Breaking Down Zbom Home Collection Co.,Ltd Financial Health: Key Insights for Investors

Investors scrutinizing Zbom Home Collection Co., Ltd. (603801.SS) will find a mixed financial picture: 2024 revenue fell to 5.26 billion CNY (down 14.04% from 6.12 billion CNY) and TTM revenue as of Sept 30, 2025 is 4.66 billion CNY (a 20.58% YoY decline), while market capitalization sits at 3.93 billion CNY with a P/S of 0.86; profitability also softened-2024 net profit attributable to shareholders dropped to 385.42 million CNY (‑35.23%), net margin fell to 7.33% and ROE/ROA are 8.72%/2.48%-yet balance sheet metrics show total assets of 6.72 billion CNY against liabilities of 3.19 billion CNY, equity of 3.53 billion CNY and a conservative debt-to-equity of 0.23, supported by cash and equivalents of 1.24 billion CNY and a net cash position of 459.56 million CNY; liquidity (current ratio 1.26, quick ratio 1.03), interest coverage of 12.71 and debt/EBITDA of 1.84 temper risk even as Altman Z‑Score (2.46) and Piotroski F‑Score (5) signal moderate distress and average fundamentals, while valuation multiples (P/E 13.43, forward P/E 10.84, EV/EBITDA 8.44), a high payout ratio of 96.80% delivering a 6.34% dividend yield, and strategic moves into Southeast Asian franchises and whole‑house offerings frame the tradeoffs between income, leverage, and growth opportunities

Zbom Home Collection Co.,Ltd (603801.SS) Revenue Analysis

Zbom Home Collection Co.,Ltd (603801.SS) reported full-year revenue of 5.26 billion CNY in 2024, down 14.04% from 6.12 billion CNY in 2023. The company continued to face top-line pressure into 2025: trailing twelve months (TTM) revenue as of September 30, 2025, stood at 4.66 billion CNY, a 20.58% year-over-year decline. Management cited intensified competition and a complex external environment as primary drivers of the revenue contraction.

• 2024 revenue: 5.26 billion CNY (-14.04% vs. 2023)
• TTM revenue (to 2025-09-30): 4.66 billion CNY (-20.58% YoY)
• Q1 2025 operating revenue: 817.58 million CNY (-0.30% YoY)

Key revenue dynamics to monitor:

• Competitive pressure compressing volumes and/or pricing across core product lines.
• External macro and supply-chain complexity affecting order cadence and fulfillment.
• Efficiency metrics: revenue per employee (~985k CNY) implies operational leverage if headcount stabilizes while sales recover.

For additional investor context and shareholder activity, see: Exploring Zbom Home Collection Co.,Ltd Investor Profile: Who's Buying and Why?

Zbom Home Collection Co.,Ltd (603801.SS) Profitability Metrics

• Net profit attributable to shareholders (2024): 385.42 million CNY (-35.23% vs. 2023)
• Net profit attributable to shareholders (2023): 595.07 million CNY
• Net profit margin (2024): 7.33% (2023: 9.73%)
• Gross margin (2024): 34.36%
• Operating margin (2024): 5.43%
• Profit margin (2024): 6.28%
• Return on equity (ROE): 8.72%
• Return on assets (ROA): 2.48%
• Q1 2025 net profit attributable to shareholders: 42.08 million CNY (-10.90% y/y)

Zbom Home Collection Co.,Ltd (603801.SS) - Debt vs. Equity Structure

• Total assets: 6.72 billion CNY
• Total liabilities: 3.19 billion CNY
• Equity attributable to shareholders: 3.53 billion CNY
• Net cash position: 459.56 million CNY

• Capital structure: With liabilities of 3.19 billion CNY against shareholder equity of 3.53 billion CNY, the debt-to-equity ratio of 0.23 indicates a low reliance on debt financing relative to equity.
• Short-term liquidity: Current ratio 1.26 and quick ratio 1.03 signal adequate ability to meet near-term obligations without stress.
• Interest burden: An interest coverage ratio of 12.71 shows operating earnings cover interest expense by a comfortable margin, reducing refinancing risk.
• Leverage context: Debt-to-EBITDA at 1.84 denotes moderate leverage - manageable but worth monitoring if EBITDA trends downward.
• Cash flexibility: The net cash position of 459.56 million CNY provides a buffer for capital expenditures, working capital needs, or opportunistic investments.

Zbom Home Collection Co.,Ltd (603801.SS) - Liquidity and Solvency

Zbom Home Collection Co.,Ltd (603801.SS) presents a mixed liquidity and solvency profile: a comfortable cash buffer, positive operating cash conversion, but middling credit-safety metrics. Below are the key figures and what they imply for short-term coverage and longer-term solvency.

• Cash and cash equivalents: 1.24 billion CNY
• Net cash position: 459.56 million CNY (cash less interest-bearing debt)
• Operating cash flow (last 12 months): 331.34 million CNY
• Capital expenditures (last 12 months): 206 million CNY
• Free cash flow (last 12 months): 125.34 million CNY
• Current ratio: 1.26
• Quick ratio: 1.03
• Altman Z-Score: 2.46 (moderate bankruptcy risk)
• Piotroski F-Score: 5 (average financial health)
• Net cash flow from operating activities YoY change (Q1 2025): +15.44%

Key liquidity ratios indicate the company can cover near-term obligations but with limited excess cushion. The cash stockpile of 1.24 billion CNY combined with a net cash position of 459.56 million CNY reduces refinancing pressure, while free cash flow generation of 125.34 million CNY shows positive internal funding for growth and debt service.

