Shenzhen Zhenye (Group) Co.

000006.SZ

Real Estate - Development · Real Estate

Price

¥6.73

-0.10 (-1.46%)

Market Cap

¥9.09B

Exchange

Shenzhen Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Shenzhen Zhenye (Group) Co., Ltd. is a Chinese real estate developer based in Shenzhen, one of China's most economically active cities. The company builds and sells residential properties, commercial buildings, and mixed-use developments, primarily serving homebuyers and businesses in the Guangdong province region. It is a state-linked enterprise with roots going back to the early development of Shenzhen as a special economic zone.

The company earns money mainly by selling developed properties and collecting rental income from commercial spaces it retains. Its operations are concentrated in Shenzhen and surrounding areas in southern China, giving it local market familiarity but also heavy geographic concentration. With a gross margin of just 7.3% and a near-zero return on invested capital, the business is operating under significant financial pressure — a reflection of the broader stress facing China's real estate sector, where weak buyer demand, tighter credit conditions, and oversupply remain serious ongoing risks.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-67.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+129.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

37.5%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$3.9B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Shenzhen Zhenye (Group) Co.'s revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 1.35B (2021) → 1.35B (2025)

Score breakdown

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Quality

Gross Margin

15.6%

Thin — 15.6% gross margin

Operating Margin

2.7%

Thin — 2.7% operating margin

ROCE

0.1%

Weak — 0.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-79.4%

Shrinking sales (-79.4% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

22.4%

Converts sales into free cash efficiently (22.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.84

Moderate — manageable debt (0.84)

Interest Cover

1.42x

Dangerous — barely covers interest (1.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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