CNPC Capital Co Ltd

CNPC Capital Co Ltd maintains a capital structure characterized by high leverage typical of the banking industry, with total liabilities of 1,025.2 billion CNY against total equity of 104.6 billion CNY. The debt-to-equity ratio stands at 1.64, and the current ratio is 0.73, reflecting the asset-liability mismatch inherent in banking operations. Liquidity risk is assessed as medium, with a key flag noting that net cash is negative after subtracting total debt, despite holding 50.3 million CNY in cash and equivalents. Operating cash flow is negative at -18.3 billion CNY, while free cash flow is positive at 6.4 billion CNY, driven by low capital expenditures of -0.9 billion CNY.

Profitability metrics indicate modest returns, with a return on equity (ROE) of 4.01% and a return on assets (ROA) of 0.37%. The company generated net income of 4.3 billion CNY on revenue of 35.6 billion CNY, resulting in a net margin of approximately 12.1%. Without specific cohort median data provided in the input, these returns are evaluated against general banking benchmarks, where ROE levels are often higher, suggesting potential for improvement or specific capital constraints. The price-to-book ratio of 0.82 implies the market values the company below its book value, which may reflect concerns over asset quality or growth prospects.

The stock trades at a 0.82 price-to-book ratio, suggesting significant undervaluation relative to its tangible book value of 104.6 billion CNY.

Analysts assign a strong buy rating with a target price of 10.98 CNY, implying 24.5% upside from the current market price.

Net income grew 19.3% year-over-year to 5.55 billion CNY, demonstrating strong profitability growth despite revenue headwinds.

Free cash flow increased 12.0% year-over-year to 6.35 billion CNY, providing robust liquidity for potential dividends or buybacks.

The company carries a high credit risk flag, exposing investors to potential losses from borrower defaults or economic downturns.

Return on equity of 4.0% lags the 6.3% cohort median, indicating inefficient capital utilization compared to peer banks.

Debt-to-equity ratio of 1.64 is in the bottom quartile of the cohort, reflecting high leverage and financial risk.

Total assets contracted 8.6% year-over-year to 990.5 billion CNY, suggesting a shrinking balance sheet and reduced lending capacity.

Revenue ¥35.63B, −14,8% YoY; Operating income −18,2% YoY.

• ▍Revenue ¥35.63B, −14,8% YoY
• ▍Operating income −18,2% YoY
• ▍Net income −7,6% YoY
• ▍Free cash flow −10,3% YoY
• ▍Net margin 12.1%

Revenue ¥41.96B, +23,1% YoY; Operating income +4,3% YoY.

• ▍Revenue ¥41.96B, +23,1% YoY
• ▍Operating income +4,3% YoY
• ▍Net income +3,0% YoY
• ▍Free cash flow +6,4% YoY
• ▍Net margin 12.1%

Revenue ¥34.08B, +1,7% YoY; Operating income −3,6% YoY.

• ▍Revenue ¥34.08B, +1,7% YoY
• ▍Operating income −3,6% YoY
• ▍Net income −11,4% YoY
• ▍Free cash flow +0,5% YoY
• ▍Net margin 14.4%