Avic Shenyang Aircraft Co Ltd

Avic Shenyang Aircraft Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.03, indicating minimal leverage relative to its equity base of 23.55 billion CNY. The company holds total assets of 77.49 billion CNY against total liabilities of 53.93 billion CNY, resulting in a current ratio of 1.37, which suggests adequate short-term liquidity to meet immediate obligations. However, the balance sheet reflects a negative net cash position after accounting for total debt, a key flag noted in the risk assessment. Long-term debt stands at a modest 790.36 million CNY, implying that the majority of liabilities are likely operational payables or short-term borrowings rather than long-term interest-bearing debt.

Profitability metrics show a return on equity (ROE) of 13.2% and a return on assets (ROA) of 4.01%, reflecting efficient use of capital to generate net income of 3.52 billion CNY on revenue of 44.66 billion CNY. The gross profit margin is approximately 13.56%, with operating income reaching 4.03 billion CNY, indicating a stable operating margin of roughly 9.02%. While specific cohort medians are not provided for direct comparison, these returns are consistent with capital-intensive manufacturing firms in the defense sector, where high fixed costs are offset by long-term government contracts. The company’s ability to maintain positive net income despite negative operating cash flow highlights the importance of working capital management in its business model.

Analysts project 69.1% upside to a mean price target of 74.78 CNY, reflecting strong buy consensus.

Net income CAGR of 19.7% over four years demonstrates robust historical earnings growth trajectory.

Debt-to-equity ratio of 0.03 is significantly below the cohort median of 0.33, signaling low leverage risk.

Operating income grew 2.7% year-over-year to 4.03 billion CNY, maintaining positive operational momentum.

Cash conversion ratio of -0.74 falls in the bottom quartile, significantly underperforming the cohort median.

Medium liquidity risk flags potential challenges in meeting short-term obligations despite low credit risk.

Revenue ¥44.66B, +4,2% YoY; Operating income +2,7% YoY.

• ▍Revenue ¥44.66B, +4,2% YoY
• ▍Operating income +2,7% YoY
• ▍Net income +3,6% YoY
• ▍Free cash flow −192,6% YoY
• ▍Net margin 7.9%

Revenue ¥42.84B, −7,4% YoY; Operating income +15,4% YoY.

• ▍Revenue ¥42.84B, −7,4% YoY
• ▍Operating income +15,4% YoY
• ▍Net income +12,9% YoY
• ▍Free cash flow −37,1% YoY
• ▍Net margin 7.9%

Revenue ¥46.25B, +11,2% YoY; Operating income +30,7% YoY.

• ▍Revenue ¥46.25B, +11,2% YoY
• ▍Operating income +30,7% YoY
• ▍Net income +30,5% YoY
• ▍Free cash flow −61,4% YoY
• ▍Net margin 6.5%

Revenue ¥41.60B, +19,9% YoY; Operating income +37,2% YoY.

• ▍Revenue ¥41.60B, +19,9% YoY
• ▍Operating income +37,2% YoY
• ▍Net income +34,5% YoY
• ▍Free cash flow +40,0% YoY
• ▍Net margin 5.5%

Revenue ¥34.69B; Operating income ¥1.89B.

• ▍Revenue ¥34.69B
• ▍Operating income ¥1.89B
• ▍Net margin 4.9%