ZKH Latest Report

Performance Review

In 2024, ZKH (stock code: ZKH) recorded an operating income of US$2.37 billion, a year-on-year decrease of approximately 3.00% from US$2.444 billion in 2023. This reflects the challenges the company faces in revenue generation, especially in a competitive market and rising costs.

Key Data in the Financial Report

1. The decline in ZKH's operating income indicates pressure on revenue generation.

2. Sales costs decreased from US$2.027 billion in 2023 to US$1.965 billion, but gross profit still faced pressure, decreasing from US$417 million to US$405 million.

3. Macro factors may affect the company's performance, including reduced consumer spending and weak industry demand.

4. The company may have shortcomings in internal management and sales strategies, failing to effectively attract customers.

Peer Comparison

1. Industry-wide analysis: Over the past year, the industry as a whole faced challenges in revenue growth, with factors such as market saturation, rising raw material costs, and changes in consumer preferences affecting revenue performance.

2. Peer evaluation analysis: ZKH's operating income decline was relatively small, but its market share may be eroded. Competitors attract customers through innovative products and improved services, and ZKH needs to adjust its sales strategy to address competitive challenges.

Summary

ZKH's revenue decline in 2024 reflects the difficulties the company faces in a more competitive market and changing economic environment. Although sales costs have decreased, the reduction in gross profit indicates pressure on profitability. The company needs to strengthen internal management and sales strategies to enhance market competitiveness.

Opportunities

1. ZKH continues to focus on its own brand, with a 27% year-on-year growth in GMV in the second quarter of 2024.

2. The company's strategic shift towards "supply-driven" helps optimize the supply chain and enhance market responsiveness.

3. With the advancement of digitalization, ZKH's competitive advantage in digital MRO procurement services is expected to strengthen.

Risks

1. Continued pressure from market competition may lead to further revenue decline.

2. Uncertainty in the macroeconomic environment may affect consumer spending and industry demand.

3. Shortcomings in internal management efficiency and sales strategies may limit the company's ability to enhance its market competitiveness.