Hunan Zhongke Electric Co Ltd

Hunan Zhongke Electric Co Ltd maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.23 and long-term debt totaling 6.12 billion CNY against total equity of 4.97 billion CNY. The company holds a current ratio of 1.43, indicating adequate short-term liquidity coverage, though the risk assessment flags medium liquidity risk due to negative net cash after subtracting total debt. Operating cash flow stands at -1.35 billion CNY, contrasting with a positive free cash flow of 504.5 million CNY, driven by capital expenditures of -185.6 million CNY. The market capitalization is 9.55 billion CNY, with a share count of 685.4 million basic and diluted shares outstanding.

Profitability metrics show a return on equity of 8.32% and a return on assets of 2.72%, reflecting modest returns on the company's asset base of 15.21 billion CNY. The company generated a net income of 470.0 million CNY on revenues of 8.47 billion CNY, resulting in a gross profit of 1.33 billion CNY and operating income of 661.3 million CNY. While specific cohort median comparisons are absent from the input data, the valuation multiples suggest a premium positioning, with a price-to-earnings ratio of 23.09 and an EV/EBITDA of 25.37. The price-to-book ratio is 1.92, aligning with the price-to-tangible book value.

Segment and geographic revenue breakdowns are not provided in the available data, preventing a detailed analysis of revenue concentration or regional exposure. The company's activity is broadly classified under Electric Utilities, but specific product lines or customer segments remain undisclosed in the current snapshot. Consequently, concentration risks related to specific business units or geographies cannot be quantified from the present information.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to assess the company's historical growth rate or momentum. The current financial snapshot provides a static view of performance, lacking the temporal depth required to evaluate revenue acceleration or deceleration against industry peers.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The company's reliance on debt financing, evidenced by the 1.23 debt-to-equity ratio, introduces interest rate and refinancing risks. The absence of historical data limits the ability to assess operational consistency, while the negative operating cash flow highlights potential working capital pressures or timing mismatches in cash collections and payments.

Recent events and management signals are reflected in analyst estimates, which show a mean price target of 24.00 CNY, representing a significant upside from the current market price of 13.94 CNY. The mean recommendation is 1.50, with one strong buy and one buy rating, and no hold ratings, indicating bullish sentiment among covering analysts. Competitor context lists Duke Energy, NextEra Energy, and Southern Company, though no specific comparative metrics are provided for these entities.

Revenue surged 51.7% year-over-year to CNY 8.47 billion in FY2026, demonstrating robust top-line growth momentum.

Net income jumped 55.1% to CNY 470 million in FY2026, significantly outpacing revenue growth rates.

Free cash flow turned positive at CNY 343 million in FY2025, reversing previous years of negative cash generation.

Analysts assign a strong buy rating with a mean price target of CNY 24.00, implying 35.1% upside.

Long-term debt ballooned to CNY 6.12 billion in FY2026, reflecting a significant increase in leverage obligations.

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

Debt-to-equity ratio stands at 1.23, well above the cohort median of 0.75, indicating higher financial risk.

Cash conversion ratio of -3.26 places the company in the bottom quartile of its peer cohort.

Revenue ¥8.47B, +51,7% YoY; Operating income +40,8% YoY.

• ▍Revenue ¥8.47B, +51,7% YoY
• ▍Operating income +40,8% YoY
• ▍Net income +55,1% YoY
• ▍Free cash flow +47,1% YoY
• ▍Net margin 5.6%

Revenue ¥5.58B, +13,7% YoY; Operating income +1 902,2% YoY.

• ▍Revenue ¥5.58B, +13,7% YoY
• ▍Operating income +1 902,2% YoY
• ▍Net income +626,6% YoY
• ▍Free cash flow +211,6% YoY
• ▍Net margin 5.4%

Revenue ¥4.91B, −6,6% YoY; Operating income −107,2% YoY.

• ▍Revenue ¥4.91B, −6,6% YoY
• ▍Operating income −107,2% YoY
• ▍Net income −88,5% YoY
• ▍Free cash flow +70,8% YoY
• ▍Net margin 0.8%

Revenue ¥5.26B, +139,6% YoY; Operating income −11,8% YoY.

• ▍Revenue ¥5.26B, +139,6% YoY
• ▍Operating income −11,8% YoY
• ▍Net income −0,3% YoY
• ▍Free cash flow −412,8% YoY
• ▍Net margin 6.9%

Revenue ¥2.19B; Operating income ¥409.2M.

• ▍Revenue ¥2.19B
• ▍Operating income ¥409.2M
• ▍Net margin 16.7%