ZEEKR Intelligent Technology Holding Limited Sponsored ADR (ZK) AI Stock Analysis

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ZEEKR Intelligent Technology Holding Limited Sponsored ADR

(NYSE:ZK)

50Neutral

ZEEKR's overall stock score is influenced predominantly by its strong revenue growth but offset by challenges in profitability and financial stability. The positive sentiment from the earnings call and strategic initiatives are promising, yet the valuation metrics suggest caution. Technical analysis indicates short-term momentum, but potential overbought conditions warrant vigilance.

Positive Factors

Financial Performance

4Q profit surged to Rmb147mn from Rmb8mn, showcasing Zeekr's significant financial performance improvement.

Growth Strategy

Zeekr's launch strategy for new models like 007 GT and two SUVs signals strong future growth potential.

Privatization Proposal

Geely announced a proposal to privatize Zeekr, offering a premium of 13.6% to shareholders, indicating a potential positive value realization for investors.

Negative Factors

Net Loss Estimate

The 2025 net loss estimate has been widened by 41%, reflecting increased financial challenges ahead.

Profitability Concerns

The 4Q24 net loss was higher than expected due to increased operating expenses, impacting short-term profitability.

R&D Expenses

R&D expenses grew 63% quarter-over-quarter, suggesting increased spending that might affect short-term profitability.

ZEEKR Intelligent Technology Holding Limited Sponsored ADR (ZK) vs. S&P 500 (SPY)

Market Cap

$7.29B

Dividend YieldN/A

Average Volume (3M)892.12K

Price to Earnings (P/E)―

Beta (1Y)0.94

Revenue Growth45.22%

EPS Growth25.35%

CountryUS

Employees17,439

SectorGeneral

Sector StrengthN/A

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)-0.39

Shares Outstanding254,197,110

10 Day Avg. Volume1,211,085

30 Day Avg. Volume892,116

Financial Highlights & Ratios

PEG Ratio-0.24

Price to Book (P/B)-3.43

Price to Sales (P/S)0.00

P/FCF Ratio-54.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$36.00

Price Target Upside25.87% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

ZEEKR Intelligent Technology Holding Limited Sponsored ADR Business Overview & Revenue Model

Company DescriptionZEEKR Intelligent Technology Holding Limited, an investment holding company, engages in the research and development, production, commercialization, and sale of the electric vehicles and batteries. It offers battery electric passenger vehicles (BEVs) and SUVs. The company also produces and sells electric powertrain and battery packs for electric vehicles, such as motors and electric control systems; and provides automotive related research and development services. It operates in China, Europe, and internationally. The company was founded in 2017 and is based in Ningbo, China. ZEEKR Intelligent Technology Holding Limited operates as a subsidiary of Luckview Group Limited.

How the Company Makes MoneyZEEKR Intelligent Technology Holding Limited generates revenue primarily through the sale of its electric vehicles. The company designs, manufactures, and markets a variety of EV models, which are sold to consumers and businesses. Revenue is derived from direct vehicle sales, as well as through financing and leasing options offered to customers. Additionally, ZEEKR may earn income from after-sales services, which include vehicle maintenance, repairs, and the sale of spare parts. Strategic partnerships with technology firms and suppliers can also contribute to its earnings by enabling cost efficiencies and technological advancements. The company's strong focus on research and development helps in creating cutting-edge vehicles that attract a premium market segment, further boosting its revenue potential.

ZEEKR Intelligent Technology Holding Limited Sponsored ADR Financial Statement Overview

Summary

ZEEKR shows strong revenue growth, but profitability remains a concern with negative EBIT and net income margins. The balance sheet indicates financial instability due to a high debt-to-equity ratio and negative equity. However, there are improvements in cash flow management.

Income Statement

Neutral

ZEEKR shows strong revenue growth, with a 47% increase from 2023 to 2024. However, profitability is a concern, as evidenced by negative EBIT and net income margins. The net profit margin remains negative, indicating ongoing challenges in achieving profitability.

Balance Sheet

Negative

The balance sheet presents a high debt-to-equity ratio due to negative equity, highlighting financial instability. The company shows a negative equity ratio, suggesting more liabilities than assets, which is a risk factor for financial health.

Cash Flow

Neutral

Cash flow statements show positive operating cash flow and an increase in free cash flow, indicating improved cash management. However, the free cash flow to net income ratio is not favorable due to persistent net losses.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
69.32B	75.91B	51.67B	4.74B	1.01B	461.45M
	Gross Profit
10.43B	12.45B	6.85B	367.12M	160.97M	123.18M
	EBIT
-18.85B	-6.46B	-8.18B	-1.07B	-670.17M	3.49M
	EBITDA
-17.46B	-4.60B	-7.33B	-7.01B	-4.39B	13.52M
	Net Income Common Stockholders
-8.38B	-6.42B	-8.35B	-1.18B	-676.43M	15.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.79B	7.78B	3.26B	540.14M	611.60M	21.70M
	Total Assets
28.54B	32.67B	27.12B	2.80B	1.87B	1.15B
	Total Debt
11.62B	15.60B	7.98B	1.38B	260.63M	186.36M
	Net Debt
7.82B	7.81B	4.72B	838.52M	-350.98M	164.65M
	Total Liabilities
39.28B	42.82B	35.80B	3.66B	1.73B	638.01M
	Stockholders Equity
-11.69B	-11.74B	-9.63B	-984.34M	53.04M	516.83M
Cash Flow		Free Cash Flow
-812.11M	1.48B	361.93M	-1.04B	-97.93M	-59.23M
	Operating Cash Flow
-33.94M	3.20B	2.28B	-907.36M	19.11M	63.56M
	Investing Cash Flow
-774.04M	-923.89M	-1.96B	-298.04M	58.85M	-145.77M
	Financing Cash Flow
0.00	2.62B	-2.68M	1.18B	510.43M	28.60M

