Zhejiang Jiecang Linear Motion Technology Co Ltd

Zhejiang Jiecang Linear Motion Technology Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.20 and a current ratio of 2.1, indicating strong short-term liquidity coverage. The company holds total assets of 6.84 billion CNY against total liabilities of 2.16 billion CNY, resulting in total equity of 4.69 billion CNY. Despite positive operating cash flow of 559.1 million CNY, free cash flow is constrained at 28.1 million CNY due to significant capital expenditures of 495.6 million 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 of 6.94% and a return on assets of 4.75%, reflecting moderate efficiency in utilizing shareholder capital and assets. The company generated net income of 397.2 million CNY on revenue of 4.04 billion CNY, yielding a net margin of approximately 9.8%. Operating income stands at 470.7 million CNY, indicating a healthy operating margin of roughly 11.7% before interest and taxes. Without cohort median data for direct comparison, these returns appear stable for a manufacturing entity in the electronic components sector, though the low ROE suggests room for improvement in capital efficiency.

Revenue concentration and geographic exposure details are not provided in the available data, preventing a detailed analysis of segment or regional risk. The company’s activity is broadly classified under Electronic Equipment, Instruments & Components, implying a diversified product mix within this industrial niche. The absence of specific segment data limits the ability to assess revenue concentration risks or identify high-growth product lines.

Growth trajectory analysis is hindered by the absence of historical period data. The current financial snapshot shows a revenue base of 4.04 billion CNY, but without prior year comparisons, year-over-year growth rates cannot be calculated. The significant capital expenditure of 495.6 million CNY suggests ongoing investment in capacity or technology, which may support future revenue growth, but the immediate impact on profitability is muted by the high cash outflow.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting negative net cash after debt subtraction. The company’s reliance on operating cash flow to cover debt obligations is a critical monitoring point, especially given the high capital expenditure requirements. The low dilution risk indicates that share count stability is likely, with basic and diluted shares outstanding both at 385.8 million.

Recent events and analyst sentiment show a mean price target of 35.00 CNY, implying a potential upside from the current market price of 24.28 CNY. The mean recommendation of 2.33 suggests a moderate buy rating, with one strong buy and one buy recommendation, and no hold ratings. The high price target of 45.00 CNY and low of 25.00 CNY indicate a wide range of analyst expectations, reflecting uncertainty in the company’s future performance or market conditions.

Revenue grew 10.5% year-over-year to CNY 4.04 billion in FY2026, demonstrating consistent top-line expansion.

Net income surged 40.9% to CNY 397.2 million in FY2026, significantly outpacing revenue growth.

Analysts project 22.6% upside to a mean price target of CNY 35.00, signaling positive market sentiment.

Debt-to-equity ratio of 0.20 is half the cohort median of 0.40, reflecting a conservative capital structure.

Free cash flow turned negative to CNY -137.3 million in FY2025, raising concerns about cash generation.

The company faces medium liquidity risk and medium credit risk, highlighting potential financial stability challenges.

Long-term debt increased to CNY 923.2 million in FY2026, adding to the company's leverage obligations.

Revenue ¥1.08B; Operating income ¥3.3M.

• ▍Revenue ¥1.08B
• ▍Operating income ¥3.3M
• ▍Net margin -1.0%

Revenue ¥991.6M; Operating income ¥116.5M.

• ▍Revenue ¥991.6M
• ▍Operating income ¥116.5M
• ▍Net margin 10.5%

Revenue ¥867.2M; Operating income ¥125.3M.

• ▍Revenue ¥867.2M
• ▍Operating income ¥125.3M
• ▍Net margin 13.8%

Revenue ¥4.04B, +10,5% YoY; Operating income +41,9% YoY.

• ▍Revenue ¥4.04B, +10,5% YoY
• ▍Operating income +41,9% YoY
• ▍Net income +40,9% YoY
• ▍Free cash flow +120,5% YoY
• ▍Net margin 9.8%

Revenue ¥3.65B, +20,4% YoY; Operating income +51,0% YoY.

• ▍Revenue ¥3.65B, +20,4% YoY
• ▍Operating income +51,0% YoY
• ▍Net income +36,9% YoY
• ▍Free cash flow −2 844,2% YoY
• ▍Net margin 7.7%

Revenue ¥3.03B, +0,9% YoY; Operating income −40,0% YoY.

• ▍Revenue ¥3.03B, +0,9% YoY
• ▍Operating income −40,0% YoY
• ▍Net income −37,2% YoY
• ▍Free cash flow +151,3% YoY
• ▍Net margin 6.8%

Revenue ¥3.01B, +14,0% YoY; Operating income +30,4% YoY.

• ▍Revenue ¥3.01B, +14,0% YoY
• ▍Operating income +30,4% YoY
• ▍Net income +21,2% YoY
• ▍Free cash flow +97,1% YoY
• ▍Net margin 10.9%

Revenue ¥2.64B; Operating income ¥280.6M.

• ▍Revenue ¥2.64B
• ▍Operating income ¥280.6M
• ▍Net margin 10.3%