Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price2.94 USD
Fair value5.87
Our investment reviews on this name
2026-08-19Read Distribution4.49-34.6% to today ✓
2026-07-02Read Markdown6.14-52.2% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Zhongsheng Group Holdings Limited holds its Distribution at $2.94. Consolidating, no directional conviction, held for 28 days.
As held on the ledger · 2026-09-22
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 28 days
Price at the screen
$2.94
Valuation
N/A trailing · 3.23 forward price to earnings
Values screen
FAIL
Beta
0.89
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
33.41%
Below 33%
Interest-bearing debt is 33.4% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.17%
Below 33%
Cash held in interest-bearing accounts and securities is 0.2% of assets, under the one-third limit.
Pass
Receivables
17.80%
Below 49%
Money owed to the company is 17.8% of assets, under the 49% limit.
Pass
Revenue purity
0.30%
Below 5%
Only 0.3% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Zhongsheng's business is in a permissible area, but its interest-bearing debt is about 33% of the company, just over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
Fair value range in USD, drawn from the 2026-09-22 screen. The gold marker is the market price at the same screen. A 100.0% margin of safety to the base estimate.
Third-party analyst targets: 11 covering, consensus None. The average target sits +108% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-22 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The risks · The things to watch: its business and earnings are exposed to China and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
0881.HK trades on HKG (the company is based in China). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-02Distribution$2.94-19.3%Entry 8
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 19.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 49%. Our forward projection puts the odds of a 10% gain over the next month near 21%. The street (13 analysts) rates it buy, with a mean price target of $13.
2026-09-18Distribution$3.64-19.0%Entry 7
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 19.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 49%. Our forward projection puts the odds of a 10% gain over the next month near 21%. The street (13 analysts) rates it buy, with a mean price target of $13.
2026-08-19Distribution · changed$4.49+4.2%Entry 6
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 4.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 49%. Our forward projection puts the odds of a 10% gain over the next month near 21%. The street (13 analysts) rates it buy, with a mean price target of $13.
2026-07-19Markdown$4.31-29.8%Entry 5
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 29.8% since our last review. Ethical screening: PASS with ethical screening pending. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 49%. Our forward projection puts the odds of a 10% gain over the next month near 21%. The street (13 analysts) rates it buy, with a mean price target of $13.
2026-07-18Markdown$6.14+0.0%Entry 4
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with ethical screening pending. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 49%. Our forward projection puts the odds of a 10% gain over the next month near 21%. The street (13 analysts) rates it buy, with a mean price target of $13.
2026-07-15Markdown$6.14+0.0%Entry 3
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with ethical screening pending. The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-03Markdown$6.14+0.0%Entry 2
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with ethical screening pending. The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-02Markdown$6.14Entry 1
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Ethical screening: PASS with ethical screening pending. The risk-adjusted return profile shows negative risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
Latest News · What the Market Is Reading on 0881.HK