Electric Connector Technology Co Ltd

Electric Connector Technology Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.07 and a current ratio of 2.02, indicating strong short-term liquidity coverage. The company holds total equity of 4.97 billion CNY against total liabilities of 2.73 billion CNY. However, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting that while leverage is low, cash reserves may be tight relative to total obligations. The firm generated 713.4 million CNY in operating cash flow, but free cash flow was minimal at 13.4 million CNY due to capital expenditures of 348.0 million CNY.

Profitability metrics show a return on equity of 11.74% and a return on assets of 7.58%. The company reports a gross profit of 1.57 billion CNY on revenue of 5.41 billion CNY, resulting in a gross margin of approximately 29.1%. Operating income stands at 281.9 million CNY, leading to a net income of 269.6 million CNY. These returns are derived from a business model that appears to have moderate operating leverage, as operating income is roughly 5.2% of revenue.

The company’s revenue mix is not detailed in the available segment data, but the classification indicates activity in Electronic Equipment, Instruments & Components. Without specific geographic or segment breakdowns, the revenue concentration risk cannot be quantified beyond the total revenue figure of 5.41 billion CNY. The business operates within the Information Technology sector according to sector classification, despite the rule-based classification placing it in Utilities.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue base of 5.41 billion CNY serves as the baseline for valuation. The company’s market capitalization is 26.7 billion CNY, implying a significant premium over its book value and earnings. The lack of historical trend data prevents a definitive assessment of revenue growth rates or earnings stability over the past five years.

Risk factors include medium liquidity risk and low dilution risk. The key flag indicates negative net cash after debt subtraction, which may constrain financial flexibility. The dilution risk is assessed as low, with basic and diluted shares outstanding both at 424.82 million, indicating no significant options or convertible securities impacting the share count. The company’s valuation multiples are high, with a P/E of 45.73 and an EV/EBITDA of 42.67, suggesting that the market prices in significant future growth or stability that is not yet reflected in current earnings.

Recent observations show a mean analyst price target of 55.00 CNY, which is below the current market price of 62.85 CNY. The mean recommendation is 1.67, with three analysts issuing buy or strong-buy ratings and no hold ratings. This suggests that while analysts are bullish on the stock’s direction, they perceive the current valuation as rich relative to their target prices. No specific filing, news, or transcript observations were provided to detail recent corporate actions or strategic shifts.

Revenue ¥1.20B; Operating income ¥151.5M.

• ▍Revenue ¥1.20B
• ▍Operating income ¥151.5M
• ▍Net margin 10.3%

Revenue ¥1.33B; Operating income ¥158.0M.

• ▍Revenue ¥1.33B
• ▍Operating income ¥158.0M
• ▍Net margin 12.3%

Revenue ¥1.19B; Operating income ¥169.1M.

• ▍Revenue ¥1.19B
• ▍Operating income ¥169.1M
• ▍Net margin 12.7%

Revenue ¥1.10B; Operating income ¥155.8M.

• ▍Revenue ¥1.10B
• ▍Operating income ¥155.8M
• ▍Net margin 13.2%

Revenue ¥5.41B, +16,0% YoY; Operating income −57,6% YoY.

• ▍Revenue ¥5.41B, +16,0% YoY
• ▍Operating income −57,6% YoY
• ▍Net income −56,7% YoY
• ▍Free cash flow −96,0% YoY
• ▍Net margin 5.0%

Revenue ¥4.66B, +49,0% YoY; Operating income +67,5% YoY.

• ▍Revenue ¥4.66B, +49,0% YoY
• ▍Operating income +67,5% YoY
• ▍Net income +74,7% YoY
• ▍Free cash flow +883,0% YoY
• ▍Net margin 13.4%

Revenue ¥3.13B, +5,4% YoY; Operating income −25,1% YoY.

• ▍Revenue ¥3.13B, +5,4% YoY
• ▍Operating income −25,1% YoY
• ▍Net income −19,6% YoY
• ▍Free cash flow −84,0% YoY
• ▍Net margin 11.4%

Revenue ¥2.97B, −8,5% YoY; Operating income +29,2% YoY.

• ▍Revenue ¥2.97B, −8,5% YoY
• ▍Operating income +29,2% YoY
• ▍Net income +19,3% YoY
• ▍Free cash flow +109,7% YoY
• ▍Net margin 14.9%

Revenue ¥3.25B; Operating income ¥410.6M.

• ▍Revenue ¥3.25B
• ▍Operating income ¥410.6M
• ▍Net margin 11.4%