Guangdong CHJ Industry Co Ltd

Guangdong CHJ Industry Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.29 and a current ratio of 1.69, indicating adequate short-term liquidity coverage. The company holds total assets of 7.56 billion CNY against total liabilities of 3.80 billion CNY, resulting in total equity of 3.76 billion CNY. Long-term debt stands at 1.08 billion CNY. Despite positive free cash flow of 122.4 million CNY, operating cash flow is negative at -71.4 million CNY, driven by capital expenditures of 83.2 million CNY. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting reliance on external financing or asset liquidation for certain obligations.

Profitability metrics indicate modest returns, with a return on equity (ROE) of 6.69% and a return on assets (ROA) of 3.33%. The company generated net income of 497.0 million CNY on revenue of 9.32 billion CNY, yielding a net margin of approximately 5.33%. Gross profit was 1.97 billion CNY, resulting in a gross margin of 21.17%. Operating income was 638.5 million CNY. Without cohort median data for direct comparison, these returns appear typical for a mature manufacturing entity in the textiles sector, though the low ROE suggests limited leverage of equity to generate profits.

Revenue concentration and geographic exposure details are not provided in the available data. The company’s total revenue of 9.32 billion CNY is attributed to its overall operations, but specific segment breakdowns or regional contributions are absent. Consequently, an analysis of revenue concentration risk or geographic diversification cannot be performed based on the current input.

Growth trajectory analysis is limited due to the absence of historical period data. The financial snapshot provides only the latest normalized period figures, preventing a year-over-year or quarter-over-quarter trend analysis. Without historical revenue or net income data, it is not possible to assess the company’s growth momentum or cyclicality.

Risk factors include medium liquidity risk and low dilution risk. The key flag indicates that net cash is negative after subtracting total debt, which may constrain financial flexibility. The dilution risk is assessed as low, with no immediate signs of significant share issuance. The company’s basic and diluted shares outstanding are identical at 888.5 million, confirming no current dilutive securities in the calculation.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of 17.92 CNY and a median target of 18.48 CNY, implying significant upside from the current market price of 10.63 CNY. The mean recommendation is 1.25, indicating a strong buy consensus, with six strong-buy ratings and two buy ratings from analysts. No specific filing, news, or transcript observations are provided in the input data.

Revenue surged 43% year-over-year to CNY 9.3 billion in FY2026, demonstrating strong top-line growth momentum.

Net income jumped 156.7% to CNY 497 million in FY2026, indicating a significant recovery in profitability.

Free cash flow turned positive at CNY 122 million in FY2026, reversing previous years of negative cash generation.

Analysts assign a strong buy rating with an 84.4% upside potential to a mean price target of CNY 17.92.

Operating income expanded 171.4% year-over-year to CNY 638 million in FY2026, highlighting improved operational efficiency.

Net margin of 3.6% remains below the cohort median of 5.3%, suggesting weaker profitability relative to peers.

Cash conversion ratio sits in the bottom quartile at -0.28, signaling poor ability to convert earnings into cash.

The company faces medium liquidity and credit risks, which could constrain financial flexibility and increase borrowing costs.

Operating margin of 4.4% is below the cohort median of 7.5%, reflecting persistent pressure on core operational profitability.

Revenue ¥9.32B, +43,0% YoY; Operating income +171,3% YoY.

• ▍Revenue ¥9.32B, +43,0% YoY
• ▍Operating income +171,3% YoY
• ▍Net income +156,7% YoY
• ▍Free cash flow +161,9% YoY
• ▍Net margin 5.3%

Revenue ¥6.52B, +10,5% YoY; Operating income −41,5% YoY.

• ▍Revenue ¥6.52B, +10,5% YoY
• ▍Operating income −41,5% YoY
• ▍Net income −41,9% YoY
• ▍Free cash flow −2 032,6% YoY
• ▍Net margin 3.0%

Revenue ¥5.90B, +33,6% YoY; Operating income +60,1% YoY.

• ▍Revenue ¥5.90B, +33,6% YoY
• ▍Operating income +60,1% YoY
• ▍Net income +67,4% YoY
• ▍Free cash flow +77,8% YoY
• ▍Net margin 5.7%

Revenue ¥4.42B, −4,7% YoY; Operating income −41,7% YoY.

• ▍Revenue ¥4.42B, −4,7% YoY
• ▍Operating income −41,7% YoY
• ▍Net income −43,2% YoY
• ▍Free cash flow −155,4% YoY
• ▍Net margin 4.5%

Revenue ¥4.64B; Operating income ¥431.4M.

• ▍Revenue ¥4.64B
• ▍Operating income ¥431.4M
• ▍Net margin 7.6%