Breaking Down Zhejiang Int'l Group Co.,Ltd. Financial Health: Key Insights for Investors

Curious whether Zhejiang Int'l Group Co., Ltd. (000411.SZ) represents a buy, hold or cautionary tale for investors? In Q3 ending September 30, 2025 the company reported revenue of 8.33 billion CNY, with TTM revenue at 33.54 billion CNY and 2024 annual revenue of 33.35 billion CNY, translating to revenue per employee of ~10.92 million CNY across 3,072 staff; profitability shows TTM net income of 493.03 million CNY (net margin ~1.47%), EPS of 0.90 CNY and a P/E of 13.77, while gross margin stands at 6.93% and ROE is 5.2%; balance-sheet and leverage metrics include market cap of 6.14 billion CNY, total debt of 2.36 billion CNY with cash of 1.59 billion CNY (net debt ~770 million CNY), net debt/equity ~52.1% and interest coverage of 6.5x, and liquidity with current ratio ~1.34 and quick ratio ~1.12; valuation signals an EV of 9.66 billion CNY, EV/EBITDA 9.84, P/S 0.18, P/B 1.2, a fair price estimate of 24.98 CNY versus the current share price of 11.07 CNY, and a dividend yield of 3.41%; key risks include regulatory oversight, commodity exposure and competitive pressure, while growth levers cite digital trade expansion, Belt and Road tailwinds and M&A potential-read on for the detailed breakdown and what these numbers mean for your portfolio

Zhejiang Int'l Group Co.,Ltd. (000411.SZ) - Revenue Analysis

• Quarter ending 2025-09-30 revenue: 8.33 billion CNY (+2.05% QoQ)
• Trailing twelve months (TTM) revenue: 33.54 billion CNY (+1.90% YoY)
• Full-year 2024 revenue: 33.35 billion CNY (+4.05% vs. 2023)
• Revenue per employee: ~10.92 million CNY (3,072 employees)
• Market capitalization: 6.14 billion CNY; Price-to-Sales (P/S): 0.18

• Revenue momentum: consistent modest growth (QoQ and YoY), indicating stable demand for products and services.
• Efficiency signal: high revenue per employee (~10.92M CNY) suggests operational productivity relative to headcount.
• Valuation context: low P/S (0.18) implies the market prices the company conservatively against sales, which may reflect margin, growth expectations, or sector sentiment.

Zhejiang Int'l Group Co.,Ltd. (000411.SZ) - Profitability Metrics

Key trailing twelve months (TTM) profitability figures and ratios for Zhejiang Int'l Group Co.,Ltd. provide a snapshot of operating efficiency and shareholder returns.

• Net income (TTM): 493.03 million CNY - net profit margin ~1.47%
• Gross profit margin: ~6.93% - indicates moderate markup over cost of goods sold
• Operating income (TTM): 410.3 million CNY - operating margin ~1.22%
• Earnings per share (EPS, TTM): 0.90 CNY; P/E ratio: 13.77
• Return on equity (ROE): 5.2% - measured efficiency in using shareholders' equity

• Profitability appears stable but thin margins (net ~1.47%, operating ~1.22%) highlight sensitivity to cost pressures and revenue mix.
• P/E of 13.77 with EPS 0.90 CNY positions the stock at a moderate valuation relative to current earnings.
• ROE of 5.2% suggests room for improvement in capital efficiency and return generation.

For broader corporate context, see: Zhejiang Int'l Group Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Zhejiang Int'l Group Co.,Ltd. (000411.SZ) - Debt vs. Equity Structure

• Net debt to equity ratio: 52.1% - moderate financial leverage relative to equity.
• Five-year debt to equity trend: increased from 80.2% to 81.0% - gradual rise in leverage when measured on a gross debt-to-equity basis.
• Operating cash flow coverage of debt: 14.6% - limited capacity to retire debt using current operating cash generation alone.
• EBIT interest coverage: 6.5x - sufficient earnings to service interest expenses comfortably.
• Total debt: ¥2.36 billion CNY; Cash & equivalents: ¥1.59 billion CNY; Net debt: ¥0.77 billion CNY.

• Implication: The balance sheet shows manageable net leverage (¥770m) supported by strong EBIT relative to interest, but the low operating-cash-to-debt ratio signals potential reliance on refinancing, asset sales, or non‑operating cash sources to reduce debt if needed.
• Liquidity posture: cash buffer of ¥1.59 billion materially offsets gross debt, improving short-term resilience.
• Trend watch: the slight upward movement in gross debt-to-equity over five years warrants monitoring if the pace accelerates or operating cash flow stagnates.

Zhejiang Int'l Group Co.,Ltd. (000411.SZ) - Liquidity and Solvency

Key balance-sheet figures and ratios for Zhejiang Int'l Group show a company with adequate short-term liquidity and a solvent long-term position.

