China Aerospace Times Electronics Co Ltd

China Aerospace Times Electronics Co Ltd maintains a capital structure characterized by a debt-to-equity ratio of 0.29 and a current ratio of 1.75, indicating moderate leverage and adequate short-term liquidity coverage. The company holds total assets of 48.77 billion CNY against total liabilities of 27.91 billion CNY, resulting in total equity of 20.86 billion CNY. Long-term debt stands at 6.12 billion CNY. Despite the positive current ratio, the risk assessment flags medium liquidity risk, noting that net cash is negative after subtracting total debt. Operating cash flow is negative at -1.03 billion CNY, and free cash flow is negative at -0.19 billion CNY, driven by capital expenditures of -0.87 billion CNY.

Profitability metrics reveal thin margins and low returns relative to typical industrial standards. The company reports a net income of 227.0 million CNY on revenue of 13.91 billion CNY, yielding a net margin of approximately 1.6%. Return on equity is 2.08%, and return on assets is 0.89%. These returns are low, suggesting capital intensity or margin compression within the defense electronics segment. The gross profit is 2.74 billion CNY, resulting in a gross margin of approximately 19.7%. Operating income is 276.8 million CNY, indicating significant operating expenses relative to gross profit.

Revenue concentration is not detailed in segment or geographic breakdowns within the available data. The company’s activity is broadly defined as Aerospace & Defense, implying exposure to government and military procurement cycles. Without specific segment data, the revenue mix is assumed to be consolidated under the primary defense electronics activity. The lack of geographic disclosure limits the assessment of regional exposure risks.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The current revenue of 13.91 billion CNY serves as the baseline. Without prior year comparisons, year-over-year growth rates cannot be calculated. The negative operating and free cash flows suggest that current growth or operational activities are consuming cash rather than generating it, which may indicate investment in capacity or working capital pressures.

Risk factors include medium liquidity risk and low dilution risk. The key flag highlights negative net cash after debt subtraction, which poses a refinancing or liquidity management challenge. The negative operating cash flow of -1.03 billion CNY is a significant concern, as it indicates the core business is not generating sufficient cash to cover operations. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 3.30 billion.

Recent events are reflected in analyst estimates, which show a mean price target of 14.18 CNY and a median of 14.82 CNY, both significantly below the current market price of 21.19 CNY. The mean recommendation is 1.00 (strong buy), with three strong-buy ratings and no buy, hold, or sell ratings. This divergence between the strong buy recommendation and the lower price targets suggests analysts see long-term value but acknowledge current valuation premiums or near-term headwinds.

Revenue ¥13.91B, −2,6% YoY; Operating income −58,9% YoY.

• ▍Revenue ¥13.91B, −2,6% YoY
• ▍Operating income −58,9% YoY
• ▍Net income −58,6% YoY
• ▍Free cash flow −155,2% YoY
• ▍Net margin 1.6%

Revenue ¥14.28B, −23,8% YoY; Operating income +14,5% YoY.

• ▍Revenue ¥14.28B, −23,8% YoY
• ▍Operating income +14,5% YoY
• ▍Net income +4,4% YoY
• ▍Free cash flow +17,8% YoY
• ▍Net margin 3.8%

Revenue ¥18.73B, +7,2% YoY; Operating income −12,1% YoY.

• ▍Revenue ¥18.73B, +7,2% YoY
• ▍Operating income −12,1% YoY
• ▍Net income −14,3% YoY
• ▍Free cash flow +53,4% YoY
• ▍Net margin 2.8%

Revenue ¥17.48B, +9,3% YoY; Operating income +6,5% YoY.

• ▍Revenue ¥17.48B, +9,3% YoY
• ▍Operating income +6,5% YoY
• ▍Net income +11,6% YoY
• ▍Free cash flow −53,6% YoY
• ▍Net margin 3.5%

Revenue ¥15.99B; Operating income ¥629.1M.

• ▍Revenue ¥15.99B
• ▍Operating income ¥629.1M
• ▍Net margin 3.4%