Qingdao Hanhe Cable Co Ltd

Qingdao Hanhe Cable Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.22 and a strong current ratio of 2.7, indicating adequate short-term liquidity despite a medium liquidity risk rating. The company holds total assets of CNY 12.5 billion against total liabilities of CNY 3.6 billion, resulting in total equity of CNY 8.9 billion. Long-term debt stands at CNY 1.98 billion. While the balance sheet is leveraged modestly, the risk assessment flags that net cash is negative after subtracting total debt, suggesting reliance on operating cash flows to service obligations. Operating cash flow of CNY 622 million exceeds free cash flow of CNY 391 million, reflecting capital expenditures of CNY 157 million.

Profitability metrics indicate modest returns on capital, with a return on equity (ROE) of 6.73% and a return on assets (ROA) of 4.78%. The company generated net income of CNY 553 million on revenue of CNY 10.4 billion, yielding a net margin of approximately 5.3%. Gross profit was CNY 1.46 billion, implying a gross margin of roughly 14%. Operating income of CNY 630 million suggests operational efficiency before interest and taxes. Without cohort median data for direct comparison, these returns appear consistent with capital-intensive manufacturing industries, though the ROE is below the typical hurdle rate for high-growth equities.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of product mix or geographic exposure. The company operates primarily within the electrical equipment space, as indicated by its sector classification classification. The absence of segment breakdowns limits the ability to assess diversification benefits or specific regional risks.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The latest normalized period shows revenue of CNY 10.4 billion and net income of CNY 553 million. Without prior year or quarterly trends, it is not possible to determine the momentum of revenue growth or earnings stability. The valuation multiples, including a P/E of 35.61 and EV/EBITDA of 35.35, suggest the market is pricing in future growth expectations or a stable earnings profile, despite the modest current returns.

Risk factors include a medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which could constrain financial flexibility during downturns. The company has a basic and diluted share count of 3.33 billion shares, with no immediate signs of aggressive share issuance. The low dilution risk suggests that existing shareholders are not currently facing significant erosion of ownership stakes.

Recent observations highlight an ESG score of 32.12 (grade C-), with the governance pillar scoring lowest at 21.28. The environment pillar scored 32.91, and the social pillar scored 39.65. The ESG controversies score is 100, indicating no significant recent controversies. These scores suggest room for improvement in governance practices, which could impact long-term investor sentiment and regulatory standing.

Debt-to-equity ratio of 0.22 is well below the cohort median of 0.4, suggesting a conservative capital structure.

Free cash flow reached 481 million CNY in FY-1, demonstrating the company's ability to generate cash from operations.

Operating income grew 40.1% year-over-year in the latest period, signaling a potential recovery in operational efficiency.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity erosion.

Long-term debt surged to 1.98 billion CNY in FY0, increasing financial leverage and potential interest burden.

Cash conversion ratio of 0.31 is significantly below the cohort median of 1.2, reflecting poor cash flow quality.

Revenue ¥9.26B, −4,1% YoY; Operating income −16,2% YoY.

• ▍Revenue ¥9.26B, −4,1% YoY
• ▍Operating income −16,2% YoY
• ▍Net income −13,8% YoY
• ▍Free cash flow −6,8% YoY
• ▍Net margin 7.1%

Revenue ¥9.66B, −1,9% YoY; Operating income −1,6% YoY.

• ▍Revenue ¥9.66B, −1,9% YoY
• ▍Operating income −1,6% YoY
• ▍Net income −3,3% YoY
• ▍Free cash flow +81,9% YoY
• ▍Net margin 7.9%

Revenue ¥9.84B, +9,6% YoY; Operating income −0,3% YoY.

• ▍Revenue ¥9.84B, +9,6% YoY
• ▍Operating income −0,3% YoY
• ▍Net income +1,1% YoY
• ▍Free cash flow +57,1% YoY
• ▍Net margin 8.0%