Can ZKH sustain its EPS growth trend in 2025?

**ZKH's prospects for sustaining EPS growth in 2025 are uncertain**. Several factors indicate challenges and potential headwinds for the company:

1. **Recent Performance**: ZKH's fourth-quarter 2024 performance was disappointing, with an EPS of -$0.18, significantly missing the forecasted $0.08. This indicates underlying issues that could impact future earnings.

2. **Revenue Decline and Profitability Challenges**: While ZKH maintained steady revenue for the full year, there was a decline in gross merchandise volume (GMV) and net revenues. The company's gross profit decreased, and it reported a loss per share in Q4 2024. These factors suggest that ZKH is facing profitability challenges that could affect its EPS growth.
3. **Strategic Optimizations and Market Conditions**: ZKH has been optimizing certain low-margin businesses and adjusting to a dynamic demand landscape. These strategic moves could impact short-term profitability and EPS growth as the company navigates through these changes.
4. **Financial Metrics and Outlook**: Despite the challenges, ZKH has achieved positive operating cash flow for the first time and is targeting profitability in 2025. The company's focus on digital transformation and supply chain optimization could positively influence its financial performance over time.

In conclusion, while ZKH has shown resilience and is making strategic adjustments, the uncertainty around its EPS growth in 2025 is high due to recent performance misses and profitability challenges. The company's ability to sustain EPS growth will depend on its successful implementation of strategic plans and favorable market conditions.