Dividend yield will be 1.7%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (52% earnings payout ratio) but not covered by cash flows (105% cash payout ratio). The dividend has increased by an average of 36% per year over the past 2 years and payments have been stable during that time. The company's earnings per share (EPS) would need to decline by 42% to shift the payout ratio to a potentially unsustainable range, which is more than the 6.6% EPS decline seen over the last 5 years. Buy Or Sell Opportunity • May 07
Now 26% overvalued after recent price rise Over the last 90 days, the stock has risen 6.1% to CN¥30.24. The fair value is estimated to be CN¥23.98, however this is not to be taken as a sell 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 11%. Aankondiging • Apr 25
Zkteco Co., Ltd. Proposes Final Cash Dividend for the Year 2024 Zkteco Co., Ltd. announced on 23 April 2025 the profit distribution proposal for the year 2024 as final cash dividend/10 shares (tax included) of CNY 5.00000000. Reported Earnings • Apr 24
Full year 2024 earnings released: EPS: CN¥0.95 (vs CN¥0.92 in FY 2023) Full year 2024 results: EPS: CN¥0.95 (up from CN¥0.92 in FY 2023). Revenue: CN¥1.99b (up 1.1% from FY 2023). Net income: CN¥183.0m (up 3.3% from FY 2023). Profit margin: 9.2% (up from 9.0% in FY 2023). Aankondiging • Apr 23
Zkteco Co., Ltd., Annual General Meeting, May 15, 2025 Zkteco Co., Ltd., Annual General Meeting, May 15, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Dongguan, Guangdong China New Risk • Apr 07
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 Chinese stocks, typically moving 8.0% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.0% average weekly change). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥21.99, the stock trades at a trailing P/E ratio of 26.8x. Average trailing P/E is 48x in the Electronic industry in China. Total loss to shareholders of 11% over the past year. Aankondiging • Mar 31
Zkteco Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Zkteco Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Aankondiging • Dec 31
Zkteco Co., Ltd. to Report Fiscal Year 2024 Results on Apr 23, 2025 Zkteco Co., Ltd. announced that they will report fiscal year 2024 results on Apr 23, 2025 Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.22 (vs CN¥0.26 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.22 (down from CN¥0.26 in 3Q 2023). Revenue: CN¥507.8m (up 1.0% from 3Q 2023). Net income: CN¥42.0m (down 16% from 3Q 2023). Profit margin: 8.3% (down from 9.9% in 3Q 2023). Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥25.86, the stock trades at a trailing P/E ratio of 29.8x. Average trailing P/E is 41x in the Electronic industry in China. Total loss to shareholders of 19% over the past year. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥27.20, the stock trades at a trailing P/E ratio of 31.3x. Average trailing P/E is 38x in the Electronic industry in China. Total loss to shareholders of 17% over the past year. Aankondiging • Sep 30
Zkteco Co., Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Zkteco Co., Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.27 (vs CN¥0.30 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.27 (down from CN¥0.30 in 2Q 2023). Revenue: CN¥503.4m (down 5.8% from 2Q 2023). Net income: CN¥52.3m (down 8.3% from 2Q 2023). Profit margin: 10% (in line with 2Q 2023). Aankondiging • Jun 29
Zkteco Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Zkteco Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Declared Dividend • May 24
Dividend of CN¥0.45 announced Shareholders will receive a dividend of CN¥0.45. Ex-date: 29th May 2024 Payment date: 29th May 2024 Dividend yield will be 1.9%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (50% earnings payout ratio) but not covered by cash flows (dividend approximately 33x free cash flows). The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. The company's earnings per share (EPS) would need to decline by 44% to shift the payout ratio to a potentially unsustainable range, which is more than the 2.0% EPS decline seen over the last 5 years. Aankondiging • Apr 24
Zkteco Co., Ltd., Annual General Meeting, May 15, 2024 Zkteco Co., Ltd., Annual General Meeting, May 15, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Dongguan, Guangdong China Reported Earnings • Apr 24
