Zhejiang Semir Garment Co Ltd

Zhejiang Semir Garment Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.07, indicating minimal leverage relative to shareholder equity. The balance sheet shows total assets of 18.65 billion CNY against total liabilities of 7.26 billion CNY, resulting in total equity of 11.39 billion CNY. Liquidity is supported by a current ratio of 1.95, which suggests adequate short-term asset coverage for liabilities. However, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, implying that cash and equivalents are insufficient to cover all debt obligations without asset liquidation or financing. Long-term debt stands at 823 million CNY, a modest figure relative to the company's scale.

Profitability metrics indicate moderate returns on capital. The return on equity (ROE) is 8.83%, while the return on assets (ROA) is 5.39%. These figures reflect the company's ability to generate earnings from its asset base and equity, though they are not exceptionally high. The gross profit of 6.36 billion CNY on revenue of 15.09 billion CNY yields a gross margin of approximately 42.1%, which is typical for apparel manufacturers with some brand premium. Operating income of 1.24 billion CNY and net income of 892 million CNY demonstrate the company's ability to convert sales into bottom-line earnings, with an operating margin of roughly 8.2% and a net margin of 5.9%.

The company's revenue mix and geographic exposure are not detailed in the available data, preventing a specific analysis of segment concentration or regional risk. Without segment or geographic breakdowns, it is assumed that revenue is derived from the core apparel business across its primary operating regions, likely dominated by the domestic Chinese market given the ticker and currency. The absence of specific segment data limits the ability to assess diversification benefits or concentration risks within the product line or customer base.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The latest normalized period shows revenue of 15.09 billion CNY and net income of 892 million CNY. Without prior year or quarterly comparisons, year-over-year growth rates cannot be calculated. The free cash flow is negative at -631 million CNY, driven by operating cash flow of 1.73 billion CNY and capital expenditure of -614 million CNY. This negative free cash flow suggests that the company is reinvesting heavily in its operations or facing working capital pressures, which may impact near-term liquidity if not sustained by operating cash generation.

Risk factors include medium liquidity risk and low dilution risk. The key flag regarding negative net cash after debt subtraction highlights a potential vulnerability in cash management or debt structure. The low dilution risk suggests that the share count is stable, with basic and diluted shares outstanding both at 2.69 billion, indicating no significant options or convertible securities that could dilute earnings per share. The absence of high dilution risk is a positive factor for existing shareholders, preserving earnings per share integrity.

Recent events and analyst sentiment are reflected in the IR observations. The mean and median price targets are 6.71 CNY, with a high of 7.00 CNY and a low of 6.43 CNY, suggesting a consensus view of upside potential from the current market price of 5.74 CNY. The mean recommendation is 1.57, indicating a strong buy sentiment, with 3 strong buy and 4 buy ratings, and no hold ratings. This analyst coverage suggests confidence in the company's near-term performance and valuation, although the low classification confidence and lack of detailed segment data warrant caution in interpreting these signals.

Analysts project 18.6% upside to a mean price target of 6.715 CNY, reflecting strong buy consensus.

Debt-to-equity ratio of 0.07 is well below the cohort median of 0.40, signaling a conservative leverage profile.

Cash conversion ratio of 1.72 surpasses the cohort median of 1.2, highlighting strong earnings quality.

Long-term debt increased to 823 million CNY, nearly doubling from 477 million CNY in the previous fiscal year.

The company faces a medium liquidity risk, suggesting potential challenges in meeting short-term financial obligations.

Revenue ¥15.09B, +3,2% YoY; Operating income −19,8% YoY.

• ▍Revenue ¥15.09B, +3,2% YoY
• ▍Operating income −19,8% YoY
• ▍Net income −21,5% YoY
• ▍Free cash flow −296,6% YoY
• ▍Net margin 5.9%

Revenue ¥14.63B, +7,1% YoY; Operating income +2,8% YoY.

• ▍Revenue ¥14.63B, +7,1% YoY
• ▍Operating income +2,8% YoY
• ▍Net income +1,4% YoY
• ▍Free cash flow −54,6% YoY
• ▍Net margin 7.8%

Revenue ¥13.66B, +2,5% YoY; Operating income +73,0% YoY.

• ▍Revenue ¥13.66B, +2,5% YoY
• ▍Operating income +73,0% YoY
• ▍Net income +76,1% YoY
• ▍Free cash flow +271,2% YoY
• ▍Net margin 8.2%

Revenue ¥13.33B, −13,5% YoY; Operating income −54,9% YoY.

• ▍Revenue ¥13.33B, −13,5% YoY
• ▍Operating income −54,9% YoY
• ▍Net income −57,1% YoY
• ▍Free cash flow −217,3% YoY
• ▍Net margin 4.8%

Revenue ¥15.42B; Operating income ¥1.93B.

• ▍Revenue ¥15.42B
• ▍Operating income ¥1.93B
• ▍Net margin 9.6%