ZEEKR Intelligent Technology Holding Limited Sponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price28.60

Price Trends

50DMA

24.51

Positive

100DMA

25.48

Positive

200DMA

23.26

Positive

Market Momentum

MACD

1.47

Negative

RSI

72.27

Negative

STOCH

96.64

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZK, the sentiment is Positive. The current price of 28.6 is above the 20-day moving average (MA) of 22.87, above the 50-day MA of 24.51, and above the 200-day MA of 23.26, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 72.27 is Negative, neither overbought nor oversold. The STOCH value of 96.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZK.

ZEEKR Intelligent Technology Holding Limited Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	$4.60B	25.73	-18.75%	5.15%	17.19%	-69.33%
NIO	56 Neutral	$8.76B	―	-142.49%	―	16.99%	12.99%
ZK	50 Neutral	$7.29B	―	86.66%	―	45.22%	25.35%
XPEV	50 Neutral	$20.27B	―	-17.11%	―	32.32%	49.34%
LCID	45 Neutral	$7.99B	―	-50.06%	―	40.67%	3.40%
VFS	39 Underperform	$8.77B	―	36.15%	―	139.64%	-159.15%
PSNY	33 Underperform	$2.33B	―	94.66%	―	-29.25%	-114.69%

* General Sector Average

Performance Comparison

ZEEKR Intelligent Technology Holding Limited Sponsored ADR

28.78

2.04

7.63%

NIO

Nio

4.12

-1.21

-22.70%

XPEV

XPeng, Inc. ADR

20.91

12.92

161.70%

LCID

Lucid Group

2.76

-0.14

-4.83%

PSNY

Polestar Automotive Holding UK

1.15

-0.22

-16.06%

VFS

VinFast Auto

3.62

-0.62

-14.62%

ZEEKR Intelligent Technology Holding Limited Sponsored ADR Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q4-2024)

% Change Since: 1.27%|

Next Earnings Date:Aug 20, 2025

Earnings Call Sentiment Positive

The earnings call presented a generally positive outlook, with strong sales and revenue growth, improved gross margins, and strategic integration efforts. However, concerns about intense market competition and achieving future sales targets were noted.

Q4-2024 Updates

Positive Updates

Record Vehicle Sales and Revenue Growth

ZEEKR Group achieved a total sales of 500,000 vehicles in 2024, with Lynk & Co brand delivering 280,000 units, a nearly 30% year-over-year increase, and ZEEKR brand surpassing 222,000 vehicles, an 87% year-over-year increase. Total vehicle revenue reached RMB55.5 billion, with overall revenue at RMB75.9 billion.

Gross Margin Improvement

In the fourth quarter, vehicle gross margin reached 17.3%, while the full-year vehicle margin was 15.6%. This shows a strong improvement in profitability.

Strategic Integration and Global Expansion

ZEEKR and Lynk & Co successfully completed equity transaction, with a global user base over 1.82 million. The company aims to deliver 710,000 vehicles in 2025 and expand international sales to constitute 10% of total sales.

Launch of New Models

In 2025, ZEEKR brand plans to launch three new models, including ZEEKR 007GT and ZEEKR 9X, while Lynk & Co brand plans two new models. The new models feature advanced technologies, including super electric hybrid technology and Level 3 autonomous driving.

Negative Updates

Intense Market Competition

There is significant competition in the Chinese and global new energy vehicle markets, which poses challenges to achieving sales targets and maintaining profitability.

Sales Volume Concerns

The management acknowledged that sales volume in the first quarter was not satisfactory, though it aligned with expectations. The company is under pressure to meet the ambitious target of 710,000 vehicle sales in 2025.

Company Guidance

During the call, ZEEKR Group provided guidance on several key metrics for 2025 and beyond. The company aims to deliver 710,000 vehicles in 2025, with the ZEEKR brand expected to reach 320,000 units and the Lynk & Co brand targeting 390,000 units. The company also projected a consolidated vehicle gross margin of around 15% for the full year of 2025, following the integration of Lynk & Co and ZEEKR. Additionally, ZEEKR Group is targeting a reduction in R&D expenses to around 6% of revenue over the next two years while aiming to reduce SG&A expenses to around 8% of revenue in the same timeframe. The company plans to expand its product portfolio, with new models being launched across both brands, and anticipates that over 10% of its sales in 2025 will come from international markets. ZEEKR Group is also strategizing to enhance its competitive edge by leveraging its full-stack AI capabilities, aiming for significant advancements in autonomous driving and intelligent features.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.