LB Group Co Ltd

LB Group Co Ltd maintains a capital structure characterized by significant leverage, with total liabilities of 41.5 billion CNY against total equity of 22.9 billion CNY. The debt-to-equity ratio stands at 1.05, driven primarily by long-term debt of 24.1 billion CNY. Liquidity is assessed as medium risk, supported by a current ratio of 1.0, indicating that current assets exactly cover current liabilities. The company generates substantial operating cash flow of 3.97 billion CNY, but free cash flow is compressed to 550 million CNY due to capital expenditures of 1.9 billion CNY. The net cash position is negative after subtracting total debt, highlighting a reliance on external financing or debt servicing capabilities.

Profitability metrics indicate modest returns on capital. The return on equity (ROE) is 5.44%, and the return on assets (ROA) is 1.93%. The company reported net income of 1.24 billion CNY on revenue of 25.99 billion CNY, resulting in a net margin of approximately 4.8%. Gross profit was 5.25 billion CNY, yielding a gross margin of roughly 20.2%. Operating income stood at 1.57 billion CNY. Without cohort median data for direct comparison, these returns must be evaluated against the broader Chemicals industry norms, where capital intensity often pressures ROA. The valuation multiples reflect this profile, with a P/E ratio of 30.65 and an EV/EBITDA of 39.08, suggesting the market prices in future growth or stability despite current moderate returns.

Segment and geographic revenue breakdowns are not provided in the available data, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is broadly classified under Chemicals, implying exposure to commodity price cycles and industrial demand drivers typical of the Materials sector.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest normalized period shows revenue of 25.99 billion CNY, but year-over-year or multi-year trends cannot be calculated from the provided snapshot. Consequently, the sustainability of current revenue levels and the pace of expansion remain unquantified in this analysis.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which may constrain financial flexibility during periods of tight credit markets. The current ratio of 1.0 leaves little buffer for short-term obligations, requiring careful working capital management. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 2.38 billion shares, indicating no significant options or convertible securities currently impacting share count.

Recent events and analyst sentiment suggest a positive outlook. The mean analyst price target is 22.18 CNY, with a median of 21.62 CNY, implying upside from the current market price of 16.00 CNY. The mean recommendation is 1.88, leaning towards a buy, with 8 analysts issuing buy or strong-buy ratings and no hold ratings. This consensus suggests confidence in the company’s future performance despite the current valuation multiples.

LB Group Co Ltd (002601.SZ) has experienced no material changes in its fundamental profile or market signals as of the latest analysis. A review of 17 key fields confirmed stability, with no significant shifts detected in the company's operational or financial standing. The absence of new developments is reflected in the lack of active watcher signals and a quiet news cycle. Cross-source data indicates minimal media activity, with only a single dispatch recorded on July 13, 2026, amidst otherwise zero daily counts throughout late June and early July 2026. From a structural perspective, the company maintains a lean governance and coverage footprint. It is currently associated with one officer, two analysts, and zero index memberships, while no top holders are identified in the current dataset. This static environment suggests a period of consolidation for LB Group, with no immediate catalysts driving investor attention or altering the company's risk-reward profile. The lack of material change implies that previous assessments remain valid, offering no new basis for strategic adjustment.

Analysts project 45.6% upside to a mean price target of 22.18, signaling strong market confidence in future performance.

Revenue grew at a 6.0% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Cash conversion ratio of 3.19 ranks in the top quartile, indicating superior efficiency in generating cash from earnings.

Free cash flow turned positive in FY2025 and FY2026, suggesting improved operational liquidity after a negative period.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity value erosion.

High credit risk flags suggest significant potential for loan losses or counterparty defaults impacting future financial health.

Debt-to-equity ratio of 1.05 sits in the bottom quartile, indicating excessive leverage compared to peer median of 0.4.

Operating margin of 6.1% trails the cohort median of 7.5%, reflecting weaker cost management or pricing power.

Return on equity of 5.4% underperforms the cohort median of 7.9%, signaling inefficient use of shareholder capital.

Revenue ¥6.54B, −1,8% YoY; Operating income −116,7% YoY.

• ▍Revenue ¥6.54B, −1,8% YoY
• ▍Operating income −116,7% YoY
• ▍Net income −8,8% YoY
• ▍Net margin -6.6%

Revenue ¥6.11B, −13,7% YoY; Operating income −62,9% YoY.

• ▍Revenue ¥6.11B, −13,7% YoY
• ▍Operating income −62,9% YoY
• ▍Net income −65,7% YoY
• ▍Net margin 4.7%

Revenue ¥6.28B, −3,5% YoY; Operating income −14,6% YoY.

• ▍Revenue ¥6.28B, −3,5% YoY
• ▍Operating income −14,6% YoY
• ▍Net income −9,2% YoY
• ▍Net margin 11.1%

Revenue ¥7.06B; Operating income ¥849.1M.

• ▍Revenue ¥7.06B
• ▍Operating income ¥849.1M
• ▍Net margin 9.7%

Revenue ¥6.65B; Operating income -¥211.3M.

• ▍Revenue ¥6.65B
• ▍Operating income -¥211.3M
• ▍Net margin -5.9%

Revenue ¥7.08B; Operating income ¥1.03B.

• ▍Revenue ¥7.08B
• ▍Operating income ¥1.03B
• ▍Net margin 11.9%

Revenue ¥25.99B, −5,6% YoY; Operating income −46,0% YoY.

• ▍Revenue ¥25.99B, −5,6% YoY
• ▍Operating income −46,0% YoY
• ▍Net income −42,6% YoY
• ▍Free cash flow −29,0% YoY
• ▍Net margin 4.8%

Revenue ¥27.54B, +2,8% YoY; Operating income −25,5% YoY.

• ▍Revenue ¥27.54B, +2,8% YoY
• ▍Operating income −25,5% YoY
• ▍Net income −32,8% YoY
• ▍Free cash flow +3 293,3% YoY
• ▍Net margin 7.9%

Revenue ¥26.79B, +10,9% YoY; Operating income −4,0% YoY.

• ▍Revenue ¥26.79B, +10,9% YoY
• ▍Operating income −4,0% YoY
• ▍Net income −5,6% YoY
• ▍Free cash flow +100,9% YoY
• ▍Net margin 12.0%

Revenue ¥24.16B, +17,2% YoY; Operating income −26,4% YoY.

• ▍Revenue ¥24.16B, +17,2% YoY
• ▍Operating income −26,4% YoY
• ▍Net income −26,9% YoY
• ▍Free cash flow −556,4% YoY
• ▍Net margin 14.2%

Revenue ¥20.62B; Operating income ¥5.52B.

• ▍Revenue ¥20.62B
• ▍Operating income ¥5.52B
• ▍Net margin 22.7%