Breaking Down Weihai Guangwei Composites Co., Ltd. Financial Health: Key Insights for Investors

Peel back the numbers on Weihai Guangwei Composites Co., Ltd. and the picture is nuanced: Q3 2025 revenue rose to 785.35 million CNY (+5.24% YoY) while trailing twelve-month revenue sits at 2.53 billion CNY (a 5.21% YoY decline) against 2024 annual sales of 2.45 billion CNY (-2.69%); yet profitability shows strain with Q3 net income falling to 145.42 million CNY (-41.05% YoY) and a net margin of 18.52% (down 43.98% YoY), EBITDA of 318.21 million CNY (-13.22% YoY) and TTM EPS of 0.65 CNY; balance sheet metrics reveal total assets of 8.59 billion CNY, equity of 5.49 billion CNY and a conservative debt-to-equity of 0.31 despite a negative net cash position of -595.35 million CNY and cash plus short-term investments of 1.11 billion CNY; liquidity and solvency look solid with a current ratio of 2.11, quick ratio of 1.62, operating cash flow (TTM) of 1.05 billion CNY, free cash flow of 366 million CNY and an Altman Z-Score of 6.55, while valuation multiples span a trailing P/E of 43.90 and forward P/E of 25.15, P/S near 9-10 and enterprise value to EBITDA of 27.47 (market caps cited around 23.6-25.8 billion CNY; share price 30.79 CNY as of Dec 12, 2025); add a game-changing 658 million CNY contract signed in June 2025 and analyst forecasts of ~35.6% EPS growth and ~18.6% revenue CAGR alongside expansion into carbon fiber, wind power and aerospace, and the stakes for investors-between risk signals like a Piotroski F‑Score of 5 and high P/E and the clear growth catalysts-are compelling reasons to read on for the detailed breakdown.

Weihai Guangwei Composites Co., Ltd. (300699.SZ) - Revenue Analysis

Weihai Guangwei Composites' recent revenue trend shows mixed short-term growth against a weakening trailing-twelve-month (TTM) base and modest annual contraction in 2024. Key headline figures and per-employee productivity highlight where growth and valuation tension exist.

• Q3 2025 revenue: 785.35 million CNY (+5.24% YoY vs Q3 2024)
• TTM revenue: 2.53 billion CNY (TTM -5.21% YoY)
• 2024 annual revenue: 2.45 billion CNY (‑2.69% vs 2023)
• Estimated 2023 revenue: ~2.52 billion CNY (calculated from 2024 decline)
• Revenue per employee (TTM): ~1.13 million CNY (2,236 employees)
• Market cap: 25.83 billion CNY; P/S ratio: 9.91; share price: 30.79 CNY (as of 12-Dec-2025)

• Revenue per employee (TTM): 2,530,000,000 / 2,236 ≈ 1,131,900 CNY
• Valuation context: Market cap 25.83 billion CNY / TTM revenue 2.53 billion CNY = P/S 9.91
• Share price reference: 30.79 CNY (12-Dec-2025)

For additional background on ownership, trading patterns and investor composition, see: Exploring Weihai Guangwei Composites Co., Ltd. Investor Profile: Who's Buying and Why?

Weihai Guangwei Composites Co., Ltd. (300699.SZ) - Profitability Metrics

• Net income (Q3 2025): 145.42 million CNY (down 41.05% YoY)
• Net profit margin (Q3 2025): 18.52% (down 43.98% YoY)
• EBITDA (Q3 2025): 318.21 million CNY (down 13.22% YoY)
• Effective tax rate (Q3 2025): 17.74%
• TTM EPS: 0.65 CNY
• Return on assets (ROA): 7.54%
• Return on capital: 8.93%

• The sharp drop in net income and net profit margin suggests pressure on operating profitability and/or non-operating items affecting the bottom line in Q3 2025.
• EBITDA fell more modestly than net income, implying margin compression may be partially driven by tax/finance/one-off items beyond core operations.
• ROA (7.54%) and return on capital (8.93%) indicate the company still extracts reasonable returns from assets and invested capital despite quarterly earnings volatility.
• The effective tax rate of 17.74% provides calibration for pre‑tax to after‑tax differences influencing net profit trends.
• TTM EPS at 0.65 CNY frames earnings per share across the last twelve months for valuation comparisons.

Weihai Guangwei Composites Co., Ltd. (300699.SZ) - Debt vs. Equity Structure

• Total assets: 8.59 billion CNY
• Total liabilities: 3.09 billion CNY
• Total equity: 5.49 billion CNY
• Debt-to-equity ratio: 0.31 (3.09 / 5.49)
• Net cash position: -595.35 million CNY (cash & short-term investments: 1.11 billion CNY)
• Interest coverage ratio: 14.66
• Book value per share: 6.69 CNY

• A debt-to-equity of 0.31 signals limited financial leverage relative to equity, reducing refinancing and solvency risk.
• Despite a positive cash & short-term investments balance (1.11B CNY), the reported net cash position of -595.35M CNY indicates the company carries more interest-bearing debt than immediate cash, likely due to longer-term borrowing or working capital usage.
• An interest coverage ratio of 14.66 suggests operating earnings comfortably cover interest obligations, supporting financial stability even with negative net cash.