Consider monitoring working capital trends and debt maturities relative to the 1.24 billion CNY cash buffer; the Altman Z-Score of 2.46 and Piotroski F-Score of 5 suggest vigilance on profitability and balance-sheet quality despite positive free cash flow. For broader investor context, see: Exploring Zbom Home Collection Co.,Ltd Investor Profile: Who's Buying and Why?

Zbom Home Collection Co.,Ltd (603801.SS) - Valuation Analysis

Zbom Home Collection's market pricing and payout behavior offer a mixed picture for investors seeking income or value exposure. The headline multiples and cash-return metrics below provide a snapshot of how the market currently values the company's earnings, cash flow and dividend policy.

• Trailing P/E: 13.43 - indicates the stock trades at a moderate multiple of last 12 months' earnings.
• Forward P/E: 10.84 - suggests consensus analyst estimates point to earnings growth or improved near-term valuation.
• EV/EBITDA: 8.44 - implies enterprise value is about 8.4× operating EBITDA, a level often viewed as reasonable for a stable, mid-cap industrial/consumer business.
• EV/FCF: 28.71 - a higher multiple of free cash flow, indicating cash generation is valued more richly relative to EBITDA.
• Dividend per share: 0.60 CNY - provides direct cash return to shareholders.
• Dividend yield: ~6.34% - attractive yield relative to many peers and fixed income alternatives.
• Payout ratio: 96.80% - denotes almost all reported earnings are being distributed as dividends, leaving little retained for reinvestment.
• Beta: 0.62 - stock volatility is meaningfully lower than the market, implying defensive characteristics or lower sensitivity to market swings.

Key considerations for investors:

• Income seekers will find the ~6.34% yield attractive, but the near-100% payout ratio raises questions about dividend durability in a downturn or if earnings decline.
• The difference between EV/EBITDA (8.44) and EV/FCF (28.71) suggests caution: operating earnings are reasonably priced, but free cash conversion or one-off cash items reduce the apparent cash yield.
• Lower beta (0.62) may appeal to risk-averse investors seeking lower volatility exposure within the sector.
• Forward P/E (10.84) implies expected earnings improvement-monitor upcoming earnings releases and guidance to validate that expectation.

For context on corporate direction and strategic priorities that could affect valuation, see: Mission Statement, Vision, & Core Values (2026) of Zbom Home Collection Co.,Ltd.

Zbom Home Collection Co.,Ltd (603801.SS) - Risk Factors

• Intensified competition in the home furnishings industry: rising domestic rivals, low-cost imports, and e-commerce players eroding pricing power and market share.
• Complex and volatile external environment: supply-chain disruptions, raw-material cost swings, and fluctuating consumer demand increase earnings volatility.
• Moderate bankruptcy risk: Altman Z-Score = 2.46, signaling neither safety nor imminent distress but a vulnerability to adverse shocks.
• Average fundamental health: Piotroski F‑Score = 5, indicating mixed signals across profitability, leverage/liquidity, and operating efficiency.
• Profitability deterioration in 2024: key margins and returns declined, raising questions about operational efficiency and cost control.
• High shareholder cash distribution: payout ratio ≈ 96.80%, which may constrain reinvestment for growth, capex, and deleveraging.

• Operational efficiency risks: falling margins and ROE suggest rising costs or margin compression; needed actions include SKU rationalization, supply-chain optimization, and pricing strategy review.
• Capital allocation constraints: near-total payout leaves little buffer for working capital, modernization, or M&A-heightening financial strain if revenue weakens further.
• Liquidity and leverage considerations: with a middling Altman score and average Piotroski, balance-sheet resilience is limited against macro shocks or aggressive competitor moves.
• Execution risk: management must reverse margin erosion while balancing shareholder expectations for dividends; failure to do so risks further rating deterioration and investor confidence loss.

Zbom Home Collection Co.,Ltd (603801.SS) - Growth Opportunities

• Regional franchise expansion: active rollout of brand retail franchise business across Southeast Asian markets - targeting multi-country presence to diversify revenue and capture fast-growing home-furnishing demand in ASEAN.
• New categories and packaging: opportunity to introduce adjacent product categories (soft furnishings, smart home integrations, modular systems) and bundled whole-house packages that increase average order value.
• Whole-house business model: integrated sales, design and installation offering enhances customer lifetime value and creates recurring service and refurbishment revenue streams.
• Supply chain & localized services: investments in localized warehousing, logistics partnerships and trained service teams reduce lead times and improve gross margins in overseas markets.
• Dividend policy and capital allocation: a dividend yield of 6.34% indicates a shareholder-friendly stance that can help attract income-focused investors while signaling confidence in cash generation.
• Cost control and efficiency: ongoing initiatives in procurement optimization, SKU rationalization and operations digitization support margin resilience even as expansion accelerates.

• Investor considerations: monitor franchise roll-out metrics (new store openings, unit-level economics), margin trends from supply-chain efficiencies, and conversion rates on whole-house packages versus single-item sales.
• Execution risks: international franchising requires strong local partners, compliance and cultural adaptation; category expansion needs inventory and channel management to avoid margin dilution.