Breaking Down China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. Financial Health: Key Insights for Investors

Investors weighing China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (000758.SZ) will want to scrutinize a string of hard facts: quarterly revenue dropped to CNY 1.64 billion (a 17.84% decline year‑over‑year), TTM revenue sits at CNY 8.90 billion (down 11.92% Y/Y) while TTM net income is CNY 546.53 million for a net margin of 6.14% and EPS of CNY 0.27; liquidity and leverage show a current ratio 1.25, quick ratio 0.58, debt/equity 0.51 and a net cash position of -CNY 1.60 billion, and valuation metrics include EV CNY 17.72 billion with EV/EBITDA 37.12 and a TTM P/E of 23.77 (market cap reported between CNY 11.88-12.68 billion), so read on to parse how these figures across revenue, profitability, debt structure and valuation translate into risks and opportunities for shareholders.

China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. (000758.SZ) - Revenue Analysis

• Quarter (ending Sep 30, 2025) revenue: CNY 1.64 billion, down 17.84% year-over-year.
• Trailing twelve months (TTM) revenue: CNY 8.90 billion, down 11.92% year-over-year.
• Full-year 2024 revenue: CNY 8.92 billion, a decline of 4.74% versus 2023.
• Revenue per employee: ~CNY 1.81 million, with total employees at 4,911.
• Market capitalization: CNY 11.88 billion; price-to-sales (P/S) ratio: 1.33.
• Operating segments: Non-Ferrous Metal Mining and Smelting; Contracting Engineering; Manufacturing and Trading.

• Segment mix implications: Revenue pressure in mining/smelting or contracting will disproportionately affect margins and working capital needs depending on project timing and metal prices.
• Productivity lens: CNY 1.81 million revenue per employee is a useful benchmark vs peers in engineering/construction and smelting to assess labor efficiency and capital intensity.
• Valuation context: P/S of 1.33 implies the market values the company at ~1.33 times trailing sales - compare to sector averages for relative cheapness/expensiveness.
• Investor considerations: monitor quarterly order intake in Contracting Engineering and metal price trends affecting Non-Ferrous Metal Mining and Smelting.

China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. (000758.SZ) - Profitability Metrics

Key profitability indicators for China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. (000758.SZ) provide a snapshot of operational efficiency and shareholder returns. The following figures reflect the company's recent performance and trends relevant to investors assessing earnings quality and margin stability.

• Trailing twelve months (TTM) net income: CNY 546.53 million
• TTM earnings per share (EPS): CNY 0.27
• Net profit margin (TTM): ~6.14%
• Return on equity (ROE): 6.56%
• Gross profit margin: 15.47%
• Operating margin: 8.01%
• Operating profit (2023): CNY 806.56 million (increase of CNY 328.83 million vs. 2020)
• Reported average annual earnings growth rate: 72.3%

The interplay between margins and growth highlights both operational efficiency and momentum in earnings expansion. Investors should consider how the 15.47% gross margin and 8.01% operating margin convert into the reported 6.14% net margin and the 6.56% ROE, given the company's capital structure and non-operating items.

• Margin profile: healthy gross margin but compression toward net margins suggests notable operating and non-operating costs.
• Profitability vs. growth: a 72.3% average annual earnings growth rate indicates high historical earnings acceleration, which should be validated for sustainability.
• Operating leverage: the CNY 328.83 million jump in operating profit from 2020 to 2023 signals improved operational scale or mix.
• Per-share outcomes: EPS of CNY 0.27 ties directly to valuation multiples and dividend capacity analysis.

For broader investor context and ownership trends, see: Exploring China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. Investor Profile: Who's Buying and Why?

China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. (000758.SZ) - Debt vs. Equity Structure

• Debt-to-Equity Ratio: 0.51 - a balanced capital structure that leans modestly toward equity but uses meaningful debt financing.
• Current Ratio: 1.25 - indicates adequate short-term liquidity overall.
• Quick Ratio: 0.58 - signals potential difficulty meeting immediate liabilities without relying on inventory conversion.
• Interest Coverage Ratio: 1.76 - operating income covers interest expenses, but margin for stress is limited.
• Net Cash Position: -CNY 1.60 billion - more debt than cash on hand, i.e., a net debt position.
• Enterprise Value (EV): CNY 17.72 billion with EV/EBITDA of 37.12 - implies a high market valuation relative to recurring operating earnings.

