Shijiazhuang Shangtai Technology Co Ltd

Shijiazhuang Shangtai Technology Co Ltd maintains a balanced capital structure with a debt-to-equity ratio of 0.53 and a strong current ratio of 2.97, indicating adequate short-term liquidity coverage. The company holds total assets of 11.74 billion CNY against total liabilities of 4.73 billion CNY, resulting in total equity of 7.01 billion CNY. Long-term debt stands at 3.73 billion CNY. Despite positive operating cash flow of 955.68 million CNY, free cash flow is negative at -17.76 million CNY due to significant capital expenditures of 1.03 billion CNY. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting reliance on external financing or cash flow generation to service obligations.

Profitability metrics show a return on equity (ROE) of 13.25% and a return on assets (ROA) of 7.91%, reflecting efficient use of capital. The company generated net income of 945.82 million CNY on revenue of 7.94 billion CNY, yielding a net margin of approximately 11.9%. Operating income was 1.13 billion CNY, indicating healthy operational leverage. Gross profit stood at 1.65 billion CNY, resulting in a gross margin of roughly 20.8%. These returns are supported by a price-to-earnings ratio of 23.14 and an EV/EBITDA of 22.14, suggesting the market values the company’s earnings power at a premium relative to its book value, which is reflected in a price-to-book ratio of 3.07.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the ability to assess specific business unit contributions or geographic exposure. The company’s total revenue of 7.94 billion CNY serves as the primary aggregate metric for performance evaluation. Without segment breakdowns, the analysis relies on consolidated figures to infer business stability and growth drivers.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The current financial snapshot provides a single-period view, preventing year-over-year or quarter-over-quarter trend analysis. The significant capital expenditure of 1.03 billion CNY suggests ongoing investment in capacity or technology, which may drive future revenue growth, but the immediate impact on free cash flow is negative.

Risk factors include medium liquidity risk and low dilution risk. The key flag indicates that net cash is negative after subtracting total debt, which could pose challenges in periods of cash flow volatility. The dilution risk is assessed as low, with basic and diluted shares outstanding both at 364.62 million, indicating no immediate options or convertible securities impacting share count. The company’s reliance on debt financing, as evidenced by the 3.73 billion CNY in long-term debt, requires careful management of interest obligations and refinancing risks.

Recent events and analyst sentiment are positive, with a mean price target of 68.31 CNY and a median price target of 68.31 CNY, implying an upside potential from the current market price of 58.95 CNY. The mean recommendation is 1.40, with three strong-buy ratings and two buy ratings, and no hold ratings, indicating strong analyst confidence in the company’s prospects. The high price target is 75.90 CNY, and the low is 60.71 CNY, suggesting a consensus view of moderate upside with limited downside risk according to analyst estimates.

Dilution risk is assessed as low, providing some protection to existing shareholders against equity value erosion.

Free cash flow turned negative to -17.8 million CNY in FY2026, signaling severe liquidity generation challenges.

Long-term debt surged to 3.73 billion CNY in FY2026, raising significant concerns about leverage and solvency.

Medium liquidity and credit risk flags suggest potential difficulties in meeting short-term obligations or refinancing debt.

Revenue ¥7.94B, +51,9% YoY; Operating income +9,7% YoY.

• ▍Revenue ¥7.94B, +51,9% YoY
• ▍Operating income +9,7% YoY
• ▍Net income +12,8% YoY
• ▍Free cash flow −3 021,2% YoY
• ▍Net margin 11.9%

Revenue ¥5.23B, +19,1% YoY; Operating income +18,1% YoY.

• ▍Revenue ¥5.23B, +19,1% YoY
• ▍Operating income +18,1% YoY
• ▍Net income +16,0% YoY
• ▍Free cash flow −99,8% YoY
• ▍Net margin 16.0%

Revenue ¥4.39B, −8,2% YoY; Operating income −45,3% YoY.

• ▍Revenue ¥4.39B, −8,2% YoY
• ▍Operating income −45,3% YoY
• ▍Net income −43,9% YoY
• ▍Free cash flow −1,6% YoY
• ▍Net margin 16.5%