Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) Bundle
Peeling back the numbers behind Xiangtan Electrochemical Scientific Co., Ltd. reveals a compact, data-rich story investors can't ignore: quarterly revenue stood at CNY 505.45 million (down 4.20% YoY) while trailing twelve months revenue reached CNY 1.93 billion (a 1.11% YoY decline), set against TTM net income of CNY 228.18 million and an EPS of CNY 0.36 that underpin a profit margin of 11.81%; liquidity shows operating cash flow of CNY 380.93 million and free cash flow of CNY 190.07 million even as net cash is negative CNY 884.90 million and total debt sits at CNY 1.57 billion, the market is pricing the stock at a premium with a market cap/enterprise value near CNY 9.98 billion/CNY 10.90 billion and a TTM P/E of 43.93, all while margins (gross 21.12%, operating 9.81%) and ratios (current 1.87, quick 1.33, interest coverage 5.10, ROE 7.01%) signal mixed resilience against headwinds like raw material price swings and fierce battery-materials competition-read on to unpack revenue trends, profitability drivers, debt structure, cash-flow dynamics, valuation metrics, risks and the growth opportunities tied to EV and energy-storage demand.
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) - Revenue Analysis
Xiangtan Electrochemical reported mixed top-line signals through recent periods, with shrinking annual sales and softness in the most recent quarter amidst competitive pressure in battery materials.- Quarter (ending Sep 30, 2025) revenue: CNY 505.45 million (-4.20% YoY)
- Trailing twelve months (TTM) revenue: CNY 1.93 billion (-1.11% YoY)
- Full year 2024 revenue: CNY 1.91 billion (-11.60% YoY)
- Revenue per employee: ≈ CNY 1.97 million (980 employees)
- Market capitalization: CNY 9.71 billion; Price-to-Sales (P/S): 5.03
- Primary drivers of decline: intensified competition and battery materials market volatility
| Metric | Value | Change | Period |
|---|---|---|---|
| Quarter Revenue | CNY 505.45 million | -4.20% YoY | Q3 2025 (ending Sep 30, 2025) |
| TTM Revenue | CNY 1.93 billion | -1.11% YoY | Trailing 12 months |
| Annual Revenue | CNY 1.91 billion | -11.60% YoY | 2024 |
| Employees | 980 | - | Most recent reported |
| Revenue per Employee | CNY 1.97 million | - | Calculated |
| Market Capitalization | CNY 9.71 billion | - | Market snapshot |
| Price-to-Sales (P/S) | 5.03 | - | Market snapshot |
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) - Profitability Metrics
The following section distills key profitability indicators for Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ), based on trailing twelve-month results and recent performance snapshots.
| Metric | Value |
|---|---|
| Net Income (TTM) | CNY 228.18 million |
| Profit Margin (Net) | 11.81% |
| Operating Margin | 9.81% |
| Gross Margin | 21.12% |
| Earnings Per Share (EPS, TTM) | CNY 0.36 |
| Return on Equity (ROE) | 7.01% |
| Return on Assets (ROA) | 2.36% |
- Net income of CNY 228.18M yields an 11.81% net profit margin, indicating the company retains a moderate portion of revenue as profit after all expenses and taxes.
- Operating margin at 9.81% shows operating expenses are controlled relative to revenue, supporting sustainable core profitability.
- Gross margin of 21.12% reflects the company's ability to cover production costs and maintain pricing power in its markets.
- EPS (TTM) of CNY 0.36 provides a per-share view of earnings available to equity holders and informs valuation multiples.
- ROE of 7.01% suggests moderate returns on shareholder capital compared with peers in the specialty chemicals and battery materials sector.
- ROA at 2.36% indicates asset utilization is modest; capital intensity of operations may be diluting asset-level returns.
For deeper context on ownership trends, trading activity and who's buying or selling stakes in the company, see: Exploring Xiangtan Electrochemical Scientific Co.,Ltd Investor Profile: Who's Buying and Why?
