NARI Technology Co Ltd

NARI Technology maintains a strong liquidity position with a current ratio of 1.99, indicating the company can cover its short-term obligations nearly twice over. However, the company reported negative operating cash flow of -165.3 million CNY and capital expenditures of -603.8 million CNY, suggesting ongoing investment in infrastructure and operations. The debt-to-equity ratio of 0.01 indicates minimal leverage, and the company's total liabilities are significantly lower than its total equity, which is a positive sign for financial stability.

Profitability metrics show a return on equity (ROE) of 4.65% and a return on assets (ROA) of 2.61%, both below the industry median for IT Services & Consulting. The company's gross profit margin is 31.14% (3.87 billion CNY gross profit on 12.42 billion CNY revenue), and its operating margin is 20.60% (2.56 billion CNY operating income on 12.42 billion CNY revenue), which is in line with the industry average. However, the net profit margin of 17.02% (2.11 billion CNY net income on 12.42 billion CNY revenue) is slightly above the median for the sector.

The company's revenue is concentrated in a single business segment, with no disclosed geographic breakdown. This lack of diversification may expose the company to higher risk if demand in its primary market or industry declines. The company's revenue concentration in IT services suggests that it is highly dependent on the performance of the industrial and commercial sectors it serves.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or decline projected in the next fiscal year. The company's current price-to-earnings (P/E) ratio of 96.83 is significantly higher than the industry median, indicating that the market is pricing in high expectations for future earnings growth. The price-to-book (P/B) ratio of 4.5 also suggests that the company is valued at a premium relative to its book value.

The company's risk profile is characterized by medium liquidity risk and low dilution risk. The negative net cash position after subtracting total debt is a concern, but the low debt-to-equity ratio and strong equity base mitigate this risk. The company has not issued additional shares recently, and there is no indication of near-term dilution pressure. The company's capital structure is conservative, with minimal long-term debt and a strong equity position.

Recent filings and transcripts indicate that the company is focused on expanding its IT services and consulting offerings to meet growing demand in the industrial and commercial sectors. The company has also emphasized the importance of innovation and digital transformation in its strategic planning. Analysts have generally positive outlooks, with a mean price target of 29.64 CNY and a median price target of 29.20 CNY, suggesting that the market expects the stock to appreciate in the near term.

Revenue grew 15.3% year-over-year to CNY 66.2 billion in FY2026, demonstrating strong top-line expansion momentum.

Analysts project 26.6% upside to a mean price target of CNY 29.64, reflecting strong market confidence.

Free cash flow surged 27.5% year-over-year to CNY 3.28 billion, highlighting robust cash generation capabilities.

Long-term debt decreased to CNY 905 million, resulting in a negligible debt-to-equity ratio of 0.01.

Cash conversion ratio of -0.08 places the company in the bottom quartile of its IT Services cohort.

Net income growth of 8.8% lagged behind revenue growth of 15.3%, suggesting potential margin compression pressures.

Return on equity of 4.65% is only marginally above the cohort median of 4.27%, indicating modest capital efficiency.

The company faces medium liquidity risk, which could constrain operational flexibility during periods of market stress.

Revenue ¥27.65B, +10,2% YoY; Operating income +7,6% YoY.

• ▍Revenue ¥27.65B, +10,2% YoY
• ▍Operating income +7,6% YoY
• ▍Net income +9,1% YoY
• ▍Net margin 12.4%

Revenue ¥9.56B, +7,5% YoY; Operating income +6,7% YoY.

• ▍Revenue ¥9.56B, +7,5% YoY
• ▍Operating income +6,7% YoY
• ▍Net income +6,0% YoY
• ▍Net margin 7.5%

Revenue ¥14.33B, +17,5% YoY; Operating income +6,8% YoY.

• ▍Revenue ¥14.33B, +17,5% YoY
• ▍Operating income +6,8% YoY
• ▍Net income +7,9% YoY
• ▍Net margin 13.3%

Revenue ¥15.35B, +23,6% YoY; Operating income +6,6% YoY.

• ▍Revenue ¥15.35B, +23,6% YoY
• ▍Operating income +6,6% YoY
• ▍Net income +7,5% YoY
• ▍Net margin 14.8%

Revenue ¥25.10B; Operating income ¥3.68B.

• ▍Revenue ¥25.10B
• ▍Operating income ¥3.68B
• ▍Net margin 12.5%

Revenue ¥8.90B; Operating income ¥819.7M.

• ▍Revenue ¥8.90B
• ▍Operating income ¥819.7M
• ▍Net margin 7.6%

Revenue ¥66.23B, +15,3% YoY; Operating income +7,7% YoY.

• ▍Revenue ¥66.23B, +15,3% YoY
• ▍Operating income +7,7% YoY
• ▍Net income +8,8% YoY
• ▍Free cash flow +27,6% YoY
• ▍Net margin 12.5%

Revenue ¥57.42B, +11,3% YoY; Operating income +6,2% YoY.

• ▍Revenue ¥57.42B, +11,3% YoY
• ▍Operating income +6,2% YoY
• ▍Net income +5,9% YoY
• ▍Free cash flow −45,8% YoY
• ▍Net margin 13.3%

Revenue ¥51.57B, +10,1% YoY; Operating income +9,2% YoY.

• ▍Revenue ¥51.57B, +10,1% YoY
• ▍Operating income +9,2% YoY
• ▍Net income +11,4% YoY
• ▍Free cash flow +86,2% YoY
• ▍Net margin 13.9%

Revenue ¥46.83B, +10,4% YoY; Operating income +14,7% YoY.

• ▍Revenue ¥46.83B, +10,4% YoY
• ▍Operating income +14,7% YoY
• ▍Net income +14,2% YoY
• ▍Free cash flow −23,2% YoY
• ▍Net margin 13.8%

Revenue ¥42.41B; Operating income ¥6.84B.

• ▍Revenue ¥42.41B
• ▍Operating income ¥6.84B
• ▍Net margin 13.3%