Stock Price Prediction

ZKH stock shows bullish potential due to its strategic partnership with Tmall, enhancing its market reach and supply chain efficiency. The company’s Q3 2024 financials indicate improved gross margins (17%) and reduced net loss, reflecting operational optimizations. With its expansion into the U.S. market and focus on private label products, ZKH could see sustained growth, targeting RMB2.28 billion in revenue.

ZKH stock shows bearish signals due to its declining GMV (-7.2% YoY in Q3 2024) and persistent net losses, despite slight revenue growth (0.7% YoY) and improved gross margins (17%). The stock's profitability challenges and reliance on strategic partnerships like Tmall may not offset its operational inefficiencies in the short term. Current price levels could face further downside pressure unless significant operational improvements materialize.