Harbin Electric Co Ltd

Harbin Electric maintains a conservative capital structure with a debt-to-equity ratio of 0.40 and a current ratio of 1.13, indicating adequate short-term liquidity coverage. The balance sheet reflects total assets of 78.66 billion CNY against total liabilities of 60.86 billion CNY, with cash and equivalents standing at 15.25 billion CNY. Long-term debt is limited to 7.08 billion CNY, suggesting low leverage relative to equity. Operating cash flow of 4.63 billion CNY supports the company’s liquidity position, while free cash flow of 1.08 billion CNY indicates modest residual cash generation after capital expenditures of 1.77 billion CNY.

Profitability metrics show a return on equity of 14.98% and a return on assets of 3.39%, reflecting efficient use of equity despite a negative operating income of -6.15 billion CNY. The discrepancy between negative operating income and positive net income of 2.67 billion CNY suggests significant non-operating gains or tax benefits. The price-to-earnings ratio of 13.86 and price-to-book ratio of 2.08 indicate moderate valuation multiples relative to earnings and book value. The negative EV/EBITDA of -4.68 highlights the distortion caused by operating losses, while the EV/revenue ratio of 0.62 suggests a low enterprise value relative to sales.

Revenue concentration and segment data are not explicitly detailed in the available input, limiting granular analysis of business mix. Geographic exposure is similarly unspecified, preventing assessment of regional risk diversification. The company’s activity is broadly categorized under Electric Utilities, with industry codes aligning with Electrical Equipment under the Industrials sector, suggesting a hybrid operational profile between utility services and equipment manufacturing.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess long-term growth momentum or cyclicality. The latest normalized period shows revenue of 46.07 billion CNY, but year-over-year or compound annual growth rates cannot be computed from the provided snapshot.

Risk assessment indicates low liquidity risk and low dilution risk, with no immediate filing-based flags detected. The company’s stable share count of 2.24 billion basic and diluted shares suggests no recent equity issuance or buyback activity. Key risks may stem from the negative operating income, which could reflect one-time charges or structural margin pressures, though the positive net income mitigates immediate solvency concerns.

Recent events include analyst estimates with a mean price target of 29.52 CNY and a median target of 29.57 CNY, implying significant upside from the current market price of 16.52 CNY. The mean recommendation of 1.60, with two strong buys and three buys, reflects bullish sentiment among analysts. No specific filing, news, or transcript observations are provided, limiting insight into recent corporate actions or strategic shifts.

Revenue grew 19% year-over-year to CNY 46.1 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income surged 58.2% to CNY 2.67 billion in FY2026, indicating significant improvement in profitability.

Analysts project 37.3% upside to a mean price target of HKD 29.53, signaling positive market sentiment.

Long-term debt decreased to CNY 7.08 billion in FY2026, reflecting a deleveraging trend and improved balance sheet health.

Operating income collapsed to a CNY 6.15 billion loss in FY2026, representing a severe deterioration in core operations.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations.

Revenue ¥46.07B, +19,0% YoY; Operating income −404,9% YoY.

• ▍Revenue ¥46.07B, +19,0% YoY
• ▍Operating income −404,9% YoY
• ▍Net income +58,1% YoY
• ▍Free cash flow +117,4% YoY
• ▍Net margin 5.8%

Revenue ¥38.72B, +32,4% YoY; Operating income +140,0% YoY.

• ▍Revenue ¥38.72B, +32,4% YoY
• ▍Operating income +140,0% YoY
• ▍Net income +193,3% YoY
• ▍Free cash flow +2 251,1% YoY
• ▍Net margin 4.4%

Revenue ¥29.25B, +17,1% YoY; Operating income +451,8% YoY.

• ▍Revenue ¥29.25B, +17,1% YoY
• ▍Operating income +451,8% YoY
• ▍Net income +482,7% YoY
• ▍Free cash flow −90,8% YoY
• ▍Net margin 2.0%

Revenue ¥24.98B, +15,8% YoY; Operating income +103,5% YoY.

• ▍Revenue ¥24.98B, +15,8% YoY
• ▍Operating income +103,5% YoY
• ▍Net income +102,4% YoY
• ▍Free cash flow +105,6% YoY
• ▍Net margin 0.4%

Revenue ¥21.57B; Operating income -¥4.30B.

• ▍Revenue ¥21.57B
• ▍Operating income -¥4.30B
• ▍Net margin -19.2%