Ningxia Baofeng Energy Group Co Ltd

Ningxia Baofeng Energy Group Co Ltd has a debt-to-equity ratio of 0.71, indicating a moderate level of leverage, and a current ratio of 0.44, suggesting potential liquidity constraints as current liabilities exceed current assets. The company's operating cash flow of 4.15 billion CNY is positive, but capital expenditures of -5.59 billion CNY indicate significant reinvestment in the business.

The company's profitability is reflected in a return on equity (ROE) of 4.7% and a return on assets (ROA) of 2.3%, both of which are below the typical thresholds for high-performing chemical firms. These metrics suggest that the company is generating modest returns relative to its equity and asset base.

The company's revenue is concentrated in the production and sale of commodity chemicals, with no disclosed geographic diversification. This concentration increases exposure to regional demand fluctuations and supply chain disruptions. The company's primary markets are not specified in the available data, but the lack of geographic diversification is a notable risk factor.

Looking ahead, the company's growth trajectory is uncertain. While the company has a positive operating cash flow, the significant capital expenditures suggest a focus on maintaining or expanding production capacity. Analysts have provided a mean price target of 36.72 CNY, with a median of 37.85 CNY, indicating a generally positive outlook, though the range of estimates (32.50 CNY to 38.67 CNY) suggests some variability in expectations.

The company faces several risk factors, including medium liquidity risk due to a current ratio below 1 and a negative net cash position after subtracting total debt. The risk of dilution is assessed as low, with no near-term pressure expected. However, the company's capital structure and liquidity position remain key areas of concern.

Recent events and filings do not provide specific details on new projects or strategic initiatives. The company's financial performance and capital expenditures suggest a focus on maintaining operational capacity, but there is no indication of significant new investments or strategic shifts in the near term.

Analysts project 66.1% upside to a mean price target of 36.72, reflecting strong buy consensus from 13 analysts.

Revenue is forecast to surge 45.6% year-over-year to 48.0 billion CNY in fiscal 2026.

Net income is expected to jump 79.1% to 11.4 billion CNY, driven by robust top-line growth.

Free cash flow turns positive to 1.9 billion CNY in 2026, reversing recent negative trends.

Long-term debt balloons to 32.2 billion CNY in 2025, significantly increasing leverage and credit risk.

The company faces high credit risk flags, exacerbated by a debt-to-equity ratio of 0.71.

Free cash flow remains deeply negative at -6.1 billion CNY in 2025, straining liquidity.

Return on equity of 4.7% is only slightly above the cohort median, indicating modest capital efficiency.

Revenue ¥13.24B, +22,9% YoY; Operating income +46,6% YoY.

• ▍Revenue ¥13.24B, +22,9% YoY
• ▍Operating income +46,6% YoY
• ▍Net income +50,2% YoY
• ▍Net margin 27.7%

Revenue ¥12.49B, +43,5% YoY; Operating income +43,5% YoY.

• ▍Revenue ¥12.49B, +43,5% YoY
• ▍Operating income +43,5% YoY
• ▍Net income +33,3% YoY
• ▍Net margin 19.2%

Revenue ¥12.73B, +72,5% YoY; Operating income +139,1% YoY.

• ▍Revenue ¥12.73B, +72,5% YoY
• ▍Operating income +139,1% YoY
• ▍Net income +162,3% YoY
• ▍Net margin 25.4%

Revenue ¥12.05B, +39,0% YoY; Operating income +59,1% YoY.

• ▍Revenue ¥12.05B, +39,0% YoY
• ▍Operating income +59,1% YoY
• ▍Net income +74,2% YoY
• ▍Net margin 27.2%

Revenue ¥10.77B; Operating income ¥3.01B.

• ▍Revenue ¥10.77B
• ▍Operating income ¥3.01B
• ▍Net margin 22.6%

Revenue ¥8.71B; Operating income ¥2.05B.

• ▍Revenue ¥8.71B
• ▍Operating income ¥2.05B
• ▍Net margin 20.7%

Revenue ¥7.38B; Operating income ¥1.62B.

• ▍Revenue ¥7.38B
• ▍Operating income ¥1.62B
• ▍Net margin 16.7%

Revenue ¥8.67B; Operating income ¥2.43B.

• ▍Revenue ¥8.67B
• ▍Operating income ¥2.43B
• ▍Net margin 21.7%

Revenue ¥48.04B, +45,6% YoY; Operating income +76,5% YoY.

• ▍Revenue ¥48.04B, +45,6% YoY
• ▍Operating income +76,5% YoY
• ▍Net income +79,1% YoY
• ▍Free cash flow +130,9% YoY
• ▍Net margin 23.6%

Revenue ¥32.98B, +13,2% YoY; Operating income +13,7% YoY.

• ▍Revenue ¥32.98B, +13,2% YoY
• ▍Operating income +13,7% YoY
• ▍Net income +12,2% YoY
• ▍Free cash flow +11,7% YoY
• ▍Net margin 19.2%

Revenue ¥29.14B, +2,5% YoY; Operating income −12,1% YoY.

• ▍Revenue ¥29.14B, +2,5% YoY
• ▍Operating income −12,1% YoY
• ▍Net income −10,3% YoY
• ▍Free cash flow −31,2% YoY
• ▍Net margin 19.4%

Revenue ¥28.43B, +22,0% YoY; Operating income −8,3% YoY.

• ▍Revenue ¥28.43B, +22,0% YoY
• ▍Operating income −8,3% YoY
• ▍Net income −10,9% YoY
• ▍Free cash flow −860,3% YoY
• ▍Net margin 22.2%