Breaking Down Chongqing Sanfeng Environment Group Corp., Ltd. Financial Health: Key Insights for Investors

Investors peering into Chongqing Sanfeng Environment Group Corp., Ltd. will find a mixed financial portrait: Q3 2025 operating revenue of CNY 1.31 billion contributed to a trailing twelve months revenue of CNY 5.63 billion (down 6.29% YoY) against a market capitalization near CNY 13.71 billion, while profitability remains notable with a trailing net profit margin of 22.43% and ROE of 10.74%; liquidity and cash-generation look strong with operating cash flow of CNY 2.32 billion, free cash flow of CNY 1.83 billion and cash/equivalents of CNY 4.47 billion, yet leverage and solvency raise caution-total debt of CNY 8.16 billion, net debt position of -CNY 3.69 billion and an Altman Z-Score of 1.53-as valuation metrics (P/E ~10.9, P/S ~2.47, EV/EBITDA ~7.47) sit alongside an analyst price target of CNY 11.25; add to the mix strategic growth aims (expansion into at least 10 new countries and projected international revenue growth of 30%), and the stage is set for a deeper dive into revenue trends, margins, debt structure, liquidity and market risks that every investor should read next

Chongqing Sanfeng Environment Group Corp., Ltd. (601827.SS) - Revenue Analysis

• Q3 2025 operating revenue: CNY 1.31 billion (-5.62% QoQ)
• TTM revenue (Q3 2025): CNY 5.63 billion (-6.29% YoY)
• 2024 annual revenue: CNY 5.99 billion (-0.59% vs. 2023)
• Revenue per employee: CNY 1.78 million
• Total employees: 3,165
• Market capitalization: ~CNY 13.71 billion
• Price-to-sales (P/S) ratio: 2.44

• Operational drivers: municipal waste volumes, plant utilization rates, power generation tariffs
• External pressures: sector competition, evolving environmental/regulatory standards
• Efficiency indicators: stable workforce with CNY 1.78 million revenue per employee

Chongqing Sanfeng Environment Group Corp., Ltd. (601827.SS) - Profitability Metrics

• Net profit margin (TTM): 22.43% - strong conversion of revenue into net income.
• Operating margin (TTM): 28.26% - effective control over operating expenses.
• Gross margin (TTM): 36.31% - solid buffer above cost of goods sold.
• Return on equity (ROE): 10.74% - efficient use of shareholders' equity.
• Earnings per share (EPS, TTM): CNY 0.76; P/E ratio: 10.86 - reasonable valuation relative to earnings.
• Dividend yield: 2.97%; Payout ratio: ~50.96% - balanced shareholder returns and reinvestment.

• Implication: margins across gross, operating and net levels show consistent profitability layers that support both dividends and reinvestment.
• Valuation context: P/E of 10.86 relative to EPS of CNY 0.76 suggests the market prices the stock at a modest multiple of earnings.

Chongqing Sanfeng Environment Group Corp., Ltd. (601827.SS) - Debt vs. Equity Structure

Chongqing Sanfeng Environment Group Corp., Ltd. (601827.SS) shows a capital structure characterized by moderate leverage supported by operating cash flows from long-term waste treatment contracts. Key balance-sheet and coverage metrics indicate manageable financial risk while highlighting a net debt position.

• Debt-to-Equity Ratio: 0.65 - moderate leverage relative to shareholders' equity.
• Total Debt: CNY 8.16 billion.
• Net Cash Position: -CNY 3.69 billion (net debt), reflecting total debt less available cash and equivalents.
• Equity (Book Value): CNY 12.54 billion; Book Value per Share: CNY 7.12.
• Interest Coverage Ratio: 7.43 - earnings cover interest expense comfortably.
• Debt-to-EBITDA: 3.35 - leverage relative to operating earnings.
• Financial leverage profile: supported by stable, contracted cash flows from long-term waste treatment agreements.

Debt maturity profile, covenant specifics, and cash reserve trends should be reviewed alongside these headline metrics to assess refinancing risk and liquidity runway. For more detail on ownership and investor trends, see: Exploring Chongqing Sanfeng Environment Group Corp., Ltd. Investor Profile: Who's Buying and Why?

