Zhongguancun Science Tech Leasing (SEHK:1601) Stock Trails Q3 Earnings Resilience

Simply Wall St · 1d ago

Zhongguancun Science-Tech Leasing just dropped its Q3 2026 scorecard and the headline is simple. Profit stayed solid while the share price told a very different story. The stock closed at HK$0.645 on 30 October, leaving it far below the supplied fair value estimate and on the wrong side of a weak 90 day return.

The real tension sits in profitability. Net income from continuing operations over the last twelve months came in at CNY 241.6 million, yet the trailing net margin eased to 47.9%. Today’s muted valuation looks less like calm analysis and more like the market fixating on that margin squeeze while ignoring the still hefty earnings base.

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Q3 2026 Earnings Summary

  • Revenue (Q3 2026 vs. Q3 2025): CNY 269.1 million vs. CNY 329.0 million (down about 18%)
  • Net Income from Continuing Operations (Q3 2026 vs. Q3 2025): CNY 54.1 million vs. CNY 70.4 million (down about 23%)
  • Basic EPS (Q3 2026 vs. Q3 2025): Not disclosed for Q3 2026 vs. CNY 0.0436 in Q3 2025 (directionally weaker given the lower profit)
  • Net Profit Margin, Trailing 12 Months (2026 Q3 TTM vs. prior year TTM): 47.9% vs. 53.7% (compressed by about 5.8 percentage points)

Prefer clean visual charts over reading through another wall of figures on Zhongguancun Science-Tech Leasing? See the full picture of how its earnings and valuation fit together in our interactive company report for Zhongguancun Science-Tech Leasing.

SEHK:1601 Trailing 12-Month Earnings & Revenue History as at Oct 2026
SEHK:1601 Trailing 12-Month Earnings & Revenue History as at Oct 2026

Can Zhongguancun Leasing Still Support A Bullish View?

For a bullish angle on Zhongguancun Science-Tech Leasing, two points still work. Profit from continuing operations over the last twelve months of CNY 241.6 million on a 47.9% trailing margin shows the business remains earnings rich even after pressure on profitability. Recent finance lease deals with agricultural technology clients hint that management is still finding sectors willing to use its leasing model, which supports the idea that demand for science and tech oriented financing is not stalling outright.

Where The Zhongguancun Bear Case Finds Support

Concerns about the business are not hard to ground in the latest figures. Q3 revenue fell from CNY 329.0 million to CNY 269.1 million and quarterly profit declined from CNY 70.4 million to CNY 54.1 million, which lines up with fears around slower leasing activity and pricing pressure. The trailing margin easing from 53.7% to 47.9% also backs worries that Zhongguancun Science-Tech Leasing may need to work harder, or take more risk, to defend returns on its specialist loan book.

After a year of softer margins and questions around debt and dividend reliability, it is fair to ask if Zhongguancun Science-Tech Leasing’s recent wobble is just the start of a bigger problem. Review the full risk analysis for Zhongguancun Science-Tech Leasing which shows 2 important warning signs

Hunt For Mispriced Earnings Power

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