Yankuang Energy Group Co Ltd

Yankuang Energy Group Co Ltd maintains a capital structure characterized by significant leverage, with total liabilities of CNY 350.9 billion against total equity of CNY 101.1 billion. The debt-to-equity ratio stands at 1.31, indicating a highly leveraged balance sheet relative to shareholder equity. Liquidity is constrained, as evidenced by a current ratio of 0.85, which falls below the standard threshold of 1.0, suggesting potential short-term coverage challenges. The company holds long-term debt of CNY 132.0 billion, and the risk assessment flags negative net cash after subtracting total debt, highlighting a reliance on external financing or operational cash flow to service obligations. Despite these constraints, the firm generates substantial operating cash flow of CNY 16.6 billion, which supports its ability to meet immediate obligations despite the tight current ratio.

Profitability metrics reveal a company trading at a significant discount to its book value, with a price-to-book ratio of 0.43 and a price-to-earnings ratio of 4.75. The return on equity is 9.06%, while return on assets is 2.03%, reflecting the capital-intensive nature of the mining business and the drag of high leverage on asset efficiency. The enterprise value-to-EBITDA multiple of 11.41 suggests that while the equity is cheap, the enterprise value accounts for the heavy debt load, pricing in the risk associated with the company's financial structure. The gross profit of CNY 33.6 billion on revenue of CNY 133.3 billion indicates a gross margin of approximately 25.2%, which is typical for integrated mining operations but subject to commodity price volatility.

Analysts project 33.7% upside to a mean price target of 18.47, reflecting strong buy consensus among seven analysts.

Cash conversion ratio of 1.82 ranks in the top quartile, significantly outperforming the 1.0 cohort median.

Free cash flow is projected to grow 5.5% year-over-year to 6.0 billion CNY in fiscal 2026.

Debt-to-equity ratio of 1.31 places the company in the bottom quartile compared to the 0.12 cohort median.

The company faces high credit risk and medium liquidity risk according to internal risk flag assessments.

Revenue ¥133.34B, −5,5% YoY; Operating income −44,8% YoY.

• ▍Revenue ¥133.34B, −5,5% YoY
• ▍Operating income −44,8% YoY
• ▍Net income −39,9% YoY
• ▍Free cash flow +5,5% YoY
• ▍Net margin 6.9%

Revenue ¥141.14B, +6,3% YoY; Operating income −17,3% YoY.

• ▍Revenue ¥141.14B, +6,3% YoY
• ▍Operating income −17,3% YoY
• ▍Net income −22,6% YoY
• ▍Free cash flow +309,2% YoY
• ▍Net margin 10.8%

Revenue ¥132.74B, −14,1% YoY; Operating income −37,7% YoY.

• ▍Revenue ¥132.74B, −14,1% YoY
• ▍Operating income −37,7% YoY
• ▍Net income −36,3% YoY
• ▍Free cash flow −94,1% YoY
• ▍Net margin 14.8%

Revenue ¥154.60B, +42,3% YoY; Operating income +117,8% YoY.

• ▍Revenue ¥154.60B, +42,3% YoY
• ▍Operating income +117,8% YoY
• ▍Net income +80,4% YoY
• ▍Free cash flow +225,6% YoY
• ▍Net margin 20.0%

Revenue ¥108.62B; Operating income ¥24.82B.

• ▍Revenue ¥108.62B
• ▍Operating income ¥24.82B
• ▍Net margin 15.8%