Shanxi Xinghuacun Fen Wine Factory Co Ltd

Shanxi Xinghuacun Fen Wine Factory maintains a conservative capital structure with a debt-to-equity ratio of 0.02 and a current ratio of 2.86, indicating strong short-term liquidity coverage. The company holds total equity of 39.63 billion CNY against total liabilities of 16.69 billion CNY, with long-term debt limited to 746.83 million CNY. Despite the risk assessment flagging net cash as negative after subtracting total debt, the balance sheet remains robust with total assets of 56.32 billion CNY. The firm generates substantial operating cash flow of 9.01 billion CNY, which exceeds its capital expenditure of 1.19 billion CNY, resulting in free cash flow of 4.32 billion CNY.

Profitability metrics demonstrate high returns on capital, with a return on equity of 27.71% and a return on assets of 19.50%. The company reports a net income of 12.25 billion CNY on revenue of 38.72 billion CNY, yielding a net margin of approximately 31.6%. Operating income stands at 16.66 billion CNY, reflecting strong operational leverage. The valuation snapshot shows a price-to-earnings ratio of 12.25 and an EV/EBITDA of 9.01, suggesting the market prices the stock at a moderate multiple relative to its earnings power. The price-to-book ratio is 3.4, consistent with the high return on equity.

Revenue concentration is not detailed in segment or geographic breakdowns within the available data, but the company’s primary activity is identified as exploration and production in the classification data, which conflicts with the sector classification classification of Beverages. The company’s business model relies on the production and sale of Fenjiu, a premium Baijiu brand. Without specific segment data, the revenue mix is assumed to be dominated by core liquor sales, with potential contributions from related services or distribution channels.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue of 38.72 billion CNY and net income of 12.25 billion CNY represent the latest normalized period figures. Without year-over-year or quarterly trend data, the growth rate cannot be quantified from the provided snapshot. The company’s ability to sustain its high profitability margins will depend on continued demand for premium Baijiu and effective cost management.

Risk factors include a medium liquidity risk rating and a low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which may indicate that cash and cash equivalents are lower than total debt obligations, despite the low debt-to-equity ratio. This discrepancy warrants further investigation into the composition of current assets and liabilities. The dilution risk is low, with basic and diluted shares outstanding both at 1.22 billion, indicating no significant options or convertible securities impacting share count.

Recent events are reflected in analyst estimates, with a mean price target of 184.05 CNY and a median target of 181.00 CNY, suggesting significant upside potential from the current market price of 110.30 CNY. The mean recommendation is 1.63, with 13 strong buy and 11 buy ratings, indicating strong analyst confidence. The high price target of 268.00 CNY and low target of 126.00 CNY show a wide range of expectations, but the consensus is bullish. No specific filing, news, or transcript observations are provided in the input data.

Revenue grew at an 18.0% CAGR over four years, demonstrating strong top-line expansion momentum.

Net income CAGR of 23.2% over four years highlights robust profitability growth trajectory.

Analysts project 43.1% upside to the mean price target of 184.05, signaling strong market confidence.

Net income growth stalled at 0.0% year-over-year, indicating a potential plateau in profitability expansion.

Cash conversion ratio of 0.82 falls below the cohort median of 1.22, suggesting weaker cash realization.

The company faces a medium level of liquidity risk, which could impact short-term financial flexibility.

Operating income growth slowed to just 0.7% year-over-year, reflecting decelerating operational momentum.

Revenue ¥14.92B, −9,7% YoY; Operating income −18,6% YoY.

• ▍Revenue ¥14.92B, −9,7% YoY
• ▍Operating income −18,6% YoY
• ▍Net income −19,0% YoY
• ▍Net margin 36.1%

Revenue ¥5.79B, +24,5% YoY; Operating income −3,8% YoY.

• ▍Revenue ¥5.79B, +24,5% YoY
• ▍Operating income −3,8% YoY
• ▍Net income −5,7% YoY
• ▍Net margin 14.5%

Revenue ¥8.96B, +4,0% YoY; Operating income +0,7% YoY.

• ▍Revenue ¥8.96B, +4,0% YoY
• ▍Operating income +0,7% YoY
• ▍Net income −1,4% YoY
• ▍Net margin 32.4%

Revenue ¥7.44B, +0,5% YoY; Operating income −13,3% YoY.

• ▍Revenue ¥7.44B, +0,5% YoY
• ▍Operating income −13,3% YoY
• ▍Net income −13,5% YoY
• ▍Net margin 25.0%

Revenue ¥16.52B; Operating income ¥8.90B.

• ▍Revenue ¥16.52B
• ▍Operating income ¥8.90B
• ▍Net margin 40.2%

Revenue ¥4.65B; Operating income ¥1.29B.

• ▍Revenue ¥4.65B
• ▍Operating income ¥1.29B
• ▍Net margin 19.2%

Revenue ¥8.61B; Operating income ¥3.94B.

• ▍Revenue ¥8.61B
• ▍Operating income ¥3.94B
• ▍Net margin 34.1%

Revenue ¥7.41B; Operating income ¥2.94B.

• ▍Revenue ¥7.41B
• ▍Operating income ¥2.94B
• ▍Net margin 29.0%

Revenue ¥38.72B, +7,5% YoY; Operating income +0,8% YoY.

• ▍Revenue ¥38.72B, +7,5% YoY
• ▍Operating income +0,8% YoY
• ▍Net income +0,0% YoY
• ▍Free cash flow −36,9% YoY
• ▍Net margin 31.6%

Revenue ¥36.01B, +12,8% YoY; Operating income +16,3% YoY.

• ▍Revenue ¥36.01B, +12,8% YoY
• ▍Operating income +16,3% YoY
• ▍Net income +17,3% YoY
• ▍Free cash flow +4,6% YoY
• ▍Net margin 34.0%

Revenue ¥31.93B, +21,8% YoY; Operating income +30,7% YoY.

• ▍Revenue ¥31.93B, +21,8% YoY
• ▍Operating income +30,7% YoY
• ▍Net income +28,9% YoY
• ▍Free cash flow +22,3% YoY
• ▍Net margin 32.7%

Revenue ¥26.21B, +31,3% YoY; Operating income +54,7% YoY.

• ▍Revenue ¥26.21B, +31,3% YoY
• ▍Operating income +54,7% YoY
• ▍Net income +52,4% YoY
• ▍Free cash flow +2,1% YoY
• ▍Net margin 30.9%