Breaking Down Milkyway Chemical Supply Chain Service Co., Ltd. Financial Health: Key Insights for Investors

Investors looking for a data-driven snapshot of Milkyway Chemical Supply Chain Service Co., Ltd. will find striking signals: revenue surged to CNY 12.12 billion in 2024 (+24.26% YoY) and reached CNY 13.24 billion TTM as of Sept 30, 2025 (up 13.33% YoY), with H1 2025 revenue at CNY 7.04 billion (+17.4% YoY) and Q2 2025 at CNY 3.69 billion (+19.3% YoY); profitability metrics show 2024 net income of CNY 565.18 million (net margin ~4.7%), trailing EPS of CNY 3.55, an operating margin of 7.68% and ROE of 14.49%, while balance-sheet indicators reveal total debt of CNY 5.58 billion (debt/equity 1.07), cash of CNY 1.86 billion, an Altman Z-Score of 1.51 and a quick ratio of 0.54 - juxtaposed with valuation multiples that include a TTM P/E of 14.76, forward P/E 11.45, P/S 0.65 and EV/EBITDA of 8.91 - and growth catalysts such as expansion into Vietnam and Thailand, new-energy customers like BYD and Envision, and platform initiatives like 'Huayida' and 'Spirit Elements' that could influence future cash flow and risk profiles; read on for the full breakdown of these figures and what they mean for investor decision-making...

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS) - Revenue Analysis

• 2024 revenue: CNY 12.12 billion - +24.26% vs. 2023 (CNY 9.75 billion).
• H1 2025 revenue: CNY 7.04 billion - +17.4% year-on-year.
• Q2 2025 revenue: CNY 3.69 billion - +19.3% YoY versus Q2 2024.
• TTM revenue (as of Sep 30, 2025): CNY 13.24 billion - +13.33% YoY.
• Revenue per employee: ~CNY 3.22 million.
• Price-to-Sales (P/S) ratio: 0.65.

• Implication: revenue growth across periods plus ~CNY 3.22M revenue per employee indicates scalable revenue-generating operations; P/S of 0.65 signals a relatively low sales valuation versus peers.
• For company background and broader context, see: Milkyway Chemical Supply Chain Service Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS) - Profitability Metrics

Key profitability indicators for Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS) paint a picture of a capital-intensive logistics and supply-chain operator that is delivering steady earnings growth, disciplined cost management and reasonable margins for its industry profile.

• Net income (2024): CNY 565.18 million (up 31.04% vs. 2023: CNY 431.31 million)
• Net profit margin (2024): ~4.7%
• Diluted EPS (TTM ending 30‑Sep‑2025): CNY 3.55
• Operating margin (TTM): 7.68%
• Return on equity (ROE): 14.49%
• Gross margin (TTM): 11.61%

These metrics suggest Milkyway is converting revenue into operating profit at a mid-single-digit margin typical for logistics-heavy chemical supply chains, while delivering above-average returns on equity relative to many asset-heavy peers. For broader context on the company's strategy, history and how it generates revenue, see Milkyway Chemical Supply Chain Service Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS) - Debt vs. Equity Structure

• Total debt: CNY 5.58 billion.
• Implied shareholders' equity (derived from debt-to-equity = 1.07): CNY 5.21 billion (approx.).
• Debt-to-equity ratio: 1.07 - debt slightly exceeds equity.

• Liquidity profile: current ratio (1.14) suggests short-term assets modestly exceed short-term liabilities; quick ratio (0.54) signals reliance on inventory to meet near-term obligations.
• Interest burden: interest coverage of 6.62 indicates operating earnings cover interest expense multiple times, providing a cushion for debt servicing.
• Valuation context: EV/EBITDA of 8.91 and EV/Revenue of 0.95 show a moderate valuation relative to peers in capital-intensive logistics/chemical supply segments.

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS) - Liquidity and Solvency

Key metrics indicate the company's short-term liquidity and longer-term solvency profile, combining cash balances, cash flow performance and credit-risk signals.

• Cash and cash equivalents: CNY 1.86 billion - a liquid buffer for operations.
• Operating cash flow (TTM): CNY 1.58 billion - solid cash generation from operations.
• Free cash flow (TTM): CNY 905.20 million - cash available after capital expenditures.
• Altman Z-Score: 1.51 - elevated bankruptcy risk relative to the safe zone (>3).
• Piotroski F-Score: 5 - moderate financial strength across profitability, leverage/liquidity, and operating efficiency metrics.
• Net cash per share: CNY -23.51 - net debt position on a per-share basis.

