Yihai Kerry Arawana Holdings Co Ltd

Yihai Kerry Arawana Holdings Co Ltd maintains a capital structure characterized by significant leverage, with long-term debt of 86.53 billion CNY against total equity of 96.43 billion CNY, resulting in a debt-to-equity ratio of 0.9. The company holds a current ratio of 1.19, indicating adequate short-term liquidity to cover immediate obligations, though the risk assessment flags medium liquidity risk due to negative net cash after subtracting total debt. The market capitalization stands at 132.34 billion CNY, with a market price of 24.41 CNY per share.

Profitability metrics reveal modest returns on capital, with a return on equity (ROE) of 3.27% and a return on assets (ROA) of 1.38%. The company generated a net income of 3.15 billion CNY on revenue of 245.13 billion CNY, yielding a net margin of approximately 1.29%. Operating income was 5.21 billion CNY, while gross profit reached 15.62 billion CNY. These returns are consistent with the low-margin nature of the integrated food products industry, where volume and operational efficiency drive profitability rather than high per-unit margins.

Revenue concentration is not explicitly detailed in segment or geographic breakdowns within the available data, but the company's activity is defined as integrated oil and gas by rule-based classification, which conflicts with the sector classification classification of Food Products. The primary revenue driver is the processing and sale of edible oils and related products, as indicated by the company's name and industry codes. The lack of segment data prevents a detailed analysis of revenue mix, but the overall revenue scale suggests a dominant market position in its core business.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, the current revenue of 245.13 billion CNY indicates a large-scale operation. The free cash flow is minimal at 367.47 million CNY, despite operating cash flow of 15.44 billion CNY, due to significant capital expenditures of 4.79 billion CNY. This suggests ongoing investment in capacity or efficiency, which may support future growth but currently constrains free cash flow generation.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, highlighting the company's reliance on debt financing. The debt-to-equity ratio of 0.9 is moderate but requires monitoring, especially in a high-interest-rate environment. The absence of strong buy recommendations from analysts, with a mean recommendation of 2.40, suggests a cautious market outlook.

Recent events include analyst estimates with a mean price target of 35.05 CNY and a median price target of 37.60 CNY, indicating potential upside from the current market price of 24.41 CNY. The high price target is 41.00 CNY, while the low is 24.00 CNY. There are no strong buy recommendations, with four buy ratings and no hold ratings, suggesting a mixed but generally positive analyst sentiment. The competitor context lists major oil and gas companies, which may reflect the rule-based classification error rather than direct competitive dynamics.

Net income surged 26.0% year-over-year to CNY 3.15 billion in FY2026, signaling strong bottom-line recovery.

Operating income jumped 44.4% to CNY 5.21 billion in FY2026, demonstrating significant improvement in core profitability.

Free cash flow turned positive at CNY 367 million in FY2026, reversing years of negative cash generation.

Long-term debt decreased to CNY 86.5 billion in FY2026, reflecting a deleveraging trend from previous highs.

Cash conversion ratio of 4.9 ranks best-in-class within the Integrated Oil & Gas cohort of 158 peers.

Net margin of 1.29% remains significantly below the 4.96% median for the Integrated Oil & Gas cohort.

The company faces a high credit risk flag, suggesting potential difficulties in meeting financial obligations.

Revenue declined 5.3% year-over-year to CNY 238.3 billion in FY2025, showing top-line weakness before FY2026 recovery.

Four-year net income CAGR is negative at -6.5%, highlighting long-term earnings erosion despite recent recovery.

Revenue ¥60.86B, −3,1% YoY; Operating income −55,0% YoY.

• ▍Revenue ¥60.86B, −3,1% YoY
• ▍Operating income −55,0% YoY
• ▍Net income −62,3% YoY
• ▍Net margin 0.7%

Revenue ¥68.59B, +4,0% YoY; Operating income +215,7% YoY.

• ▍Revenue ¥68.59B, +4,0% YoY
• ▍Operating income +215,7% YoY
• ▍Net income +197,0% YoY
• ▍Net margin 1.4%

Revenue ¥56.60B, +8,4% YoY; Operating income +553,3% YoY.

• ▍Revenue ¥56.60B, +8,4% YoY
• ▍Operating income +553,3% YoY
• ▍Net income +261,0% YoY
• ▍Net margin 1.4%

Revenue ¥59.08B; Operating income ¥1.50B.

• ▍Revenue ¥59.08B
• ▍Operating income ¥1.50B
• ▍Net margin 1.7%

Revenue ¥245.13B, +2,9% YoY; Operating income +44,4% YoY.

• ▍Revenue ¥245.13B, +2,9% YoY
• ▍Operating income +44,4% YoY
• ▍Net income +26,0% YoY
• ▍Free cash flow +148,6% YoY
• ▍Net margin 1.3%

Revenue ¥238.28B, −5,3% YoY; Operating income +7,4% YoY.

• ▍Revenue ¥238.28B, −5,3% YoY
• ▍Operating income +7,4% YoY
• ▍Net income −12,1% YoY
• ▍Free cash flow +89,7% YoY
• ▍Net margin 1.1%

Revenue ¥251.52B, −2,3% YoY; Operating income −11,7% YoY.

• ▍Revenue ¥251.52B, −2,3% YoY
• ▍Operating income −11,7% YoY
• ▍Net income −5,4% YoY
• ▍Free cash flow +5,9% YoY
• ▍Net margin 1.1%

Revenue ¥257.49B, +13,8% YoY; Operating income −38,5% YoY.

• ▍Revenue ¥257.49B, +13,8% YoY
• ▍Operating income −38,5% YoY
• ▍Net income −27,1% YoY
• ▍Free cash flow −65,9% YoY
• ▍Net margin 1.2%

Revenue ¥226.23B; Operating income ¥6.19B.

• ▍Revenue ¥226.23B
• ▍Operating income ¥6.19B
• ▍Net margin 1.8%