Sinoma Science & Technology Co Ltd

Sinoma Science & Technology Co Ltd maintains a capital structure characterized by significant leverage and tight liquidity. The company reports total assets of 65.59 billion CNY against total liabilities of 45.68 billion CNY, resulting in a debt-to-equity ratio of 0.87. Long-term debt stands at 17.29 billion CNY, while total equity is 19.91 billion CNY. Liquidity is constrained, evidenced by a current ratio of 0.93, indicating that current liabilities exceed current assets. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt. Despite strong operating cash flow of 5.40 billion CNY, free cash flow is negligible at 53.59 million CNY due to substantial capital expenditures of 3.55 billion CNY.

Profitability metrics reveal low returns on capital relative to the high valuation multiples. The company generated net income of 1.82 billion CNY on revenue of 30.20 billion CNY, yielding a net margin of approximately 6.0%. Return on equity is 5.21%, and return on assets is 1.58%, suggesting inefficient capital deployment. These returns are modest given the market’s valuation of the firm. The gross profit of 5.62 billion CNY indicates a gross margin of roughly 18.6%, while operating income of 2.34 billion CNY reflects an operating margin of 7.7%. Without cohort median data for direct comparison, these returns appear thin for a materials company, particularly when weighed against the high entry cost for investors.

Segment and geographic revenue concentration data is not provided in the available input, preventing a detailed analysis of revenue mix or regional exposure. The company’s total revenue of 30.20 billion CNY is attributed to its aggregate operations within the Chemicals industry. In the absence of segment breakdowns, the analysis assumes a consolidated operational model where specific product lines or geographic regions are not disclosed as distinct reporting units in this dataset.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue figure of 30.20 billion CNY serves as the baseline for performance evaluation. Without year-over-year or quarter-over-quarter historical trends, it is not possible to determine the momentum of revenue growth or the stability of earnings over time. The capital expenditure of 3.55 billion CNY suggests ongoing investment in capacity or technology, but the impact on future revenue growth remains unquantified in this snapshot.

Risk factors are dominated by liquidity constraints and valuation disconnects. The medium liquidity risk is driven by a current ratio below 1.0 and negative net cash. Dilution risk is assessed as low, with basic and diluted shares outstanding identical at 1.68 billion shares, indicating no immediate options or convertible securities impacting share count. The key flag of negative net cash after debt subtraction highlights a reliance on external financing or operating cash flow to service obligations. The high valuation multiples amplify these risks, as any deterioration in cash flow could severely impact the stock price.

Recent events and market sentiment indicate strong analyst support despite the high valuation. The mean analyst price target is 55.89 CNY, with a median of 53.02 CNY, both significantly below the current market price of 76.58 CNY. The high price target is 75.00 CNY, still below the current trading level. Analyst recommendations are overwhelmingly positive, with a mean recommendation of 1.33 (where 1 is strong buy), comprising 6 strong buys and 3 buys, and no holds. This divergence between analyst targets and current price suggests either a recent price surge not yet reflected in targets or a potential overvaluation relative to consensus expectations.

Free cash flow surged 102.1% year-over-year in FY2026, signaling a critical turnaround in liquidity generation.

Net income jumped 103.8% year-over-year in FY2026, demonstrating strong bottom-line recovery momentum.

Revenue grew 25.9% year-over-year in FY2026, indicating robust top-line expansion despite prior volatility.

Cash conversion ratio of 5.21 ranks best-in-class, significantly outperforming the cohort median of 1.2.

Operating income increased 103.5% year-over-year in FY2026, reflecting improved core operational profitability.

High credit risk flags indicate significant financial stability concerns for the company’s debt obligations.

Debt-to-equity ratio of 0.87 is more than double the cohort median of 0.4, indicating high leverage.

Net margin of 4.14% remains below the cohort median of 5.28%, showing weaker profitability than peers.

Revenue ¥30.20B, +25,9% YoY; Operating income +103,5% YoY.

• ▍Revenue ¥30.20B, +25,9% YoY
• ▍Operating income +103,5% YoY
• ▍Net income +103,8% YoY
• ▍Free cash flow +102,1% YoY
• ▍Net margin 6.0%

Revenue ¥23.98B, −7,4% YoY; Operating income −61,3% YoY.

• ▍Revenue ¥23.98B, −7,4% YoY
• ▍Operating income −61,3% YoY
• ▍Net income −59,9% YoY
• ▍Free cash flow +45,4% YoY
• ▍Net margin 3.7%

Revenue ¥25.89B, +0,3% YoY; Operating income −28,1% YoY.

• ▍Revenue ¥25.89B, +0,3% YoY
• ▍Operating income −28,1% YoY
• ▍Net income −37,8% YoY
• ▍Free cash flow −431,3% YoY
• ▍Net margin 8.6%

Revenue ¥25.81B, +27,2% YoY; Operating income +1,6% YoY.

• ▍Revenue ¥25.81B, +27,2% YoY
• ▍Operating income +1,6% YoY
• ▍Net income +6,0% YoY
• ▍Free cash flow −150,3% YoY
• ▍Net margin 13.8%

Revenue ¥20.30B; Operating income ¥4.07B.

• ▍Revenue ¥20.30B
• ▍Operating income ¥4.07B
• ▍Net margin 16.6%