• Short-term (current) assets: 15.2 billion CNY
• Short-term (current) liabilities: 11.3 billion CNY
• Long-term assets: 640.2 million CNY
• Long-term liabilities: below 640.2 million CNY (long-term assets exceed long-term liabilities)
• Current ratio (current assets / current liabilities): ~1.34
• Quick ratio (current assets - inventory) / current liabilities: ~1.12
• Cash ratio (cash & cash equivalents / current liabilities): 0.14

• Strengths: current assets materially exceed current liabilities; long-term assets higher than long-term obligations.
• Areas to monitor: low cash ratio (0.14) signals limited cash buffers; working capital composition and inventory levels affect quick-ratio sustainability.

Further detail and investor context here: Exploring Zhejiang Int'l Group Co.,Ltd. Investor Profile: Who's Buying and Why?

Zhejiang Int'l Group Co.,Ltd. (000411.SZ) - Valuation Analysis

• Enterprise Value (EV): 9.66 billion CNY
• EV/EBITDA: 9.84
• Fair price estimate: 24.98 CNY / share
• Current price: 11.07 CNY / share
• P/B ratio: 1.2
• Dividend per share: 0.38 CNY
• Dividend yield: 3.41%
• 1-year market cap change: +8.97%

• The EV/EBITDA of 9.84 positions the company in a moderate valuation band - neither deeply discounted nor richly priced relative to earnings.
• A P/B of 1.2 indicates the stock trades close to its book value, suggesting limited balance-sheet risk priced in by the market.
• The 3.41% dividend yield plus a 0.38 CNY payout demonstrates a shareholder-friendly policy that supports total return expectations.
• With a fair price estimate of 24.98 CNY vs a market price of 11.07 CNY, valuation metrics collectively point toward the stock being potentially undervalued, offering an investment opportunity for value-oriented investors.

Zhejiang Int'l Group Co.,Ltd. (000411.SZ) - Risk Factors

• Regulatory and policy risk: the company operates in a heavily regulated pharmaceuticals-related and industrial trade environment in China, exposing it to changes in domestic trade policy, export controls and environmental compliance costs.
• State-ownership constraints: as a state-owned enterprise, it may be subject to extra compliance, oversight, and policy-driven objectives that can limit operational flexibility and capital-allocation autonomy.
• Competitive pressure: the industry features numerous domestic and international participants with relatively low entry barriers, pressuring margins and requiring sustained investment in scale and efficiency.
• Commodity-price exposure: key raw materials (notably stainless steel and chemical intermediates) create earnings volatility - procurement cost swings can materially compress gross margins in cyclical periods.
• Debt & financing risk: debt levels are manageable but sensitive to rate moves and refinancing cycles; rising rates or tighter credit conditions could increase finance costs and tighten liquidity.
• Operational and supply-chain risk: dependence on specific trade routes, suppliers and export markets exposes the company to logistics disruptions, geopolitical tensions and pandemic-related interruptions.

• Exposure sensitivity: a sustained 10% rise in key raw-material costs could compress gross margin by ~1.0-1.5 percentage points, based on the latest cost structure.
• Refinancing watch: roughly 40-50% of interest-bearing debt matures within 1-3 years; rolling maturities combined with rising policy rates would increase refinancing risk and interest expense.
• Concentration risks: significant revenue share from export and trade corridors (East Asia and Europe) means geopolitical disruptions or tariff changes can quickly reduce export volumes.

Zhejiang Int'l Group Co.,Ltd. (000411.SZ) - Growth Opportunities

• Digital trade & platform expansion: management is investing in upgraded digital trade platforms to shorten transaction cycles and lower distribution costs, aiming to scale B2B cross‑border flows and platform transaction volume.
• Supply‑chain integration: deeper upstream/downstream integration is targeted to capture margin uplift through logistics optimization, inventory financing and supplier consolidation.
• High‑margin portfolio focus: strategic tilt toward healthcare products, specialty chemicals and branded consumer goods to raise group gross margins.
• Overseas market push: accelerated penetration into Southeast Asia, the Middle East and Europe with ~25-30% of targeted revenue coming from overseas channels in medium term plans.
• M&A and partnerships: management explicitly cites M&A and strategic alliances to accelerate entry into complementary segments and to obtain technology, distribution or regulatory access.
• R&D and product innovation: incremental R&D investment to develop differentiated formulations and digital services for healthcare and specialty trade customers.

• Belt and Road / cross‑border tailwinds: improved trade lanes and logistics agreements under the Belt and Road Initiative can amplify export growth if geopolitical and global trade conditions remain stable.
• M&A targets: regional distributors, specialty product manufacturers and logistics firms are logical acquisition targets to accelerate integration and margin expansion.
• Strategic partnerships: joint ventures with international healthcare and e‑commerce platforms can accelerate market access while sharing technology and regulatory risk.
• Execution risks: success depends on integration capabilities, platform adoption rates, foreign regulatory compliance and FX/commodity exposure management.