Zhejiang Construction Investment Group Co Ltd

Zhejiang Construction Investment Group Co Ltd maintains a capital structure characterized by high leverage and tight liquidity. The company reports total assets of CNY 122.99 billion against total liabilities of CNY 113.08 billion, resulting in a debt-to-equity ratio of 1.79. Long-term debt stands at CNY 17.70 billion. The current ratio is 0.95, indicating that current liabilities exceed current assets, which aligns with the medium liquidity risk assessment. Operating cash flow is positive at CNY 3.81 billion, but free cash flow is negative at CNY -0.28 billion due to capital expenditures of CNY -0.39 billion. The market capitalization is CNY 9.19 billion, with a price-to-book ratio of 0.93, suggesting the market values the company near its book value.

Profitability metrics indicate thin margins and low returns on capital. Net income is CNY 214.54 million on revenue of CNY 81.11 billion, yielding a net margin of approximately 0.26%. Return on equity is 2.19%, and return on assets is 0.18%. These returns are modest, reflecting the capital-intensive nature of the construction and engineering sector. The operating income is CNY 675.68 million, while gross profit is CNY 4.11 billion. The price-to-earnings ratio is 42.4, which appears elevated relative to the low absolute earnings, though the EV/EBITDA of 36.44 and EV/Revenue of 0.33 provide alternative valuation perspectives.

The company’s revenue mix and geographic exposure are not detailed in the available segment or geography data. Consequently, specific concentration risks related to business lines or regions cannot be quantified from the provided input. The analysis relies on aggregate financial figures, which show a large revenue base of CNY 81.11 billion, typical for major infrastructure and construction entities in the region.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to assess the direction or acceleration of revenue growth or profitability improvements. The current financial snapshot provides a static view of performance, lacking the temporal context required for trend reasoning.

Risk factors include medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, highlighting reliance on external financing or operating cash flow to service obligations. The dilution risk is assessed as low, with basic and diluted shares outstanding both at 1.32 billion, indicating no significant options or convertible securities impacting the share count. The negative free cash flow and high debt levels require monitoring to ensure continued access to capital markets.

Recent events and observations are limited to ESG metrics. The company has a ESG Score of 33.11, with an Environment pillar score of 40.31, Social pillar of 21.08, and Governance pillar of 39.61. The ESG grade is C-, and the controversies score is 100, indicating fewer controversies. No specific filing, news, or transcript observations are provided in the input data to detail recent corporate actions or market reactions.

Free cash flow improved significantly by 73.5% year-over-year, indicating better cash generation capabilities.

Net income grew 11.0% year-over-year, demonstrating resilience in profitability despite revenue stagnation.

Cash conversion ratio of 13.44 is best-in-class compared to the cohort median of 0.66.

Long-term debt decreased to 17.7 billion CNY, reflecting a consistent deleveraging trend over four years.

Dilution risk is assessed as low, providing stability for existing shareholders' equity interests.

Net margin of 0.27% ranks in the bottom quartile of the construction cohort median of 3.81%.

Revenue declined at a 4.0% CAGR over four years, signaling persistent top-line contraction.

Debt-to-equity ratio of 1.79 is significantly higher than the cohort median of 0.29.

Credit risk is flagged as high, posing significant potential threats to financial stability.

Revenue ¥21.88B; Operating income ¥172.1M.

• ▍Revenue ¥21.88B
• ▍Operating income ¥172.1M
• ▍Net margin 0.2%

Revenue ¥18.82B; Operating income ¥42.6M.

• ▍Revenue ¥18.82B
• ▍Operating income ¥42.6M
• ▍Net margin -0.1%

Revenue ¥20.78B; Operating income ¥129.1M.

• ▍Revenue ¥20.78B
• ▍Operating income ¥129.1M
• ▍Net margin -0.2%

Revenue ¥80.64B, −12,9% YoY; Operating income −13,1% YoY.

• ▍Revenue ¥80.64B, −12,9% YoY
• ▍Operating income −13,1% YoY
• ▍Net income −50,7% YoY
• ▍Free cash flow +12,9% YoY
• ▍Net margin 0.2%

Revenue ¥92.61B, −6,0% YoY; Operating income −48,4% YoY.

• ▍Revenue ¥92.61B, −6,0% YoY
• ▍Operating income −48,4% YoY
• ▍Net income −59,6% YoY
• ▍Free cash flow −819,7% YoY
• ▍Net margin 0.4%

Revenue ¥98.54B, +3,4% YoY; Operating income +6,1% YoY.

• ▍Revenue ¥98.54B, +3,4% YoY
• ▍Operating income +6,1% YoY
• ▍Net income −7,4% YoY
• ▍Free cash flow +91,3% YoY
• ▍Net margin 1.0%

Revenue ¥95.33B; Operating income ¥1.48B.

• ▍Revenue ¥95.33B
• ▍Operating income ¥1.48B
• ▍Net margin 1.1%