Sichuan Hexie Shuangma Co Ltd

SICHUAN HEXIE SHUANGMA Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.13 and a current ratio of 1.81, indicating adequate short-term liquidity coverage. The company holds total assets of CNY 9.73 billion against total liabilities of CNY 1.96 billion, resulting in a strong equity base of CNY 7.77 billion. Despite this balance sheet strength, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting potential constraints in immediate cash availability despite overall solvency. The company generated operating cash flow of CNY 321.5 million and free cash flow of CNY 341.7 million, demonstrating positive cash generation capabilities.

Profitability metrics reveal modest returns, with a return on equity (ROE) of 5.37% and a return on assets (ROA) of 4.29%. The company reported net income of CNY 298.3 million on revenue of CNY 1.21 billion, yielding a net margin of approximately 24.7%. Operating income stood at CNY 367.0 million, reflecting an operating margin of roughly 30.4%. These returns are evaluated against the backdrop of a high valuation multiple, with a price-to-earnings ratio of 48.82 and an EV/EBITDA of 50.81, suggesting that the market prices in significant future growth expectations or premium positioning within the construction materials sector.

Debt-to-equity ratio of 0.13 is well below the cohort median of 0.4, suggesting a conservative capital structure.

Free cash flow surged 199.6% year-over-year to CNY 1.02 billion, demonstrating strong cash generation recovery.

The single analyst recommendation is a strong buy, signaling positive sentiment despite limited coverage.

Revenue declined with a negative 0.1% CAGR over four years, showing a lack of top-line growth.

Cash conversion ratio of 0.77 is below the cohort median of 1.2, reflecting weaker cash generation efficiency.

Long-term debt increased significantly to CNY 1.0 billion in FY2026, raising leverage concerns compared to prior years.

The company faces medium liquidity and credit risks, which could impact financial stability and borrowing costs.

Revenue ¥1.21B, +12,2% YoY; Operating income +25,8% YoY.

• ▍Revenue ¥1.21B, +12,2% YoY
• ▍Operating income +25,8% YoY
• ▍Net income −3,6% YoY
• ▍Free cash flow +387,9% YoY
• ▍Net margin 24.7%

Revenue ¥1.07B, −11,9% YoY; Operating income −74,3% YoY.

• ▍Revenue ¥1.07B, −11,9% YoY
• ▍Operating income −74,3% YoY
• ▍Net income −68,6% YoY
• ▍Free cash flow −93,2% YoY
• ▍Net margin 28.8%

Revenue ¥1.22B, −0,3% YoY; Operating income −18,4% YoY.

• ▍Revenue ¥1.22B, −0,3% YoY
• ▍Operating income −18,4% YoY
• ▍Net income −16,5% YoY
• ▍Free cash flow −17,8% YoY
• ▍Net margin 67.7%

Revenue ¥1.22B; Operating income ¥1.15B.

• ▍Revenue ¥1.22B
• ▍Operating income ¥1.15B
• ▍Net margin 80.8%