Wuliangye Yibin Co Ltd

Wuliangye maintains a conservative capital structure with a debt-to-equity ratio of 0.0 and a current ratio of 2.45, indicating strong short-term liquidity coverage. The balance sheet shows total assets of 189.98 billion CNY against total liabilities of 70.05 billion CNY, resulting in total equity of 119.93 billion CNY. Despite positive operating cash flow of 29.71 billion CNY, free cash flow is reported as negative 18.23 billion CNY, driven by capital expenditures of 1.97 billion CNY and other cash outflows not fully detailed in the snapshot. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, a contradiction to the zero debt-to-equity ratio that requires careful interpretation of cash equivalents versus debt instruments.

Profitability metrics appear compressed in the valuation snapshot, with a return on equity of 1.8% and return on assets of 1.14%, which are significantly lower than typical industry medians for high-margin beverage producers. The company reports a gross profit of 22.53 billion CNY on revenue of 40.53 billion CNY, implying a gross margin of approximately 55.6%. Operating income stands at 12.24 billion CNY, leading to net income of 8.95 billion CNY. The low ROE and ROA figures may reflect a specific accounting period or normalization issue, as they do not align with the high net income relative to equity base.

Analysts project 13.2% upside to a mean price target of 98.31, reflecting strong market confidence in the company's future performance.

The company maintains a zero debt-to-equity ratio, significantly outperforming the cohort median of 0.33 and indicating a robust balance sheet.

Cash conversion metrics are best-in-class at 13.77, vastly exceeding the cohort median of 1.22 and demonstrating superior operational efficiency.

Dilution risk is assessed as low, suggesting that existing shareholders are unlikely to face significant equity erosion in the near term.

Credit risk is rated low, indicating a stable financial position with minimal likelihood of default on financial obligations.

Revenue is forecast to decline by 54.6% year-over-year, indicating a massive contraction in top-line growth and market demand.

Revenue ¥22.84B, +33,7% YoY; Operating income +73,3% YoY.

• ▍Revenue ¥22.84B, +33,7% YoY
• ▍Operating income +73,3% YoY
• ▍Net income +82,6% YoY
• ▍Net margin 35.3%

Revenue -¥20.42B, −196,0% YoY; Operating income −277,8% YoY.

• ▍Revenue -¥20.42B, −196,0% YoY
• ▍Operating income −277,8% YoY
• ▍Net income −281,4% YoY
• ▍Net margin 61.5%

Revenue ¥8.17B, −52,7% YoY; Operating income −66,4% YoY.

• ▍Revenue ¥8.17B, −52,7% YoY
• ▍Operating income −66,4% YoY
• ▍Net income −65,6% YoY
• ▍Net margin 24.7%

Revenue ¥15.83B, +0,1% YoY; Operating income −9,1% YoY.

• ▍Revenue ¥15.83B, +0,1% YoY
• ▍Operating income −9,1% YoY
• ▍Net income −7,6% YoY
• ▍Net margin 29.3%

Revenue ¥17.09B; Operating income ¥6.15B.

• ▍Revenue ¥17.09B
• ▍Operating income ¥6.15B
• ▍Net margin 25.8%

Revenue ¥21.26B; Operating income ¥9.69B.

• ▍Revenue ¥21.26B
• ▍Operating income ¥9.69B
• ▍Net margin 32.6%

Revenue ¥17.27B; Operating income ¥8.13B.

• ▍Revenue ¥17.27B
• ▍Operating income ¥8.13B
• ▍Net margin 34.0%

Revenue ¥15.82B; Operating income ¥6.93B.

• ▍Revenue ¥15.82B
• ▍Operating income ¥6.93B
• ▍Net margin 31.7%

Revenue ¥40.53B, −54,5% YoY; Operating income −72,3% YoY.

• ▍Revenue ¥40.53B, −54,5% YoY
• ▍Operating income −72,3% YoY
• ▍Net income −71,9% YoY
• ▍Free cash flow −234,6% YoY
• ▍Net margin 22.1%

Revenue ¥89.18B, +7,1% YoY; Operating income +5,3% YoY.

• ▍Revenue ¥89.18B, +7,1% YoY
• ▍Operating income +5,3% YoY
• ▍Net income +5,4% YoY
• ▍Free cash flow −8,6% YoY
• ▍Net margin 35.7%

Revenue ¥83.27B, +12,6% YoY; Operating income +12,8% YoY.

• ▍Revenue ¥83.27B, +12,6% YoY
• ▍Operating income +12,8% YoY
• ▍Net income +13,2% YoY
• ▍Free cash flow −3,4% YoY
• ▍Net margin 36.3%

Revenue ¥73.97B, +11,7% YoY; Operating income +14,3% YoY.

• ▍Revenue ¥73.97B, +11,7% YoY
• ▍Operating income +14,3% YoY
• ▍Net income +14,2% YoY
• ▍Free cash flow +11,1% YoY
• ▍Net margin 36.1%