Anhui Korrun Co Ltd

Anhui Korrun maintains a debt-to-equity ratio of 0.88, indicating a moderate reliance on debt financing, while its current ratio of 0.99 suggests limited short-term liquidity cushion. Free cash flow of 99.8 million CNY is constrained by capital expenditures of -255.4 million CNY, reflecting ongoing investment in operations. The company's return on equity of 15.4% outperforms the industry median, but its return on assets of 5.7% lags behind, signaling underutilization of asset base. Profitability metrics reveal a gross margin of 23.1% (1.13 billion CNY gross profit on 4.89 billion CNY revenue) and an operating margin of 9.6% (468 million CNY operating income), both below the industry median for apparel firms. Net income of 331 million CNY represents a 6.8% margin, which is in line with the sector average. The company's capital structure is supported by 5.77 billion CNY in total assets, but 3.62 billion CNY in liabilities, including 1.89 billion CNY in long-term debt, creates leverage risk. Geographic and segment exposure is not disclosed in the available data, but revenue concentration in a single product category (apparel and accessories) increases vulnerability to demand shifts. The absence of segment reporting limits visibility into diversification efforts. Historical revenue growth is not available, but the company's operating cash flow of 576 million CNY suggests stable cash generation despite negative net cash position. Analyst sentiment is mixed, with a mean recommendation of 1.5 (leaning toward buy) and a consensus price target of 24.60 CNY. However, the lack of strong buy or hold ratings indicates cautious optimism. Risk assessment flags include medium liquidity risk and a negative net cash position after subtracting total debt, which could constrain operational flexibility. Recent filings and transcripts are not available in the provided data, but the company's capital expenditures and debt levels suggest ongoing investment in production capacity. No dilution risk is flagged in the current period, though the absence of diluted shares outstanding implies no recent equity issuance.