Qingdao TGOOD Electric Co Ltd

Qingdao TGOOD Electric maintains a debt-to-equity ratio of 0.97, indicating a moderate reliance on debt financing, while its current ratio of 1.17 suggests limited short-term liquidity cushion. The company reported negative operating cash flow of CNY -705.6 million and capital expenditures of CNY -483.6 million, signaling ongoing investment in infrastructure and operations. Despite these outflows, the firm's total equity of CNY 6.63 billion provides a baseline of financial stability.

Profitability metrics reveal a return on equity (ROE) of 1.98% and a return on assets (ROA) of 0.57%, both below the industry median for heavy electrical equipment firms. The gross profit margin of 24.16% (CNY 804 million on CNY 3.33 billion revenue) is in line with sector norms, but the operating margin of 5.13% (CNY 170.7 million) is weak, suggesting pressure on cost control or pricing power.

The company operates as a single business segment, with no disclosed geographic revenue breakdown. This lack of diversification implies that performance is concentrated in its core industrial goods market, with no material exposure to international markets or ancillary product lines.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the current or next fiscal year. Analysts have assigned a mean price target of CNY 36.91, with a median of CNY 35.24, and a mean recommendation of 1.50 (leaning toward "buy"). However, the absence of revenue growth in the outlook suggests a defensive positioning in a mature industry.

The risk profile is characterized by medium liquidity risk and low dilution risk. The firm's negative net cash position (CNY -705.6 million operating cash flow) raises concerns about short-term financial flexibility, though the low dilution risk indicates no immediate threat from equity issuance. No material dilution adjustments have been applied to the valuation metrics.

Recent filings and transcripts have not disclosed any material events or strategic shifts. The company remains focused on its core industrial electrical equipment business, with no announced diversification or restructuring initiatives.

Net income surged 35.6% year-over-year to CNY 1.24 billion in FY2026, demonstrating strong profitability growth.

Free cash flow improved significantly by 88.9% to CNY 1.0 billion, indicating enhanced cash generation capabilities.

Operating income grew 51.0% year-over-year to CNY 1.54 billion, reflecting robust operational efficiency improvements.

Revenue expanded 13.7% annually over four years, reaching CNY 15.8 billion in FY2026, showing consistent top-line growth.

Long-term debt decreased slightly to CNY 5.72 billion in FY2026, suggesting a modest improvement in leverage management.

The company faces high credit risk, posing significant potential threats to financial stability and asset quality.

Debt-to-equity ratio of 0.97 is in the bottom quartile compared to the cohort median of 0.19, signaling high leverage.

Current market price of CNY 40.01 exceeds the mean analyst price target of CNY 36.91, implying limited upside potential.

Revenue ¥2.22B, +5,4% YoY; Operating income +85,2% YoY.

• ▍Revenue ¥2.22B, +5,4% YoY
• ▍Operating income +85,2% YoY
• ▍Net income +11,1% YoY
• ▍Net margin 3.2%

Revenue ¥5.95B, +21,9% YoY; Operating income +28,3% YoY.

• ▍Revenue ¥5.95B, +21,9% YoY
• ▍Operating income +28,3% YoY
• ▍Net income +18,6% YoY
• ▍Net margin 9.4%

Revenue ¥3.58B, +1,1% YoY; Operating income +68,2% YoY.

• ▍Revenue ¥3.58B, +1,1% YoY
• ▍Operating income +68,2% YoY
• ▍Net income +41,5% YoY
• ▍Net margin 10.0%

Revenue ¥4.15B, +24,8% YoY; Operating income +114,9% YoY.

• ▍Revenue ¥4.15B, +24,8% YoY
• ▍Operating income +114,9% YoY
• ▍Net income +99,4% YoY
• ▍Net margin 6.3%

Revenue ¥2.10B; Operating income ¥24.8M.

• ▍Revenue ¥2.10B
• ▍Operating income ¥24.8M
• ▍Net margin 3.1%

Revenue ¥4.88B; Operating income ¥588.6M.

• ▍Revenue ¥4.88B
• ▍Operating income ¥588.6M
• ▍Net margin 9.6%

Revenue ¥3.54B; Operating income ¥258.0M.

• ▍Revenue ¥3.54B
• ▍Operating income ¥258.0M
• ▍Net margin 7.2%

Revenue ¥3.33B; Operating income ¥170.7M.

• ▍Revenue ¥3.33B
• ▍Operating income ¥170.7M
• ▍Net margin 4.0%

Revenue ¥15.79B, +2,7% YoY; Operating income +51,0% YoY.

• ▍Revenue ¥15.79B, +2,7% YoY
• ▍Operating income +51,0% YoY
• ▍Net income +35,6% YoY
• ▍Free cash flow +89,0% YoY
• ▍Net margin 7.9%

Revenue ¥15.37B, +21,1% YoY; Operating income +94,7% YoY.

• ▍Revenue ¥15.37B, +21,1% YoY
• ▍Operating income +94,7% YoY
• ▍Net income +86,6% YoY
• ▍Free cash flow +1 072,4% YoY
• ▍Net margin 6.0%

Revenue ¥12.69B, +9,1% YoY; Operating income +98,5% YoY.

• ▍Revenue ¥12.69B, +9,1% YoY
• ▍Operating income +98,5% YoY
• ▍Net income +80,4% YoY
• ▍Free cash flow +56,4% YoY
• ▍Net margin 3.9%

Revenue ¥11.63B, +23,2% YoY; Operating income +66,2% YoY.

• ▍Revenue ¥11.63B, +23,2% YoY
• ▍Operating income +66,2% YoY
• ▍Net income +45,4% YoY
• ▍Free cash flow +74,3% YoY
• ▍Net margin 2.3%