Harbin Electric Corporation Jiamusi Electric Machine Co Ltd

The company maintains a conservative capital structure with a debt-to-equity ratio of 0.08 and a current ratio of 1.66, indicating adequate short-term liquidity coverage. Total assets stand at 10.12 billion CNY, supported by total equity of 4.61 billion CNY and long-term debt of 351.89 million CNY. Despite the low leverage, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting reliance on operating cash flows to service obligations. Operating cash flow is 296.56 million CNY, while free cash flow is 66.02 million CNY, reflecting capital expenditures of 368.89 million CNY.

Profitability metrics indicate modest returns, with a return on equity of 4.74% and a return on assets of 2.16%. The company reports a net income of 254.07 million CNY on revenue of 4.92 billion CNY, resulting in a net margin of approximately 5.16%. The price-to-earnings ratio is 49.79, and the EV/EBITDA is 33.29, suggesting the market prices the stock at a premium relative to its current earnings generation. The price-to-book ratio is 2.36, aligning with the tangible book value multiple.

Revenue concentration and segment details are not explicitly provided in the available data, but the company’s activity is centered on electric utilities and electrical equipment. The geographic exposure is not detailed, but the ticker suffix .SZ indicates listing on the Shenzhen Stock Exchange, implying a primary operational base in China. The lack of specific segment breakdown limits the ability to assess diversification risks within the utility and equipment sectors.

Growth trajectory is inferred from analyst estimates, which project mean revenue of 5.56 billion CNY and mean EBIT of 807.20 million CNY. This represents a potential revenue increase from the current 4.92 billion CNY, suggesting expected growth in the near term. The historical periods data is not available to confirm long-term trends, but the forward estimates indicate positive momentum in both top-line and operating income.

Risk factors include medium liquidity risk and low dilution risk. The key flag of negative net cash after debt subtraction highlights a potential vulnerability in cash management, although the low debt-to-equity ratio mitigates solvency concerns. The dilution risk is assessed as low, with basic and diluted shares outstanding both at 833.98 million, indicating no significant options or convertible securities impacting share count.

Recent observations include analyst estimates for revenue and EBIT, but no specific filing, news, or transcript events are detailed. The competitor context lists Duke Energy, NextEra Energy, and Southern Company, though these are US-based utilities and may not be direct peers for a Chinese electrical equipment manufacturer, limiting the relevance of direct comparative analysis.

The company maintains a conservative debt-to-equity ratio of 0.08, significantly below the 0.75 median for the Electric Utilities cohort.

Cash conversion of 2.1 exceeds the cohort median of 1.65, indicating superior efficiency in turning earnings into cash.

Free cash flow surged 132.3% year-over-year to CNY 153 million, demonstrating strong recent cash generation capabilities.

Liquidity and credit risks are assessed as medium and low respectively, indicating a stable financial risk profile.

The four-year revenue CAGR is negative 9.6%, highlighting a persistent long-term decline in sales growth.

Revenue ¥4.90B, −7,9% YoY; Operating income −18,9% YoY.

• ▍Revenue ¥4.90B, −7,9% YoY
• ▍Operating income −18,9% YoY
• ▍Net income −35,8% YoY
• ▍Free cash flow −71,1% YoY
• ▍Net margin 5.2%

Revenue ¥5.32B, +16,7% YoY; Operating income +23,2% YoY.

• ▍Revenue ¥5.32B, +16,7% YoY
• ▍Operating income +23,2% YoY
• ▍Net income +4,8% YoY
• ▍Free cash flow −29,1% YoY
• ▍Net margin 7.5%

Revenue ¥4.56B, +49,7% YoY; Operating income +65,7% YoY.

• ▍Revenue ¥4.56B, +49,7% YoY
• ▍Operating income +65,7% YoY
• ▍Net income +78,7% YoY
• ▍Free cash flow +193,1% YoY
• ▍Net margin 8.4%