Dehua TB New Decoration Material Co Ltd

Dehua TB New Decoration Material Co Ltd maintains a conservative capital structure characterized by minimal leverage. The debt-to-equity ratio stands at 0.02, indicating that long-term debt of 701.95 million CNY is negligible relative to total equity of 3.30 billion CNY. Despite this low leverage, the risk assessment flags medium liquidity risk, supported by a current ratio of 1.33. The balance sheet shows total assets of 6.10 billion CNY against total liabilities of 2.80 billion CNY. Operating cash flow is robust at 863.32 million CNY, significantly exceeding free cash flow of 184.01 million CNY, which reflects capital expenditures of 102.99 million CNY. The company holds a net cash position that is technically negative after subtracting total debt, a key flag noted in the risk assessment, though the absolute debt levels remain low.

Profitability metrics demonstrate strong operational efficiency. The company reports a net income of 702.29 million CNY on revenue of 8.88 billion CNY, yielding a net margin of approximately 7.9%. Return on equity is 18.11%, and return on assets is 9.8%, both indicating effective utilization of capital. The valuation snapshot shows a price-to-earnings ratio of 16.18 and an EV/EBITDA of 12.23. The price-to-book ratio is 2.93, suggesting the market values the company's tangible assets at a premium. Without specific cohort medians provided in the input, these returns are assessed as solid for a materials manufacturer, particularly given the low debt burden.

The company's revenue mix and geographic exposure are not detailed in the available segments or geography sections. Consequently, specific concentration risks related to product lines or regional markets cannot be quantified from the current data. The classification as "Paper & Forest Products" suggests a reliance on raw material inputs typical of that industry, but the specific activity is listed as unclassified, limiting deeper structural analysis of revenue drivers.

Growth trajectory analysis is constrained by the absence of historical periods data in the input. The financial snapshot provides only the latest normalized period figures. Revenue of 8.88 billion CNY and net income of 702.29 million CNY represent the current baseline. Without year-over-year or quarterly trend data, the direction and velocity of growth cannot be determined from the provided structured analysis state.

Risk factors are primarily centered on liquidity and classification uncertainty. The liquidity risk is rated as medium, despite the low debt levels, potentially due to working capital dynamics or cash conversion cycles not fully visible in the static ratios. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 829.75 million, indicating no significant options or convertible securities currently impacting share count. The key flag regarding negative net cash after debt subtraction warrants monitoring, although the absolute debt amount is small.

Recent events and market sentiment are reflected in the IR observations. Analysts maintain a positive outlook, with a mean recommendation of 1.50 (strong buy) and a mean price target of 17.34 CNY, implying significant upside from the current market price of 11.66 CNY. The high price target is 18.37 CNY and the low is 16.31 CNY, showing consensus among the four covering analysts (two strong buys, two buys). No specific filing, news, or transcript observations are provided in the input to detail recent corporate actions or strategic shifts.

Analysts project 31.3% upside to a mean price target of 17.34, reflecting strong buy consensus.

Net income grew 20% year-over-year to 702 million CNY in FY2026, signaling robust earnings recovery.

Debt-to-equity ratio of 0.02 is well below the cohort median of 0.4, highlighting a conservative capital structure.

Free cash flow turned negative to -280 million CNY in FY2025, raising concerns about short-term liquidity generation.

Gross profit decreased to 1.54 billion CNY in FY2026, down from 1.66 billion CNY in FY2024, showing margin pressure.

The company faces medium liquidity risk, which could constrain financial flexibility during periods of market stress.

Four-year revenue CAGR is negative at -1.5%, suggesting a long-term trend of declining sales volume.

Revenue ¥8.88B, −3,3% YoY; Operating income +23,3% YoY.

• ▍Revenue ¥8.88B, −3,3% YoY
• ▍Operating income +23,3% YoY
• ▍Net income +20,0% YoY
• ▍Free cash flow +165,6% YoY
• ▍Net margin 7.9%

Revenue ¥9.19B, +1,4% YoY; Operating income −13,3% YoY.

• ▍Revenue ¥9.19B, +1,4% YoY
• ▍Operating income −13,3% YoY
• ▍Net income −15,1% YoY
• ▍Free cash flow −207,7% YoY
• ▍Net margin 6.4%

Revenue ¥9.06B, +1,6% YoY; Operating income +49,7% YoY.

• ▍Revenue ¥9.06B, +1,6% YoY
• ▍Operating income +49,7% YoY
• ▍Net income +54,8% YoY
• ▍Free cash flow +938,3% YoY
• ▍Net margin 7.6%

Revenue ¥8.92B, −5,4% YoY; Operating income −36,3% YoY.

• ▍Revenue ¥8.92B, −5,4% YoY
• ▍Operating income −36,3% YoY
• ▍Net income −37,4% YoY
• ▍Free cash flow −94,1% YoY
• ▍Net margin 5.0%

Revenue ¥9.43B; Operating income ¥943.8M.

• ▍Revenue ¥9.43B
• ▍Operating income ¥943.8M
• ▍Net margin 7.5%