Weihai Guangwei Composites Co., Ltd. (300699.SZ) - Liquidity and Solvency

Key liquidity and solvency metrics for Weihai Guangwei Composites Co., Ltd. (300699.SZ) indicate a generally healthy short-term position and low bankruptcy risk while showing moderate operational strength.

• Current ratio: 2.11 - covers short-term liabilities more than twice over.
• Quick ratio: 1.62 - adequate immediate liquidity excluding inventories.
• Operating cash flow (TTM): 1.05 billion CNY - solid cash generation from operations.
• Free cash flow: 366 million CNY - cash available after capital expenditures.
• Capital expenditures: 681.93 million CNY - ongoing investment in asset base.
• Altman Z-Score: 6.55 - indicates low risk of bankruptcy.
• Piotroski F-Score: 5 - reflects moderate financial strength.

For additional corporate context and background on strategy and ownership that can influence liquidity and solvency over time, see: Weihai Guangwei Composites Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Weihai Guangwei Composites Co., Ltd. (300699.SZ) Valuation Analysis

• Trailing P/E: 43.90 - indicates historical earnings priced at a high multiple.
• Forward P/E: 25.15 - implies earnings estimates materially lower multiples than trailing, reflecting expected earnings growth or analyst upgrades.
• P/S: 9.32 - revenue is being valued at a high multiple versus peers in many manufacturing segments.
• P/B: 4.30 - equity valued several times above book, suggesting strong intangible value or high ROE expectations.
• EV/EBITDA: 27.47 - enterprise valuation relative to operating profit is elevated, implying rich valuation for operating cash flow.
• EV/FCF: 66.06 - very high, showing free cash flow is small relative to enterprise value, or investors pay heavily for future cash conversion.
• Market Capitalization: 23.61 billion CNY.
• Enterprise Value: 24.18 billion CNY.

• Valuation context: investors are paying materially above typical manufacturing multiples, which may be justified by above-market growth expectations, industry moat, or margin expansion.
• Risk considerations: high EV/FCF and EV/EBITDA increase sensitivity to earnings disappointments or margin compression.
• Opportunity considerations: the gap between trailing and forward P/E suggests anticipated earnings acceleration; monitor guidance, backlog and cash conversion.

Weihai Guangwei Composites Co., Ltd. (300699.SZ) - Risk Factors

Key risk indicators for Weihai Guangwei Composites Co., Ltd. show mixed signals: significant earnings contraction in 2025, margin compression, liquidity strain despite modest leverage, and valuation that may be rich relative to peers. Investors should weigh operating deterioration against relatively low bankruptcy risk and middling fundamental quality.

• Net profit attributable to shareholders: down 32.55% YoY in the first three quarters of 2025.
• Net profit margin: declined 43.98% YoY in Q3 2025.
• Net cash position: negative (net debt / negative net cash), indicating potential liquidity concerns.
• Altman Z-Score: 6.55 - suggests low bankruptcy risk.
• Piotroski F-Score: 5 - indicates moderate financial strength and mixed operational signals.
• Debt-to-equity ratio: 0.31 - relatively low leverage, but offset by negative net cash.
• Price-to-Earnings (P/E) ratio: 43.90 - may point to overvaluation versus industry peers.

Specific risk drivers to monitor:

• Cash flow trajectory and working capital management given negative net cash and recent profit declines.
• Margin recovery prospects: pricing power, raw material cost pass-through, and manufacturing efficiency.
• Financing needs and refinancing risk if liquidity remains negative despite low leverage.
• Execution risk around any strategic initiatives intended to restore profitability (capacity, product mix, customer concentration).
• Market valuation sensitivity: a P/E of 43.90 leaves limited margin for error if earnings continue to fall.

For context on corporate direction and values that may influence strategic risk decisions, see Mission Statement, Vision, & Core Values (2026) of Weihai Guangwei Composites Co., Ltd.

Weihai Guangwei Composites Co., Ltd. (300699.SZ) Growth Opportunities

• Major contract: a June 2025 contract worth 658 million CNY is expected to materially boost 2025 revenue and margin realization, especially in composite structural components.
• Analyst consensus: projected earnings growth of 35.6% CAGR and revenue growth of 18.6% CAGR (three-year outlook).
• Return expectations: ROE is forecasted to reach 16.6% in three years, reflecting improved profitability and capital efficiency as new orders are executed.
• Product expansion: strategic push into carbon fiber and advanced composite materials broadens addressable markets and enables higher ASP (average selling price) products.
• End-market demand: meaningful upside from wind power (turbine blades, components) and aerospace supply chains where lightweight/high-strength composites command premium pricing.
• R&D focus: sustained R&D investment underpins potential for differentiated materials and certifications that open aerospace and high-end industrial applications.

• Revenue drivers: large contract execution in 2025, expanded carbon fiber product mix, higher penetration in wind and aerospace segments.
• Margin drivers: scale effects from larger orders, improved mix toward higher‑margin composite assemblies, and incremental margin uplift from proprietary materials developed via R&D.
• Execution risks: certification timelines in aerospace, supply chain raw‑material volatility (carbon fiber, resin), and competitive pricing pressure in wind OEM channels.