Shanghai Liangxin Electrical Co Ltd

Shanghai Liangxin Electrical Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.10 and a current ratio of 2.02, indicating strong short-term liquidity coverage. The company holds total equity of 4.26 billion CNY against total liabilities of 1.73 billion CNY. However, the firm reports negative free cash flow of -89.5 million CNY, driven by capital expenditures of 255.3 million CNY that exceed operating cash flow of 225.5 million CNY. This cash burn results in a net cash position that is negative after subtracting total debt, a key risk flag noted in the assessment.

Profitability metrics show a return on equity of 7.65% and a return on assets of 5.44%. The company trades at a price-to-earnings ratio of 36.0 and an EV/EBITDA of 35.76, suggesting the market prices in significant future growth or premium positioning relative to earnings. The price-to-book ratio stands at 2.75. Without cohort median data provided in the input, direct comparative analysis of these returns against industry peers is omitted, but the high valuation multiples imply expectations for margin expansion or revenue acceleration.

Segment and geographic revenue breakdowns are not provided in the available data. Consequently, specific analysis of revenue concentration risks or regional exposure cannot be performed. The company’s total revenue for the latest period is 4.48 billion CNY.

Historical period data for revenue and net income trends is absent from the input. Therefore, the growth trajectory cannot be quantified using multi-year annual or quarterly trends. The current valuation of 2.77x EV/Revenue suggests the market is assigning a premium to the current revenue base.

Risk assessment indicates medium liquidity risk and low dilution risk. The primary financial concern is the negative free cash flow and the resulting negative net cash position after debt subtraction. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 1.12 billion shares.

Recent IR observations show a mean analyst price target of 9.93 CNY, which is below the current market price of 10.44 CNY. The median target is 10.20 CNY, with a high of 12.38 CNY and a low of 7.20 CNY. The mean recommendation is 2.14, indicating a slight buy bias, supported by 3 strong buy and 2 buy ratings against 1 hold.

Operating and net margins exceed cohort medians, indicating superior profitability relative to peers.

Debt-to-equity ratio of 0.1 is significantly lower than the cohort median of 0.4.

Free cash flow improved by 30.6% year-over-year, showing better cash generation efficiency.

Revenue grew 5.8% year-over-year, demonstrating continued top-line expansion despite margin pressures.

Analysts maintain a buy recommendation with a median price target of 10.2 CNY.

Net income CAGR of -10.8% over four years indicates persistent earnings deterioration.

Cash conversion ratio of 0.69 is below the cohort median of 1.2.

Revenue ¥4.48B, +5,8% YoY; Operating income −4,1% YoY.

• ▍Revenue ¥4.48B, +5,8% YoY
• ▍Operating income −4,1% YoY
• ▍Net income −15,0% YoY
• ▍Free cash flow +30,6% YoY
• ▍Net margin 5.9%

Revenue ¥4.24B, −7,6% YoY; Operating income −41,1% YoY.

• ▍Revenue ¥4.24B, −7,6% YoY
• ▍Operating income −41,1% YoY
• ▍Net income −38,9% YoY
• ▍Free cash flow −5 160,6% YoY
• ▍Net margin 7.4%

Revenue ¥4.59B, +10,3% YoY; Operating income +27,2% YoY.

• ▍Revenue ¥4.59B, +10,3% YoY
• ▍Operating income +27,2% YoY
• ▍Net income +21,1% YoY
• ▍Free cash flow +101,1% YoY
• ▍Net margin 11.1%

Revenue ¥4.16B, +3,2% YoY; Operating income −1,6% YoY.

• ▍Revenue ¥4.16B, +3,2% YoY
• ▍Operating income −1,6% YoY
• ▍Net income +0,8% YoY
• ▍Free cash flow +34,5% YoY
• ▍Net margin 10.1%

Revenue ¥4.03B; Operating income ¥423.8M.

• ▍Revenue ¥4.03B
• ▍Operating income ¥423.8M
• ▍Net margin 10.4%