Anhui Tongguan Copper Foil Group Co Ltd

Anhui Tongguan Copper Foil Group Co Ltd maintains a capital structure characterized by a debt-to-equity ratio of 0.26 and a current ratio of 2.66, indicating moderate leverage and adequate short-term liquidity coverage. The company holds total assets of 7.66 billion CNY against total liabilities of 2.27 billion CNY, resulting in total equity of 5.39 billion CNY. Long-term debt stands at 1.43 billion CNY. Despite the healthy current ratio, the risk assessment flags medium liquidity risk, noting that net cash is negative after subtracting total debt. Operating cash flow is negative at -171.5 million CNY, and free cash flow is negative at -42.7 million CNY, driven by capital expenditures of 312.9 million CNY.

Profitability metrics reveal significant operational challenges. The company reports a gross profit of 214.9 million CNY on revenue of 6.69 billion CNY, implying a gross margin of approximately 3.2%. Operating income is negative at -758.7 million CNY, while net income is positive at 62.6 million CNY, likely due to non-operating items or tax effects. Return on equity is -2.3% and return on assets is -1.62%, both indicating poor capital efficiency. The enterprise value to EBITDA ratio is negative at -689.33, reflecting the negative operating earnings. The price-to-book ratio is elevated at 22.17, and the enterprise value to revenue ratio is 23.16, suggesting the market is pricing in significant future growth or asset revaluation despite current operational losses.

The company’s revenue mix and geographic exposure are not detailed in the available data. Without segment or geographic breakdowns, the concentration risk cannot be quantified from the provided inputs. The analysis relies on aggregate financial figures, which show a large revenue base of 6.69 billion CNY but thin margins.

Growth trajectory analysis is limited by the absence of historical period data. The current financial snapshot shows a single period of performance. Without multi-year revenue or net income trends, it is not possible to assess the direction or sustainability of growth. The current negative operating income and negative free cash flow suggest a period of investment or operational difficulty, but the long-term trend remains unverified in this dataset.

Risk factors include medium liquidity risk and low dilution risk. The key flag indicates that net cash is negative after subtracting total debt, which may constrain financial flexibility. The negative operating cash flow and free cash flow further highlight the need for external financing or asset monetization to sustain operations. The low dilution risk suggests that share count stability is not an immediate concern, with basic and diluted shares outstanding both at 829.02 million.

Recent events and observations are limited to analyst estimates. The mean price target is 30.78 CNY, with a mean recommendation of 1.00 (strong buy). There are two strong-buy ratings and no buy, hold, or sell ratings. This suggests that analysts view the current market price of 144.17 CNY as significantly overvalued relative to their target, or that there is a discrepancy in the data. The lack of recent filing, news, or transcript observations limits the ability to assess recent corporate actions or market sentiment shifts.

Net income surged 335.1% year-over-year, demonstrating a significant recovery in profitability compared to the prior period.

Operating income increased by 306.6% year-over-year, indicating a strong rebound in core operational earnings performance.

Free cash flow improved by 193.6% year-over-year, suggesting a notable enhancement in cash generation capabilities.

The debt-to-equity ratio of 0.26 is below the cohort median of 0.15, reflecting a conservative leverage position.

Cash conversion of 1.38 exceeds the cohort median of 0.96, highlighting superior efficiency in converting earnings to cash.

The company faces a high credit risk flag, indicating substantial concerns regarding its creditworthiness and financial stability.

Revenue ¥6.69B, +41,8% YoY; Operating income −257,2% YoY.

• ▍Revenue ¥6.69B, +41,8% YoY
• ▍Operating income −257,2% YoY
• ▍Net income +140,1% YoY
• ▍Free cash flow +90,8% YoY
• ▍Net margin 0.9%

Revenue ¥3.78B, −2,3% YoY; Operating income −98,4% YoY.

• ▍Revenue ¥3.78B, −2,3% YoY
• ▍Operating income −98,4% YoY
• ▍Net income −93,5% YoY
• ▍Free cash flow −106,9% YoY
• ▍Net margin 0.5%

Revenue ¥3.87B, −5,1% YoY; Operating income −30,7% YoY.

• ▍Revenue ¥3.87B, −5,1% YoY
• ▍Operating income −30,7% YoY
• ▍Net income −27,9% YoY
• ▍Free cash flow −159,6% YoY
• ▍Net margin 6.8%