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CN¥0.92 (down from CN¥1.16 in FY 2022). Revenue: CN¥1.97b (up 2.7% from FY 2022). Net income: CN¥177.3m (down 7.8% from FY 2022). Profit margin: 9.0% (down from 10.0% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.2%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in China. Aankondiging • Mar 30
Zkteco Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Zkteco Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 New Risk • Feb 05
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 Chinese stocks, typically moving 6.8% 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 Short dividend paying track record (1 year of continuous dividend payments). Share price has been volatile over the past 3 months (6.8% average weekly change). Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥22.35, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 17x in the Electronic industry in China. Total loss to shareholders of 23% over the past year. Aankondiging • Dec 30
Zkteco Co., Ltd. to Report Fiscal Year 2023 Results on Apr 24, 2024 Zkteco Co., Ltd. announced that they will report fiscal year 2023 results on Apr 24, 2024 Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥36.10, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 23x in the Electronic industry in China. Total returns to shareholders of 30% over the past year. Reported Earnings • Oct 27
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: CN¥0.26 (down from CN¥0.40 in 3Q 2022). Revenue: CN¥502.8m (up 5.1% from 3Q 2022). Net income: CN¥49.9m (down 22% from 3Q 2022). Profit margin: 9.9% (down from 13% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 8.0%. Earnings per share (EPS) also missed analyst estimates by 37%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Aankondiging • Sep 30
Zkteco Co., Ltd. to Report Q3, 2023 Results on Oct 27, 2023 Zkteco Co., Ltd. announced that they will report Q3, 2023 results on Oct 27, 2023 Price Target Changed • Sep 01
Price target increased by 9.8% to CN¥38.00 Up from CN¥34.62, the current price target is provided by 1 analyst. New target price is 14% above last closing price of CN¥33.33. Stock is up 12% over the past year. The company is forecast to post earnings per share of CN¥1.15 for next year compared to CN¥1.16 last year. Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.30 (vs CN¥0.28 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.30 (up from CN¥0.28 in 2Q 2022). Revenue: CN¥534.2m (up 8.4% from 2Q 2022). Net income: CN¥57.1m (up 39% from 2Q 2022). Profit margin: 11% (up from 8.3% in 2Q 2022). The increase in margin was driven by higher revenue. Aankondiging • May 23
Zkteco Co., Ltd. Approves Cash Dividend for the Year 2022 Zkteco Co., Ltd. held its Annual General Meeting of 2022 on 19 May 2023, during which it approved cash dividend of CNY 3.50000000 per ten shares (tax included) for the year 2022. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥51.47, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 23x in the Electronic industry in China. Reported Earnings • Apr 28
Full year 2022 earnings released: EPS: CN¥1.50 (vs CN¥1.53 in FY 2021) Full year 2022 results: EPS: CN¥1.50. Revenue: CN¥1.92b (down 1.9% from FY 2021). Net income: CN¥192.2m (up 13% from FY 2021). Profit margin: 10.0% (up from 8.7% in FY 2021). The increase in margin was driven by lower expenses. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electronic industry in China. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥39.20, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 22x in the Electronic industry in China. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥45.90, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 27x in the Electronic industry in China. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥46.59, the stock trades at a trailing P/E ratio of 39.1x. Average trailing P/E is 39x in the Electronic industry in China. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥42.09, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 25x in the Electronic industry in China. Reported Earnings • Oct 28
Third quarter 2022 earnings released Third quarter 2022 results: EPS: CN¥0.52. Net income: CN¥63.9m (up CN¥63.9m from 3Q 2021). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Reported Earnings • Aug 17
First quarter 2022 earnings released: EPS: CN¥0.26 (vs CN¥0.17 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.26 (up from CN¥0.17 in 1Q 2021). Revenue: CN¥432.4m (up 1.4% from 1Q 2021). Net income: CN¥29.3m (up 51% from 1Q 2021). Profit margin: 6.8% (up from 4.5% in 1Q 2021). The increase in margin was primarily driven by higher revenue.