ADAMA Ltd

ADAMA Ltd maintains a capital structure characterized by significant leverage, with long-term debt of 17.82 billion CNY against total equity of 17.58 billion CNY, resulting in a debt-to-equity ratio of 1.01. The company’s liquidity position is assessed as medium risk, supported by a current ratio of 1.14. While operating cash flow stands at 4.05 billion CNY, free cash flow is negative at -1.08 billion CNY due to capital expenditures of 1.21 billion CNY, indicating that operational cash generation is currently insufficient to cover investment needs without external financing or debt utilization.

Profitability metrics reflect a challenging operating environment, with the company reporting a net loss of 1.05 billion CNY and an operating loss of 897.4 million CNY on revenues of 28.94 billion CNY. This results in a negative return on equity of -11.98% and a negative return on assets of -4.35%. The gross profit of 7.46 billion CNY suggests that while the company retains margin at the gross level, operating expenses and other costs are eroding profitability, leading to negative earnings before interest and taxes, which renders the EV/EBITDA multiple negative at -19.36.

Net income improved 64% year-over-year to -1.05 billion CNY, signaling a significant reduction in losses compared to the prior year.

Free cash flow surged 66.4% to -1.08 billion CNY, indicating a substantial improvement in cash generation efficiency despite remaining negative.

Analysts assign a strong buy rating with a mean price target of 7.92 CNY, implying 21.8% upside from the current market price.

Gross profit increased to 7.46 billion CNY in FY2026, demonstrating resilience in core profitability metrics despite net losses.

Long-term debt decreased to 17.82 billion CNY in FY2026, reflecting a modest reduction in leverage compared to the previous year.

The company faces high credit risk, posing significant potential challenges to its financial stability and borrowing costs.

Revenue declined 1.8% year-over-year to 28.94 billion CNY, reflecting a contraction in top-line growth momentum.

Cash conversion ratio of -1.92 is in the bottom quartile, suggesting persistent difficulties in converting earnings into cash.

Revenue ¥7.21B, +0,5% YoY; Operating income +237,3% YoY.

• ▍Revenue ¥7.21B, +0,5% YoY
• ▍Operating income +237,3% YoY
• ▍Net income +276,6% YoY
• ▍Net margin 7.9%

Revenue ¥28.94B, −1,8% YoY; Operating income +58,9% YoY.

• ▍Revenue ¥28.94B, −1,8% YoY
• ▍Operating income +58,9% YoY
• ▍Net income +64,0% YoY
• ▍Free cash flow +66,4% YoY
• ▍Net margin -3.6%

Revenue ¥29.49B, −10,0% YoY; Operating income −49,4% YoY.

• ▍Revenue ¥29.49B, −10,0% YoY
• ▍Operating income −49,4% YoY
• ▍Net income −80,8% YoY
• ▍Free cash flow −3,7% YoY
• ▍Net margin -9.8%

Revenue ¥32.78B, −12,3% YoY; Operating income −300,1% YoY.

• ▍Revenue ¥32.78B, −12,3% YoY
• ▍Operating income −300,1% YoY
• ▍Net income −363,5% YoY
• ▍Free cash flow −281,6% YoY
• ▍Net margin -4.9%

Revenue ¥37.38B, +20,4% YoY; Operating income +41,5% YoY.

• ▍Revenue ¥37.38B, +20,4% YoY
• ▍Operating income +41,5% YoY
• ▍Net income +287,2% YoY
• ▍Free cash flow +34,0% YoY
• ▍Net margin 1.6%

Revenue ¥31.04B; Operating income ¥516.0M.

• ▍Revenue ¥31.04B
• ▍Operating income ¥516.0M
• ▍Net margin 0.5%