SuZhou Invotech Scroll Technologies Co Ltd

SuZhou Invotech Scroll Technologies Co Ltd maintains a strong liquidity position with a current ratio of 4.68, indicating the company can easily cover its short-term liabilities with its current assets. The company's liquidity_fpt score is high, supported by a positive operating cash flow of 33,751,920 CNY and a negligible long-term debt of 560,400 CNY. However, the risk assessment notes that net cash is negative after subtracting total debt, suggesting potential liquidity constraints if short-term obligations increase.

The company's profitability is moderate, with a return on equity (ROE) of 2.24% and a return on assets (ROA) of 1.84%. These figures are below the typical thresholds for high-performing industrial machinery firms, indicating that the company is not generating exceptional returns relative to its equity and asset base. The gross profit margin of 24.1% is in line with industry norms, but the operating margin of 15.8% suggests that operating expenses are consuming a significant portion of gross profit.

SuZhou Invotech Scroll Technologies Co Ltd operates in a single business segment, with no disclosed geographic diversification in the provided data. The company's revenue is entirely attributed to its domestic operations, which may expose it to regional economic fluctuations and regulatory changes in China. The lack of international revenue diversification increases the company's concentration risk, as it is not insulated from local market conditions.

The company's growth trajectory is modest, with no significant revenue growth reported in the latest financial period. The operating cash flow of 33,751,920 CNY and capital expenditure of -31,968,510 CNY suggest that the company is reinvesting a portion of its cash flow into operations, but the net cash flow is relatively low. Analysts have assigned a mean recommendation of 1.00, indicating a strong buy, but the company's earnings per share (EPS) of 0.61 CNY is below the mean estimate of 1.19 CNY, suggesting potential earnings shortfalls.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's debt-to-equity ratio is 0.0, indicating no leverage, which reduces financial risk but may also limit growth opportunities. The risk of dilution is low, as the number of shares outstanding has not changed between basic and diluted shares. However, the negative net cash position after subtracting total debt is a red flag for liquidity management.

Recent events and filings do not indicate any major corporate actions or strategic shifts in the latest period. The company's capital expenditure of -31,968,510 CNY suggests ongoing investment in operations, but the lack of disclosed projects or expansion plans limits visibility into future growth drivers. The absence of recent earnings surprises or regulatory issues supports the low dilution risk assessment.

The company maintains a zero debt-to-equity ratio, significantly lower than the 0.20 median for its industrial machinery peer group.

Cash conversion efficiency stands at 1.5, outperforming the 0.95 median benchmark for the industrial machinery and equipment sector.

Analyst consensus assigns a strong buy recommendation to the stock, indicating positive professional sentiment despite limited coverage.

Dilution and credit risks are assessed as low, suggesting a stable capital structure and limited near-term equity overhang.

Free cash flow deteriorated sharply to negative 50.2 million CNY in FY2026, signaling severe liquidity pressure and cash burn.

Net income collapsed to 36.3 million CNY in FY2026, representing a significant decline from 87.4 million CNY in FY2024.

Long-term debt surged to 63.3 million CNY in FY2026, a massive increase from negligible levels in prior fiscal years.

Revenue and net income CAGRs were negative 5.2% and 5.3% respectively over the four-year period ending FY2024.

Return on equity of 2.24% falls below the 3.56% median for the industrial machinery cohort, indicating poor capital efficiency.

Revenue ¥568.4M, −4,8% YoY; Operating income −58,3% YoY.

• ▍Revenue ¥568.4M, −4,8% YoY
• ▍Operating income −58,3% YoY
• ▍Net income −51,1% YoY
• ▍Free cash flow −194,2% YoY
• ▍Net margin 6.4%

Revenue ¥596.7M, +7,5% YoY; Operating income −17,4% YoY.

• ▍Revenue ¥596.7M, +7,5% YoY
• ▍Operating income −17,4% YoY
• ▍Net income −15,1% YoY
• ▍Free cash flow −329,0% YoY
• ▍Net margin 12.4%

Revenue ¥555.0M, +23,9% YoY; Operating income +21,8% YoY.

• ▍Revenue ¥555.0M, +23,9% YoY
• ▍Operating income +21,8% YoY
• ▍Net income +24,2% YoY
• ▍Free cash flow −73,9% YoY
• ▍Net margin 15.7%