Zhejiang Chint Electrics Co Ltd

Zhejiang Chint Electrics maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.56 and long-term debt totaling 69.2 billion CNY against total equity of 44.5 billion CNY. The company holds a current ratio of 1.49, indicating adequate short-term liquidity to cover immediate obligations, though the risk assessment flags medium liquidity risk due to negative net cash after subtracting total debt. Operating cash flow stands at 23.1 billion CNY, providing a robust buffer against debt servicing requirements, while free cash flow is recorded at 4.6 billion CNY after capital expenditures of 1.9 billion CNY.

Profitability metrics show a return on equity of 8.89% and a return on assets of 2.49%, reflecting moderate efficiency in utilizing shareholder capital and total assets. The company generates a gross profit of 15.3 billion CNY on revenue of 59.1 billion CNY, resulting in a gross margin of approximately 25.8%. Operating income is 7.6 billion CNY, leading to a net income of 4.5 billion CNY, which supports a net margin of roughly 7.6%. Without cohort median data for direct comparison, these returns are evaluated against the company's historical performance and industry standards for electrical equipment manufacturers.

Revenue concentration and geographic exposure details are not explicitly provided in the available segments or geography sections, limiting the ability to assess specific market dependencies. The company's total revenue of 59.1 billion CNY suggests a substantial market presence, but the lack of segment breakdown prevents a detailed analysis of revenue mix by product line or region.

Growth trajectory analysis is constrained by the absence of historical periods data, preventing a year-over-year or quarter-over-quarter comparison of revenue and net income trends. The current financial snapshot provides a static view of the company's performance, but without historical context, the direction and sustainability of growth remain unclear.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The company's high debt load relative to equity poses a potential credit risk, although strong operating cash flows mitigate immediate solvency concerns.

Recent events and observations indicate positive analyst sentiment, with a mean price target of 40.72 CNY and a median target of 38.00 CNY, suggesting upside potential from the current market price of 25.11 CNY. The mean recommendation of 1.83, with two strong buys and three buys, reflects confidence in the company's future performance. No specific filing, news, or transcript observations are provided to detail recent corporate actions or market developments.

Revenue grew at a 10.9% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Free cash flow surged 88.7% year-over-year to CNY 4.6 billion, indicating significantly improved cash generation capabilities.

Operating margin of 11.0% exceeds the cohort median of 7.5%, reflecting superior operational efficiency relative to peers.

Analysts project 26.5% upside to a mean price target of CNY 40.72, signaling strong market confidence in future performance.

Cash conversion ratio of 5.84 is best-in-class compared to the cohort median of 1.2, highlighting robust cash management.

Debt-to-equity ratio of 1.56 places the company in the bottom quartile, indicating significantly higher leverage than peers.

Long-term debt increased to CNY 69.2 billion in FY2026, raising substantial concerns regarding solvency and financial flexibility.

Revenue declined 8.3% year-over-year in the latest period, suggesting a potential slowdown in business growth momentum.

High credit risk flags indicate significant potential for default or financial distress given the current leverage profile.

Return on assets of 2.5% remains relatively low, suggesting inefficient utilization of assets to generate net income.

Revenue ¥59.14B, −8,3% YoY; Operating income +12,8% YoY.

• ▍Revenue ¥59.14B, −8,3% YoY
• ▍Operating income +12,8% YoY
• ▍Net income +16,2% YoY
• ▍Free cash flow +88,7% YoY
• ▍Net margin 7.6%

Revenue ¥64.52B, +12,7% YoY; Operating income +4,2% YoY.

• ▍Revenue ¥64.52B, +12,7% YoY
• ▍Operating income +4,2% YoY
• ▍Net income +5,1% YoY
• ▍Free cash flow +129,3% YoY
• ▍Net margin 6.0%

Revenue ¥57.25B, +24,5% YoY; Operating income +9,1% YoY.

• ▍Revenue ¥57.25B, +24,5% YoY
• ▍Operating income +9,1% YoY
• ▍Net income −8,4% YoY
• ▍Free cash flow +118,3% YoY
• ▍Net margin 6.4%

Revenue ¥45.97B, +17,8% YoY; Operating income +33,7% YoY.

• ▍Revenue ¥45.97B, +17,8% YoY
• ▍Operating income +33,7% YoY
• ▍Net income +19,5% YoY
• ▍Free cash flow +31,2% YoY
• ▍Net margin 8.8%

Revenue ¥39.03B; Operating income ¥4.45B.

• ▍Revenue ¥39.03B
• ▍Operating income ¥4.45B
• ▍Net margin 8.6%