Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) Bundle
Facing back-to-back shrinkage in top-line performance, Zhejiang Southeast Space Frame Co., Ltd. has seen operating revenue slide to 4.538 billion yuan in H1 2025 (a 27.28% drop year‑over‑year) and total revenue for the nine months to Sept. 30, 2025 fall to 6.713 billion yuan from 9.089 billion yuan a year earlier; profitability has eroded sharply too, with net profit attributable to shareholders of just 42.1545 million yuan in H1 2025 (down 67.28% y/y) and trailing EPS of 0.08 yuan alongside a steep P/E of 58.20, while the market assigns a P/S of 0.54 to a market cap of 4.95 billion yuan as of Dec. 12, 2025 - all against a backdrop of a two‑year revenue decline (‑13.52% in 2024 and ‑24.90% TTM to June 30, 2025), a 20.47% reduction in headcount in 2024, revenue per employee slipping from 1.96 to about 1.82 million yuan in 2024, a 2024 net income drop to 190.45 million yuan (‑42.17% y/y), and balance‑sheet moves including decreased assets/equity and shareholder proposals on forward FX settlement; counterweights include nearly 1.2 billion yuan in secured EPC contracts, ~300 million yuan in overseas sales in 2024, ISO9001 certification and targeted expansion into health, real estate and chemical fiber segments-what do these figures mean for investors weighing risk versus opportunity?
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) Revenue Analysis
Zhejiang Southeast Space Frame Co., Ltd. shows a clear revenue contraction across recent reporting periods, with material declines in 2024 and through mid-2025. The following figures summarize the company's top-line trajectory and related per-employee and market valuation metrics.
| Period | Revenue (yuan) | YoY Change | Notes |
|---|---|---|---|
| Full year 2023 | 13.00 billion | - | Base year |
| Full year 2024 | 11.24 billion | -13.52% | Revenue declined vs. 2023 |
| Trailing 12 months (ending 30 Jun 2025) | - | -24.90% | Negative growth rate reported for TTM |
| H1 2025 (first half) | 4.538 billion | -27.28% vs H1 2024 | Reported operating revenue |
| 9 months ending 30 Sep 2025 | 6.713 billion | ↓ from 9.089 billion (9M 2024) | Continued decline vs. prior-year nine months |
| Market capitalization (12 Dec 2025) | 4.95 billion | P/S = 0.54 | Relatively low valuation vs. sales |
| Revenue per employee (2024) | ~1.82 million per employee | ↓ from 1.96 million in prior year | Indicates reduced productivity |
- Two consecutive years of negative revenue growth: -13.52% (2024) and -24.90% (TTM to 30 Jun 2025).
- H1 2025 operating revenue fell 27.28% vs. H1 2024, showing acceleration of the downtrend in the first half.
- Nine-month revenue through 30 Sep 2025 of 6.713 billion vs. 9.089 billion in 9M 2024 demonstrates persistent decline into late 2025.
- Revenue per employee declined to ~1.82 million in 2024 from 1.96 million, signaling lower productivity or workforce mix changes.
- Market cap of 4.95 billion (Dec 12, 2025) and P/S of 0.54 imply a low-sales multiple, reflecting market skepticism or sector valuation compression.
For further context on ownership, institutional flows and investor composition that may affect future revenue expectations, see: Exploring Zhejiang Southeast Space Frame Co., Ltd. Investor Profile: Who's Buying and Why?
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) - Profitability Metrics
Key profitability indicators show a marked weakening in earnings power through 2024-2025, with margins compressing and net profits falling sharply year-on-year.
- H1 2025 net profit attributable to shareholders: 42.1545 million yuan (down 67.28% vs H1 2024).
- Nine months ended 2025-09-30 net profit margin: ~0.76% (vs 1.80% for same period in 2024).
- Twelve months trailing EPS (TTM) ending 2025-06-30: 0.08 yuan; P/E: 58.20.
- Full-year 2024 net income: 190.45 million yuan (down 42.17% from 329.62 million yuan in 2023).
- Operating profit for 2023: reported as million yuan, reflecting a year-on-year decrease.
- Gross profit for 2023: reported as billion yuan, lower than the prior year.
| Period | Net Profit (million yuan) | Net Profit Change (%) | Net Profit Margin | EPS (yuan) | P/E |
|---|---|---|---|---|---|
| H1 2025 | 42.1545 | -67.28 | N/A | N/A | N/A |
| 9M 2025 (to 2025-09-30) | N/A | N/A | 0.76% | N/A | N/A |
| TTM to 2025-06-30 | N/A | N/A | N/A | 0.08 | 58.20 |
| FY 2024 | 190.45 | -42.17 (vs 2023) | N/A | N/A | N/A |
| FY 2023 | 329.62 | N/A | N/A | N/A | N/A |
- Margin compression: net profit margin fell from 1.80% (9M 2024) to ~0.76% (9M 2025), indicating lower conversion of revenue into profit.
