Yunnan Energy New Material (Group) Co Ltd

Yunnan Energy New Material (Group) Co Ltd has a debt-to-equity ratio of 0.63, indicating a moderate level of leverage, and a current ratio of 1.2, suggesting limited short-term liquidity cushion. The company's operating cash flow of 1.55 billion CNY is positive, but capital expenditures of -2.21 billion CNY indicate significant reinvestment in the business. The liquidity risk is assessed as medium, with a key flag noting that net cash is negative after subtracting total debt.

The company's profitability is modest, with a return on equity (ROE) of 0.52% and a return on assets (ROA) of 0.27%. These figures are below the typical thresholds for strong performance in the Commodity Chemicals industry, where ROE and ROA are often higher due to the capital-intensive nature of the sector. The gross profit margin is 22.05%, and the operating margin is 4.28%, both of which are in line with the industry's average for commodity chemical producers.

Yunnan Energy New Material (Group) Co Ltd operates primarily in the domestic Chinese market, with no disclosed international revenue segments. The company's revenue is concentrated in a single business line, which increases exposure to sector-specific risks such as commodity price volatility and regulatory changes in the chemical industry. There is no indication of diversification across product lines or geographic regions in the latest financial disclosures.

The company's revenue growth is expected to remain flat in the current fiscal year, with no significant changes in the outlook for the next fiscal year. The capital expenditures of -2.21 billion CNY suggest a focus on maintaining and expanding production capacity, which is a common strategy in the commodity chemicals industry to meet demand and maintain market share. The company's operating cash flow is positive, but the net cash position is negative, indicating that the company is using cash to service debt and fund operations.

The risk assessment for Yunnan Energy New Material (Group) Co Ltd highlights a medium liquidity risk and a low dilution risk. The company has not issued additional shares recently, and the dilution potential is minimal. However, the negative net cash position and the high level of long-term debt (16.01 billion CNY) could pose challenges in the event of a liquidity crunch or a rise in interest rates. The company's debt-to-equity ratio of 0.63 is relatively low compared to industry peers, but the negative net cash position suggests that the company is not generating sufficient cash to cover its debt obligations.

Recent filings and transcripts do not indicate any major strategic shifts or operational disruptions. The company's management has not disclosed any significant capital projects or new product launches in the latest investor communications. Analysts have provided a mixed outlook, with a mean recommendation of 1.67 (leaning toward buy) and a wide range of price targets from 32.00 CNY to 85.00 CNY, reflecting uncertainty about the company's future performance.

Yunnan Energy New Material (Group) Co Ltd (002812.SZ) has undergone a significant update to its corporate taxonomy, now formally classified under the "Chemicals" activity and the "Basic Materials" economic sector. This reclassification represents a medium-severity change in the company's profile, establishing a clearer framework for understanding its operational focus within the broader industrial landscape. Alongside the sectoral update, the company's risk assessment metrics have been initialized. The dilution risk is now rated as "low," indicating a stable capital structure with minimal immediate threat of share value erosion from new issuances. This assessment provides investors with a baseline for evaluating the security of their equity position. Conversely, the liquidity risk has been assessed at a "medium" level. This designation suggests that while the company maintains operational fluidity, there are moderate considerations regarding cash flow management or market depth that warrant monitoring. This risk profile complements the low dilution rating by highlighting areas where financial flexibility may be more constrained. These updates occur against a backdrop of limited external coverage, with the company currently tracked by only one analyst and holding no index memberships. The absence of reported top holders or officer changes further underscores the internal nature of these recent profile adjustments, which primarily serve to refine the company's risk and sectoral classification rather than reflect immediate shifts in ownership or leadership.

Free cash flow turned positive in FY2026, reaching 253 million CNY, marking a significant improvement from the previous year's deficit.

Net margin of 5.4% exceeds the Commodity Chemicals cohort median of 4.2%, indicating superior profitability relative to peers.

Cash conversion ratio of 11.69 is best-in-class compared to the cohort median of 1.1, demonstrating strong operational efficiency.

Revenue grew 34.1% year-over-year in FY2026 to 13.6 billion CNY, showing robust top-line expansion momentum.

Operating income surged 153.2% year-over-year in FY2026, reflecting a substantial recovery in core business profitability.

Return on equity of 0.52% is significantly below the cohort median of 3.61%, indicating poor capital efficiency.

The company faces high credit risk, posing a significant threat to financial stability and potential default.

Debt-to-equity ratio of 0.63 is double the cohort median of 0.31, signaling elevated leverage and financial risk.

Revenue ¥3.91B, +43,2% YoY; Operating income +2 108,2% YoY.

• ▍Revenue ¥3.91B, +43,2% YoY
• ▍Operating income +2 108,2% YoY
• ▍Net income +901,7% YoY
• ▍Net margin 6.7%

Revenue ¥4.09B, +51,5% YoY; Operating income +129,9% YoY.

• ▍Revenue ¥4.09B, +51,5% YoY
• ▍Operating income +129,9% YoY
• ▍Net income +122,9% YoY
• ▍Net margin 5.6%

Revenue ¥3.78B, +41,0% YoY; Operating income −42,2% YoY.

• ▍Revenue ¥3.78B, +41,0% YoY
• ▍Operating income −42,2% YoY
• ▍Net income −95,5% YoY
• ▍Net margin 0.2%

Revenue ¥3.03B, +23,6% YoY; Operating income −173,4% YoY.

• ▍Revenue ¥3.03B, +23,6% YoY
• ▍Operating income −173,4% YoY
• ▍Net income −189,6% YoY
• ▍Net margin -3.9%

Revenue ¥2.73B; Operating income ¥16.0M.

• ▍Revenue ¥2.73B
• ▍Operating income ¥16.0M
• ▍Net margin 1.0%

Revenue ¥2.70B; Operating income -¥1.32B.

• ▍Revenue ¥2.70B
• ▍Operating income -¥1.32B
• ▍Net margin -37.0%

Revenue ¥2.68B; Operating income ¥210.9M.

• ▍Revenue ¥2.68B
• ▍Operating income ¥210.9M
• ▍Net margin 5.7%

Revenue ¥2.46B; Operating income ¥105.1M.

• ▍Revenue ¥2.46B
• ▍Operating income ¥105.1M
• ▍Net margin 5.4%

Revenue ¥13.63B, +34,1% YoY; Operating income +153,2% YoY.

• ▍Revenue ¥13.63B, +34,1% YoY
• ▍Operating income +153,2% YoY
• ▍Net income +125,6% YoY
• ▍Free cash flow +107,0% YoY
• ▍Net margin 1.0%

Revenue ¥10.16B, −15,6% YoY; Operating income −127,8% YoY.

• ▍Revenue ¥10.16B, −15,6% YoY
• ▍Operating income −127,8% YoY
• ▍Net income −122,0% YoY
• ▍Free cash flow +17,7% YoY
• ▍Net margin -5.5%

Revenue ¥12.04B, −4,4% YoY; Operating income −36,5% YoY.

• ▍Revenue ¥12.04B, −4,4% YoY
• ▍Operating income −36,5% YoY
• ▍Net income −36,8% YoY
• ▍Free cash flow −672,2% YoY
• ▍Net margin 21.0%

Revenue ¥12.59B, +57,7% YoY; Operating income +48,2% YoY.

• ▍Revenue ¥12.59B, +57,7% YoY
• ▍Operating income +48,2% YoY
• ▍Net income +47,2% YoY
• ▍Free cash flow +17,8% YoY
• ▍Net margin 31.8%