Shenzhen Envicool Technology Co Ltd

The company's capital structure is relatively conservative, with a debt-to-equity ratio of 0.26, indicating a low reliance on debt financing. However, its liquidity position is rated as medium, and it has negative net cash after subtracting total debt, which could pose short-term liquidity challenges. The current ratio of 1.8 suggests the company has sufficient current assets to cover its current liabilities, but the negative operating cash flow of -45.66 million CNY raises concerns about its ability to generate cash from operations.

Profitability metrics show a return on equity (ROE) of 4.7% and a return on assets (ROA) of 2.48%, both below the industry median for industrial machinery and equipment firms. The gross profit margin is 31.7%, and the operating margin is 14.0%, which are in line with the industry average. However, the company's net income margin of 12.6% is slightly below the median, indicating potential inefficiencies in cost management or tax optimization.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The absence of segment or geographic breakdown in the financial data limits the ability to assess the company's risk profile in detail.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or decline projected in the next fiscal year. The capital expenditure of -173.87 million CNY indicates ongoing investment in infrastructure and production capacity, which could support long-term growth. However, the negative operating cash flow suggests that the company may need to rely on external financing to fund these investments.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company has not issued additional shares recently, and there is no indication of imminent dilution. However, the negative net cash position and reliance on external financing could increase liquidity risk in the short term. The risk assessment also notes that the company's financial leverage is low, which is a positive factor for credit risk.

Recent events include the publication of the latest financial report, which provides updated figures on revenue, profitability, and cash flow. There are no recent filings or transcripts indicating significant corporate actions or strategic shifts. The company's stock has a mean price target of 101.67 CNY, with a median of 113.00 CNY, suggesting a generally positive outlook among analysts. The mean recommendation of 2.21 indicates a slight bias toward buy ratings, with 10 buy and 4 strong-buy recommendations.

Shenzhen Envicool Technology Co Ltd (002837.SZ) has been formally classified within the Industrials economic sector, specifically under the Industrial Goods activity. This structural update provides a clearer framework for analyzing the company’s operational focus and market positioning. The risk profile for the company has also been established, with dilution risk assessed as low. This suggests that the potential for existing shareholders to see their ownership stakes reduced through new share issuance is currently minimal. Conversely, liquidity risk has been categorized as medium. This indicates that while the stock is tradable, investors should be aware of potential constraints in buying or selling large positions without impacting the share price. These assessments provide a foundational view of the company’s financial and operational characteristics, aiding in a more structured evaluation of its investment profile.

Revenue grew at a 28.5% CAGR from 2022 to 2026, demonstrating strong top-line expansion momentum.

Net income CAGR of 26.3% over four years indicates robust profitability growth alongside revenue expansion.

Operating and net margins exceed the 75th percentile of the industrial machinery cohort, showing superior efficiency.

Free cash flow surged 239.4% year-over-year in 2026, highlighting significant improvement in cash generation.

Analysts maintain a buy recommendation with a mean price target implying modest upside from current levels.

Long-term debt more than doubled to 1.4 billion CNY in 2026, signaling increased leverage and credit risk.

The company faces high credit risk flags, potentially complicating future financing and increasing borrowing costs.

Cash conversion ranks in the bottom quartile of peers, indicating poor efficiency in turning profits into cash.

Return on equity of 4.7% remains relatively low despite high margins, suggesting inefficient capital utilization.

Medium liquidity risk flags suggest potential challenges in meeting short-term financial obligations comfortably.

Revenue ¥1.18B, +26,0% YoY; Operating income −88,5% YoY.

• ▍Revenue ¥1.18B, +26,0% YoY
• ▍Operating income −88,5% YoY
• ▍Net income −82,0% YoY
• ▍Net margin 0.7%

Revenue ¥2.04B, +18,9% YoY; Operating income +33,0% YoY.

• ▍Revenue ¥2.04B, +18,9% YoY
• ▍Operating income +33,0% YoY
• ▍Net income +23,0% YoY
• ▍Net margin 6.0%

Revenue ¥1.45B, +25,3% YoY; Operating income +2,3% YoY.

• ▍Revenue ¥1.45B, +25,3% YoY
• ▍Operating income +2,3% YoY
• ▍Net income +8,3% YoY
• ▍Net margin 12.6%

Revenue ¥932.6M; Operating income ¥54.9M.

• ▍Revenue ¥932.6M
• ▍Operating income ¥54.9M
• ▍Net margin 5.1%

Revenue ¥1.64B, +69,7% YoY; Operating income +39,5% YoY.

• ▍Revenue ¥1.64B, +69,7% YoY
• ▍Operating income +39,5% YoY
• ▍Net income +38,0% YoY
• ▍Net margin 10.2%

Revenue ¥1.72B; Operating income ¥114.6M.

• ▍Revenue ¥1.72B
• ▍Operating income ¥114.6M
• ▍Net margin 5.8%

Revenue ¥1.16B; Operating income ¥189.8M.

• ▍Revenue ¥1.16B
• ▍Operating income ¥189.8M
• ▍Net margin 14.6%

Revenue ¥966.9M; Operating income ¥135.3M.

• ▍Revenue ¥966.9M
• ▍Operating income ¥135.3M
• ▍Net margin 12.6%

Revenue ¥6.07B, +32,2% YoY; Operating income +17,1% YoY.

• ▍Revenue ¥6.07B, +32,2% YoY
• ▍Operating income +17,1% YoY
• ▍Net income +15,3% YoY
• ▍Free cash flow +239,3% YoY
• ▍Net margin 8.6%

Revenue ¥4.59B, +30,0% YoY; Operating income +27,1% YoY.

• ▍Revenue ¥4.59B, +30,0% YoY
• ▍Operating income +27,1% YoY
• ▍Net income +31,6% YoY
• ▍Free cash flow −56,1% YoY
• ▍Net margin 9.9%

Revenue ¥3.53B, +20,7% YoY; Operating income +24,4% YoY.

• ▍Revenue ¥3.53B, +20,7% YoY
• ▍Operating income +24,4% YoY
• ▍Net income +22,7% YoY
• ▍Free cash flow −41,7% YoY
• ▍Net margin 9.7%

Revenue ¥2.92B, +31,2% YoY; Operating income +46,0% YoY.

• ▍Revenue ¥2.92B, +31,2% YoY
• ▍Operating income +46,0% YoY
• ▍Net income +36,7% YoY
• ▍Free cash flow +166,3% YoY
• ▍Net margin 9.6%