Zhejiang Asia-Pacific Mechanical & Electronic Co Ltd

The company maintains a capital structure characterized by a debt-to-equity ratio of 0.52 and a current ratio of 1.17, indicating moderate leverage and adequate short-term liquidity coverage. Total liabilities stand at CNY 5.27 billion against total equity of CNY 3.36 billion, with long-term debt comprising CNY 1.74 billion. Despite positive operating cash flow of CNY 1.35 billion, the firm reports negative net cash after subtracting total debt, signaling a medium liquidity risk profile. Free cash flow is recorded at CNY 339 million, derived from operating cash flow less capital expenditures of CNY 339 million.

Profitability metrics reveal a return on equity of 7.51% and a return on assets of 2.92%, which are modest returns relative to the capital employed. The company generated a gross profit of CNY 1.14 billion on revenues of CNY 5.61 billion, resulting in a gross margin of approximately 20.4%. Operating income reached CNY 514 million, leading to a net income of CNY 490 million. The valuation multiples reflect a price-to-earnings ratio of 29.62 and an EV/EBITDA of 33.91, suggesting the market prices the stock at a premium relative to its current earnings generation.

Revenue concentration is not detailed by specific segments or geography in the available data, limiting the ability to assess exposure to specific customer bases or regional markets. The company’s activity is broadly defined within the Automobile Components industry, implying dependence on the automotive supply chain dynamics. Without specific segment breakdowns, the revenue mix is assumed to be diversified across its core mechanical and electronic product lines as per its general business description.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The latest normalized period shows revenue of CNY 5.61 billion and net income of CNY 490 million. Analyst estimates project a mean EPS of 0.92 CNY, compared to the last actual EPS of 0.66 CNY, indicating expected earnings growth. However, without multi-year historical trends, the sustainability and pace of this growth cannot be quantitatively assessed from the provided snapshot.

Risk factors include a medium liquidity risk due to negative net cash positions and a low dilution risk, as basic and diluted shares outstanding are identical at 739.1 million. The key flag of negative net cash after debt subtraction highlights potential refinancing needs or reliance on operating cash flows to service obligations. The current ratio of 1.17 provides a thin buffer for short-term liabilities, requiring careful working capital management.

Recent observations indicate a mean analyst recommendation of 2.00, with one buy rating and no strong buy, hold, sell, or strong sell ratings. This suggests a cautiously optimistic view from the limited analyst coverage. The discrepancy between the mean EPS estimate of 0.92 CNY and the actual EPS of 0.66 CNY points to anticipated improvement in profitability, potentially driven by operational efficiencies or favorable market conditions in the automotive components sector.

Net income surged to 490 million CNY in FY2026, reflecting strong top-line and bottom-line growth momentum.

Free cash flow improved significantly to 339 million CNY in FY2026, demonstrating robust operational cash generation capabilities.

The company ranks best-in-class for cash conversion at 5.34, significantly outperforming the cohort median of 1.2.

A single analyst recommendation of buy suggests positive sentiment from limited market coverage.

The company faces high credit risk, posing a significant threat to financial stability and asset quality.

Revenue ¥5.61B, +31,6% YoY; Operating income +127,0% YoY.

• ▍Revenue ¥5.61B, +31,6% YoY
• ▍Operating income +127,0% YoY
• ▍Net income +130,2% YoY
• ▍Free cash flow +107,0% YoY
• ▍Net margin 8.7%

Revenue ¥4.26B, +10,0% YoY; Operating income +126,6% YoY.

• ▍Revenue ¥4.26B, +10,0% YoY
• ▍Operating income +126,6% YoY
• ▍Net income +119,6% YoY
• ▍Free cash flow +191,0% YoY
• ▍Net margin 5.0%

Revenue ¥3.87B, +3,3% YoY; Operating income +35,6% YoY.

• ▍Revenue ¥3.87B, +3,3% YoY
• ▍Operating income +35,6% YoY
• ▍Net income +42,7% YoY
• ▍Free cash flow +385,9% YoY
• ▍Net margin 2.5%

Revenue ¥3.75B, +3,3% YoY; Operating income +47,2% YoY.

• ▍Revenue ¥3.75B, +3,3% YoY
• ▍Operating income +47,2% YoY
• ▍Net income +54,7% YoY
• ▍Free cash flow −122,2% YoY
• ▍Net margin 1.8%