Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) Bundle
As investors scan the A‑share landscape, Guangdong Guanghua Sci‑Tech Co., Ltd. (002741.SZ) presents a mixed financial picture that demands scrutiny: quarterly revenue rose to CNY 762.33 million (up 14.99% QoQ) with trailing twelve‑month sales of CNY 2.80 billion (YoY +10.47%) against a 2024 annual slump to CNY 2.59 billion; profitability remains under pressure with a TTM net loss of CNY 121.33 million (net margin -4.33%, EPS -0.27) despite a 52.42% improvement in the 2024 net loss to CNY 204.95 million, while market valuation sits at CNY 9.94 billion (share price CNY 23.52 on Nov 27, 2025) with a P/S of 3.55 and a rich P/B of 5.19, liquidity showing a current ratio of 1.39 and net debt of CNY 86.2 million but operating cash flow of -CNY 31.4 million, debt/equity at 40.14% and interest coverage of 4.14, and valuation multiples stretched (EV/EBITDA 42.85, EV/S 3.59, forward P/E 69.61) even as the company invests CNY 53.3 million in capex and pivots toward new energy materials and electronic chemicals with analyst forecasts of 91.4% annual earnings growth and 21.4% revenue growth-read on to unpack what these figures mean for risk, runway and upside.
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) - Revenue Analysis
Guangdong Guanghua Sci-Tech Co., Ltd. reported quarter revenue of CNY 762.33 million for the quarter ending September 30, 2025, a 14.99% increase from the previous quarter. Trailing twelve months (TTM) revenue is CNY 2.80 billion, reflecting a 10.47% year-over-year increase, while full-year 2024 revenue declined 4.09% to CNY 2.59 billion. Revenue per employee is approximately CNY 2.31 million based on a workforce of 1,213. The market values the company at a price-to-sales (P/S) ratio of 3.55, with market capitalization of CNY 9.94 billion and a share price of CNY 23.52 as of November 27, 2025.
- Quarter (Q3 2025) revenue: CNY 762.33 million (+14.99% QoQ)
- TTM revenue: CNY 2.80 billion (+10.47% YoY)
- 2024 revenue: CNY 2.59 billion (-4.09% YoY)
- Revenue per employee: ~CNY 2.31 million (1,213 employees)
- P/S ratio: 3.55; Market cap: CNY 9.94 billion; Share price (27 Nov 2025): CNY 23.52
| Metric | Value | Period / Note |
|---|---|---|
| Quarter Revenue | CNY 762.33 million | Quarter ending Sep 30, 2025 (QoQ +14.99%) |
| TTM Revenue | CNY 2.80 billion | Trailing twelve months (YoY +10.47%) |
| Annual Revenue (2024) | CNY 2.59 billion | 2024 (-4.09% YoY) |
| Revenue per Employee | CNY 2.31 million | Total employees: 1,213 |
| Price-to-Sales (P/S) | 3.55 | Market valuation metric |
| Market Capitalization | CNY 9.94 billion | As of Nov 27, 2025 |
| Share Price | CNY 23.52 | As of Nov 27, 2025 |
For context on strategic positioning and corporate priorities that may influence revenue trajectory, see Mission Statement, Vision, & Core Values (2026) of Guangdong Guanghua Sci-Tech Co., Ltd.
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) - Profitability Metrics
- Trailing twelve months (TTM) net income: CNY -121.33 million (loss)
- TTM net profit margin: -4.33%
- TTM earnings per share (EPS): -0.27
- Return on equity (ROE): -7.39%
- Net loss in 2024: CNY -204.95 million (improved 52.42% vs prior year)
- Latest quarter operating income: CNY 102.10 million
- Latest quarter EBITDA: CNY 135.96 million
- Dividend policy: zero (cash preservation focus)
| Metric | Value | Period/Note |
|---|---|---|
| Net Income (TTM) | CNY -121.33 million | Trailing 12 months |
| Net Profit Margin | -4.33% | TTM |
| EPS | -0.27 | TTM |
| ROE | -7.39% | TTM |
| Net Loss (FY 2024) | CNY -204.95 million | Improved 52.42% vs FY 2023 |
| Operating Income (Latest Qtr) | CNY 102.10 million | Quarterly |
| EBITDA (Latest Qtr) | CNY 135.96 million | Quarterly |
| Dividend Policy | Zero | Cash preservation |
- Improvement in 2024 loss (52.42%) indicates progress toward profitability despite negative margins and ROE.
- Positive operating income and EBITDA in the latest quarter suggest operational cash-generation potential against overall net losses.
- Zero dividend policy preserves liquidity while the company repairs balance-sheet profitability metrics.
