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Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H (HK:0564)
:0564
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Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H (0564) AI Stock Analysis

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HK:0564

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H

(0564)

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Neutral 67 (OpenAI - Gpt-5.6Sol)
Rating:67Neutral
Price Target:
HK$13.50
â–Ľ(-35.41% Downside)
Action:Downgraded
Date:09/06/26
The score is driven primarily by solid fundamentals (strong revenue growth and still-positive margins) but held back by weaker cash conversion and higher leverage. Technicals are a meaningful drag given the clear downtrend and bearish momentum signals. Valuation is a major positive, supported by a low P/E and high dividend yield.
Positive Factors
Strong revenue growth
Revenue growth of about 20% indicates strong demand and expanding business activity. Sustained top-line scale can support operating leverage, strengthen customer relationships, and provide a broader base for future equipment sales and lifecycle-service revenue.
Negative Factors
Margin compression
Falling margins indicate that strong revenue growth is not translating fully into earnings, potentially reflecting higher costs or pricing pressure. If sustained, compression would reduce reinvestment capacity and weaken the profitability of future sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Revenue growth of about 20% indicates strong demand and expanding business activity. Sustained top-line scale can support operating leverage, strengthen customer relationships, and provide a broader base for future equipment sales and lifecycle-service revenue.
Read all positive factors

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H (0564) vs. iShares MSCI Hong Kong ETF (EWH)

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description
ZCZL Industrial Technology Group Co., Ltd. engages in the manufacturing of comprehensive coal mining and excavating equipment. It operates through Manufacture of Coal Mining Machinery and Manufacture of Auto Parts segments. The company was founded...
How the Company Makes Money
The company makes money mainly by selling coal mining equipment and providing lifecycle services tied to that equipment. (1) Equipment sales: Revenue is generated from manufacturing and selling core products used in underground coal extraction, in...

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Financial Statement Overview

Summary
Strong top-line momentum (TTM revenue up ~20%) and still-solid profitability (TTM gross margin ~21%, net margin ~8%). Offsetting this, margins have compressed versus 2024–2025, leverage has risen meaningfully (debt-to-equity ~0.50 vs ~0.22 in 2025), and free cash flow is thin with weak conversion (TTM FCF ~0.66B, ~-45% growth and <50% of earnings).
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
56
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue49.54B41.39B37.05B36.42B32.04B29.29B
Gross Profit10.15B9.40B8.91B7.99B6.63B6.41B
EBITDA5.46B6.58B6.60B5.53B4.30B3.94B
Net Income4.27B4.29B3.93B3.27B2.54B1.95B
Balance Sheet
Total Assets51.51B51.34B48.57B49.17B44.30B36.65B
Cash, Cash Equivalents and Short-Term Investments8.88B9.52B10.67B12.19B10.56B7.28B
Total Debt11.93B5.38B5.09B8.03B8.97B7.05B
Total Liabilities27.05B26.43B25.82B27.29B25.66B21.00B
Stockholders Equity23.68B24.19B21.95B20.38B17.81B14.80B
Cash Flow
Free Cash Flow656.17M848.95M1.97B1.97B1.14B2.08B
Operating Cash Flow3.27B2.40B3.94B3.06B2.26B2.96B
Investing Cash Flow1.90B904.87M-634.54M-1.31B-3.53B-1.56B
Financing Cash Flow-3.83B-2.90B-4.78B-946.63M1.63B-877.39M

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.90
Price Trends
50DMA
13.52
Negative
100DMA
14.51
Negative
200DMA
16.85
Negative
Market Momentum
MACD
-0.41
Positive
RSI
31.09
Neutral
STOCH
14.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0564, the sentiment is Negative. The current price of 20.9 is above the 20-day moving average (MA) of 13.23, above the 50-day MA of 13.52, and above the 200-day MA of 16.85, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 14.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0564.

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$4.57B3.9213.84%6.99%8.69%2.14%
67
Neutral
HK$28.09B7.6314.08%11.08%8.98%-17.09%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
55
Neutral
HK$285.93M11.051.21%4.35%-48.58%-29.93%
54
Neutral
HK$17.65B11.077.18%3.28%0.22%-23.29%
54
Neutral
HK$2.01B8.373.21%18.52%4.91%-22.68%
46
Neutral
HK$5.46B-87.72-5.52%5.59%-2.65%69.13%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0564
Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H
12.93
-5.22
-28.77%
HK:0179
Johnson Electric Holdings
18.58
-11.10
-37.39%
HK:2339
BeijingWest International
4.07
3.56
698.04%
HK:1899
Xingda International Holdings
1.05
>-0.01
-0.10%
HK:1148
Xinchen China Power Holdings Ltd.
0.22
-0.02
-8.05%
HK:1809
Prinx Chengshan Holdings Limited
7.15
0.51
7.60%

Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H Corporate Events

ZCZL Industrial Technology Group Publishes Unaudited Interim Results for First Half of 2026
Aug 30, 2026
ZCZL Industrial Technology Group Company Limited has announced its unaudited interim results for the six months ended 30 June 2026, with the board confirming that the figures comply with Hong Kong Stock Exchange listing requirements. The interim r...
ZCZL Industrial Technology Secures Shareholders’ Backing for A Share Buyback Plan
Aug 25, 2026
ZCZL Industrial Technology Group Company Limited held its third extraordinary general meeting of 2026, along with separate A share and H share class meetings, on 25 August in Zhengzhou. Shareholders representing about 40.7% of the company&#8217;s ...
ZCZL Industrial Technology Group Sets Late-August Board Meeting on Interim Results and Dividend
Aug 18, 2026
ZCZL Industrial Technology Group Company Limited has scheduled a board meeting for 28 August 2026 at its convention centre in the Zhengzhou section of the China (He&#8217;nan) Pilot Free Trade Zone. The company, incorporated in the PRC and listed ...
ZCZL Industrial Technology Group Calls EGM to Approve A-Share Buyback Plan
Aug 5, 2026
ZCZL Industrial Technology Group Company Limited has convened its third extraordinary general meeting of 2026 to be held on August 25 in Zhengzhou, PRC. The Hong Kong-listed industrial technology group manages both A and H shares and operates with...
ZCZL Industrial Technology Group Calls H Share Meeting on A Share Repurchase Plan
Aug 5, 2026
ZCZL Industrial Technology Group Company Limited has called its third H share class meeting of 2026 for August 25 in Zhengzhou, with shareholders asked to vote on a special resolution authorizing the repurchase of A shares via centralized bidding....
ZCZL Industrial Technology Group Plans Up to RMB400 Million A-Share Buyback
Jul 31, 2026
ZCZL Industrial Technology Group Company Limited has approved a proposal to repurchase part of its issued A shares through centralized bidding on the Shanghai Stock Exchange, using between RMB300 million and RMB400 million of its own or self-raise...
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.Date of analysis: Sep 06, 2026