Zhejiang Yonghe Refrigerant Co Ltd

Zhejiang Yonghe Refrigerant Co Ltd has a debt-to-equity ratio of 1.14, indicating a moderate reliance on debt financing. The company's current ratio of 0.65 suggests potential liquidity constraints, as current liabilities exceed current assets. Operating cash flow of 108.86 million CNY supports operations but is insufficient to cover capital expenditures of -541.71 million CNY, which indicates a net outflow from investing activities.

Profitability metrics show a return on equity (ROE) of 2.76% and a return on assets (ROA) of 1.04%, both below the typical thresholds for high-performing chemical firms. Gross profit of 209.57 million CNY and operating income of 81.41 million CNY reflect a narrow margin structure, which is common in the commodity chemicals industry but leaves little room for volatility.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional demand fluctuations and regulatory changes. No major international markets are reported, and the company's operations are primarily localized.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the next fiscal year. Capital expenditures remain a drag on cash flow, and the company's ability to fund these without external financing will be a key determinant of its financial health.

Risk factors include medium liquidity risk due to the current ratio and a negative net cash position after subtracting total debt. Dilution risk is currently low, as shares outstanding remain unchanged between basic and diluted measures. However, the company's reliance on long-term debt (3.11 billion CNY) introduces credit risk, particularly if interest rates rise or refinancing becomes difficult.

Recent filings and transcripts have not revealed any material events or strategic shifts. Analysts have issued a mean recommendation of 1.50, indicating a cautiously positive outlook, with a consensus price target of 31.73 CNY.

Operating and net margins exceed Commodity Chemicals medians, indicating superior profitability relative to peers.

Projected 2026 revenue growth to 5.2 billion CNY signals strong top-line expansion potential.

Analysts assign a strong buy rating with a target price implying upside potential.

Cash conversion ratio of 1.44 exceeds the cohort median of 1.10, suggesting efficient cash generation.

Projected 2026 free cash flow turns positive to 137.5 million CNY, improving liquidity outlook.

Debt-to-equity ratio of 1.14 is significantly higher than the cohort median of 0.31, indicating high leverage.

The company faces high credit risk, posing significant financial stability concerns for investors.

Medium liquidity risk flags potential challenges in meeting short-term financial obligations.

Revenue ¥5.21B, +13,0% YoY; Operating income +139,1% YoY.

• ▍Revenue ¥5.21B, +13,0% YoY
• ▍Operating income +139,1% YoY
• ▍Net income +123,5% YoY
• ▍Free cash flow +128,2% YoY
• ▍Net margin 10.8%

Revenue ¥4.61B, +5,4% YoY; Operating income +29,7% YoY.

• ▍Revenue ¥4.61B, +5,4% YoY
• ▍Operating income +29,7% YoY
• ▍Net income +36,8% YoY
• ▍Free cash flow +55,9% YoY
• ▍Net margin 5.5%

Revenue ¥4.37B, +14,9% YoY; Operating income −34,3% YoY.

• ▍Revenue ¥4.37B, +14,9% YoY
• ▍Operating income −34,3% YoY
• ▍Net income −38,8% YoY
• ▍Free cash flow −19,2% YoY
• ▍Net margin 4.2%

Revenue ¥3.80B, +27,2% YoY; Operating income −8,5% YoY.

• ▍Revenue ¥3.80B, +27,2% YoY
• ▍Operating income −8,5% YoY
• ▍Net income +8,0% YoY
• ▍Free cash flow −210,5% YoY
• ▍Net margin 7.9%