Xiangtan Electric Manufacturing Co Ltd

Xiangtan Electric Manufacturing Co Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.16 and a current ratio of 1.8, indicating adequate short-term liquidity coverage. The company holds total assets of 17.09 billion CNY against total liabilities of 7.40 billion CNY, resulting in total equity of 9.68 billion CNY. Long-term debt stands at 1.54 billion 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 for debt servicing. Operating cash flow is 701.45 million CNY, while free cash flow is 248.14 million CNY, reflecting capital expenditures of 214.58 million CNY.

Profitability metrics indicate modest returns on capital. Return on equity is 2.49% and return on assets is 1.41%, which are relatively low for the industrial sector, suggesting efficient capital deployment is a challenge or that the company is in a growth investment phase. The gross profit is 606.12 million CNY on revenue of 4.89 billion CNY, implying a gross margin of approximately 12.4%. Operating income is 247.10 million CNY, leading to a net income of 224.77 million CNY. The valuation multiples are elevated, with a price-to-earnings ratio of 55.06 and an EV/EBITDA of 56.24, indicating the market is pricing in significant future growth or expecting a multiple expansion, despite current low returns. The price-to-book ratio is 1.37, which is moderate.

The company’s revenue mix is not detailed in the available segment data, but the classification as Electric Utilities and Electrical Equipment suggests exposure to power generation, transmission, or distribution infrastructure. Geographic exposure is not explicitly broken down in the provided data, but as a Chinese-listed entity (600416.SS), the primary revenue base is likely domestic. The lack of segment detail limits the ability to assess concentration risk within specific product lines or regions.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The latest reported revenue is 4.89 billion CNY, with an actual EPS of 0.16 CNY. Without multi-year historical data, it is not possible to determine the year-over-year growth rate or trend consistency. The current valuation implies expectations of strong future earnings growth, which contrasts with the current low ROE and ROA.

Risk factors include medium liquidity risk and the negative net cash position. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 1.48 billion shares. The company faces potential operational risks inherent in the utilities and electrical equipment sectors, including regulatory changes and commodity price fluctuations. The ESG score is 14.93 with a grade of D, indicating potential environmental, social, or governance concerns that could impact long-term sustainability and investor appeal.

Recent observations include an analyst estimate of last actual EPS at 0.16 CNY and revenue at 4.89 billion CNY. The ESG controversies score is 100, indicating no major controversies, but the low pillar scores for Environment (29.66), Social (5.76), and Governance (9.29) suggest areas for improvement. No specific recent news events or filing observations are provided in the input data.

Net income surged 39.4% CAGR from 2022 to FY-2, demonstrating strong profitability growth despite modest revenue expansion.

Cash conversion ratio of 2.91 exceeds the 75th percentile of the Electric Utilities cohort, indicating superior cash generation efficiency.

Debt-to-equity ratio of 0.16 is significantly above the cohort median of 0.75, reflecting a conservative leverage profile.

Free cash flow improved to 259.7 million CNY in FY-2, up from negative 32.4 million CNY in 2023.

Long-term debt decreased to 1.54 billion CNY in FY0, down from 3.84 billion CNY in 2022, reducing interest burden.

The company faces high credit risk according to internal risk flags, potentially impacting borrowing costs and financial stability.

Revenue declined 6.6% year-over-year in the latest period, signaling weakening top-line growth momentum.

Gross profit dropped to 606.1 million CNY in FY0, down from 954.0 million CNY in FY-2, compressing margins.

Revenue ¥4.89B, +4,0% YoY; Operating income −8,8% YoY.

• ▍Revenue ¥4.89B, +4,0% YoY
• ▍Operating income −8,8% YoY
• ▍Net income −9,7% YoY
• ▍Free cash flow +41,6% YoY
• ▍Net margin 4.6%

Revenue ¥4.70B, +3,0% YoY; Operating income −17,7% YoY.

• ▍Revenue ¥4.70B, +3,0% YoY
• ▍Operating income −17,7% YoY
• ▍Net income −17,0% YoY
• ▍Free cash flow −32,5% YoY
• ▍Net margin 5.3%

Revenue ¥4.58B, +13,7% YoY; Operating income +120,7% YoY.

• ▍Revenue ¥4.58B, +13,7% YoY
• ▍Operating income +120,7% YoY
• ▍Net income +227,4% YoY
• ▍Free cash flow −123,5% YoY
• ▍Net margin 5.7%

Revenue ¥4.03B; Operating income ¥147.1M.

• ▍Revenue ¥4.03B
• ▍Operating income ¥147.1M
• ▍Net margin 2.0%