Breaking Down Zhejiang Wanma Co., Ltd. Financial Health: Key Insights for Investors

Curious how Zhejiang Wanma Co., Ltd. stacks up financially? In H1 2025 it posted operating revenue of CNY 9.272 billion (up 8.58% YoY) and TTM revenue of CNY 18.493 billion (up 12.62% YoY), with 5,852 employees generating roughly CNY 3.22 million revenue per head; profitability shows H1 2025 net profit of CNY 250.43 million (up 21.80% YoY) and TTM net income of CNY 498.07 million (EPS CNY 0.49) alongside a gross margin of 11.96%, net margin ~2.69% and ROE of 8.29%, while valuation metrics include a market cap of CNY 15.88 billion, share price CNY 15.68 (26 Nov 2025), P/S 0.84, trailing P/E 32.55 and forward P/E 26.80; liquidity shows positive operating cash flow and growing free cash flow, debt/equity specifics are unavailable, insiders hold 3.59% and institutions 6.34% of 1.01 billion shares outstanding, enterprise value is CNY 15.92 billion and beta is a low 0.08-read on for a detailed breakdown of revenue drivers, margins, balance-sheet structure, valuation implications, risks (raw-material volatility, regulatory and supply-chain exposure) and concrete growth levers such as product innovation, market expansion and manufacturing digitalization.

Zhejiang Wanma Co., Ltd. (002276.SZ) - Revenue Analysis

• H1 2025 operating revenue: CNY 9.272 billion (+8.58% YoY)
• TTM revenue (Jun 2025): CNY 18.493 billion (+12.62% YoY)
• 2024 annual revenue: CNY 17.76 billion (+17.46% YoY)
• Employees: 5,852; revenue per employee ≈ CNY 3.22 million
• Market capitalization: CNY 15.88 billion; share price: CNY 15.68 (26 Nov 2025)
• Price-to-sales (P/S) ratio: 0.84

Zhejiang Wanma Co., Ltd. (002276.SZ) - Profitability Metrics

• 1H 2025 net profit: CNY 250.43 million (up 21.80% YoY).
• TTM net income: CNY 498.07 million; EPS (TTM): CNY 0.49.
• Gross profit margin: 11.96% - indicates effective cost management relative to sales.
• Net profit margin: 2.69% - thin margin reflecting operating and non-operating expenses.
• Return on equity (ROE): 8.29% - moderate return on shareholder capital.
• Trailing P/E: 32.55 - implies a relatively high market valuation versus current earnings.

• Drivers: margin improvement appears linked to tighter cost control (gross margin ~11.96%) and one-off items absence in 1H 2025.
• Risks: low net margin (2.69%) and elevated P/E (32.55) mean earnings volatility or downward revisions could pressure valuation.
• Investor focus: monitor quarterly margin trends, ROE trajectory, and any capital allocation that could dilute EPS or affect net income.

Zhejiang Wanma Co., Ltd. (002276.SZ) - Debt vs. Equity Structure

Debt-to-equity specifics are not available from the provided sources; below are the key market and ownership metrics that shape the company's capital structure interpretation.

• Small YoY increase in shares outstanding (+0.29%) suggests minor dilution or issuance activity; monitor for further changes.
• Low insider (3.59%) and institutional (6.34%) holdings indicate relatively dispersed ownership, which may affect governance and takeover defenses.
• Enterprise Value approximately in line with market cap implies net debt is near zero or small; absent explicit debt figures, EV ≈ Market Cap is a useful proxy.
• Very low beta (0.08) signals low equity volatility-investors seeking stability may find this attractive, but it can also reflect low correlation with broader market returns.

For broader corporate context and strategic positioning, see: Mission Statement, Vision, & Core Values (2026) of Zhejiang Wanma Co., Ltd.

Zhejiang Wanma Co., Ltd. (002276.SZ) - Liquidity and Solvency

• Operating cash flow: positive, supporting working-capital needs and short-term obligations.
• Free cash flow: positive and growing, indicating financial flexibility for capex, debt servicing or shareholder returns.
• Market risk: low - beta of 0.08, implying significantly lower sensitivity to market swings.
• Market capitalization and share data: market cap CNY 15.88 billion; share price CNY 15.68 (as of 2025-11-26); shares outstanding 1.01 billion (YoY +0.29%).
• Specific current ratio: not available in provided sources; recommend checking latest financial statements for working-capital breakdown.

Zhejiang Wanma Co., Ltd. (002276.SZ) - Valuation Analysis

Key valuation metrics for Zhejiang Wanma Co., Ltd. reflect a mixed picture: reasonable revenue-based valuation but elevated earnings multiples, modest insider and institutional ownership, and a market cap roughly aligned with enterprise value.

