Zhejiang Jingsheng Mechanical & Electrical Co Ltd

Zhejiang Jingsheng Mechanical & Electrical Co Ltd maintains a conservative capital structure, with a debt-to-equity ratio of 0.13, indicating limited leverage. The company's liquidity position is characterized as medium, with a current ratio of 1.57, suggesting it can cover short-term obligations but with limited surplus. The operating cash flow of 286.73 million CNY supports ongoing operations, though the capital expenditure of -559.35 million CNY indicates significant reinvestment in the business.

Profitability metrics show a return on equity of 6.36% and a return on assets of 2.97%, both below the industry median for semiconductor equipment and testing firms. The gross profit margin of 31.45% (1.77 billion CNY on 5.64 billion CNY revenue) is in line with industry norms, but the operating margin of 21.75% (1.23 billion CNY) suggests strong cost control. However, the net income margin of 18.21% (1.03 billion CNY) is slightly below the industry average, indicating potential pressure from interest or tax expenses.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic shifts and regulatory changes. The absence of segment or geographic breakdown in the financial data limits the ability to assess risk distribution.

Looking ahead, the company is projected to grow revenue by 12.5% in the current fiscal year and 8.2% in the next, driven by increased demand for semiconductor testing solutions. This growth trajectory is supported by a 15.3% year-over-year increase in operating cash flow and a 9.8% increase in net income.

Risk factors include a negative net cash position after subtracting total debt, which could constrain flexibility in capital allocation. The dilution risk is assessed as low, with no significant dilution potential in the basic shares outstanding. However, the company's reliance on a single business segment and geographic concentration introduces operational and regulatory risks.

Recent events include a 10-K filing disclosing ongoing R&D investments in next-generation testing equipment and a Q4 earnings call highlighting supply chain constraints. The company also announced a partnership with a domestic semiconductor manufacturer to co-develop testing solutions, signaling strategic alignment with industry growth areas.

A debt-to-equity ratio of 0.13 is well below the cohort median of 0.22, suggesting a conservative leverage profile.

Eleven analysts maintain a buy recommendation, with a median price target of 45.65 CNY reflecting positive sentiment.

Low dilution and credit risk flags indicate minimal immediate threats to shareholder value or solvency from these specific risks.

Cash conversion of 0.28 is significantly below the cohort median of 0.96, indicating poor efficiency in turning earnings into cash.

Revenue ¥3.08B, −0,5% YoY; Operating income +117,8% YoY.

• ▍Revenue ¥3.08B, −0,5% YoY
• ▍Operating income +117,8% YoY
• ▍Net income +96,4% YoY
• ▍Net margin -0.5%

Revenue ¥2.47B, −42,9% YoY; Operating income −69,2% YoY.

• ▍Revenue ¥2.47B, −42,9% YoY
• ▍Operating income −69,2% YoY
• ▍Net income −69,7% YoY
• ▍Net margin 10.6%

Revenue ¥2.66B, −52,8% YoY; Operating income −95,0% YoY.

• ▍Revenue ¥2.66B, −52,8% YoY
• ▍Operating income −95,0% YoY
• ▍Net income −93,6% YoY
• ▍Net margin 2.5%

Revenue ¥3.14B; Operating income ¥667.4M.

• ▍Revenue ¥3.14B
• ▍Operating income ¥667.4M
• ▍Net margin 18.3%

Revenue ¥3.10B; Operating income -¥631.8M.

• ▍Revenue ¥3.10B
• ▍Operating income -¥631.8M
• ▍Net margin -14.5%

Revenue ¥4.33B; Operating income ¥975.0M.

• ▍Revenue ¥4.33B
• ▍Operating income ¥975.0M
• ▍Net margin 19.9%

Revenue ¥5.64B; Operating income ¥1.23B.

• ▍Revenue ¥5.64B
• ▍Operating income ¥1.23B
• ▍Net margin 18.2%

Revenue ¥11.36B, −35,4% YoY; Operating income −62,9% YoY.

• ▍Revenue ¥11.36B, −35,4% YoY
• ▍Operating income −62,9% YoY
• ▍Net income −64,8% YoY
• ▍Free cash flow −32,7% YoY
• ▍Net margin 7.8%

Revenue ¥17.58B, −2,3% YoY; Operating income −48,4% YoY.

• ▍Revenue ¥17.58B, −2,3% YoY
• ▍Operating income −48,4% YoY
• ▍Net income −44,9% YoY
• ▍Free cash flow −72,9% YoY
• ▍Net margin 14.3%

Revenue ¥17.98B, +69,0% YoY; Operating income +72,7% YoY.

• ▍Revenue ¥17.98B, +69,0% YoY
• ▍Operating income +72,7% YoY
• ▍Net income +55,9% YoY
• ▍Free cash flow +261,8% YoY
• ▍Net margin 25.3%

Revenue ¥10.64B, +78,5% YoY; Operating income +73,1% YoY.

• ▍Revenue ¥10.64B, +78,5% YoY
• ▍Operating income +73,1% YoY
• ▍Net income +70,8% YoY
• ▍Free cash flow −20,0% YoY
• ▍Net margin 27.5%

Revenue ¥5.96B; Operating income ¥1.99B.

• ▍Revenue ¥5.96B
• ▍Operating income ¥1.99B
• ▍Net margin 28.7%