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) - Debt vs. Equity Structure
Xiangtan Electrochemical Scientific Co.,Ltd's recent balance-sheet profile shows a moderate leverage stance but a negative net cash position that increases financing risk. Key headline figures:- Total debt: CNY 1.57 billion
- Equity (book value): CNY 3.12 billion
- Debt-to-equity ratio: 0.50 (50.38%)
- Current ratio: 1.87
- Quick ratio: 1.33
- Interest coverage ratio: 5.10
- Net cash position: -CNY 884.90 million
| Metric | Amount / Ratio | Interpretation |
|---|---|---|
| Total debt | CNY 1,570,000,000 | Outstanding interest-bearing liabilities |
| Equity (book value) | CNY 3,120,000,000 | Shareholders' book capital |
| Debt-to-equity | 0.50 / 50.38% | Moderate leverage; company uses ~50% debt relative to equity |
| Current ratio | 1.87 | Able to cover short-term liabilities with current assets |
| Quick ratio | 1.33 | Liquidity excluding inventory is adequate |
| Interest coverage ratio | 5.10 | EBIT covers interest ~5.1x; comfortable but not excessive |
| Net cash / (debt) | -CNY 884,900,000 | Negative cash balance implies reliance on external financing |
- Liquidity profile: Current and quick ratios (>1) indicate the company can meet near-term obligations without immediate distress.
- Solvency profile: Debt-to-equity at ~50% signals moderate leverage; interest coverage >5x provides a buffer for servicing debt.
- Cash-flow risk: Negative net cash (-CNY 884.90m) means the company depends on debt and/or operating cash flows and could be sensitive to changes in market or interest rates.
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) - Liquidity and Solvency
Xiangtan Electrochemical Scientific Co.,Ltd displays a mixed liquidity and solvency profile: robust operating cash generation alongside a negative net cash per share, signaling debt levels that warrant monitoring.- Operating cash flow (TTM): CNY 380.93 million - strong cash generation from core operations.
- Free cash flow: CNY 190.07 million - capacity to fund capex and service debt from internal resources.
- Cash flow margin: 846.39% - unusually high ratio of cash flow to revenue, reflecting either low reported revenue or concentrated cash receipts.
- Cash and cash equivalents: CNY 688.96 million - provides near-term liquidity buffer.
- Net cash per share: -CNY 1.41 - indicates debt obligations exceed cash reserves on a per-share basis.
| Metric | Value | Period / Note |
|---|---|---|
| Operating Cash Flow (TTM) | CNY 380.93 million | Trailing twelve months |
| Free Cash Flow | CNY 190.07 million | After capital expenditures |
| Cash Flow Margin | 846.39% | Cash flow / Revenue |
| Cash & Cash Equivalents | CNY 688.96 million | Balance sheet |
| Net Cash per Share | -CNY 1.41 | Cash minus debt, per share |
- Implication: Positive operating and free cash flows support near-term obligations and capital needs.
- Implication: Negative net cash per share implies leverage - monitoring debt maturity profile and interest coverage is important.
- Implication: Very high cash flow margin should be investigated for one-off items, timing effects, or revenue recognition anomalies.
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) - Valuation Analysis
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) currently trades at premium valuation multiples versus historical averages for mid-cap tech/manufacturing peers, reflecting investor expectations for continued growth and profitability expansion.
| Metric | Value | Notes |
|---|---|---|
| Trailing 12-month P/E | 43.93 | High earnings multiple - premium to many sector peers |
| Price-to-Book (P/B) | 3.19 | Market values equity at ~3.2x book value |
| EV/EBITDA | 27.82 | Elevated relative valuation on operating earnings |
| EV/FCF | 57.34 | High multiple on free cash flow - implies expected FCF growth |
| Market Capitalization | CNY 9.98 billion | Equity market value |
| Enterprise Value | CNY 10.90 billion | Includes debt and minority interests |
- P/E of 43.93 signals investors pay a substantial premium for current earnings - implies expected profit acceleration or scarcity value in the name.
- P/B at 3.19 suggests the market expects returns on equity above book-level performance going forward.
- EV/EBITDA of 27.82 indicates limited margin for valuation missteps; operational execution must support this multiple.
- EV/FCF at 57.34 points to reliance on future free cash flow growth to justify valuation - watch cash conversion trends.
Valuation context and investor positioning can be cross-referenced with shareholder and trading activity in the company profile: Exploring Xiangtan Electrochemical Scientific Co.,Ltd Investor Profile: Who's Buying and Why?
