CMST Development Co Ltd

CMST Development Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.18 and a current ratio of 1.8, indicating adequate short-term liquidity despite a medium liquidity risk rating. The company holds total assets of 23.76 billion CNY against total liabilities of 9.85 billion CNY, resulting in total equity of 13.91 billion CNY. Long-term debt stands at 2.54 billion CNY, and while the company generates positive operating cash flow of 1.21 billion CNY, free cash flow is lower at 525.93 million CNY due to capital expenditures of 180.80 million CNY. A key risk flag notes that net cash is negative after subtracting total debt, suggesting reliance on external financing or asset liquidation for certain obligations.

Profitability metrics indicate modest returns, with a return on equity (ROE) of 1.94% and a return on assets (ROA) of 1.14%. The company reported net income of 545.55 million CNY on revenue of 67.69 billion CNY, yielding a net margin of approximately 0.81%. Operating income was 1.10 billion CNY, and gross profit was 2.03 billion CNY, reflecting a gross margin of roughly 3.0%. These returns are below typical industry medians for logistics firms, suggesting operational inefficiencies or a low-margin business model.

Revenue concentration and segment details are not explicitly provided in the available data, but the company’s primary activity is identified as Air Freight & Logistics. The geographic exposure is not detailed, but the financials are reported in CNY, indicating a primary operational base in China. Without specific segment breakdowns, the revenue mix is assumed to be dominated by the core logistics activities described in the classification.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest revenue figure of 67.69 billion CNY serves as the baseline for current performance. Without year-over-year comparisons, the growth rate cannot be quantified, but the scale of revenue suggests a mature operation.

Risk factors include medium liquidity risk and low dilution risk. The negative net cash position is a significant flag, potentially impacting the company’s ability to weather economic downturns or invest in growth without external capital. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 2.17 billion.

Recent events include analyst estimates with a mean recommendation of 2.00, indicating a buy rating. There is one buy recommendation and no strong buy, hold, sell, or strong sell ratings. The last actual EPS was 0.25 CNY, and the last actual revenue was 67.69 billion CNY. No specific filing, news, or transcript observations are provided in the input data.

Free cash flow surged to 526 million CNY in FY2026, demonstrating strong cash generation capabilities despite revenue fluctuations.

Cash conversion ratio of 4.5 ranks best-in-class among 2,655 peers, indicating superior efficiency in turning earnings into cash.

Long-term debt decreased to 2.54 billion CNY in FY2026, reflecting a consistent deleveraging trend over the analyzed period.

Debt-to-equity ratio of 0.18 is well below the cohort median of 0.4, suggesting a conservative and stable capital structure.

Gross profit increased to 2.03 billion CNY in FY2026, showing resilience in core profitability despite overall revenue declines.

Operating margin of 0.94% falls in the bottom quartile of the cohort, indicating significant competitive disadvantage in cost management.

The company faces a high credit risk flag, posing potential challenges for financing and operational stability.

Revenue contracted 14.1% year-over-year in FY2025, highlighting a substantial decline in top-line growth momentum.

Revenue ¥67.69B, +5,9% YoY; Operating income +27,6% YoY.

• ▍Revenue ¥67.69B, +5,9% YoY
• ▍Operating income +27,6% YoY
• ▍Net income +17,0% YoY
• ▍Free cash flow +60,9% YoY
• ▍Net margin 0.8%

Revenue ¥63.89B, −5,0% YoY; Operating income −26,1% YoY.

• ▍Revenue ¥63.89B, −5,0% YoY
• ▍Operating income −26,1% YoY
• ▍Net income −40,7% YoY
• ▍Free cash flow −21,5% YoY
• ▍Net margin 0.7%

Revenue ¥75.24B; Operating income ¥975.7M.

• ▍Revenue ¥75.24B
• ▍Operating income ¥975.7M
• ▍Net margin 1.2%