Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) Bundle
Curious whether Zhongshan Broad‑Ocean Motor Co., Ltd. (002249.SZ) is a resilient investment or a hidden risk? Dive into the numbers: quarterly revenue was 2.94 billion CNY (Q3 2025, -3.52% YoY) while trailing twelve‑month revenue stands at 12.45 billion CNY (TTM, +6.99% YoY) against a 2024 annual revenue of 12.11 billion CNY and a steady ~5% CAGR (2022-2024); profitability shows momentum with H1 2025 net income of 602 million CNY (+34.6% YoY) and a sustained net margin near 7.5% alongside a gross margin up to 22.2% and ROE of 11.1%; the balance sheet is conservative - debt‑to‑equity 0.04, total liabilities 8.26 billion CNY versus equity 10.01 billion CNY, interest coverage 59.77 and debt/EBITDA 0.29 - while liquidity is supported by a net cash position with 3.53 billion CNY in cash against 288 million CNY total debt and current/quick ratios of 1.49/0.98; valuation and market metrics (market cap 25.99 billion CNY, P/S 2.09, P/E 24.41, EV/EBITDA 17.94, P/B 2.56) sit broadly in line with peers as the company pursues global expansion, 15 manufacturing sites, nearly 4,000 patent applications and a planned ~1 billion CNY investment in NEV powertrain R&D and manufacturing - read on for granular breakdowns of revenue drivers, margin trends, leverage, liquidity and the risks that could sway this story
Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) - Revenue Analysis
Zhongshan Broad-Ocean Motor reported mixed top-line signals through late 2025: the quarter ending September 30, 2025 delivered revenue of 2.94 billion CNY (a decline of 3.52% year-over-year), while the trailing twelve months (TTM) revenue reached 12.45 billion CNY, reflecting a 6.99% YoY rise. The company's full-year 2024 revenue was 12.11 billion CNY, a 7.31% increase versus 2023, and revenue growth has shown steadiness with an approximate CAGR of 5% from 2022-2024.- Q3 2025 revenue: 2.94 billion CNY (-3.52% YoY)
- TTM revenue (to Sep 30, 2025): 12.45 billion CNY (+6.99% YoY)
- 2024 annual revenue: 12.11 billion CNY (+7.31% YoY)
- Revenue per employee: ~925,990 CNY (13,445 employees)
- Market capitalization: 25.99 billion CNY; P/S ratio: 2.09
- Revenue CAGR (2022-2024): ≈5%
| Period | Revenue (CNY) | YoY Change | Notes |
|---|---|---|---|
| Q3 2025 (ended Sep 30, 2025) | 2.94 billion | -3.52% | Short-term pullback vs. Q3 2024 |
| TTM (to Sep 30, 2025) | 12.45 billion | +6.99% | Rolling 12-month growth |
| FY 2024 | 12.11 billion | +7.31% | Full-year performance |
| Revenue per employee | 925,990 | - | 13,445 employees |
| Market capitalization | 25.99 billion | - | P/S = 2.09 |
| Revenue CAGR (2022-2024) | ≈5.0% | - | Stable moderate growth |
Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) - Profitability Metrics
Zhongshan Broad-Ocean Motor Co., Ltd. has shown notable improvement in core profitability measures across recent reporting periods, driven by margin expansion, cost control and higher net income.- Net income (H1 2025): 602 million CNY, up 34.6% year-on-year.
- Trailing twelve-month EPS: 0.44 CNY; P/E ratio: 24.41.
- Return on equity (ROE) 2025: 11.1%, indicating efficient use of shareholders' equity.
- Consistent net profit margin: ~7.5% over the past three years (2023-2025).
| Metric / Year | 2022 | 2023 | 2024 | 2025 (H1 or Latest) |
|---|---|---|---|---|
| Net Income (CNY, reported) | - | - | - | 602 million (H1 2025) |
| Net Profit Margin | 3.9% | ~7.5% | 7.5% | ~7.5% (latest) |
| Gross Margin | 19.3% | - | 22.2% | - |
| ROE | - | - | - | 11.1% (2025) |
| EPS (TTM) | - | - | - | 0.44 CNY |
| P/E Ratio | - | - | - | 24.41 |
- Margin trajectory: Gross margin improved from 19.3% (2022) to 22.2% (2024), supporting higher net margins.
- Profitability stability: Net profit margin holding at ~7.5% suggests recurring operational improvements rather than one-off gains.
- Valuation context: With EPS of 0.44 CNY and P/E 24.41, investors should weigh growth prospects against current multiple.
Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) - Debt vs. Equity Structure
Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) displays a notably conservative capital structure as of September 2025, characterized by low leverage, strong coverage of interest obligations, and ample equity relative to liabilities.- Debt-to-Equity Ratio: 0.04 - very low debt burden versus shareholders' equity.
- Total Liabilities: 8.26 billion CNY; Total Equity: 10.01 billion CNY - equity base exceeds liabilities.
- Interest Coverage Ratio: 59.77 - operating income covers interest expense by a wide margin.
- Debt-to-EBITDA: 0.29 - minimal leverage relative to operating cash generation.
- Debt-to-Free Cash Flow: 0.29 - low dependence on debt to fund free cash flow needs.
- Overall: Conservative structure provides significant liquidity buffers and financial stability.
| Metric | Value | Interpretation |
|---|---|---|
| Debt-to-Equity Ratio | 0.04 | Extremely low leverage |
| Total Liabilities | 8.26 billion CNY | Absolute liability level |
| Total Equity | 10.01 billion CNY | Strong equity base |
| Interest Coverage Ratio | 59.77 | Very high capacity to meet interest payments |
| Debt-to-EBITDA | 0.29 | Low leverage vs. operating earnings |
| Debt-to-Free Cash Flow | 0.29 | Minimal reliance on debt financing |
- Implication for investors: low financial risk from leverage, high interest-payment resilience, and meaningful equity cushions.
- Liquidity stance: the combination of low debt ratios and strong coverage supports flexibility for capital allocation or weathering macro shocks.
Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) - Liquidity and Solvency
Zhongshan Broad-Ocean Motor Co., Ltd. presents a conservative liquidity profile and strong net cash position that underpins short-term stability and supports ongoing capital deployment. Key metrics indicate the company can meet immediate obligations while generating moderate returns on assets and invested capital.- Current ratio: 1.49 - adequate short-term liquidity to cover current liabilities.
- Quick ratio: 0.98 - near-1.0 quick coverage, showing sufficient liquid assets for immediate needs.
- Net cash position: Cash & equivalents 3.53 billion CNY vs. total debt 288 million CNY - comfortable leverage buffer.
- Effective tax rate: 14.81% - company tax burden contributing to net profitability.
- ROA: 3.41% - indicates efficient use of assets to generate profit.
- ROIC: 6.08% - demonstrates effective deployment of invested capital.
| Metric | Value | Implication |
|---|---|---|
| Current Ratio | 1.49 | Can cover short-term liabilities with some cushion |
| Quick Ratio | 0.98 | Liquid assets nearly match immediate liabilities |
| Cash & Equivalents | 3.53 billion CNY | Strong cash base |
| Total Debt | 288 million CNY | Low absolute leverage |
| Net Cash Position | +3.242 billion CNY | Cash minus debt; significant liquidity surplus |
| Effective Tax Rate | 14.81% | Moderate tax expense relative to pre-tax income |
| Return on Assets (ROA) | 3.41% | Reasonable asset profitability |
| Return on Invested Capital (ROIC) | 6.08% | Effective capital deployment above low-cost benchmarks |
Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) - Valuation Analysis
Key valuation metrics for Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) provide a snapshot of how the market prices the company's earnings, cash flows, assets and sales relative to peers and historical norms. The figures below combine market-capitalization-based multiples and cash-flow-driven indicators to present a balanced view of valuation.
- Enterprise value to EBITDA (EV/EBITDA): 17.94 - suggests a moderate valuation relative to operating profitability.
- Enterprise value to free cash flow (EV/FCF): 17.97 - indicates how the market values the company's free cash generation.
- Price-to-operating-cash-flow (P/OCF): 6.29 - reflects market pricing of operating cash flow.
- Price-to-book (P/B): 2.56 - implies the market values net assets at about 2.56x book value.
- Market capitalization: 25.99 billion CNY with Price-to-Sales (P/S): 2.09.
- Relative positioning: valuation metrics are broadly in line with industry standards, implying a fair market valuation compared to peers.
| Metric | Value | Interpretation |
|---|---|---|
| EV / EBITDA | 17.94 | Moderate - indicates market pays a premium for earnings before interest, tax, depreciation and amortization. |
| EV / FCF | 17.97 | Suggests investors value each unit of free cash flow at roughly the same multiple as EBITDA. |
| P / OCF | 6.29 | Relatively low multiple on operating cash flow, pointing to solid cash generation vs. price. |
| P / B | 2.56 | Market values the company's net assets at ~2.6x - typical for capital-intensive manufacturing with growth prospects. |
| Market Cap | 25.99 billion CNY | Scale indicator for investor positioning and liquidity. |
| P / S | 2.09 | Market values each yuan of sales at ~2.1x - consistent with peers in similar margins and growth. |
For related strategic context and the company's forward-looking framing, see: Mission Statement, Vision, & Core Values (2026) of Zhongshan Broad-Ocean Motor Co., Ltd.
Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) - Risk Factors
- Fluctuations in raw material prices, especially copper, can materially affect margins. A 10% rise in copper prices can increase motor production costs by several percentage points, pressuring gross margins.
- Supply chain disruptions - as seen during the COVID‑19 pandemic - can interrupt component supply, delay shipments and raise logistics costs, leading to short‑term revenue volatility.
- Low financial leverage provides resilience: the company's reported debt‑to‑equity ratio is 0.04, indicating limited balance‑sheet risk from interest cost increases.
- Global expansion exposes the business to geopolitical, trade and economic risks across multiple markets; tariffs, export controls or sanctions could reduce overseas sales or raise costs.
- Regulatory shifts in energy efficiency and environmental standards for HVAC and motor products can alter product demand and require R&D or retooling expenditures.
- Significant exposure to international markets leaves the company vulnerable to currency exchange rate fluctuations, which can affect reported revenue and margins when converted to RMB.
| Risk Factor | Key Metric / Illustration | Potential Impact |
|---|---|---|
| Raw material price volatility (copper) | Example: a 10% copper price increase → several % rise in unit production cost | Compression of gross margin; potential need to raise selling prices |
| Supply chain disruptions | Past COVID‑19 disruptions caused multi‑week delays in components | Revenue timing shifts, higher expedited freight and inventory costs |
| Leverage / balance sheet strength | Debt‑to‑Equity: 0.04 | Low financing risk; capacity to absorb shocks without heavy refinancing |
| Geopolitical & market expansion risks | Significant international sales exposure (management disclosures indicate material overseas presence) | Tariffs, trade restrictions or local economic slowdowns can reduce sales |
| Regulatory & efficiency standards | Stricter HVAC/motor efficiency rules in key markets | Potential product redesign costs and shifting demand toward compliant models |
| Currency exchange rate risk | Revenue and costs denominated in multiple currencies; FX moves affect RMB reporting | Volatility in net income and margins; need for hedging strategies |
- Operational mitigation strategies to monitor: raw material hedging, diversified supplier base, inventory buffers, targeted FX hedging, and continued R&D to meet evolving efficiency standards.
- Investor considerations: a low debt‑to‑equity (0.04) reduces solvency risk, but earnings sensitivity to commodity prices, supply chains and FX means earnings can remain cyclical and externally driven.
Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) - Growth Opportunities
Zhongshan Broad-Ocean Motor Co., Ltd. is positioning itself to capture accelerated demand in the new energy vehicle (NEV) ecosystem through targeted capital deployment, global manufacturing scale-up, and sustained R&D investment. Key strategic elements driving growth:- Major CAPEX commitment: ~1 billion CNY earmarked for a new energy vehicle powertrain system and parts R&D and manufacturing site in Chongqing to support electrified powertrain production and localization of supply.
- Global manufacturing footprint: 15 manufacturing facilities across multiple continents, including factories in the U.S., Mexico, Britain, Thailand, Vietnam, and Morocco - enabling regional supply, lower logistics costs, and faster customer response.
- International R&D presence: technology and engineering centers in Detroit, Chicago, and London to tailor products to global OEM and aftermarket requirements and accelerate product development cycles.
- Intellectual property scale: 3,991 patent applications with 2,160 valid patents, reflecting robust innovation capacity in motor, inverter, and powertrain technologies.
- Higher-margin overseas operations: management reports indicate overseas business yields higher gross margins than domestic segments, supporting profitability as export and global-supply revenues grow.
| Metric | Value |
|---|---|
| Planned Chongqing investment | ~1,000,000,000 CNY |
| Total manufacturing facilities (current year) | 15 facilities |
| Countries with factories (examples) | U.S., Mexico, Britain, Thailand, Vietnam, Morocco, others |
| R&D centers | Detroit, Chicago, London |
| Patent applications | 3,991 total |
| Valid patents | 2,160 |
- Strategic benefits: The Chongqing site enhances NEV powertrain vertical integration; worldwide factories mitigate geopolitical and tariff risk; R&D in key automotive hubs shortens innovation cycles and supports OEM partnerships.
- Commercial implication: With higher overseas gross margins and expanding global sales channels, incremental volume from NEV powertrain production should have outsized impact on consolidated profitability if execution meets timelines.
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