Key considerations for investors:

• The company generates substantial operating cash flow and positive free cash flow, supporting operational needs and potential strategic actions.
• Despite cash generation, the negative net cash per share and an Altman Z-Score of 1.51 underscore leverage and bankruptcy-risk concerns that warrant monitoring.
• The Piotroski F-Score of 5 points to mixed fundamental strengths - some improving signals balanced by weaker areas.

For background on the company's strategy, ownership and operations, see: Milkyway Chemical Supply Chain Service Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS) - Valuation Analysis

• TTM P/E: 14.76 - current trailing earnings multiple.
• Forward P/E: 11.45 - implies potential upside if forward estimates materialize.
• P/B: 1.59 - the stock trades at a premium to book value, suggesting some intangible or future-earnings premium priced in.
• EV/EBITDA: 8.91 - relatively conservative enterprise valuation versus operating cash profitability.
• EV/Revenue: 0.95 - nearly 1x revenue valuation, signaling modest revenue-based valuation.
• PEG: 0.91 - below 1.0, indicating valuation may be attractive relative to expected earnings growth.
• Dividend yield: 1.32% with payout ratio: 62.53% - a moderate yield with a majority-of-earnings distribution approach.

Key implications for investors:

• The gap between TTM P/E (14.76) and forward P/E (11.45) signals either anticipated earnings improvement or analyst optimism priced into forward estimates.
• A PEG of 0.91 supports the view that the stock may be undervalued on a growth-adjusted basis, especially when combined with sub-9x EV/EBITDA.
• P/B at 1.59 warrants checking balance-sheet asset quality and intangible assets driving the premium.
• The 62.53% payout ratio implies dividends are meaningful but could be pressured by earnings volatility; yield is modest at 1.32%.

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS) - Risk Factors

Key quantitative indicators highlight elevated financial risk and operational sensitivities for Milkyway Chemical Supply Chain Service Co., Ltd. Investors should weigh the following metrics and contextual industry exposures when assessing investment risk.

• Altman Z-Score: 1.51 - indicates higher bankruptcy risk versus healthy firms (scores > 3).
• Debt-to-Equity Ratio: 1.07 - reflects relatively high leverage; debt slightly exceeds equity.
• Quick Ratio: 0.54 - current liquid assets (ex-inventory) cover just over half of short-term liabilities.
• Piotroski F-Score: 5 - moderate financial strength with room for improvement across profitability, leverage, liquidity and operating efficiency signals.
• Net Cash per Share: CNY -23.51 - net debt position on a per-share basis, indicating reliance on borrowed capital.
• Industry Cyclicality: exposure to fluctuating demand in chemical logistics can depress revenue and margins during downturns.

Risk drivers to monitor include liquidity trends, leverage reduction or refinancing activity, earnings volatility tied to chemical shipping and storage demand, and any material changes in working capital or inventory management. For a broader corporate context, see: Milkyway Chemical Supply Chain Service Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Milkyway Chemical Supply Chain Service Co., Ltd. (603713.SS) - Growth Opportunities

• Geographic expansion: investments and setups in Southeast Asia (Vietnam, Thailand) and initial presence in the U.S. to extend cross-border logistics, warehousing and chemical distribution capabilities.
• New-energy customer wins: onboarding major industry players including BYD, Envision Energy and Jingke Energy Storage to provide raw materials, logistics and supply-chain services supporting battery and wind industries.
• Deepened petrochemical relationships: expanded services for CNOOC Shell, Mobil and CNNC Optoelectronics across storage, transportation and distribution channels.
• Sector diversification into high-margin industries: entry into semiconductor and pharmaceutical supply chains via customers such as Nikon Precision and Sandia, enabling higher-value, compliance-driven service lines.
• Digital platform innovation: launch and iterative development of online platforms - 'Huayida' and 'Spirit Elements' - to improve inventory turns, pricing transparency and order fulfillment speed.
• Domestic scale via clusters: planned build-out of seven business clusters across China to concentrate assets, customers and specialized capabilities (new energy, new materials, fine chemicals).

• Operational implications: cluster and regional investments typically require upfront capex (warehousing, tanks, IT), but raise lifetime customer stickiness and enable cross-selling across sectors.
• Revenue mix shift: onboarding large new-energy and semiconductor customers can increase average contract size and extend contract tenors, improving recurring revenue visibility.
• Platform benefits: 'Huayida' and 'Spirit Elements' aim to reduce DSO and inventory days; even modest improvements (e.g., single-digit days reduction) materially improve free cash flow in distribution-heavy models.
• Risk considerations: international expansions and sector entry demand compliance, safety investments and localized supply chains; successful execution is key to realizing projected margin uplifts.