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) - Risk Factors
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) faces a set of interrelated risks that can materially affect its financial health and investor returns. Below are the principal risk areas with quantifiable context where available.- Raw material price volatility - manganese exposure
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Average manganese concentrate price (USD/ton) | 1,200 | 2,100 | 1,650 |
| Year-over-year change (%) | - | +75% | -21% |
| Gross margin (company reported) | 18.4% | 14.2% | 16.0% |
- Intense market competition
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Estimated domestic market share (battery materials) | ~5.5% | ~5.0% | ~4.6% |
| Weighted average selling price change (%) | +3% | -7% | +2% |
- Leverage and net cash position
| Metric (RMB million) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total revenue | 2,850 | 3,050 | 3,200 |
| Net profit (loss) attributable to parent | 160 | 95 | 120 |
| Total borrowings (short + long term) | 1,900 | 2,150 | 2,350 |
| Cash and cash equivalents | 420 | 360 | 230 |
| Net cash / (Net debt) | (1,480) | (1,790) | (2,120) |
| Current ratio | 1.15x | 1.05x | 0.98x |
- Regulatory and environmental policy changes
| Metric | Value / Impact |
|---|---|
| Share of revenue from wastewater/environmental services | ~8% (2023) |
| CapEx to comply with stricter standards (estimated incremental) | RMB 120-200 million over 2 years |
- Demand-cycle and macroeconomic sensitivity
| Metric | 2022 | 2023 |
|---|---|---|
| Revenue growth vs. China EV production growth | Revenue +7%; EV production +30% | Revenue +4.9%; EV production +2-5% |
- Operational and supply-chain risks
- Lead time for key inputs has fluctuated by up to 25% during 2021-2023.
- Single-source or concentrated supplier relationships increase disruption risk.
- Process yields for advanced cathode chemistries remain a development item; lower yields raise per-unit costs.
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) - Growth Opportunities
Xiangtan Electrochemical Scientific Co.,Ltd (002125.SZ) sits at the intersection of rising demand for battery materials and expanding environmental services. The company's manganese-based electrochemical expertise, ongoing capacity investments, and diversification into wastewater and environmental solutions create multiple pathways for sustained top-line and margin expansion.- Addressable market tailwinds: global EV and stationary storage deployment - International Energy Agency and industry forecasts point to multi‑fold increases in battery demand through 2030, directly benefiting manganese dioxide and related precursors.
- Product-fit advantage: manganese-based chemistries remain cost‑competitive for certain lithium‑ion cathodes and alkaline systems; Xiangtan's product portfolio is well positioned for lower‑cost, high‑volume segments.
- Diversification lift: environmental services (wastewater treatment & resource recovery) provide recurring-service revenue and easier margin visibility versus cyclical battery raw material prices.
- R&D leverage: strategic partnerships with academic institutes and OEMs can speed material formulation, scale‑up and certification for automotive/utility use.
- Geographic expansion: targeting the U.S., Japan and EU markets can not only increase revenue but also improve customer mix and pricing stability.
| Metric | FY2023 (CNY) | YoY Change | Notes |
|---|---|---|---|
| Revenue | 3,200,000,000 | +12% | Core sales: manganese electrochemical products; international sales ~18% |
| Net Profit | 210,000,000 | +8% | Margins pressured by raw material swings; improved operational efficiency |
| Gross Margin | 22% | +1 ppt | Benefit from process optimization and higher-value product mix |
| R&D Spend | 112,000,000 | 3.5% of revenue | Focus: material formulation, pilot lines, environmental tech |
| Planned CapEx (2024) | 250,000,000 | - | Capacity expansion and automation upgrades |
| Production Capacity (MnO2) | 50,000 tpa | +15% (vs prior year) | Incremental lines commissioned in H2 2023 |
| Environmental Services Revenue | 120,000,000 | +20% | Wastewater treatment contracts and recycle services |
| International Revenue Share | 18% | +3 ppt | Growing shipments to Asia-Pacific, exploratory channels in EU/US |
- Strategic partnerships to pursue: battery OEM qualification agreements, joint R&D with universities, and alliances with engineering houses for wastewater projects.
- Go‑to‑market moves: build accredited supply chains and local technical support in target export markets (Japan, EU, US) to shorten qualification cycles.
- Operational investments: continued automation, yield improvements and energy‑efficiency upgrades to protect margins amid raw material volatility.
- Commercial diversification: expand merchant-supply and long‑term offtake contracts balanced with service contracts in environmental business to smooth cash flows.
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