Lepu Medical Technology (Beijing) Co Ltd

Lepu Medical Technology maintains a relatively strong liquidity position, with a current ratio of 2.74, indicating that it has more than double the current assets to cover its current liabilities. However, the company's liquidity risk is assessed as medium, and its net cash position is negative after subtracting total debt, suggesting potential short-term cash flow constraints.

In terms of profitability, the company's return on equity (ROE) is 1.36%, and its return on assets (ROA) is 0.85%, both of which are below the typical thresholds for high-performing firms in the medical equipment industry. These figures suggest that the company is not generating strong returns relative to its equity and asset base.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification may expose the company to higher operational and market risks if demand in its primary market or product line declines.

Looking ahead, the company's growth trajectory appears modest. While the company has a positive operating cash flow of 158.89 million CNY, its capital expenditures are negative at -374.34 million CNY, indicating a reduction in investment in long-term assets. This may signal a strategic shift or a focus on cost containment rather than expansion.

The company's risk profile is characterized by a low dilution potential, with no significant dilution sources identified in the risk assessment. However, the presence of long-term debt at 6.17 billion CNY and a debt-to-equity ratio of 0.39 suggests that the company is not entirely free of leverage risk. The company's credit risk is moderate, given its manageable debt levels and positive equity position.

Recent events, including analyst estimates and recommendations, indicate a generally positive outlook from the investment community. The mean price target is 20.25 CNY, with a median of 20.64 CNY, and the mean recommendation score is 2.00, which is a "Buy" rating. This suggests that analysts expect the stock to outperform the market in the near term.

Analysts project 59.6% upside to a mean price target of 20.26, reflecting strong buy consensus among eight analysts.

Net income surged 289.6% year-over-year to 962 million CNY in FY2026, demonstrating strong recent profitability recovery.

Free cash flow turned positive to 327 million CNY in FY2026, reversing the negative trend from the prior year.

High credit risk flags and rising long-term debt to 6.58 billion CNY in FY2026 indicate deteriorating financial health.

Return on equity of 1.36% falls below the cohort median of 1.42%, suggesting inefficient capital utilization relative to peers.

Cash conversion ratio of 0.74 is below the cohort median of 0.84, highlighting weaker cash generation efficiency.

Revenue ¥1.67B, −3,7% YoY; Operating income −43,5% YoY.

• ▍Revenue ¥1.67B, −3,7% YoY
• ▍Operating income −43,5% YoY
• ▍Net income −34,8% YoY
• ▍Net margin 14.8%

Revenue ¥1.54B, +17,2% YoY; Operating income +106,6% YoY.

• ▍Revenue ¥1.54B, +17,2% YoY
• ▍Operating income +106,6% YoY
• ▍Net income +96,4% YoY
• ▍Net margin -1.3%

Revenue ¥1.57B, +12,0% YoY; Operating income +209,1% YoY.

• ▍Revenue ¥1.57B, +12,0% YoY
• ▍Operating income +209,1% YoY
• ▍Net income +176,2% YoY
• ▍Net margin 18.6%

Revenue ¥1.63B, +11,7% YoY; Operating income +92,9% YoY.

• ▍Revenue ¥1.63B, +11,7% YoY
• ▍Operating income +92,9% YoY
• ▍Net income +45,0% YoY
• ▍Net margin 19.1%

Revenue ¥1.74B; Operating income ¥468.4M.

• ▍Revenue ¥1.74B
• ▍Operating income ¥468.4M
• ▍Net margin 21.8%

Revenue ¥1.32B; Operating income -¥657.6M.

• ▍Revenue ¥1.32B
• ▍Operating income -¥657.6M
• ▍Net margin -42.2%

Revenue ¥1.40B; Operating income ¥108.8M.

• ▍Revenue ¥1.40B
• ▍Operating income ¥108.8M
• ▍Net margin 7.5%

Revenue ¥1.46B; Operating income ¥192.7M.

• ▍Revenue ¥1.46B
• ▍Operating income ¥192.7M
• ▍Net margin 14.7%

Revenue ¥6.48B, +6,2% YoY; Operating income +398,8% YoY.

• ▍Revenue ¥6.48B, +6,2% YoY
• ▍Operating income +398,8% YoY
• ▍Net income +289,6% YoY
• ▍Free cash flow +139,1% YoY
• ▍Net margin 14.8%

Revenue ¥6.10B, −23,5% YoY; Operating income −84,2% YoY.

• ▍Revenue ¥6.10B, −23,5% YoY
• ▍Operating income −84,2% YoY
• ▍Net income −80,4% YoY
• ▍Free cash flow −462,4% YoY
• ▍Net margin 4.0%

Revenue ¥7.98B, −24,8% YoY; Operating income −41,1% YoY.

• ▍Revenue ¥7.98B, −24,8% YoY
• ▍Operating income −41,1% YoY
• ▍Net income −42,9% YoY
• ▍Free cash flow −80,9% YoY
• ▍Net margin 15.8%

Revenue ¥10.61B, −0,5% YoY; Operating income +22,4% YoY.

• ▍Revenue ¥10.61B, −0,5% YoY
• ▍Operating income +22,4% YoY
• ▍Net income +28,1% YoY
• ▍Free cash flow +80,4% YoY
• ▍Net margin 20.8%