Zhejiang Hailiang Co Ltd

Zhejiang Hailiang maintains a capital structure characterized by significant leverage, with total liabilities of CNY 31.3 billion against total equity of CNY 16.8 billion, resulting in a debt-to-equity ratio of 1.35. The company holds CNY 22.6 billion in long-term debt, which contributes to a negative net cash position after subtracting total debt. Liquidity is assessed as medium, supported by a current ratio of 1.46, indicating adequate short-term asset coverage for liabilities. The market capitalization stands at CNY 46.6 billion, with a price-to-book ratio of 2.77 and a price-to-tangible book ratio of 2.77, reflecting the market's valuation of the company's equity base.

Profitability metrics indicate modest returns on capital, with a return on equity of 4.36% and a return on assets of 1.52%. The company reported net income of CNY 943.2 million on revenue of CNY 83.3 billion, yielding a net margin of approximately 1.13%. Operating income was CNY 1.2 billion, while gross profit stood at CNY 3.2 billion, suggesting thin margins typical of the Metals & Mining industry. The high EV/EBITDA multiple of 104.72 contrasts with the low EV/Revenue ratio of 0.8, highlighting the impact of debt on enterprise value relative to earnings.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the analysis of specific business unit contributions. Geographic exposure is similarly absent from the disclosed information, preventing a detailed assessment of regional risk factors. The company's activity is broadly classified under Metals & Mining, implying exposure to commodity price fluctuations and industrial demand cycles.

Growth trajectory analysis is constrained by the absence of historical period data in the input, preventing a year-over-year or quarter-over-quarter trend assessment. The latest financial snapshot shows revenue of CNY 83.3 billion, but without prior period comparisons, the direction of revenue growth cannot be determined. Analyst estimates suggest a mean EPS of 1.03 CNY, compared to the last actual EPS of 0.46 CNY, indicating expected earnings improvement.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting negative net cash after debt subtraction. The company's operating cash flow is negative at CNY -1.7 billion, while free cash flow is negative at CNY -187.7 million, driven by capital expenditures of CNY -986.4 million. These cash flow dynamics, combined with high long-term debt, pose potential refinancing risks and limit financial flexibility.

Recent events include analyst recommendations with a mean rating of 1.00 (strong buy), based on one strong-buy count and no other ratings. The discrepancy between the mean EPS estimate of 1.03 CNY and the last actual EPS of 0.46 CNY suggests analyst optimism for future performance. No specific filing, news, or transcript observations are provided in the input data.

Operating income surged 99.1% year-over-year to CNY 1.21 billion, signaling a strong operational recovery.

Free cash flow improved by 75.9% to a negative CNY 187.7 million, indicating reduced cash burn.

Net income grew 34.1% year-over-year to CNY 943.2 million, demonstrating bottom-line resilience.

Revenue maintained a 7.0% four-year CAGR, reflecting consistent long-term top-line expansion.

Gross profit reached CNY 3.16 billion, maintaining robust gross margins despite revenue fluctuations.

Operating margin of 0.77% ranks in the bottom quartile, significantly underperforming the cohort median.

High credit risk flag indicates significant potential for loan losses or financial instability.

Debt-to-equity ratio of 1.35 is in the bottom quartile, signaling excessive leverage compared to peers.

Net margin of 0.85% falls in the bottom quartile, highlighting poor profitability relative to the cohort.

Return on equity of 4.36% is below the cohort median, indicating inefficient capital utilization.

Revenue ¥83.31B, −4,8% YoY; Operating income +99,1% YoY.

• ▍Revenue ¥83.31B, −4,8% YoY
• ▍Operating income +99,1% YoY
• ▍Net income +34,1% YoY
• ▍Free cash flow +75,9% YoY
• ▍Net margin 1.1%

Revenue ¥87.55B, +15,6% YoY; Operating income −55,4% YoY.

• ▍Revenue ¥87.55B, +15,6% YoY
• ▍Operating income −55,4% YoY
• ▍Net income −37,1% YoY
• ▍Free cash flow +32,8% YoY
• ▍Net margin 0.8%

Revenue ¥75.75B, +2,4% YoY; Operating income −9,1% YoY.

• ▍Revenue ¥75.75B, +2,4% YoY
• ▍Operating income −9,1% YoY
• ▍Net income −7,5% YoY
• ▍Free cash flow +17,0% YoY
• ▍Net margin 1.5%

Revenue ¥74.00B, +16,6% YoY; Operating income +4,7% YoY.

• ▍Revenue ¥74.00B, +16,6% YoY
• ▍Operating income +4,7% YoY
• ▍Net income +9,1% YoY
• ▍Free cash flow −290,7% YoY
• ▍Net margin 1.6%

Revenue ¥63.44B; Operating income ¥1.43B.

• ▍Revenue ¥63.44B
• ▍Operating income ¥1.43B
• ▍Net margin 1.7%