Breaking Down Shenzhen Agricultural Products Group Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven snapshot of Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ): with 2024 revenue of CNY 5.63 billion (up 2.51% from CNY 5.49 billion) and TTM revenue per share of CNY 4.13, the company posted TTM gross profit of CNY 1.46 billion for a 20.87% gross margin while TTM net profit margin slid to 6.83% from 8.18% in 2023; profitability shows EPS CNY 0.20 with a P/E of 47.07 and operating margin at 10.91%, even as the latest quarter revenue jumped 22.45% year-over-year to CNY 1.71 billion but net income fell 26.96% to CNY 73.36 million-capital structure reveals total debt of CNY 6.88 billion against total equity of CNY 10.99 billion (debt-to-equity 62.62%, net debt-to-equity 56.4%) while market cap reached CNY 18.32 billion (a 63.34% one-year gain) and enterprise value stands at CNY 24.85 billion; liquidity and cash dynamics are striking-current ratio at 61.10% with a net quarterly cash increase of CNY 1.42 billion and a cash flow margin of 2,105.72%-set against WACC of 7.6%, P/B of 1.75, modest dividend yield of 0.81% (forward CNY 0.28), and clear risk vectors including regulatory exposure, competitive pressures, seasonality and elevated leverage that investors must weigh as growth opportunities in digital logistics, regional expansion and traceability technologies promise operational upside

Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ) - Revenue Analysis

Shenzhen Agricultural Products Group Co., Ltd. reported steady top-line growth with revenue of CNY 5.63 billion in 2024, up 2.51% from CNY 5.49 billion in 2023. Recent quarterly results and trailing twelve-month (TTM) metrics show accelerating momentum driven by both volume and price mix improvements.

• 2024 total revenue: CNY 5.63 billion (▲2.51% vs. 2023 CNY 5.49 billion)
• Revenue per share (TTM): CNY 4.13
• Quarterly revenue growth (most recent TTM quarter): 21% year-over-year
• Gross profit (TTM): CNY 1.46 billion; Gross margin: 20.87%
• Latest quarter (ending Sep 2025) revenue: CNY 1.71 billion (▲22.45% YoY)
• Market capitalization (12-Dec-2025): CNY 18.32 billion (▲63.34% over past year)
• Enterprise value: CNY 24.85 billion

Key revenue drivers and considerations:

• Stronger retail and wholesale channels lifting quarterly sales, reflected in two consecutive high-single/low-double-digit YoY gains.
• Improved product mix and yield management supporting a TTM gross margin of 20.87% despite commodity cost pressure.
• Revenue-per-share of CNY 4.13 underscores per-share top-line improvement and dilution dynamics.
• Market valuation expansion (market cap +63.34% YoY) and enterprise value of CNY 24.85 billion indicate investor confidence in future revenue trajectory.

Related corporate context: Mission Statement, Vision, & Core Values (2026) of Shenzhen Agricultural Products Group Co., Ltd.

Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ) - Profitability Metrics

• Net profit margin (TTM): 6.83% (down from 8.18% in 2023)
• Earnings per share (TTM): CNY 0.20; Price-to-earnings (P/E) ratio: 47.07
• Return on assets (ROA): 2.11%
• Return on equity (ROE): 5.12%
• Operating margin: 10.91%
• Latest quarter net income: CNY 73.36 million (-26.96% vs. same quarter last year)
• Dividend yield: 0.81%; Forward annual dividend rate: CNY 0.28 per share

• Profitability context: Operating margin (10.91%) suggests the business generates healthy operating earnings relative to revenue, but the fall in net profit margin (6.83% TTM from 8.18% in 2023) and the quarterly net income decline (-26.96%) point to rising non-operating costs, tax, interest expense, or one-off items reducing bottom-line results.
• Returns and capital efficiency: ROA of 2.11% and ROE of 5.12% signal modest returns on assets and equity; investors should compare these with peers in agro-products and distribution to assess competitive positioning.
• Valuation and payout: EPS of CNY 0.20 and a P/E of 47.07 imply market optimism or limited near-term earnings visibility; dividend yield (0.81%) and CNY 0.28 forward dividend provide some income but are modest relative to total return expectations.

Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ) - Debt vs. Equity Structure

• Total debt (latest quarter): CNY 6.88 billion.
• Total equity (latest quarter): CNY 10.99 billion.
• Total debt-to-equity ratio: 62.62% (moderate leverage).
• Net debt-to-equity ratio: 56.4% (relatively high - substantial reliance on debt financing).
• Interest coverage (EBIT / interest): 17.6x (EBIT comfortably covers interest expenses).
• Five-year trend: reported reduction in debt-to-equity from 98.4% to 73.2%, indicating deleveraging over time.

• Implications for liquidity and risk: with CNY 6.88 bn debt vs CNY 10.99 bn equity, the company retains an equity buffer, but a net-debt ratio of 56.4% signals material leverage after cash adjustments.
• Coverage and servicing: a 17.6x interest coverage ratio reduces short-term default risk and supports capacity to service borrowing under current earnings.
• Trend analysis: the multi-year decline from 98.4% toward lower leverage (73.2%) demonstrates management focus on deleveraging, though current reported ratios (62.62% total, 56.4% net) show continued reliance on debt funding.

Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ) - Liquidity and Solvency

Key balance-sheet and cash-flow metrics for Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ) highlight a mix of liquidity constraints on the short-term side and strong cash-generation metrics year-over-year.

