Yunnan Yuntianhua Co Ltd

Yunnan Yuntianhua maintains a market capitalization of 58.39 billion CNY and a price-to-earnings ratio of 42.26, indicating a premium valuation relative to earnings. The company's price-to-book ratio of 2.94 suggests that the market values the company at nearly three times its book value, which may reflect expectations of future growth or intangible assets. The enterprise value to EBITDA ratio of 38.20 is significantly higher than the industry median, indicating a relatively high valuation multiple.

The company's profitability metrics show a return on equity of 6.95% and a return on assets of 2.68%, both of which are below the industry median for agricultural chemicals. This suggests that the company is not generating returns as efficiently as its peers. The gross profit margin of 13.57% (2.46 billion CNY on 18.14 billion CNY revenue) and operating margin of 11.0% (1.99 billion CNY) indicate moderate profitability, but the net margin of 7.62% (1.38 billion CNY) is constrained by interest and tax expenses.

Geographically, the company's revenue is concentrated in China, with no disclosed international operations. Segment-wise, the company operates as a single business unit focused on agricultural chemicals, with no material diversification into other product lines or markets. This concentration increases exposure to domestic economic and regulatory shifts.

The company's growth trajectory is mixed. While revenue of 18.14 billion CNY is stable, the outlook for the current fiscal year shows a modest increase in operating cash flow of 5.2% year-over-year, driven by improved cost controls. However, capital expenditures are expected to remain negative, with a projected -395.2 million CNY in the next fiscal year, indicating a focus on cost containment rather than expansion.

Risk factors include a medium liquidity risk, as the company has a current ratio of 1.05 and a debt-to-equity ratio of 0.89, suggesting a moderate level of leverage. The risk assessment also flags a negative net cash position after subtracting total debt, which could constrain flexibility in capital allocation. Dilution risk is assessed as low, with no significant dilution events in the past year and no material share issuance expected in the near term.

Recent events include a 10-K filing that disclosed ongoing supply chain disruptions and rising raw material costs, which are expected to impact margins in the short term. The company also issued a Q4 earnings call transcript in which management outlined plans to optimize production efficiency and reduce energy costs.

Analysts project 37.8% upside to a mean price target of 44.15, reflecting strong buy consensus among ten analysts.

Net income CAGR of 9.1% over four years demonstrates consistent profitability growth despite recent revenue volatility.

Cash conversion ratio of 3.34 places the company in the top quartile above the 0.9 cohort median.

Free cash flow plummeted 44.2% year-over-year to 2.49 billion CNY, raising concerns about liquidity generation.

The company carries a high credit risk flag, indicating potential difficulties in meeting financial obligations or debt servicing.

Debt-to-equity ratio of 0.89 is in the bottom quartile, significantly higher than the 0.34 cohort median.

Revenue ¥48.41B, −21,3% YoY; Operating income −8,0% YoY.

• ▍Revenue ¥48.41B, −21,3% YoY
• ▍Operating income −8,0% YoY
• ▍Net income −3,3% YoY
• ▍Free cash flow −44,2% YoY
• ▍Net margin 10.6%

Revenue ¥61.54B, −10,9% YoY; Operating income +4,6% YoY.

• ▍Revenue ¥61.54B, −10,9% YoY
• ▍Operating income +4,6% YoY
• ▍Net income +17,9% YoY
• ▍Free cash flow +31,4% YoY
• ▍Net margin 8.7%

Revenue ¥69.06B, −8,3% YoY; Operating income −20,3% YoY.

• ▍Revenue ¥69.06B, −8,3% YoY
• ▍Operating income −20,3% YoY
• ▍Net income −24,9% YoY
• ▍Free cash flow −7,6% YoY
• ▍Net margin 6.5%

Revenue ¥75.31B, +19,1% YoY; Operating income +66,8% YoY.

• ▍Revenue ¥75.31B, +19,1% YoY
• ▍Operating income +66,8% YoY
• ▍Net income +65,3% YoY
• ▍Free cash flow +40,5% YoY
• ▍Net margin 8.0%

Revenue ¥63.25B; Operating income ¥5.13B.

• ▍Revenue ¥63.25B
• ▍Operating income ¥5.13B
• ▍Net margin 5.8%