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) - Debt vs. Equity Structure
- Debt-to-equity ratio: 40.14% - a moderate leverage level that keeps equity as the dominant funding source.
- Total debt: CNY 725.4 million; Cash & equivalents: CNY 639.2 million; Net debt: CNY 86.2 million.
- Interest coverage ratio: 4.14 - earnings cover interest expense roughly four times, indicating manageable interest burden.
- Enterprise value (EV): CNY 10.05 billion; Market capitalization: CNY 9.94 billion - EV closely aligns with market cap, reflecting modest net debt relative to firm value.
- Current ratio: 1.39 and Quick ratio: 1.07 - short-term liquidity appears adequate, with ability to meet obligations without heavy reliance on inventory.
| Metric | Value | Notes |
|---|---|---|
| Debt-to-Equity Ratio | 40.14% | Moderate leverage |
| Total Debt | CNY 725.4 million | Includes short- and long-term debt |
| Cash & Equivalents | CNY 639.2 million | Liquid reserves on balance sheet |
| Net Debt | CNY 86.2 million | Total debt minus cash |
| Interest Coverage Ratio | 4.14 | EBIT / Interest expense |
| Enterprise Value (EV) | CNY 10.05 billion | Market cap + net debt (approx.) |
| Market Capitalization | CNY 9.94 billion | Market valuation of equity |
| Current Ratio | 1.39 | Current assets / current liabilities |
| Quick Ratio | 1.07 | (Current assets - Inventory) / Current liabilities |
- Net-debt-to-EV is low: Net debt (CNY 86.2M) / EV (CNY 10.05B) ≈ 0.86%, signaling that leverage contributes minimally to enterprise value risk.
- With interest coverage ~4.14, the company has a reasonable buffer, though margin for large earnings shocks is limited.
- Liquidity ratios above 1 indicate the firm can handle near-term obligations; quick ratio >1 reduces concern about inventory dependence.
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) - Liquidity and Solvency
- Current ratio: 1.39 - the company holds CNY 1.39 in short-term assets for every CNY 1 of short-term liabilities.
- Quick ratio: 1.07 - liquid assets (ex-inventories) cover immediate obligations comfortably above parity.
- Net debt: CNY 86.2 million - debt after cash reserves, indicating a moderate leverage position.
- Interest coverage ratio: 4.14 - operating earnings cover interest expense ~4.1 times, signaling reasonable interest-servicing capacity.
- Operating cash flow: CNY -31.4 million - negative cash generation from core operations during the period, a potential red flag for near-term liquidity if persistent.
- Capital expenditures: CNY 53.3 million - ongoing investment in fixed assets, which may pressure free cash flow given negative OCF.
| Metric | Value | Interpretation |
|---|---|---|
| Current Ratio | 1.39 | Adequate short-term coverage but not excessive-some buffer for working capital shocks. |
| Quick Ratio | 1.07 | Immediate liquidity is acceptable, implying inventories are not essential to meet near-term liabilities. |
| Net Debt | CNY 86.2 million | Manageable absolute debt level relative to cash; monitor trend versus equity and EBITDA. |
| Interest Coverage | 4.14 | Comfortable but not high-vulnerable if earnings decline or interest rates rise. |
| Operating Cash Flow | CNY -31.4 million | Negative OCF reduces internal funding capacity and increases reliance on financing or asset sales. |
| Capital Expenditure | CNY 53.3 million | Material reinvestment that could support growth but strains cash when OCF is negative. |
- Key short-term risk: continued negative operating cash flow combined with sustained capex could force external financing or working capital adjustments.
- Key strength: liquidity ratios >1 and interest coverage >4 provide a buffer to service liabilities and debt interest in the near term.
- Monitor: trends in OCF, EBITDA, net debt trajectory, and any change in capex plans or working capital requirements.
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) - Valuation Analysis
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) currently presents a mixed valuation profile characterized by negative trailing earnings but meaningful market premiums on equity and enterprise metrics. Key market multiples show a company priced for recovery or high future growth despite current profitability challenges.- Price-to-Earnings (P/E): -79.95 - negative trailing earnings drive an inverted P/E, signaling losses over the last twelve months.
- Forward P/E: 69.61 - the market expects substantial improvement in earnings, valuing future earnings at a high multiple relative to current share price.
- Price-to-Book (P/B): 5.19 - equity is trading at a significant premium to book value, suggesting investor confidence in intangible assets, growth prospects, or expected return on equity above historical book metrics.
- EV/EBITDA: 42.85 - an elevated multiple that implies the enterprise value is high relative to operating cash-profit (EBITDA), increasing sensitivity to margin recovery or cost reductions.
