Changhong Meiling Co Ltd

Changhong Meiling Co Ltd has a market capitalization of 4.83 billion CNY and a price-to-earnings ratio of 18.54, which is above the industry median of 15.2 for the Appliances, Tools & Housewares sector. The company's liquidity position is characterized by a current ratio of 1.06 and a debt-to-equity ratio of 0.29, indicating a moderate reliance on debt financing. The operating cash flow of 2.73 billion CNY supports its liquidity, but the negative net cash position after subtracting total debt raises some concerns.

The company's profitability is modest, with a return on equity of 4.39% and a return on assets of 1.09%, both below the industry median of 6.8% and 2.4%, respectively. The gross profit margin is 8.8%, which is in line with the industry median of 9.1%, but the operating margin of 3.3% is below the median of 4.5%. This suggests that the company is facing cost pressures or pricing challenges.

Geographically, Changhong Meiling's revenue is primarily concentrated in China, with no disclosed international revenue segments. The company operates in a single business segment focused on household appliances, which exposes it to domestic economic cycles and consumer demand fluctuations. The lack of geographic diversification increases its vulnerability to regional economic downturns.

The company's growth trajectory is mixed. Revenue for the latest period was 9.02 billion CNY, which is below the analyst estimate of 30.41 billion CNY. The outlook for the current fiscal year suggests a modest increase in revenue, but the next fiscal year is expected to show a decline. The capital expenditure of -149.36 million CNY indicates a reduction in investment, which may signal a strategic shift or financial constraints.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's key financial flags include a negative net cash position after subtracting total debt, which could impact its ability to fund operations or investments without external financing. The dilution potential is low, with no significant changes in shares outstanding between basic and diluted shares.

Recent events and filings indicate that the company has not issued any new shares or raised capital through public offerings in the last quarter. The latest earnings report showed an EPS of 0.40 CNY, which is in line with the analyst estimate. There are no recent regulatory actions or major business developments reported in the latest filings.

Changhong Meiling Co Ltd (000521.SZ) has been formally classified within the "Appliances, Tools & Housewares" activity and the "Consumer Cyclicals" economic sector, marking a significant update to its corporate taxonomy. This classification provides a clearer framework for understanding the company's operational focus and its exposure to consumer spending trends, which are inherently linked to broader economic cycles. In terms of risk profile, the company now exhibits a "low" dilution risk, suggesting that the potential for existing shareholders to see their ownership stakes reduced through new share issuance is currently minimal. This assessment offers a degree of stability for equity holders, indicating that capital structure changes are not an immediate concern. Conversely, the company faces a "medium" liquidity risk, highlighting potential challenges in meeting short-term financial obligations or converting assets into cash without significant loss. This metric serves as a key indicator for investors to monitor the company's cash flow management and working capital efficiency, particularly given its position in the consumer cyclicals sector. With only one officer and two analysts covering the stock, and no current index membership or top holders identified, Changhong Meiling remains a relatively niche entity in the market. The combination of low dilution risk and medium liquidity risk, set against its specific sector classification, defines the current investment landscape for the company.

Revenue grew 12.1% year-over-year to CNY 30.4 billion, demonstrating strong top-line expansion momentum.

Cash conversion score of 10.47 ranks as best-in-class compared to the 1.03 cohort median.

Debt-to-equity ratio of 0.29 is below the 0.27 cohort median, suggesting a conservative leverage profile.

Free cash flow collapsed to CNY 85.4 million, a drastic decline from previous periods.

The company faces high credit risk, posing significant potential threats to financial stability and operations.

Revenue contracted at a 4.6% annual rate over four years, indicating long-term growth challenges.

Revenue ¥30.41B, +6,3% YoY; Operating income −32,4% YoY.

• ▍Revenue ¥30.41B, +6,3% YoY
• ▍Operating income −32,4% YoY
• ▍Net income −41,3% YoY
• ▍Free cash flow −82,1% YoY
• ▍Net margin 1.3%

Revenue ¥28.60B, +17,3% YoY; Operating income +2,1% YoY.

• ▍Revenue ¥28.60B, +17,3% YoY
• ▍Operating income +2,1% YoY
• ▍Net income −5,0% YoY
• ▍Free cash flow −38,4% YoY
• ▍Net margin 2.4%

Revenue ¥24.38B, +20,6% YoY; Operating income +180,4% YoY.

• ▍Revenue ¥24.38B, +20,6% YoY
• ▍Operating income +180,4% YoY
• ▍Net income +200,9% YoY
• ▍Free cash flow +156,3% YoY
• ▍Net margin 3.0%