Aerospace CH UAV Co Ltd

Aerospace CH UAV Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.06 and a current ratio of 2.21, indicating strong short-term liquidity coverage. The company holds total assets of 11.64 billion CNY against total liabilities of 3.63 billion CNY, resulting in a tangible book value that supports a price-to-book multiple of 2.18. Despite the low leverage, the firm reports negative operating cash flow of -260.88 million CNY, offset partially by free cash flow of 19.84 million CNY after capital expenditures of 223.88 million CNY. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting reliance on external financing or retained earnings to fund operations.

Profitability metrics remain compressed relative to the high valuation multiples applied by the market. The company generated a net income of 26.93 million CNY on revenue of 2.93 billion CNY, yielding a return on equity of 0.68% and a return on assets of 0.47%. These returns are significantly below typical industry medians for mature defense contractors, reflecting the early-stage or high-investment nature of the business. The price-to-earnings ratio stands at 318.47, and EV/EBITDA is 214.76, implying that investors are pricing in substantial future growth rather than current earnings power. The gross profit of 556.86 million CNY represents a gross margin of approximately 19%, which is modest for a technology-intensive defense firm.

Analysts project 23.0% upside to a mean price target of 25.76 CNY, signaling strong buy sentiment.

Revenue grew 14.2% year-over-year to 2.93 billion CNY in FY2026, indicating top-line expansion.

Free cash flow improved 88.8% year-over-year to 19.8 million CNY, showing better cash generation.

The company maintains a low debt-to-equity ratio of 0.06, suggesting a conservative capital structure.

Dilution risk is assessed as low, protecting existing shareholders from significant equity erosion.

The company faces high credit risk, potentially impacting its ability to service increasing long-term debt.

Revenue ¥2.93B, +14,2% YoY; Operating income −50,8% YoY.

• ▍Revenue ¥2.93B, +14,2% YoY
• ▍Operating income −50,8% YoY
• ▍Net income −69,5% YoY
• ▍Free cash flow +88,8% YoY
• ▍Net margin 0.9%

Revenue ¥2.57B, −10,4% YoY; Operating income −35,7% YoY.

• ▍Revenue ¥2.57B, −10,4% YoY
• ▍Operating income −35,7% YoY
• ▍Net income −42,5% YoY
• ▍Free cash flow −8,4% YoY
• ▍Net margin 3.4%

Revenue ¥2.87B, −25,7% YoY; Operating income −46,7% YoY.

• ▍Revenue ¥2.87B, −25,7% YoY
• ▍Operating income −46,7% YoY
• ▍Net income −50,0% YoY
• ▍Free cash flow −89,4% YoY
• ▍Net margin 5.4%

Revenue ¥3.86B, +32,4% YoY; Operating income +29,7% YoY.

• ▍Revenue ¥3.86B, +32,4% YoY
• ▍Operating income +29,7% YoY
• ▍Net income +34,8% YoY
• ▍Free cash flow −53,7% YoY
• ▍Net margin 7.9%

Revenue ¥2.91B; Operating income ¥275.7M.

• ▍Revenue ¥2.91B
• ▍Operating income ¥275.7M
• ▍Net margin 7.8%