• Liquidity balance: current ratio suggests working-capital sufficiency, but quick ratio highlights reliance on inventory turnover.
• Leverage and solvency: 0.51 D/E and interest coverage of 1.76 indicate manageable but not comfortable cushion against earnings shocks.
• Valuation risk: EV/EBITDA of 37.12 points to rich valuation; earnings compression would pressure the share price more than for lower-multiple peers.
• Net debt: -CNY 1.60 billion net cash position (i.e., net debt) increases sensitivity to rising interest rates or tighter credit conditions.

China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. (000758.SZ) - Liquidity and Solvency

• Current ratio 1.25 - short-term assets exceed short-term liabilities but offer limited cushion versus volatility.
• Quick ratio 0.58 - reliance on inventory or other non-liquid assets to meet near-term obligations; potential strain if receivables or inventory turn slow.
• Interest coverage 1.76 - operating income covers interest expense by less than two times, indicating sensitivity to earnings declines or rate increases.
• Debt-to-equity 0.51 - moderate leverage signaling a balanced financing mix; not overly aggressive but debt is material.
• Net cash -CNY 1.60 billion - negative cash position implies more outstanding debt than cash on hand, increasing refinancing and liquidity risk.
• ROA 0.66% - low asset efficiency; large asset base generating modest returns, which can pressure ability to grow earnings without asset optimization.

China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. (000758.SZ) - Valuation Analysis

• TTM Price-to-Earnings (P/E): 23.77 - suggests investors are paying ~24x trailing earnings.
• Price-to-Book (P/B): 1.35 - market values the company at 1.35× book equity.
• Enterprise Value (EV): CNY 17.72 billion with EV/EBITDA of 37.12 - EV implies significant valuation relative to operating cash profits.
• Market Capitalization: CNY 12.68 billion - equity market value.
• Price-to-Sales (P/S): 1.33 - investors pay 1.33× annual revenue.
• Price-to-Free-Cash-Flow (P/FCF): 35.86 - free cash flow is valued at ~36×.

China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. (000758.SZ) - Risk Factors

• Leverage: debt-to-equity ratio at 0.51 implies moderate leverage but meaningful debt obligations relative to equity.
• Liquidity strain: quick ratio of 0.58 points to limited immediate liquid resources to cover short-term liabilities without relying on inventory sales.
• Negative net cash: a net cash position of -CNY 1.60 billion signals more borrowings than cash and equivalents on the balance sheet.
• Interest burden: interest coverage ratio of 1.76 suggests operating income covers interest expense only by a relatively thin margin.
• Revenue contraction: quarter ending 30 Sep 2025 revenue fell 17.84% year-over-year, indicating demand or execution pressures.
• Margin pressure: gross profit margin at 15.47% and operating margin at 8.01% may reflect cost pressures, lower pricing power, or inefficiencies.

• Refinancing and interest-rate risk: negative net cash and only 1.76x interest coverage raise vulnerability if rates rise or credit markets tighten.
• Working capital and covenant risk: quick ratio below 1 increases the chance of strained vendor or creditor relationships and potential covenant breaches.
• Revenue volatility: a 17.84% YoY quarterly revenue decline may reflect contract delays, reduced project awards, or lower commodity-driven demand.
• Margin compression: gross margin of 15.47% and operating margin of 8.01% limit the firm's ability to absorb cost shocks without profit erosion.
• Execution risk on large projects: moderate leverage combined with declining revenues heightens the impact of cost overruns or payment delays on financial stability.

China Nonferrous Metal Industry's Foreign Engineering and Construction Co.,Ltd. (000758.SZ) - Growth Opportunities

• Average annual earnings growth rate: 72.3% over recent years, indicating rapid profit expansion that can support reinvestment and strategic initiatives.
• Operating profit (2023): CNY 806.56 million - up by ~CNY 328.83 million versus 2020, reflecting improving core profitability in operating activities.
• Segment diversification: Non-Ferrous Metal Mining and Smelting, Contracting Engineering, and Manufacturing and Trading - providing multiple, partially uncorrelated revenue streams.
• Market capitalization: CNY 11.88 billion with a P/S ratio of 1.33, suggesting the market is pricing growth but still leaves room for re-rating if top-line momentum continues.
• Return on equity (ROE): 6.56% - a base for potential improvement through margin expansion, asset optimization, or capital structure adjustments.
• Enterprise value (EV): CNY 17.72 billion and EV/EBITDA: 37.12 - a valuation that signals expectations for future earnings growth and opportunities for value creation if EBITDA scales.

• Scaling higher-margin engineering and contracting backlog while improving execution efficiency.
• Expanding manufacturing and trading channels to capture downstream margins and recurring revenues.
• Prudent capital allocation to raise ROE above current 6.56% through buybacks, dividend policy, or selective M&A.
• Cost and working-capital optimization to convert strong earnings growth into sustainable free cash flow.