• Current ratio: 61.10% (below the 100% industry benchmark, indicating potential short-term liquidity pressure)
• Quick ratio: not specified; likely similar to the current ratio, implying limited immediate liquid-asset coverage of short-term liabilities
• Cash ratio: not provided; latest-quarter net change in cash: CNY 1.42 billion, a 1,393.28% YoY increase
• Total assets: CNY 23.90 billion
• Total liabilities: CNY 12.91 billion
• Cash flow margin: 2,105.72% (very high, reflecting exceptional cash relative to reported revenue for the period)
• Operating cash flow (OCF) YoY growth: 33.28% (improved operational cash generation)

Investor implications and directional considerations:

• Short-term liquidity risk: current ratio at 61.10% suggests the company may face challenges meeting near-term obligations without relying on cash generation or financing.
• Offsetting strength from cash flow: a CNY 1.42 billion increase in cash (latest quarter) and a 2,105.72% cash flow margin plus 33.28% OCF growth reduce refinancing urgency if sustainable.
• Balance-sheet cushion: total assets (CNY 23.90 billion) exceed total liabilities (CNY 12.91 billion), providing solvency headroom despite low short-term liquidity ratios.
• Monitoring items: verify recurring nature of elevated cash flow margin, confirm quick/cash ratios when disclosed, and track working-capital drivers that depress the current ratio.

Additional context on corporate purpose and long-term orientation can be found here: Mission Statement, Vision, & Core Values (2026) of Shenzhen Agricultural Products Group Co., Ltd.

Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ) - Valuation Analysis

• WACC at 7.6% sets the baseline discount rate for DCF analyses - use 9.80% for equity cash flows if isolating shareholder returns.
• P/B of 1.75x signals a premium to net asset value; compare against sector peers to assess whether premium is justified by margins or growth.
• P/E at 47.07x is elevated; check trailing vs. forward EPS, one-off items, and earnings momentum to judge sustainability.
• Dividend yield (0.81%) indicates a conservative distribution policy - investors seeking income may find yield insufficient.
• Market cap growth of 63.34% over the past year implies either earnings improvement, multiple expansion, or both - decompose via EV/EBITDA and revenue/EBITDA growth analysis.

• To derive EV/EBITDA: obtain current Enterprise Value (market cap + net debt) and divide by trailing or forward EBITDA. Use the result to compare valuation against domestic and regional food/agri peers.
• Sensitivity: run DCF scenarios with WACC at 7.6% base, ±1.0% shifts, and alternative terminal growth rates to see implied fair-value ranges given the current high P/E.

Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ) - Risk Factors

• Regulatory risk: Exposure to changes in Chinese agricultural policy, subsidy adjustments, and tightening food safety rules can directly affect margin profiles and operating cost structures.
• Competitive pressure: Traditional wholesale markets, regional rivals and fast-growing e-commerce fresh-produce platforms intensify price and margin competition.
• Macroeconomic cyclicality: Agricultural demand and pricing are sensitive to economic cycles, consumer confidence and disposable income trends-leading to volatility in revenue and gross margins.
• Operational concentration: Dependence on seasonal harvests and specific regional supply basins increases vulnerability to weather events, disease outbreaks and logistics interruptions.
• Leverage and liquidity: Elevated leverage and a current ratio below 1.0 (below 100%) heighten refinancing, interest-rate and short-term cash-flow risks during downturns.

• Food-safety and compliance costs: Ad hoc recalls, upgraded traceability systems or fines can cause one-off expenses and reputational damage.
• Supply-chain disruptions: Port/logistics delays, regional flooding or producer-side shocks (pest, disease) can impair throughput and increase waste/markdowns.
• Refinancing risk: With debt-to-equity near the levels above and a current ratio below 1.0, the company may face higher borrowing costs or covenant pressure if profits decline.
• Market-share erosion: Faster, lower-cost digital platforms could capture urban consumer demand, pressuring Shenzhen Agricultural Products Group's traditional wholesale channels.

Shenzhen Agricultural Products Group Co., Ltd. (000061.SZ) - Growth Opportunities

• Regional expansion: rollouts into adjacent Guangdong-Hong Kong-Macao Greater Bay Area cities and second-tier Chinese cities to increase market reach and retailer network density.
• Digital & logistics enhancements: investment in cold-chain warehouses, last-mile fleet upgrades, and logistics orchestration platforms aimed at cutting lead times and shrinkage.
• Eco-friendly practices: supplier certification, recyclable packaging pilots, and energy-efficient facilities to boost brand trust among urban consumers.
• E-commerce & platform play: integration of agricultural product e-commerce channels and B2B/B2C digital marketplaces to modernize traditional wholesale flows.

• Delivery time reduction: partnerships with distribution networks target a 30% cut in average delivery time to retailers (e.g., from 10 hours to ~7 hours for regional routes).
• Traceability & trust: implementation of end-to-end traceability systems and blockchain-enabled batch tracking to reduce food-safety incidents and related recalls by an estimated 40% for traceable SKUs.
• Efficiency gains: smart logistics (route optimization, IoT temperature monitoring) forecast to lower cold-chain spoilage by 12-18% and increase on-time fulfillment by 15-25%.
• Customer base expansion: sustainability and e-commerce initiatives expected to lift repeat retail customer rate by 8-15% over 24 months.