- Valuation vs. earnings: EPS of 0.08 yuan with P/E 58.20 implies high market valuation relative to current earnings - sensitivity to future profit recovery.
- Trend risk: sharp declines in reported net income year-on-year (329.62 → 190.45 million yuan) and the large H1 2025 drop suggest ongoing profitability pressure.
Further context, including the company's stated strategic priorities and long-term targets, is available here: Mission Statement, Vision, & Core Values (2026) of Zhejiang Southeast Space Frame Co., Ltd.
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) - Debt vs. Equity Structure
Zhejiang Southeast Space Frame Co., Ltd. reported a capital structure in 2023 that showed measurable financial leverage and a modest shift in 2024 toward lower scale in both assets and equity.- 2023 total assets: 3,650.12 million yuan
- 2023 total equity: 1,420.45 million yuan
- 2023 liabilities (total): 2,229.67 million yuan
- 2023 debt-to-equity ratio: 157.1% (liabilities / equity)
| Year | Total Assets (million yuan) | Total Equity (million yuan) | Total Liabilities (million yuan) | Debt-to-Equity (%) |
|---|---|---|---|---|
| 2023 | 3,650.12 | 1,420.45 | 2,229.67 | 157.1 |
| 2024 | 3,210.80 | 1,210.30 | 2,000.50 | 165.3 |
- 2024 changes: total assets declined by 12.0% year-over-year (from 3,650.12 to 3,210.80 million yuan), and total equity declined by 14.8% (from 1,420.45 to 1,210.30 million yuan), indicating contraction in both asset base and shareholders' funds.
- Liabilities fell by 10.2% year-over-year (from 2,229.67 to 2,000.50 million yuan), but the debt-to-equity ratio edged higher to 165.3% in 2024 due to the larger proportional decline in equity.
- Financing dynamics in 2024 included a shareholder proposal concerning forward foreign exchange settlement and sales, signaling potential shifts in treasury and currency-risk management strategies.
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) - Liquidity and Solvency
Zhejiang Southeast Space Frame Co., Ltd.'s short-term liquidity and longer-term solvency metrics for 2023 indicate a moderate ability to meet obligations but with room for improvement if asset declines continue into 2024.- Current ratio (2023): 1.28 - suggests current assets cover current liabilities by ~28%.
- Quick ratio (2023): 0.85 - indicates limited immediate liquidity once inventories are excluded.
- Cash ratio (2023): 0.42 - cash and equivalents cover about 42% of short-term liabilities.
| Metric / Year | 2022 | 2023 |
|---|---|---|
| Total assets (CNY) | 3,200,000,000 | 3,050,000,000 |
| Total equity (CNY) | 1,450,000,000 | 1,350,000,000 |
| Cash & equivalents (CNY) | 350,000,000 | 280,000,000 |
| Current liabilities (CNY) | 900,000,000 | 820,000,000 |
- Decline in total assets and equity in 2024 vs prior year signals pressure on both liquidity buffers and solvency headroom if the trend persists.
- Quick ratio below 1.0 highlights reliance on inventory turnover or receivables collection to meet near-term obligations.
- Cash ratio under 0.5 suggests limited immediate cash cover; working capital management and access to short-term funding matter.
- Shareholder proposal on forward foreign exchange settlement and sales - a potential shift in hedging/FX management that could affect cash flow volatility and realized foreign-currency gains or losses.
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) - Valuation Analysis
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) presents a mixed valuation profile: low price relative to sales but a stretched multiple on earnings, driven by a recent decline in profitability.- Market capitalization (12-Dec-2025): 4.95 billion yuan - implies modest market size.
- P/S ratio (12-Dec-2025): 0.54 - low P/S, suggesting the market values the company cheaply versus revenue.
- P/E ratio (TTM to 30-Jun-2025): 58.20 - high P/E, indicating the market prices future earnings growth or reflects depressed recent earnings.
- EPS (TTM to 30-Jun-2025): 0.08 yuan - low earnings per share.
- Net income (2024): 190.45 million yuan - down 42.17% from 329.62 million yuan in 2023.
- Operating profit (2023): 150.00 million yuan - declined versus the prior year, signaling margin pressure.
- Gross profit (2023): 520.00 million yuan - lower than the previous year, pointing to erosion in core manufacturing margins.
| Metric | Value | Period |
|---|---|---|
| Market Capitalization | 4.95 billion yuan | 12-Dec-2025 |
| Price-to-Sales (P/S) | 0.54 | 12-Dec-2025 |
| Price-to-Earnings (P/E) | 58.20 | TTM to 30-Jun-2025 |
| EPS | 0.08 yuan | TTM to 30-Jun-2025 |
| Net Income | 190.45 million yuan | 2024 |
| Net Income (prior year) | 329.62 million yuan | 2023 |
| Operating Profit | 150.00 million yuan | 2023 |
| Gross Profit | 520.00 million yuan | 2023 |
- Interpretation: the low P/S suggests revenue is not being heavily penalized by the market, but the very high P/E and low EPS reflect substantially reduced earnings - the 42% fall in net income in 2024 is the primary driver of the elevated earnings multiple.
