Zhejiang Shengda Bio-Pharm Co Ltd

Zhejiang Shengda Bio-Pharm Co Ltd has a market capitalization of CNY 2.72 billion and a price-to-earnings ratio of 214.49, indicating a high valuation relative to its earnings. The company's price-to-book ratio is 2.18, suggesting that the market values the company at a premium to its book value. The liquidity position is characterized by a current ratio of 2.96, which is above the industry median, but the company has a negative net cash position after subtracting total debt, signaling potential liquidity risk.

The company's profitability is modest, with a return on equity of 1.02% and a return on assets of 0.75%, both of which are below the industry median for the Food Processing sector. The gross profit margin is 18.66%, and the operating margin is 4.93%, indicating that the company is generating relatively low operating profits relative to its revenue. The net profit margin is 6.35%, which is also below the industry median, suggesting that the company is not as efficient in converting revenue into net profit as its peers.

Zhejiang Shengda Bio-Pharm Co Ltd operates in a single business segment, with all revenue derived from the food processing industry. The company's geographic exposure is concentrated in China, with no significant international operations reported. This concentration increases the company's exposure to local economic conditions and regulatory changes.

The company's revenue growth has been modest, with a revenue of CNY 199.65 million in the latest reporting period. The outlook for the current fiscal year is for continued growth, with a projected increase in revenue. However, the growth trajectory is not expected to accelerate significantly in the next fiscal year, with a projected revenue increase of less than 5%.

The company's risk profile is characterized by a medium liquidity risk and a low dilution risk. The key risk flag is the negative net cash position after subtracting total debt, which could impact the company's ability to meet short-term obligations. The dilution risk is low, with no significant dilution potential in the near term.

Recent events include the company's latest financial filing, which disclosed the financial snapshot and valuation metrics. There are no recent earnings call transcripts or other material events reported that would significantly impact the company's financial position or strategic direction.

Net income surged 111.2% year-over-year to CNY 62.2 million, demonstrating strong recent profitability recovery.

Debt-to-equity ratio of 0.18 is well below the cohort median of 0.32, suggesting a conservative capital structure.

Free cash flow improved by 91.0% year-over-year, signaling a significant stabilization in cash generation capabilities.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity erosion.

Return on equity of 1.02% lags significantly behind the Food Processing cohort median of 4.99%.

Credit risk is flagged as high, indicating substantial potential for financial distress or default issues.

Liquidity risk is rated as medium, highlighting potential challenges in meeting short-term financial obligations.

Revenue ¥218.5M; Operating income ¥18.3M.

• ▍Revenue ¥218.5M
• ▍Operating income ¥18.3M
• ▍Net margin 3.5%

Revenue ¥224.4M; Operating income ¥10.9M.

• ▍Revenue ¥224.4M
• ▍Operating income ¥10.9M
• ▍Net margin 2.3%

Revenue ¥199.6M; Operating income ¥9.8M.

• ▍Revenue ¥199.6M
• ▍Operating income ¥9.8M
• ▍Net margin 6.4%

Revenue ¥738.0M, −6,5% YoY; Operating income −55,1% YoY.

• ▍Revenue ¥738.0M, −6,5% YoY
• ▍Operating income −55,1% YoY
• ▍Net income −58,4% YoY
• ▍Free cash flow +135,9% YoY
• ▍Net margin 4.3%