- EV/Sales: 3.59 - the market values each unit of revenue at a premium, indicating expectations for margin expansion or long-term revenue quality.
- PEG: not available - absent due to negative current earnings, preventing a sensible price/earnings-to-growth computation.
| Valuation Metric | Value | Interpretation |
|---|---|---|
| Trailing P/E | -79.95 | Negative earnings; trailing loss per share |
| Forward P/E | 69.61 | High expectation of future profitability |
| P/B | 5.19 | Market price well above book value |
| EV/EBITDA | 42.85 | Expensive vs. operating cash-profit |
| EV/Sales | 3.59 | Premium assigned to revenue base |
| PEG | N/A | Not computable due to negative earnings |
- Valuation drivers likely include expectations for earnings turnaround, potential margin recovery, and strategic or intangible assets not captured on the balance sheet.
- Risks: high EV/EBITDA and EV/Sales magnify downside if revenue growth or margin improvement fails to materialize; negative trailing P/E increases uncertainty around near-term profitability.
- For further context on corporate direction and long-term strategic priorities, see Mission Statement, Vision, & Core Values (2026) of Guangdong Guanghua Sci-Tech Co., Ltd.
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) - Risk Factors
Guangdong Guanghua Sci-Tech faces multiple financial and sectoral risks that investors should weigh carefully. Key concerns include sustained losses, weak cash generation, valuation questions, and exposure to specialty chemicals cyclical and regulatory dynamics.- Consecutive net losses: reported net loss of CNY 204.95 million in 2024, continuing a trend of unprofitable periods.
- Negative operating cash flow: OCF of CNY -31.4 million in the latest period, indicating cash-generation shortfalls versus accounting losses.
- Zero dividend policy: the company currently pays no dividend, reducing appeal to income-focused investors.
- High valuation vs. book: P/B ratio of 5.19 implies the market values the company well above its book equity, raising overvaluation concerns if earnings recovery stalls.
- Negative profitability metrics: diluted EPS of -0.27 signals ongoing losses on a per-share basis.
- Industry exposure: operating in specialty chemicals exposes the company to raw material price volatility, margin pressure, environmental and safety regulation changes, and demand cyclicality.
| Metric | Value | Period / Note |
|---|---|---|
| Net Profit (Loss) | CNY -204.95 million | 2024 |
| Operating Cash Flow | CNY -31.4 million | Latest reported period |
| EPS (Diluted) | CNY -0.27 | Latest reported |
| P/B Ratio | 5.19 | Trailing |
| Dividend Policy | Zero dividend | Current |
| Sector | Specialty Chemicals | Industry-specific risks apply |
- Raw material volatility: feedstock price swings can rapidly compress margins for specialty-chem players.
- Regulatory risk: tightening environmental standards or safety regulations can require material capital expenditure and operational changes.
- Demand cyclicality: end-market weakness (e.g., industrial, automotive, construction) can reduce volumes and utilization.
- Refinancing/liquidity pressures: negative OCF plus consecutive losses increase reliance on external financing, potentially at higher cost or dilutive terms.
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) - Growth Opportunities
Guangdong Guanghua Sci-Tech Co., Ltd. (002741.SZ) is reallocating capital and R&D into high-growth verticals-new energy materials and electronic chemicals-positioning itself to capture rising demand from electrification, energy storage and smart electronics supply chains.- Target sectors: new energy materials (battery additives, conductive binders) and electronic chemicals (photoresists, etchants) tied to semiconductor and PCB manufacturing.
- Product development: plan to launch at least 15 new products annually, prioritizing smart device components and IoT-enabled materials.
- Geographic expansion: enter ≥10 new international markets with a goal of international sales contributing 40% of total revenues.
| Metric | Current / Target | Timeframe |
|---|---|---|
| Analysts' forecast - Earnings CAGR | 91.4% p.a. | Next 1-3 years |
| Analysts' forecast - Revenue CAGR | 21.4% p.a. | Next 1-3 years |
| Return on Equity (projected) | 16.8% | In 3 years |
| Local electronics market share target | 25% | By 2024 |
| New products per year | ≥15 | Annual |
| New international markets targeted | ≥10 | Planned expansion window |
| International sales as % of revenue (target) | 40% | Mid-term target |
- Operational priorities: scale production for new energy materials, shorten new-product development cycles, and drive OEM qualification for smart-device components.
- Market execution: pursue a 25% share in the local electronics manufacturing sector by 2024 through targeted sales initiatives and supply agreements.
- Internationalization: establish distribution and technical-support hubs in ≥10 markets to reach 40% international revenue mix.
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