Chongqing Three Gorges Water Conservancy and Electric Power Co Ltd

The company maintains a capital structure characterized by significant leverage, with long-term debt of 10.65 billion CNY against total equity of 11.30 billion CNY, resulting in a debt-to-equity ratio of 0.94. Liquidity is constrained, evidenced by a current ratio of 0.71, which falls below the standard threshold of 1.0, indicating potential short-term coverage challenges. The firm generated operating cash flow of 1.40 billion CNY, but heavy capital expenditures of 1.49 billion CNY resulted in negative free cash flow of -680 million CNY. The market values the equity at a price-to-book ratio of 0.97, suggesting the market prices the assets at near-book value, while the price-to-earnings ratio stands at 25.22.

Profitability metrics indicate modest returns on capital, with a return on equity of 3.86% and a return on assets of 1.73%. The operating income of 663 million CNY on revenue of 10.17 billion CNY yields an operating margin of approximately 6.5%, while net income of 436 million CNY results in a net margin of roughly 4.3%. These returns are typical for capital-intensive utility operations but suggest limited efficiency in converting assets into profit relative to the scale of the balance sheet. The enterprise value to EBITDA multiple of 32.66 reflects the high capital intensity and moderate earnings yield of the business.

Revenue generation is concentrated in the electric utilities activity, as defined by its industry classification. The company operates within the Utilities sector, specifically focusing on water conservancy and electric power. Without specific segment breakdowns, the revenue mix is assumed to be dominated by regulated or contracted electricity sales, consistent with the industry profile of state-linked or regional utility providers in China.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue base of 10.17 billion CNY serves as the baseline for performance evaluation. The negative free cash flow suggests that current operations are funding expansion or maintenance capex rather than generating excess cash for distribution or debt reduction, which may constrain near-term organic growth visibility without external financing.

Risk assessment highlights medium liquidity risk due to the current ratio of 0.71 and the negative net cash position after subtracting total debt. Dilution risk is assessed as low, with basic and diluted shares outstanding identical at 1.91 billion, indicating no immediate options or convertible securities impacting share count. The key flag of negative net cash underscores the reliance on debt financing for ongoing operations and capital projects.

Recent events and competitor context are sparse in the available data. The company is compared against major US utilities such as Duke Energy, NextEra Energy, and Southern Company, though direct financial comparisons are not provided. No specific filing, news, or transcript observations are present to detail recent strategic shifts or operational updates.