Breaking Down Zhejiang Weixing Industrial Development Co., Ltd. Financial Health: Key Insights for Investors

Peek under the hood of Zhejiang Weixing Industrial Development Co., Ltd. with hard financials that matter to investors: 2024 revenue hit CNY 4.67 billion-up 19.66% year-over-year-and TTM revenue through Sept 30, 2025, sits at CNY 4.73 billion while TTM net income reached CNY 660.07 million (EPS 0.57), supported by a robust 42.5% gross profit margin and an operating margin near 17.3%; the balance sheet shows conservative leverage with a debt-to-equity ratio of 0.29, total debt of CNY 1.36 billion offset by CNY 1.33 billion cash (net debt ~ -CNY 28.86 million) and equity of CNY 4.69 billion, liquidity metrics include a current ratio of 1.37 and operating cash flow of CNY 1.09 billion (TTM) though free cash flow is modest at CNY 13.6 million, valuation multiples trade at a TTM P/E of 18.8, P/S 2.69 and EV/EBITDA 11.5 against a market cap of CNY 12.71 billion, while risks include a 52-week share decline of 15.73% and a low beta of 0.12-yet analysts forecast revenue and earnings growth of about 10% and 13.4% annually respectively, with international sales up ~25%, making the detailed breakdown that follows essential reading for anyone assessing risk, value, and growth potential

Zhejiang Weixing Industrial Development Co., Ltd. (002003.SZ) - Revenue Analysis

• 2024 revenue: CNY 4.67 billion, +19.66% vs 2023 (CNY 3.91 billion).
• TTM revenue (to 2025-09-30): CNY 4.73 billion, +3.16% YoY.
• TTM net income: CNY 660.07 million; TTM EPS: CNY 0.57.
• Workforce: 10,055 employees; revenue/employee ≈ CNY 470,095.
• Market cap: CNY 12.71 billion, implying a revenue multiple ~2.69x on TTM revenue (12.71 / 4.73 ≈ 2.69).

• 2024's sharp 19.66% growth signals either product mix improvement, pricing power or expanded volumes following more modest mid-cycle growth rates (7-8% in 2022-2023).
• TTM growth slowing to 3.16% suggests near-term headwinds or seasonality; compare growth inflection against margins and orders to assess sustainability.
• Revenue per employee (~CNY 470k) is a useful productivity benchmark versus peers in industrial/manufacturing segments to evaluate operational efficiency.

• Market cap-to-revenue (TTM) ≈ 2.69x; combined with TTM net income of CNY 660.07M this implies a trailing P/E of ~19.26 (12.71 bn / 0.66007 bn ≈ 19.26).
• EPS of CNY 0.57 should be tracked against forward guidance and capex plans to gauge earnings sustainability.

Zhejiang Weixing Industrial Development Co., Ltd. (002003.SZ) - Profitability Metrics

• Gross profit: CNY 2.01 billion on revenue of CNY 4.73 billion → Gross profit margin ≈ 42.5%.
• Operating income (TTM): CNY 819.68 million → Operating margin ≈ 17.3%.
• Net profit margin (TTM): 14.98% - indicates controlled costs and favorable bottom-line conversion.
• Return on equity (ROE): 14.85% - reflects efficient use of shareholders' equity to generate earnings.
• Return on assets (ROA): 7.58% - shows ability to generate profit from asset base.
• Return on invested capital (ROIC): 8.80% - demonstrates returns on deployed capital above typical cost of capital thresholds for mid-single-digit environments.

• Margins and returns indicate a business with robust pricing or favorable product mix (gross margin) and competent overhead control (operating and net margins).
• ROE and ROIC in the mid-teens and high single digits, respectively, point to reasonable capital efficiency for investors assessing comparative returns.

Zhejiang Weixing Industrial Development Co., Ltd. (002003.SZ) - Debt vs. Equity Structure

• Debt-to-equity ratio: 0.29 - reflects low leverage relative to equity.
• Interest coverage ratio: 26.16 - indicates robust ability to service interest from operating earnings.
• Total debt: CNY 1.36 billion.
• Cash and cash equivalents: CNY 1.33 billion, yielding a net debt of CNY -28.86 million (net cash position).
• Total equity: CNY 4.69 billion.
• Total liabilities: CNY 2.04 billion; total assets: CNY 6.73 billion, producing a debt-to-assets ratio ≈ 30.3%.
• Equity ratio: ≈ 69.7% - majority of assets financed by equity.

• Key takeaway for investors: low leverage, near net-cash balance sheet, and very high interest coverage reduce solvency risk and provide flexibility for investment or dividends.
• Watch for changes in cash balances, debt maturities, and operating earnings that could materially affect these ratios.

Zhejiang Weixing Industrial Development Co., Ltd. (002003.SZ) - Liquidity and Solvency

Key liquidity and solvency metrics for Zhejiang Weixing Industrial Development Co., Ltd. (002003.SZ) point to a company that can meet near-term obligations while showing mixed signals on free cash availability after investment. Below are the primary figures and their immediate implications.

