MeritValue

ZJK Industrial Co., Ltd.

ZJKdata completeness 75%4 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

ZJK Industrial Co., Ltd. earns about 38% on invested capital, but has diluted owners by 4% over 4 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $1.24 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025
Revenue$24.8M1$29.1M2$37.8M2$56.1M2
Net income$7.28M3$7.69M4$3.66M4$10.2M4
Operating cash flow$814,6305$4.12M6$5.34M6$6.56M6
Capital expenditure————
Free cash flow (derived)————
Total debt—$37,1847$1.22M8—
Cash & equivalents$1.52M9$2.83M10$12.3M11$14.4M11
Diluted shares60.0M60.0M60.3M62.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$6.94
your share of equity
Profit it earned you last year
$1.62
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $6.94 of net worth that earned you $1.62 last year.

iii. Is this a good business?
Moat signal · return on invested capital
38% avg · 4y
FY22 57%FY23 41%FY24 19%FY25 35%

It earned an average 38% on invested capital over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+4% shares · 4y

Share count is up 4% over 4 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 3190% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$1.24
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$7.48M
  • growthAssumed0.0%
Graham Number
$1.58
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2022-12-31 · accession 0001731122-25-000613 (Revenues)
  2. 20-F · period ending 2023-12-31 · accession 0001731122-26-000625 (Revenues)
  3. 20-F · period ending 2022-12-31 · accession 0001731122-25-000613 (ProfitLoss)
  4. 20-F · period ending 2023-12-31 · accession 0001731122-26-000625 (ProfitLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001731122-25-000613 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2023-12-31 · accession 0001731122-26-000625 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2023-12-31 · accession 0001731122-25-000613 (ShortTermBorrowings)
  8. 20-F · period ending 2024-12-31 · accession 0001731122-26-000625 (ShortTermBorrowings)
  9. 20-F · period ending 2022-12-31 · accession 0001731122-26-000625 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  10. 20-F · period ending 2023-12-31 · accession 0001731122-25-000613 (CashAndCashEquivalentsAtCarryingValue)
  11. 20-F · period ending 2024-12-31 · accession 0001731122-26-000625 (CashAndCashEquivalentsAtCarryingValue)