Yunnan Aluminium Co Ltd

Yunnan Aluminium maintains a conservative capital structure with a debt-to-equity ratio of 0.08 and a current ratio of 2.64, indicating strong short-term liquidity coverage. The balance sheet shows total assets of 44.18 billion CNY against total liabilities of 12.14 billion CNY, resulting in total equity of 32.03 billion CNY. Long-term debt stands at 2.43 billion CNY. Despite the strong current ratio, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting reliance on operating cash flows for debt servicing rather than cash reserves.

Profitability metrics demonstrate efficient capital utilization, with a return on equity (ROE) of 13.18% and a return on assets (ROA) of 9.56%. The company generated a net income of 6.05 billion CNY on revenues of 60.04 billion CNY, yielding a net margin of approximately 10.1%. Operating income was 8.65 billion CNY, reflecting a robust operating margin. The gross profit of 10.06 billion CNY indicates a gross margin of roughly 16.8%, consistent with integrated aluminum producers who benefit from vertical integration in energy and raw materials.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of product mix or geographic exposure. The company’s primary activity is listed as Metals & Mining, implying a focus on aluminum smelting and processing. Without specific segment breakdowns, the revenue base is treated as a consolidated whole, dominated by the core aluminum business.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot provides a single-period view, showing strong absolute revenue and profit figures. Without year-over-year or quarterly trend data, the sustainability and direction of growth cannot be quantitatively assessed from the provided information.

Key risk factors include medium liquidity risk and a flag indicating negative net cash after debt subtraction. Dilution risk is assessed as low, supported by the fact that basic and diluted shares outstanding are identical at 3.47 billion shares, indicating no significant options or convertible securities currently impacting the share count. The company’s low leverage reduces financial distress risk, but the negative net cash position requires monitoring of operating cash flow stability.

Recent observations from investor relations data show strong analyst sentiment, with a mean recommendation of 1.62 (where 1 is strong buy). The mean price target is 36.30 CNY, representing a significant upside from the current market price of 22.88 CNY. The median price target is 38.00 CNY, with a high of 39.90 CNY and a low of 31.00 CNY. There are 4 strong-buy ratings and 3 buy ratings, with only 1 hold rating, indicating broad consensus for positive performance.

Net income is projected to surge 37.2% year-over-year to CNY 6.05 billion in FY2026, demonstrating strong earnings momentum.

Free cash flow growth of 48.5% year-over-year indicates robust cash generation capabilities supporting future investments and dividends.

Long-term debt declines significantly to CNY 2.43 billion by FY2026, reducing financial leverage and strengthening the balance sheet.

Analysts project 23.0% upside to a mean price target of CNY 36.30, reflecting positive market sentiment.

Medium liquidity risk flags potential challenges in meeting short-term obligations, requiring careful cash flow management.

Revenue growth of 10.3% in FY2026 may face headwinds if broader economic conditions deteriorate or demand softens.

Gross profit margin compression is evident as gross profit grows slower than revenue in recent periods.

Revenue ¥60.04B, +10,3% YoY; Operating income +45,0% YoY.

• ▍Revenue ¥60.04B, +10,3% YoY
• ▍Operating income +45,0% YoY
• ▍Net income +37,2% YoY
• ▍Free cash flow +48,5% YoY
• ▍Net margin 10.1%

Revenue ¥54.45B, +27,6% YoY; Operating income +7,7% YoY.

• ▍Revenue ¥54.45B, +27,6% YoY
• ▍Operating income +7,7% YoY
• ▍Net income +11,5% YoY
• ▍Free cash flow −10,0% YoY
• ▍Net margin 8.1%

Revenue ¥42.67B, −12,0% YoY; Operating income −6,2% YoY.

• ▍Revenue ¥42.67B, −12,0% YoY
• ▍Operating income −6,2% YoY
• ▍Net income −13,4% YoY
• ▍Free cash flow −8,6% YoY
• ▍Net margin 9.3%

Revenue ¥48.46B, +16,1% YoY; Operating income +25,5% YoY.

• ▍Revenue ¥48.46B, +16,1% YoY
• ▍Operating income +25,5% YoY
• ▍Net income +37,1% YoY
• ▍Free cash flow +26,8% YoY
• ▍Net margin 9.4%

Revenue ¥41.75B; Operating income ¥4.70B.

• ▍Revenue ¥41.75B
• ▍Operating income ¥4.70B
• ▍Net margin 8.0%