Chongqing Sanfeng Environment Group Corp., Ltd. (601827.SS) - Liquidity and Solvency

An assessment of Chongqing Sanfeng Environment Group Corp., Ltd.'s short-term liquidity and longer-term solvency shows a mixed picture: solid cash generation and reserves alongside an Altman Z‑Score that signals elevated bankruptcy risk relative to peers.

• Current ratio: 1.67 - sufficient short-term assets to cover short-term liabilities.
• Quick ratio: 1.45 - adequate liquidity when inventory is excluded.
• Cash & cash equivalents: CNY 4.47 billion - a meaningful liquidity buffer.
• Operating cash flow (TTM): CNY 2.32 billion - strong core cash generation.
• Free cash flow (TTM): CNY 1.83 billion - positive and supportive of operations and debt service.
• Altman Z‑Score: 1.53 - indicative of higher bankruptcy risk compared with the industry average.

Key takeaways for investors should balance the company's substantial cash reserves and positive free cash flow against the Altman Z‑Score signaling higher bankruptcy risk; ongoing monitoring of leverage, interest coverage, and trend direction in operating cash flow is essential.

Further context on the company's background and business model is available here: Chongqing Sanfeng Environment Group Corp., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Chongqing Sanfeng Environment Group Corp., Ltd. (601827.SS) Valuation Analysis

• Trailing P/E: 10.92 - market paying ~10.9x last-12-month earnings.
• Forward P/E: 11.07 - analysts expect near-stable earnings vs. trailing results.
• P/S ratio: 2.47 - ~2.5x annual sales.
• P/B ratio: 1.11 - slightly above book value, implying modest premium to net assets.
• EV/EBITDA: 7.47 - enterprise value ~7.5x EBITDA, signaling moderate valuation vs. cash operating profits.
• EV/Revenue: 3.24 - enterprise value ~3.2x annual revenue.
• Market capitalization: ≈ CNY 13.88 billion.
• Enterprise value: ≈ CNY 18.21 billion.
• Analyst price target: CNY 11.25 - indicating upside potential versus the current market price.

• Valuation takeaway: earnings multiples (P/E and EV/EBITDA) point to a stable, moderately valued business; asset and sales-based metrics (P/B, P/S, EV/Revenue) support a reasonable entry point for value-oriented investors.
• Key watch: movement in EBITDA margins and book value will materially affect EV/EBITDA and P/B sensitivity.

Chongqing Sanfeng Environment Group Corp., Ltd. (601827.SS) - Risk Factors

• Altman Z-Score: 1.53 - indicates a higher relative risk of bankruptcy compared with healthier peers and industry averages.
• Debt-to-Equity Ratio: 0.65 - reflects moderate financial leverage that can amplify earnings volatility and affect liquidity under stress.
• Regulatory sensitivity - changes in environmental standards or subsidy regimes can materially increase compliance and capital expenditure.
• Competitive pressure - strong competition in waste incineration power generation could compress margins and limit market share expansion.
• Environmental liabilities - potential remediation, fines, or legacy waste issues may generate unpredictable cash outflows and reputational costs.
• Macro and policy risk - economic downturns or shifts in government procurement/PPP policies could reduce demand for waste treatment services and delay projects.

Chongqing Sanfeng Environment Group Corp., Ltd. (601827.SS) - Growth Opportunities

• International expansion: establish partnerships in at least 10 new countries by 2025 (currently operating in 5 nations), targeting presence across an estimated total of 15 countries.
• Revenue target: increase consolidated revenue from CNY 800 million in 2023 to CNY 1.0 billion by 2025 (25% absolute growth; supported by international expansion and product/service scaling).
• International revenue growth: project a 30% uplift in international revenue by 2025 driven by new market entries and localized service offerings.
• Profitability improvements: cost efficiency measures and innovation initiatives expected to raise net profit margin to 12% by 2025 (up from lower margins in prior years).
• Market reach: aim to enhance local support and awareness with a 25% annual increase in reach metrics (distribution, regional partners, and customer touchpoints).
• Compliance and safety: commitment to maintain a 100% compliance rate with local environmental standards across all operating jurisdictions.