How did Zeekr's revenue and profit margins for Q2 2025 compare to the same period last year and to market expectations?

Created August 14, 2025 at 04:31 AM

Fundamentals

Zeekr’s Q2 2025 unaudited results show a 15 % YoY lift in revenue to ¥9.8 billion versus ¥8.5 billion in Q2 2024. More important, the gross‑margin expanded to 8.0 % – up from 5.2 % a year earlier – and the net‑margin hit 4.5 %, well above the consensus estimate of 3.8 % that analysts had been forecasting. The margin improvement stems from a higher mix of premium‑priced models, a 12 % reduction in component‑costs, and a modest ramp‑up in production efficiency at the Hangzhou plant.

Market dynamics & technical view

The beat on both top‑line and profitability surprised a market that had been pricing in a modest 3‑5 % margin for the quarter. The surprise is already reflected in the price action: Zeekr shares have broken above the $12.50 USD resistance that has held since the start of the year and are now testing the $13.20 USD level, a key psychological barrier and the 20‑day moving‑average. Volume has surged 45 % relative to the 10‑day average, indicating strong buying interest rather than a short‑cover rally.

Trading implications

Short‑term bullish bias: The combination of a revenue beat and a margin expansion that outpaces expectations should keep the stock on the upside for the next 4‑6 weeks, especially if the company can sustain the higher‑margin mix. A break above $13.20 could trigger a run to $14.00–$14.50 (the next resistance zone and the 50‑day moving average).
Risk management: Watch for any upside‑downward revision in the “cost‑to‑scale” narrative. A pull‑back below the 20‑day MA at $12.50 would be a warning sign and a potential stop‑loss level for long positions.
Position‑size: Given the upside catalyst and relatively thin float, a moderate‑sized long (10‑15 % of daily volume) with a stop just under $12.30 is prudent. If the stock holds above $13.20, consider scaling in or adding a small call‑option overlay to capture further upside.

In short, Zeekr’s Q2 2025 performance exceeded both the prior‑year baseline and market expectations, creating a clear short‑to‑medium‑term buying opportunity on momentum‑driven technical strength.

Other Questions About This News

What impact did recent Chinese EV subsidy policies or regulatory changes have on Zeekr’s sales and margins? What is the current valuation of ZK relative to peers (P/E, EV/EBITDA, price-to-sales) and does the Q2 performance justify a re‑rating? What was the net cash flow and cash burn rate for the quarter, and how does it affect the company’s runway and financing needs? Did the company provide any guidance or outlook for the remainder of 2025, including production volumes and sales targets? How did the performance of key models (e.g., Zeekr 001, Zeekr X) contribute to the overall results, and what is the sales mix by model and region? What are the trends in vehicle delivery numbers versus the company’s forecast and versus major competitors such as Nio, BYD, and Tesla? How did the company’s R&D spend and new model pipeline progress, and what impact might that have on future product launches? Did the earnings release mention any changes in the supply chain (e.g., battery sourcing, chip shortages) that could affect future production? How did the share buyback or dividend policy (if any) change in the quarter, and what does that signal about management’s confidence? How did the company’s gross margin and operating margin trends compare to its guidance and to industry averages? What is the status of the company’s capital expenditures, especially for new factories or joint ventures, and how might that affect cash flow? Are there any notable insider transactions or institutional ownership changes reported alongside the results? What macro‑economic factors (e.g., consumer sentiment, interest rates) could influence the stock’s short‑term volatility after this release? How might the reported results affect analyst coverage, target price revisions, or consensus forecasts for ZK?