Jizhong Energy Resources Co Ltd

Jizhong Energy Resources maintains a capital structure characterized by significant leverage, with long-term debt of CNY 21.6 billion against total equity of CNY 19.1 billion, resulting in a debt-to-equity ratio of 1.13. The company’s liquidity position is constrained, evidenced by a current ratio of 0.81, which indicates that current liabilities exceed current assets. Despite generating CNY 1.96 billion in operating cash flow, the company reports negative free cash flow of CNY -2.30 billion due to substantial capital expenditures of CNY 2.28 billion, reflecting heavy investment in its asset base.

Profitability metrics suggest modest returns on capital, with a return on equity of 4.28% and a return on assets of 1.53%. The company trades at a price-to-earnings ratio of 21.02 and an EV/EBITDA of 24.06, while the price-to-book ratio stands at 0.9, indicating the market values the company slightly below its book value. The gross profit of CNY 3.41 billion on revenue of CNY 15.14 billion yields a gross margin of approximately 22.5%, supporting an operating income of CNY 1.21 billion and net income of CNY 612.6 million.

Segment and geographic revenue breakdowns are not disclosed in the available data, preventing an analysis of revenue concentration or regional exposure. The company’s operational focus remains within the broader energy sector, but specific product mix or customer concentration details are absent from the provided financial snapshot.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess the company’s historical growth rate or momentum relative to its current financial position. The current revenue base of CNY 15.14 billion serves as the sole reference point for scale.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, reinforcing the leverage concerns. The company’s ESG profile shows a ESG Score of 47.19 with a grade of C+, and an ESG controversies score of 100, indicating no major recent controversies. The environment, social, and governance pillar scores are 46.13, 45.90, and 49.83 respectively.

Recent events and management signals are not detailed in the available filing, news, or transcript observations. The analysis relies solely on the static financial and valuation data provided, with no recent disclosed events impacting the immediate outlook.

Net income surged 309.2% year-over-year to CNY 4.94 billion, demonstrating strong recent profitability growth.

Cash conversion ratio of 6.72 is best-in-class compared to the cohort median of 1.2.

Free cash flow improved 160.1% year-over-year, reaching CNY 1.17 billion in the latest period.

Dilution risk is assessed as low, suggesting limited threat to existing shareholder equity value.

Debt-to-equity ratio of 1.13 is in the bottom quartile, significantly higher than the cohort median of 0.4.

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

Net margin of 4.70% falls below the cohort median of 5.27%, reflecting lower bottom-line profitability.

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

Revenue ¥36.04B, +14,7% YoY; Operating income +52,3% YoY.

• ▍Revenue ¥36.04B, +14,7% YoY
• ▍Operating income +52,3% YoY
• ▍Net income +62,7% YoY
• ▍Free cash flow +41,0% YoY
• ▍Net margin 12.4%

Revenue ¥31.42B; Operating income ¥4.75B.

• ▍Revenue ¥31.42B
• ▍Operating income ¥4.75B
• ▍Net margin 8.7%