Zhejiang Yinlun Machinery Co Ltd

Zhejiang Yinlun Machinery Co Ltd maintains a capital structure characterized by a debt-to-equity ratio of 0.55 and a current ratio of 1.16, indicating moderate leverage and tight short-term liquidity coverage. The balance sheet reflects total assets of 21.88 billion CNY against total liabilities of 14.52 billion CNY, with long-term debt standing at 4.08 billion CNY. Operating cash flow of 1.40 billion CNY exceeds free cash flow of 507.35 million CNY, driven by capital expenditures of 1.20 billion CNY, suggesting active reinvestment in productive capacity. The company holds a net cash position that is negative after subtracting total debt, a key flag noted in the risk assessment.

Profitability metrics show a return on equity of 10.93% and a return on assets of 3.68%, reflecting efficient use of equity but modest asset turnover. The gross profit of 2.93 billion CNY on revenue of 15.68 billion CNY yields a gross margin of approximately 18.7%, while operating income of 1.25 billion CNY indicates an operating margin of roughly 8.0%. Net income stands at 957.24 million CNY, resulting in a net margin of 6.1%. These returns are supported by a valuation multiple of 57.38x P/E and 6.27x P/B, implying market expectations for sustained earnings growth or premium positioning within the industrial machinery cohort.

Revenue concentration is not detailed by segment or geography in the available data, limiting specific exposure analysis. However, the classification as Industrial Machinery & Equipment with sector classification codes pointing to Automobile Components suggests potential exposure to automotive supply chains or broader industrial manufacturing cycles. The absence of segment breakdown prevents assessment of diversification benefits or concentration risks within specific product lines or regional markets.

Growth trajectory cannot be assessed due to the absence of historical period data in the input. The current revenue base of 15.68 billion CNY provides a scale reference, but year-over-year trends, quarterly momentum, or long-term CAGR calculations are not supported by the provided financial snapshot. Analyst estimates suggest a mean price target of 59.01 CNY, implying modest upside from the current market price of 54.50 CNY, which may reflect stable rather than high-growth expectations.

Risk factors include medium liquidity risk and low dilution risk, with the primary concern being the negative net cash position after debt subtraction. The current ratio of 1.16 indicates limited buffer for short-term obligations, requiring careful working capital management. The absence of significant dilution risk is supported by identical basic and diluted share counts of 846.82 million, suggesting no immediate options or convertible securities impacting equity structure.

Recent events are reflected in analyst sentiment, with a mean recommendation of 1.56 (strong buy) and a consensus price target range of 46.30 CNY to 72.00 CNY. The strong buy bias, with 4 strong buy and 5 buy ratings and no hold ratings, indicates positive institutional outlook. No specific filing, news, or transcript observations are provided to detail recent operational or strategic developments.

Revenue grew 19% annually over four years, reaching 15.7 billion CNY in FY2026, demonstrating strong top-line expansion.

Net income surged 44% annually over four years to 957 million CNY in FY2026, indicating robust profitability growth.

Analysts assign a mean price target of 59.01 CNY, implying 1.9% upside from the current market price of 57.89 CNY.

Long-term debt increased to 4.08 billion CNY in FY2026, reflecting a rising leverage burden over the five-year period.

Debt-to-equity ratio of 0.55 is significantly higher than the 0.20 industry median, indicating elevated financial risk.

The company faces medium liquidity and credit risks, which could constrain financial flexibility during economic downturns.

Capex intensity is in the bottom quartile of peers, potentially limiting future growth capacity and competitive positioning.

Revenue ¥15.68B, +23,4% YoY; Operating income +24,6% YoY.

• ▍Revenue ¥15.68B, +23,4% YoY
• ▍Operating income +24,6% YoY
• ▍Net income +22,2% YoY
• ▍Free cash flow −6,2% YoY
• ▍Net margin 6.1%

Revenue ¥12.70B, +15,3% YoY; Operating income +26,4% YoY.

• ▍Revenue ¥12.70B, +15,3% YoY
• ▍Operating income +26,4% YoY
• ▍Net income +28,0% YoY
• ▍Free cash flow +683,0% YoY
• ▍Net margin 6.2%

Revenue ¥11.02B, +29,9% YoY; Operating income +63,7% YoY.

• ▍Revenue ¥11.02B, +29,9% YoY
• ▍Operating income +63,7% YoY
• ▍Net income +59,7% YoY
• ▍Free cash flow +116,3% YoY
• ▍Net margin 5.6%

Revenue ¥8.48B, +8,5% YoY; Operating income +70,3% YoY.

• ▍Revenue ¥8.48B, +8,5% YoY
• ▍Operating income +70,3% YoY
• ▍Net income +73,9% YoY
• ▍Free cash flow −47,0% YoY
• ▍Net margin 4.5%

Revenue ¥7.82B; Operating income ¥285.5M.

• ▍Revenue ¥7.82B
• ▍Operating income ¥285.5M
• ▍Net margin 2.8%