Guangxi Liugong Machinery Co Ltd

Guangxi Liugong Machinery Co Ltd (000528.SZ) is currently classified as Industrial Goods within Heavy Machinery & Vehicles (Industrials). Classification confidence: 0.92 (verified market data). Capital structure on the latest snapshot: total assets 47,428,680,100 CNY, total equity 17,324,073,170, short-term debt 0, long-term debt 11,222,417,590. Net cash position is approximately -11,211,088,260 CNY. Self-calculated market cap is 18,656,738,042 CNY (market_price × shares_outstanding_diluted). Profitability profile: revenue 8,121,182,740, gross profit 1,910,640,820, operating income 545,480,320, net income 485,637,100. Return on equity ~2.8%. Return on assets ~1.0%. Operating-cash-flow to net-income ratio is 2.31. Risk profile from automated assessment: liquidity risk medium, dilution risk low. Flags: Net cash is negative after subtracting total debt..

Guangxi Liugong Machinery Co Ltd (000528.SZ) has been formally classified within the Industrials economic sector and the Industrial Goods activity category, marking a significant structural update to its corporate profile. This taxonomy classification, which carries medium severity, establishes the company’s operational identity within the broader industrial manufacturing landscape, providing a clearer framework for sector-specific analysis. Alongside this sectoral definition, the company’s risk assessment profile has been initialized with specific metrics. Dilution risk is now rated as low, indicating a stable capital structure with minimal threat of share value erosion from new issuances. This low dilution risk suggests that existing shareholders are currently protected from significant equity dilution pressures. Conversely, liquidity risk has been assessed at a medium level. This rating highlights potential constraints or variability in the company’s ability to meet short-term financial obligations, a critical factor for an industrial goods manufacturer that may face cyclical working capital demands. The contrast between low dilution risk and medium liquidity risk underscores a balance between capital stability and operational cash flow management. The company is currently overseen by three officers, though it lacks coverage from analysts, index memberships, or disclosed top holders in the available data. This absence of external analyst estimates and index inclusion suggests that market attention may be limited, making the newly established risk and taxonomy metrics particularly important for investors seeking to understand the company’s fundamental positioning and financial health.

Analysts project 40% upside to a mean price target of 12.93, reflecting strong buy consensus from eight analysts.

Net income grew at a 12.7% CAGR over four years, significantly outpacing the 3.7% revenue growth rate.

Operating and net margins exceed cohort medians, indicating superior profitability relative to 131 heavy machinery peers.

Cash conversion ratio of 2.31 is more than double the cohort median of 1.03, showing strong cash generation.

Free cash flow improved to 723 million CNY in 2025, demonstrating a recovery from negative flows in 2022.

The company faces high credit risk, signaling potential difficulties in debt servicing or financial stability.

Return on equity of 2.8% lags the cohort median of 4.43%, indicating inefficient use of shareholder capital.

Debt-to-equity ratio of 0.65 is nearly double the cohort median of 0.35, implying higher financial leverage.

Free cash flow is projected to decline 14.2% year-over-year in 2026, suggesting weakening cash generation trends.

Medium liquidity risk flags potential challenges in meeting short-term obligations or maintaining operational fluidity.

Revenue ¥7.38B, +2,5% YoY; Operating income +101,0% YoY.

• ▍Revenue ¥7.38B, +2,5% YoY
• ▍Operating income +101,0% YoY
• ▍Net income +2 263,8% YoY
• ▍Net margin 2.1%

Revenue ¥33.14B, +10,2% YoY; Operating income +2,8% YoY.

• ▍Revenue ¥33.14B, +10,2% YoY
• ▍Operating income +2,8% YoY
• ▍Net income +21,3% YoY
• ▍Free cash flow −14,2% YoY
• ▍Net margin 4.9%

Revenue ¥30.06B, +9,2% YoY; Operating income +37,7% YoY.

• ▍Revenue ¥30.06B, +9,2% YoY
• ▍Operating income +37,7% YoY
• ▍Net income +52,9% YoY
• ▍Free cash flow +104,3% YoY
• ▍Net margin 4.4%

Revenue ¥27.52B, +3,9% YoY; Operating income +52,7% YoY.

• ▍Revenue ¥27.52B, +3,9% YoY
• ▍Operating income +52,7% YoY
• ▍Net income +44,8% YoY
• ▍Free cash flow +441,7% YoY
• ▍Net margin 3.2%

Revenue ¥26.48B, −7,7% YoY; Operating income −37,9% YoY.

• ▍Revenue ¥26.48B, −7,7% YoY
• ▍Operating income −37,9% YoY
• ▍Net income −39,9% YoY
• ▍Free cash flow +622,1% YoY
• ▍Net margin 2.3%

Revenue ¥28.70B; Operating income ¥1.24B.

• ▍Revenue ¥28.70B
• ▍Operating income ¥1.24B
• ▍Net margin 3.5%