Shenyang Machine Tool Co Ltd

Shenyang Machine Tool Co Ltd has a debt-to-equity ratio of 1.1, indicating a moderate reliance on debt financing, and a current ratio of 1.01, suggesting limited short-term liquidity buffer. The company's operating cash flow is negative at -130.4 million CNY, and its capital expenditure is -35.7 million CNY, reflecting ongoing investment in its operations.

The company's profitability is weak, with a return on equity of -0.89% and a return on assets of -0.28%, both significantly below the industry median for industrial machinery firms. These metrics suggest the company is underperforming in generating returns for shareholders and asset utilization.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification, making it vulnerable to regional economic shifts. There is no information on revenue by geographic region, but the lack of segment diversification increases exposure to localized demand fluctuations.

Looking ahead, the company is expected to face continued challenges, with no clear indication of revenue growth in the current or next fiscal year. The negative net income of 8.57 million CNY and the absence of positive operating income suggest a difficult operating environment.

The company's risk profile is elevated due to its negative net cash position after subtracting total debt, which increases liquidity risk. While dilution risk is currently low, the company's financial position could deteriorate if operating cash flow does not improve.

Recent filings and transcripts have not provided new insights into the company's strategic direction or operational improvements. The lack of positive developments in recent disclosures suggests ongoing operational and financial challenges.

Shenyang Machine Tool Co Ltd (000410.SZ) has undergone a significant update to its corporate taxonomy, now formally classified within the "Industrial Goods" activity and "Industrials" economic sector. This structural reclassification represents the most material change in the company's profile, shifting the analytical framework from an undefined state to a specific industrial context. The establishment of these sectoral definitions provides a clearer basis for benchmarking the company against peers in the industrial manufacturing space. By anchoring Shenyang Machine Tool within the Industrials sector, investors and analysts can now apply industry-specific metrics and expectations to evaluate its operational performance and market position. In parallel with the sectoral update, the company’s risk assessment profile has been initialized with specific risk ratings. The dilution risk is currently assessed as "low," suggesting a stable capital structure with minimal immediate threat of share value erosion through new issuance. Conversely, the liquidity risk is rated as "medium," indicating a moderate level of concern regarding the company's ability to meet short-term obligations. This combination of low dilution risk and medium liquidity risk offers a nuanced view of the company's financial health, highlighting stability in equity structure while noting areas for monitoring in cash flow management.

Revenue grew 149% year-over-year to CNY 3.74 billion, demonstrating significant top-line expansion momentum.

Free cash flow surged 39.2% to CNY 85.9 million, indicating improved operational cash generation capabilities.

Cash conversion ratio of 15.21 ranks best-in-class among 854 industrial machinery peers, highlighting efficiency.

Long-term debt decreased to CNY 650 million, reducing leverage compared to previous periods of over CNY 1 billion.

Operating income turned positive at CNY 22.8 million, reversing previous negative operating performance trends.

Net margin of -0.7% falls in the bottom quartile of the industrial machinery cohort, signaling poor profitability.

Return on equity of -0.89% ranks in the bottom quartile, indicating inefficient use of shareholder capital.

The company faces high credit risk, suggesting potential difficulties in meeting financial obligations or securing funding.

Debt-to-equity ratio of 1.1 is significantly higher than the cohort median of 0.2, indicating elevated leverage.

Revenue ¥957.5M; Operating income ¥23.0M.

• ▍Revenue ¥957.5M
• ▍Operating income ¥23.0M
• ▍Net margin 1.0%

Revenue ¥1.17B; Operating income ¥145.4M.

• ▍Revenue ¥1.17B
• ▍Operating income ¥145.4M
• ▍Net margin 12.8%

Revenue ¥934.8M; Operating income -¥20.4M.

• ▍Revenue ¥934.8M
• ▍Operating income -¥20.4M
• ▍Net margin -2.1%

Revenue ¥3.70B, +146,6% YoY; Operating income +205,6% YoY.

• ▍Revenue ¥3.70B, +146,6% YoY
• ▍Operating income +205,6% YoY
• ▍Net income +131,7% YoY
• ▍Free cash flow +30,1% YoY
• ▍Net margin 2.2%

Revenue ¥1.67B, −1,7% YoY; Operating income +104,7% YoY.

• ▍Revenue ¥1.67B, −1,7% YoY
• ▍Operating income +104,7% YoY
• ▍Net income +103,0% YoY
• ▍Free cash flow +94,4% YoY
• ▍Net margin 1.5%