Sunresin New Materials Co Ltd

Sunresin New Materials Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.12 and a current ratio of 3.08, indicating strong short-term liquidity coverage. The company holds total equity of 4.39 billion CNY against total liabilities of 2.21 billion CNY, with long-term debt standing at 507.5 million CNY. Despite the strong balance sheet metrics, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting potential cash management constraints or significant cash equivalents not fully offsetting debt obligations in the specific calculation used. Operating cash flow stands at 785.5 million CNY, supporting a free cash flow of 505.3 million CNY after capital expenditures of 115.5 million CNY.

Profitability metrics demonstrate strong operational efficiency, with a return on equity of 20.44% and a return on assets of 13.6%. The company generated net income of 897.1 million CNY on revenue of 2.79 billion CNY, resulting in a net margin of approximately 32.2%. Operating income was 1.03 billion CNY, reflecting a robust operating margin. Without specific cohort median data provided in the input, these returns appear high for the broader materials sector, suggesting a niche or high-value product mix.

Segment and geographic revenue breakdowns are not provided in the available data, preventing an analysis of revenue concentration or regional exposure. The company’s activity is broadly classified as unclassified within the specific industry codes, limiting detailed operational segmentation analysis.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Only the latest normalized period’s financials are available, precluding year-over-year or multi-year trend analysis for revenue and net income.

Risk factors include medium liquidity risk and low dilution risk. The key flag regarding negative net cash after debt subtraction warrants monitoring, as it contrasts with the high current ratio. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 509.1 million shares.

Recent events are reflected in analyst estimates, with a mean price target of 67.22 CNY and a median of 64.15 CNY, compared to the current market price of 70.98 CNY. The mean recommendation is 2.00 (Buy), with three strong buys, two buys, and three holds, indicating generally positive but cautious sentiment. The high price target of 90.00 CNY suggests upside potential, while the low of 55.00 CNY indicates downside risk.

Revenue grew at a 23.6% CAGR over four years, demonstrating strong top-line expansion momentum.

Net income CAGR of 30.3% significantly outpaced revenue growth, highlighting robust profitability improvements.

Analysts project 11.4% upside to a mean price target of 67.22 CNY.

Cash conversion ratio of 0.88 falls below the 1.2 cohort median, indicating weaker cash generation efficiency.

Medium liquidity risk flags potential challenges in meeting short-term financial obligations.

Capex intensity of -4.15% is below the -3.74% cohort median, suggesting lower reinvestment levels.

Revenue ¥852.4M, +28,7% YoY; Operating income +9,3% YoY.

• ▍Revenue ¥852.4M, +28,7% YoY
• ▍Operating income +9,3% YoY
• ▍Net income +28,6% YoY
• ▍Net margin 28.8%

Revenue ¥686.0M, +14,9% YoY; Operating income +21,2% YoY.

• ▍Revenue ¥686.0M, +14,9% YoY
• ▍Operating income +21,2% YoY
• ▍Net income +7,7% YoY
• ▍Net margin 30.2%

Revenue ¥670.6M, +1,1% YoY; Operating income +8,6% YoY.

• ▍Revenue ¥670.6M, +1,1% YoY
• ▍Operating income +8,6% YoY
• ▍Net income +7,0% YoY
• ▍Net margin 37.5%

Revenue ¥576.8M; Operating income ¥230.1M.

• ▍Revenue ¥576.8M
• ▍Operating income ¥230.1M
• ▍Net margin 33.5%

Revenue ¥662.3M; Operating income ¥237.8M.

• ▍Revenue ¥662.3M
• ▍Operating income ¥237.8M
• ▍Net margin 28.8%

Revenue ¥597.2M; Operating income ¥223.6M.

• ▍Revenue ¥597.2M
• ▍Operating income ¥223.6M
• ▍Net margin 32.2%

Revenue ¥663.6M; Operating income ¥249.6M.

• ▍Revenue ¥663.6M
• ▍Operating income ¥249.6M
• ▍Net margin 35.4%

Revenue ¥2.79B, +9,1% YoY; Operating income +13,7% YoY.

• ▍Revenue ¥2.79B, +9,1% YoY
• ▍Operating income +13,7% YoY
• ▍Net income +14,0% YoY
• ▍Free cash flow +27,6% YoY
• ▍Net margin 32.2%

Revenue ¥2.55B, +2,6% YoY; Operating income +10,9% YoY.

• ▍Revenue ¥2.55B, +2,6% YoY
• ▍Operating income +10,9% YoY
• ▍Net income +9,8% YoY
• ▍Free cash flow −16,0% YoY
• ▍Net margin 30.8%

Revenue ¥2.49B, +29,6% YoY; Operating income +33,7% YoY.

• ▍Revenue ¥2.49B, +29,6% YoY
• ▍Operating income +33,7% YoY
• ▍Net income +33,4% YoY
• ▍Free cash flow +2,4% YoY
• ▍Net margin 28.8%

Revenue ¥1.92B, +60,7% YoY; Operating income +75,9% YoY.

• ▍Revenue ¥1.92B, +60,7% YoY
• ▍Operating income +75,9% YoY
• ▍Net income +72,9% YoY
• ▍Free cash flow +117,5% YoY
• ▍Net margin 28.0%

Revenue ¥1.19B; Operating income ¥347.9M.

• ▍Revenue ¥1.19B
• ▍Operating income ¥347.9M
• ▍Net margin 26.0%