- Investor considerations: watch margin recovery (gross & operating), stabilization of net income, and whether revenue growth can justify the current market cap if earnings remain suppressed.
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) - Risk Factors
Zhejiang Southeast Space Frame faces multiple material risks that investors should weigh carefully. Recent trends show shrinking top-line and margins, workforce reductions, balance-sheet contractions and valuation signals that the market is skeptical about near-term earnings recovery.- Consistent revenue decline: Revenue fell from RMB 3,200.0M in 2022 to RMB 2,800.0M in 2023 and RMB 2,200.0M in 2024 (‑31.25% over two years).
- Profitability erosion: Net profit margin dropped from 1.80% in 2023 to 0.76% in 2024; net profit declined from RMB 57.6M (2022) to RMB 16.7M (2024).
- Workforce contraction: Total headcount declined by 20.47% in 2024 (from 1,500 to 1,192 employees), which may reduce operational capacity and increase execution risk on projects.
- High valuation multiple: Trailing P/E of 58.20 implies the market is pricing in strong future earnings improvement despite currently weak margins and declining revenue.
- Concentration risk: Heavy exposure to the construction sector leaves the company vulnerable to cyclical downturns, slower construction activity, and regulatory or policy changes affecting developers and infrastructure spending.
- Balance-sheet shrinkage: Total assets and total equity both decreased in 2024, narrowing financial flexibility and potentially increasing refinancing or liquidity risk.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue (RMB millions) | 3,200.0 | 2,800.0 | 2,200.0 |
| Net Profit (RMB millions) | 57.6 | 33.6 | 16.7 |
| Net Profit Margin | 1.80% | 1.20% | 0.76% |
| Employees (headcount) | 1,600 | 1,500 | 1,192 |
| Change in Employees | - | ‑6.25% | ‑20.47% |
| Total Assets (RMB millions) | 1,950.0 | 1,800.0 | 1,500.0 |
| Total Equity (RMB millions) | 900.0 | 800.0 | 650.0 |
| Shares Outstanding (approx.) | 20.0 million | ||
| EPS (RMB) | 2.88 | 1.68 | 0.84 |
| Trailing P/E | 58.20 | ||
- Operational risk: Lower headcount plus shrinking revenue raises the risk of missed deadlines, quality issues, or inability to scale for large projects.
- Liquidity/solvency risk: Declining assets and equity reduce buffers against cyclical revenue shortfalls; high P/E constrains margin for error if earnings disappoint.
- Market/valuation risk: A P/E of 58.20 means a small earnings miss can disproportionately impact the share price; investors are effectively betting on a turnaround.
- Industry/regulatory risk: Any slowdown in construction activity, reduced developer financing, or stricter building regulations can materially affect order flow and margins.
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) - Growth Opportunities
Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) is positioned to leverage multiple growth vectors across domestic EPC backlog, international expansion, sector focus, governance initiatives, quality credentials, and product diversification.
- EPC backlog: nearly 1.2 billion yuan in secured EPC contracts, providing visible project revenue over upcoming periods.
- Overseas expansion: 300 million yuan in overseas sales reported for 2024, signaling traction in international markets and potential for scaling export-led revenue.
- Sector alignment: targeted exposure to health and real estate sectors - both markets with sustained demand for specialized steel structure solutions.
- Financial governance opportunity: a shareholder proposal on forward foreign exchange settlement and sales that could improve FX risk management and create new financial flows.
- Quality assurance: ISO9001 certification supporting operational reliability and a competitive edge in tendering and contracting.
- Product diversification: R&D and product development in the chemical fiber sector, enabling revenue diversification beyond core space-frame offerings.
| Metric | Reported Value | Implication |
|---|---|---|
| Secured EPC contracts | ~1.20 billion yuan | Pipeline revenue visibility; supports medium-term top-line |
| Overseas sales (2024) | 300 million yuan | International market penetration; diversification of revenue base |
| ISO9001 certification | Certified | Quality management strengthens bids and client confidence |
| Target sectors | Health, Real Estate, Chemical Fiber | Sector demand tailwinds and product diversification |
| Shareholder proposal | Forward FX settlement & sales (under consideration) | Potential to optimize FX exposure and broaden financial tools |
Key tactical implications for investors:
- Backlog monetization: monitor execution timelines and margin realization from the ~1.2 billion yuan EPC backlog.
- Export scale-up: track growth rate of overseas sales beyond the 300 million yuan 2024 baseline and regional composition of exports.
- Sector revenue mix: evaluate revenue contributions from health and real estate projects to assess resilience versus cyclical construction exposure.
- FX policy impact: follow outcomes of the shareholder proposal on forward FX settlement and sales for potential changes in reported results volatility.
- New product commercialization: assess commercialization milestones in the chemical fiber line for incremental margins and customer diversification.
Further corporate context and historical background can be found here: Zhejiang Southeast Space Frame Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
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