China High Speed Transmission Equipment Group Co Ltd

The company maintains a capital structure characterized by significant leverage, with total liabilities of 30.77 billion CNY against total equity of 8.46 billion CNY. Long-term debt stands at 9.35 billion CNY, resulting in a debt-to-equity ratio of 1.1. Liquidity is assessed as medium, supported by a current ratio of 1.37 and cash and equivalents of 5.64 billion CNY. However, the risk assessment flags that net cash is negative after subtracting total debt, indicating reliance on external financing or operational cash flow to service obligations.

Profitability metrics indicate thin margins relative to the asset base. The company reports a return on equity of 2.5% and a return on assets of 0.54%. With a net income of 211.2 million CNY on revenue of 19.73 billion CNY, the net margin is approximately 1.07%. The valuation snapshot reflects these modest returns, with a price-to-earnings ratio of 10.14 and a price-to-book ratio of 0.25, suggesting the market prices the equity at a significant discount to its book value.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or product mix exposure. The company operates within the Electric Utilities industry, which typically involves large-scale infrastructure projects and long-term contracts, but specific segment breakdowns are absent from the current snapshot.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest financial snapshot shows revenue of 19.73 billion CNY, but without prior year comparisons or quarterly trends, the direction and velocity of revenue growth cannot be determined from the provided data.

Risk factors include medium liquidity risk and low dilution risk. The key flag regarding negative net cash after debt subtraction highlights potential refinancing risks or sensitivity to interest rate changes. The company’s ESG profile shows a total score of 65.58 with a strong environment pillar score of 88.32, which may mitigate certain regulatory risks associated with the utilities sector.

Recent observations include analyst estimates for actual EPS of 0.51 CNY and actual revenue of 15.37 billion CNY, which differ from the financial snapshot figures, potentially indicating different reporting periods or adjustments. The company maintains an ESG grade of B, with no significant controversies noted, as indicated by a controversies score of 100.

Free cash flow turned positive to CNY 782 million in 2021, marking a 110.7% year-over-year improvement from the prior year deficit.

Operating income surged 129.7% year-over-year to CNY 1.53 billion in 2021, signaling a strong operational recovery from 2020 losses.

Gross profit expanded to CNY 4.27 billion in 2021, the highest level in the five-year period, indicating improved top-line efficiency.

Net income recovered to CNY 211 million in 2021, a 103.2% increase from the significant net loss recorded in 2020.

The company exhibits best-in-class cash conversion at 15.02, significantly outperforming the Electric Utilities cohort median of 1.65.

Long-term debt remains elevated at CNY 9.35 billion in 2021, with a debt-to-equity ratio of 1.1 exceeding the cohort median of 0.75.

The company faces medium liquidity and credit risks, which could constrain financial flexibility and increase borrowing costs in the future.

Revenue ¥19.73B, −10,6% YoY; Operating income +129,7% YoY.

• ▍Revenue ¥19.73B, −10,6% YoY
• ▍Operating income +129,7% YoY
• ▍Net income +103,2% YoY
• ▍Free cash flow +110,7% YoY
• ▍Net margin 1.1%

Revenue ¥22.08B, −8,3% YoY; Operating income −475,0% YoY.

• ▍Revenue ¥22.08B, −8,3% YoY
• ▍Operating income −475,0% YoY
• ▍Net income −6 964,5% YoY
• ▍Free cash flow −449,6% YoY
• ▍Net margin -29.7%

Revenue ¥24.08B, +14,2% YoY; Operating income −14,3% YoY.

• ▍Revenue ¥24.08B, +14,2% YoY
• ▍Operating income −14,3% YoY
• ▍Net income −6,0% YoY
• ▍Free cash flow +15,0% YoY
• ▍Net margin 0.4%

Revenue ¥21.08B, +4,3% YoY; Operating income −12,4% YoY.

• ▍Revenue ¥21.08B, +4,3% YoY
• ▍Operating income −12,4% YoY
• ▍Net income −92,3% YoY
• ▍Free cash flow −340,8% YoY
• ▍Net margin 0.5%

Revenue ¥20.21B; Operating income ¥1.83B.

• ▍Revenue ¥20.21B
• ▍Operating income ¥1.83B
• ▍Net margin 6.5%