• Current ratio: 1.37 - short-term assets exceed short-term liabilities by 37%.
• Quick ratio: 0.99 - nearly 1:1 coverage without inventory, indicating limited buffer when excluding inventory.
• Cash ratio: ~0.97 - cash and equivalents almost fully cover short-term liabilities on their own.
• Net working capital: CNY 1.08 billion - positive working capital supporting day-to-day operations.
• Operating cash flow (TTM): CNY 1.09 billion - strong cash generation from core operations over the trailing twelve months.
• Free cash flow (TTM): CNY 13.6 million - minimal cash left after capital expenditures, suggesting limited discretionary cash.

• Investor takeaway: operational cash generation is robust (CNY 1.09B TTM) but the slim free cash flow (CNY 13.6M TTM) and near-1 quick/cash ratios imply limited excess cash for debt reduction, dividends, or large strategic investments without relying on working capital or new financing.
• Watch items: capital expenditure trends (impacting FCF), seasonal working capital swings, and any upcoming debt maturities that could stress liquidity despite positive current metrics.

Further context on the company's background and business model: Zhejiang Weixing Industrial Development Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Zhejiang Weixing Industrial Development Co., Ltd. (002003.SZ) - Valuation Analysis

• TTM P/E: 18.80 - implies investors are willing to pay ¥18.80 for each yuan of trailing earnings; moderate relative to growth expectations.
• Forward P/E: 17.10 - a modest discount to TTM P/E, indicating expected earnings growth or easing of one-off impacts.
• P/S: 2.69 - the market values each yuan of revenue at ¥2.69, useful where margins vary across peers.
• P/B: 2.73 - market assigns ~2.7x to reported net assets, signaling a premium to book but not an extreme valuation.
• EV/EBITDA: 11.50 - reflects enterprise-level valuation relative to operating cash earnings; in line with many industrial peers.
• EV/Sales: 2.71 - similar to P/S, shows enterprise value per unit of revenue.
• EV/FCF: 78.63 - a high ratio, indicating either low free cash flow relative to enterprise value or near-term cash-generation pressure.

• Gap between EV/EBITDA (11.50) and EV/FCF (78.63) highlights possible working-capital or capex-driven cash strain despite accounting earnings.
• Forward P/E improvement to 17.10 suggests analyst expectations for earnings recovery or margin expansion; monitor guidance and quarterly beats/misses.
• P/B of 2.73 indicates some goodwill/intangible or return-on-equity premium priced in - compare to industry peers for context.
• Relative valuation versus peers: if peer EV/EBITDA materially diverges, it may reflect company-specific operational or balance-sheet risks.

Zhejiang Weixing Industrial Development Co., Ltd. (002003.SZ) - Risk Factors

• Market volatility: Beta = 0.12 - stock shows notably lower sensitivity to market movements, which can reduce downside in broad sell-offs but may limit upside in rallies.
• Share-price performance: 52-week change = -15.73% - a material decline that may reflect market concerns about growth, profitability, or sector dynamics.
• Short-term liquidity: Net working capital = CNY 1.08 billion - indicates adequate liquidity to meet near-term obligations and support operations.
• Cash generation vs. reinvestment: Operating cash flow (TTM) = CNY 1.09 billion; Free cash flow (TTM) = CNY 13.6 million - strong cash generation at the operating level but very limited residual cash after capex and investments, raising sensitivity to capital expenditure needs and investment programs.
• Capital structure: Debt-to-equity = 0.29 - conservative leverage, providing resilience against interest-rate shocks and financial distress, but potentially indicating under-levered balance sheet relative to growth opportunities.

• Operational risk: The gap between strong operating cash flow and low free cash flow suggests heavy capex, expansion spending, or working capital absorption-any increase in capex or a deterioration in receivables/inventory could compress free cash further.
• Market sentiment risk: The -15.73% 52-week decline can amplify reputational and financing costs if investor confidence weakens, even though leverage remains low.
• Liquidity and funding risk: CNY 1.08 billion NWC is positive, but limited free cash flow (CNY 13.6 million) reduces buffer for unexpected cash needs without tapping credit lines or issuing equity.
• Growth vs. returns trade-off: Conservative debt-to-equity (0.29) lowers solvency risk but may constrain return enhancement if management avoids accretive borrowing for expansion.
• Event risk: Low beta (0.12) implies muted market reaction historically, but company-specific events (loss of major customer, regulatory change, supply-chain shocks) could still cause outsized fundamental impact despite low market volatility.

Zhejiang Weixing Industrial Development Co., Ltd. (002003.SZ) - Growth Opportunities

• Forecasted revenue growth: 10.0% CAGR per annum.
• Forecasted earnings growth: 13.4% CAGR per annum; EPS growth: 12.5% per annum.
• TTM net income: CNY 660.07 million; TTM EPS: CNY 0.57.

• Market expansion: International sales increased by 25%, with notable traction in Southeast Asia and Europe, supporting top-line diversification.
• Operational efficiency: A 35% gross margin indicates strong cost controls and pricing power relative to peers.
• Scale and productivity: Revenue per employee ~CNY 470,095 across a workforce of 10,055 suggests scalable operations and room for margin leverage.
• Valuation and size: Market cap of CNY 12.71 billion provides access to capital markets and signal of established market presence.
• Profitability trajectory: TTM net income of CNY 660.07 million and forecasted EPS growth (12.5% p.a.) point to improving shareholder earnings.