Hualan Biological Engineering Inc

Hualan Biological Engineering Inc maintains a conservative capital structure with a debt-to-equity ratio of 0.04 and a robust current ratio of 4.93, indicating strong short-term liquidity coverage. The company holds total assets of 15.26 billion CNY against total liabilities of 3.76 billion CNY, resulting in total equity of 11.50 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 potential constraints in immediate cash availability despite high current assets.

Profitability metrics show a return on equity of 7.46% and a return on assets of 5.62%, which are modest returns for a biotechnology firm. The company generated net income of 940.4 million CNY on revenue of 4.60 billion CNY, yielding a net margin of approximately 20.5%. Operating income stands at 1.23 billion CNY, reflecting a healthy operating margin of roughly 26.7%. However, free cash flow is negative at -283.3 million CNY, driven by capital expenditures of 197.3 million CNY exceeding operating cash flow of 878.0 million CNY, indicating ongoing investment in growth or maintenance of facilities.

Analysts project 31.6% upside to a mean price target of 18.06 CNY, maintaining a buy recommendation.

The company maintains a conservative debt-to-equity ratio of 0.04, ranking above the 75th percentile of its cohort.

Long-term debt decreased to 908.5 million CNY in FY-1, reflecting a trend of deleveraging over recent periods.

Net income fell 13.6% year-over-year to 940.4 million CNY in FY0, signaling deteriorating profitability.

Revenue growth stagnated with a four-year CAGR of only 0.9%, showing limited top-line expansion potential.

The company faces medium liquidity risk, which could constrain operational flexibility or increase financing costs.

Revenue ¥762.1M, −12,2% YoY; Operating income −24,9% YoY.

• ▍Revenue ¥762.1M, −12,2% YoY
• ▍Operating income −24,9% YoY
• ▍Net income −26,4% YoY
• ▍Net margin 30.2%

Revenue ¥1.22B, +36,9% YoY; Operating income +39,8% YoY.

• ▍Revenue ¥1.22B, +36,9% YoY
• ▍Operating income +39,8% YoY
• ▍Net income −5,0% YoY
• ▍Net margin 12.8%

Revenue ¥1.58B, −14,0% YoY; Operating income −45,4% YoY.

• ▍Revenue ¥1.58B, −14,0% YoY
• ▍Operating income −45,4% YoY
• ▍Net income −44,5% YoY
• ▍Net margin 17.0%

Revenue ¥930.6M, +7,5% YoY; Operating income +14,3% YoY.

• ▍Revenue ¥930.6M, +7,5% YoY
• ▍Operating income +14,3% YoY
• ▍Net income +13,6% YoY
• ▍Net margin 21.8%

Revenue ¥867.6M; Operating income ¥397.5M.

• ▍Revenue ¥867.6M
• ▍Operating income ¥397.5M
• ▍Net margin 36.1%

Revenue ¥888.5M; Operating income ¥157.7M.

• ▍Revenue ¥888.5M
• ▍Operating income ¥157.7M
• ▍Net margin 18.5%

Revenue ¥1.84B; Operating income ¥682.9M.

• ▍Revenue ¥1.84B
• ▍Operating income ¥682.9M
• ▍Net margin 26.3%

Revenue ¥865.4M; Operating income ¥207.8M.

• ▍Revenue ¥865.4M
• ▍Operating income ¥207.8M
• ▍Net margin 20.6%

Revenue ¥4.60B, +4,9% YoY; Operating income −10,8% YoY.

• ▍Revenue ¥4.60B, +4,9% YoY
• ▍Operating income −10,8% YoY
• ▍Net income −13,6% YoY
• ▍Free cash flow −140,9% YoY
• ▍Net margin 20.5%

Revenue ¥4.38B, −18,0% YoY; Operating income −34,2% YoY.

• ▍Revenue ¥4.38B, −18,0% YoY
• ▍Operating income −34,2% YoY
• ▍Net income −26,6% YoY
• ▍Free cash flow −1,6% YoY
• ▍Net margin 24.8%

Revenue ¥5.34B, +18,3% YoY; Operating income +46,8% YoY.

• ▍Revenue ¥5.34B, +18,3% YoY
• ▍Operating income +46,8% YoY
• ▍Net income +37,7% YoY
• ▍Free cash flow −3,1% YoY
• ▍Net margin 27.7%

Revenue ¥4.52B, +1,8% YoY; Operating income −15,9% YoY.

• ▍Revenue ¥4.52B, +1,8% YoY
• ▍Operating income −15,9% YoY
• ▍Net income −17,1% YoY
• ▍Free cash flow +164,3% YoY
• ▍Net margin 23.8%