Shaanxi Provincial Natural Gas Co Ltd

Shaanxi Provincial Natural Gas Co Ltd maintains a capital structure characterized by significant leverage, with total liabilities of 7.99 billion CNY against total equity of 6.61 billion CNY. The debt-to-equity ratio stands at 0.65, driven primarily by long-term debt of 4.31 billion CNY. Liquidity is constrained, evidenced by a current ratio of 0.35, which indicates that current liabilities significantly exceed current assets. Cash and equivalents total 548.6 million CNY, which is insufficient to cover the total debt burden, resulting in a negative net cash position. Operating cash flow of 1.29 billion CNY provides a buffer, but free cash flow is compressed to 77.2 million CNY due to capital expenditures of 727.3 million CNY.

Profitability metrics show a return on equity of 11.61% and a return on assets of 5.26%. The company generates an operating income of 724.0 million CNY on revenue of 8.59 billion CNY, yielding an operating margin of approximately 8.4%. Net income stands at 583.9 million CNY, supporting a price-to-earnings ratio of 9.94. The valuation multiples include a price-to-book of 1.15 and an EV/EBITDA of 12.02, suggesting the market prices the firm at a modest premium to book value while reflecting moderate earnings yield. Without specific cohort median data provided in the input, these returns are assessed against general industry standards for integrated utilities, where ROE above 10% is typically considered adequate for capital-intensive infrastructure businesses.

Revenue concentration is not detailed by segment or geography in the available data, limiting the ability to assess specific exposure risks. The company operates within the Shaanxi province context, implying a regional monopoly or dominant market position in natural gas distribution, which typically results in stable but regulated revenue streams. The absence of segment breakdown prevents a granular analysis of high-margin versus low-margin activities, though the integrated classification suggests a mix of upstream, midstream, or downstream activities.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest reported revenue of 8.59 billion CNY serves as the baseline for current performance. Without year-over-year or quarterly trend data, the sustainability of the current revenue base cannot be quantitatively verified, though the stable net income suggests consistent operational execution in the latest period.

Risk assessment highlights medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, reinforcing the liquidity constraints observed in the current ratio. The low dilution risk is supported by the fact that basic and diluted shares outstanding are identical at 1.11 billion shares, indicating no significant options or convertible securities currently impacting share count. The primary financial risk remains the ability to service long-term debt given the tight liquidity position.

Recent observations include analyst estimates confirming the last actual EPS of 0.53 CNY and revenue of 8.59 billion CNY. Competitor context lists Chevron, Shell, and BP, but no specific comparative data is provided, limiting the utility of this comparison. No specific filing, news, or transcript observations are present in the input to detail recent corporate actions or strategic shifts.

Free cash flow surged 186.5% year-over-year, indicating a significant improvement in cash generation capabilities.

Debt-to-equity ratio of 0.65 is below the 0.49 median, suggesting a conservative leverage profile relative to peers.

Four-year revenue CAGR of -3.2% indicates a persistent long-term decline in sales volume or pricing.

Four-year net income CAGR of -7.8% demonstrates a sustained deterioration in earnings over the period.

Medium liquidity and credit risk flags suggest potential vulnerabilities in the company's financial stability.

Revenue ¥8.60B, −4,8% YoY; Operating income −18,1% YoY.

• ▍Revenue ¥8.60B, −4,8% YoY
• ▍Operating income −18,1% YoY
• ▍Net income −19,3% YoY
• ▍Free cash flow +401,4% YoY
• ▍Net margin 6.8%