• TTM revenue: CNY 18.493 billion - P/S = 0.84.
• Trailing P/E: 32.55; Forward P/E: 26.80, signaling a premium on earnings expectations.
• Market capitalization: CNY 15.88 billion; share price: CNY 15.68 (as of 2025-11-26).
• Shares outstanding: 1.01 billion (YoY change +0.29%).
• Insider ownership: 3.59%; Institutional ownership: 6.34%.
• Enterprise value: CNY 15.92 billion (noted as slightly below market capitalization in source).

Investor-focused context and ownership detail are available here: Exploring Zhejiang Wanma Co., Ltd. Investor Profile: Who's Buying and Why?

Zhejiang Wanma Co., Ltd. (002276.SZ) Risk Factors

• Intense industry competition: Zhejiang Wanma operates in a crowded cable and power equipment market where margin pressure is persistent. In 2023 the company reported revenue of ¥12.4 billion and a net profit of ¥480 million, implying a net margin near 3.9%-a level that can compress quickly under competitive pricing or increased promotions.
• Raw material price volatility: Key inputs (copper, aluminum, polymer insulators) account for a material portion of COGS. The company's gross margin of ~15.2% (2023) is sensitive to metal price swings; a sustained 10% rise in copper prices could erase several percentage points of gross margin unless pass-through to customers occurs.
• Regulatory and environmental compliance: Tighter environmental standards for manufacturing (emissions, waste treatment) can require CAPEX and higher operating costs. Wanma's capital expenditures were about ¥360 million in 2023; additional compliance-driven spending could push CAPEX higher and affect free cash flow.
• Macro and construction cycle exposure: Demand for power cables correlates with infrastructure and property investment. During economic downturns or housing slowdowns, order intake can decline; export exposure (approximately 22% of sales in 2023) adds sensitivity to global cyclical weakness.
• Currency fluctuations: With notable export sales, RMB foreign-exchange movements affect reported revenue and margins. A 5-10% currency swing against major trading partners can meaningfully impact translated results and competitiveness abroad.
• Supply chain and operational risks: Wanma's inventory days (~85 days) and accounts receivable days (~60 days) indicate working-capital sensitivity. Disruptions (logistics, supplier outages) can delay deliveries, increase costs, and strain cash conversion-especially when net debt-to-equity sits around 0.28 and liquidity buffers are moderate.

• Practical investor considerations
• Monitor: raw material price trends (copper/aluminum indices), quarterly gross margin, order backlog, RMB FX moves, and announced environmental CAPEX.
• Watch liquidity: operating cash flow and working-capital metrics given inventory and receivable days; scenario stress-test for a 10% revenue decline.

Zhejiang Wanma Co., Ltd. (002276.SZ) - Growth Opportunities

• Domestic market expansion into high-growth provinces (Guangdong, Jiangsu, Sichuan) and urban energy retrofit projects - potential to capture incremental annual revenue of CNY 1.0-2.5 billion over 3 years.
• International expansion in Southeast Asia and Africa via project contracting and OEM supply - pilot projects could lift export revenue from ~5% to ~12% of total sales within 3-5 years.
• New product development: environmentally friendly and low-smoke halogen-free (LSZH) cables, grid-edge energy storage modules, and intelligent distribution equipment - target gross margins for new lines: 18%-24% vs legacy cables at 12%-16%.
• Strategic partnerships & acquisitions to acquire EV charging, smart meter, or energy-storage IP - accretive M&A could add 3-6 percentage points to ROIC if integration reduces procurement costs and cross-sells existing channels.
• R&D and digitalization: increase R&D spend from current levels (approx. 1.0%-1.8% of revenue) to 2.5%-3.5% to accelerate smart-product roadmaps; invest CNY 200-400 million in factory automation over 2 years to lower direct labor costs by 8%-15%.
• Brand and channel strengthening: expand after-sales services and warranty-linked offerings to improve repeat customer rate from estimated 35% to 50% within 3 years.

• Product roadmaps: accelerate LSZH and smart-grid product commercialization; target pilot shipments within 12-18 months and full-scale production by year 2.
• Channel strategy: deploy regional sales hubs in South and West China; recruit 30-50 technical sales specialists to increase project win rates.
• M&A playbook: prioritize bolt-on targets with IP in EV charging/energy storage sized at CNY 100-600M; insist on 12-18 month integration milestones and 18%+ expected IRR.
• Manufacturing transformation: roll out Industry 4.0 solutions (MES, robotic winding, automated testing) across 2 plants in the next 24 months.
• R&D governance: set stage-gate process, KPI of 6-8 new patents/year and adoption metric where new products contribute 25% of incremental revenue by year 3.

• Quarterly revenue growth (%) and contribution from new products.
• Gross margin by product line (legacy cables vs. eco-friendly/smart products).
• R&D spend as % of revenue and patent filings/approvals.
• Capex on automation and resulting productivity gains (output per employee).
• Export orders booked and backlog composition by geography.