Miracle Automation Engineering Co Ltd

Miracle Automation Engineering Co Ltd maintains a capital structure characterized by significant leverage and tight liquidity. The company reports total assets of 5.50 billion CNY against total liabilities of 3.47 billion CNY, resulting in total equity of 2.03 billion CNY. Long-term debt stands at 1.87 billion CNY, yielding a debt-to-equity ratio of 0.92. Liquidity is constrained, evidenced by a current ratio of 1.0 and a risk assessment flagging medium liquidity risk. The balance sheet reflects negative net cash after subtracting total debt, indicating reliance on external financing or operational cash generation to service obligations.

Profitability metrics indicate thin margins and low returns on capital. Revenue for the latest period is 2.76 billion CNY, with gross profit of 427.55 million CNY, implying a gross margin of approximately 15.5%. Operating income is 83.40 million CNY, and net income is 54.68 million CNY. Return on equity is 2.7%, and return on assets is 1.0%, both of which are low relative to typical industrial machinery peers, suggesting inefficient capital utilization or a cyclical trough in earnings. The valuation multiples reflect this low earnings base, with a P/E ratio of 135.57 and an EV/EBITDA of 111.35, while the P/B ratio is 3.65.