Zhejiang Nhu Co Ltd

Zhejiang Nhu Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.24 and a current ratio of 2.63, indicating strong short-term liquidity coverage. The company holds total assets of 45.6 billion CNY against total liabilities of 12.8 billion CNY, resulting in a net equity position of 32.8 billion CNY. Despite the strong balance sheet, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting reliance on operating cash flows to service obligations. The firm generates robust operating cash flow of 8.8 billion CNY, which exceeds its capital expenditure of 1.9 billion CNY, yielding free cash flow of 4.2 billion CNY.

Profitability metrics demonstrate strong operational efficiency, with a return on equity of 20.46% and a return on assets of 14.72%. The company reports a net income of 6.76 billion CNY on revenues of 22.25 billion CNY, implying a net margin of approximately 30.4%. Operating income stands at 7.84 billion CNY, reflecting a healthy operating margin. These returns are supported by a gross profit of 9.71 billion CNY. The valuation multiples reflect this profitability, with a price-to-earnings ratio of 14.23 and an EV/EBITDA of 13.18. The price-to-book ratio is 2.91, consistent with the tangible book value multiple.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The classification source indicates a rule-based assignment to Oil & Gas Exploration & Production, but the sector classification industry code lists Chemicals, suggesting potential diversification or a classification discrepancy that warrants further investigation into the specific product mix. The activity is defined as Exploration & Production, which typically implies exposure to commodity price volatility, although the specific revenue drivers are not detailed in the current dataset.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to assess the momentum of revenue growth or earnings stability. The current financial snapshot provides a static view of performance, but lacks the temporal depth required to evaluate long-term growth rates or cyclical positioning.

Risk factors include medium liquidity risk and low dilution risk. The key flag regarding negative net cash after debt subtraction highlights a potential vulnerability if operating cash flows were to decline. The dilution risk is assessed as low, supported by the fact that basic and diluted shares outstanding are identical at 3.07 billion, indicating no significant in-the-money options or convertible securities currently impacting share count. The absence of historical data limits the ability to assess earnings volatility risk.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of 38.34 CNY and a median of 38.85 CNY, implying upside from the current market price of 31.08 CNY. The mean recommendation is 1.91, leaning towards a buy, with five strong-buy ratings and three buy ratings compared to two holds. The high price target of 58.14 CNY and low of 16.80 CNY indicate a wide dispersion in analyst views, suggesting uncertainty about future performance or valuation drivers.

Analysts project 25% upside to a mean price target of 38.34, reflecting strong consensus buy ratings from eleven researchers.

Debt-to-equity ratio of 0.24 is lower than the 0.33 cohort median, suggesting a conservative leverage profile with reduced financial risk.

Free cash flow declined 13.3% year-over-year to 4.2 billion CNY, signaling weakening cash generation despite revenue growth.

Revenue growth slowed to just 3.0% year-over-year, suggesting limited top-line expansion momentum in the current fiscal period.

Medium liquidity risk flags potential challenges in meeting short-term obligations, warranting caution regarding balance sheet flexibility.

Revenue ¥6.29B, +15,7% YoY; Operating income +0,0% YoY.

• ▍Revenue ¥6.29B, +15,7% YoY
• ▍Operating income +0,0% YoY
• ▍Net income −2,8% YoY
• ▍Net margin 29.0%

Revenue ¥5.61B, −3,8% YoY; Operating income −27,1% YoY.

• ▍Revenue ¥5.61B, −3,8% YoY
• ▍Operating income −27,1% YoY
• ▍Net income −23,2% YoY
• ▍Net margin 25.7%

Revenue ¥5.54B, −6,7% YoY; Operating income −2,6% YoY.

• ▍Revenue ¥5.54B, −6,7% YoY
• ▍Operating income −2,6% YoY
• ▍Net income −3,8% YoY
• ▍Net margin 31.0%

Revenue ¥5.66B, +5,9% YoY; Operating income +28,2% YoY.

• ▍Revenue ¥5.66B, +5,9% YoY
• ▍Operating income +28,2% YoY
• ▍Net income +29,1% YoY
• ▍Net margin 30.4%

Revenue ¥5.44B; Operating income ¥2.14B.

• ▍Revenue ¥5.44B
• ▍Operating income ¥2.14B
• ▍Net margin 34.6%

Revenue ¥5.83B; Operating income ¥2.20B.

• ▍Revenue ¥5.83B
• ▍Operating income ¥2.20B
• ▍Net margin 32.2%

Revenue ¥5.94B; Operating income ¥2.07B.

• ▍Revenue ¥5.94B
• ▍Operating income ¥2.07B
• ▍Net margin 30.1%

Revenue ¥5.35B; Operating income ¥1.63B.

• ▍Revenue ¥5.35B
• ▍Operating income ¥1.63B
• ▍Net margin 25.0%

Revenue ¥22.25B, +3,0% YoY; Operating income +13,0% YoY.

• ▍Revenue ¥22.25B, +3,0% YoY
• ▍Operating income +13,0% YoY
• ▍Net income +15,3% YoY
• ▍Free cash flow −13,3% YoY
• ▍Net margin 30.4%

Revenue ¥21.61B, +43,0% YoY; Operating income +113,7% YoY.

• ▍Revenue ¥21.61B, +43,0% YoY
• ▍Operating income +113,7% YoY
• ▍Net income +117,0% YoY
• ▍Free cash flow +362,6% YoY
• ▍Net margin 27.2%

Revenue ¥15.12B, −5,1% YoY; Operating income −23,3% YoY.

• ▍Revenue ¥15.12B, −5,1% YoY
• ▍Operating income −23,3% YoY
• ▍Net income −25,3% YoY
• ▍Free cash flow +9,2% YoY
• ▍Net margin 17.9%

Revenue ¥15.93B, +6,8% YoY; Operating income −16,2% YoY.

• ▍Revenue ¥15.93B, +6,8% YoY
• ▍Operating income −16,2% YoY
• ▍Net income −16,9% YoY
• ▍Free cash flow −795,0% YoY
• ▍Net margin 22.7%