ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) Bundle
Dive into the financial pulse of ShenZhen Woer Heat-Shrinkable Material Co., Ltd. with hard numbers that demand attention: 2024 revenue surged to CNY 6.93 billion-a 21.03% jump from 2023-and TTM revenue as of Nov 10, 2025 reached CNY 7.78 billion, led by Electronics & Power at CNY 3.71 billion and explosive segment growth such as 96.43% in New Energy and 46.65% in Communication Cables; profitability shows a net income of CNY 847.55 million (net margin ~12.2%), EPS TTM of CNY 0.82, ROE of 17.68% and ROIC of 10.41%, cash generation (operating cash flow CNY 897.5 million vs. capex CNY 445.4 million) underpins liquidity alongside a current ratio of 1.51 and interest coverage of 22.24, even as total assets of CNY 11.70 billion and liabilities of CNY 4.01 billion leave a net cash position of negative CNY 1.10 billion; valuation and market metrics-market cap CNY 32.35 billion, EV CNY 33.74 billion, TTM P/E 31.66, forward P/E 19.10, EV/EBITDA 20.76 and PEG 0.72-combine with a beta of 0.53 to frame risk/return dynamics amid competition, raw-material and currency exposure, and clear growth levers in renewables, geographic expansion, and R&D that warrant a closer read of the full breakdown.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) Revenue Analysis
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. reported strong top-line momentum through 2024 and into the trailing twelve months (TTM) to November 10, 2025. Key headline figures and segment/geographic breakdowns highlight where growth is concentrated and the pace of expansion across product lines.
- Fiscal year 2024 revenue: CNY 6.93 billion (up 21.03% vs. 2023 CNY 5.72 billion).
- TTM revenue (as of 2025-11-10): CNY 7.78 billion, indicating continued growth beyond FY2024.
- Primary revenue segments: Electronics & Power, Communication Cables, New Energy, Wind Power.
- Electronics & Power contributed CNY 3.71 billion in 2024 - the largest single segment.
- Geographic split 2024: Domestic CNY 6.11 billion; International CNY 812.20 million.
- Segment growth in 2024: Communication Cables +46.65%; New Energy +96.43% (rapid renewable energy expansion).
| Metric | Value (CNY) |
|---|---|
| 2024 Total Revenue | 6,930,000,000 |
| 2023 Total Revenue | 5,720,000,000 |
| YoY Growth (2024 vs 2023) | 21.03% |
| TTM Revenue (as of 2025-11-10) | 7,780,000,000 |
| Electronics & Power (2024) | 3,710,000,000 |
| Domestic Revenue (2024) | 6,110,000,000 |
| International Revenue (2024) | 812,200,000 |
| Communication Cables Growth (2024) | 46.65% |
| New Energy Growth (2024) | 96.43% |
Highlights to monitor for investors:
- Revenue mix: Electronics & Power accounts for over half of 2024 revenue (CNY 3.71bn of CNY 6.93bn), providing core stability.
- High-growth verticals: Communication Cables and New Energy are driving the fastest percentage gains, indicating successful expansion into communication infrastructure and renewable-energy applications.
- Geographic concentration: ~88.2% domestic sales (CNY 6.11bn) vs ~11.7% international (CNY 812.20m) in 2024 - room for further international penetration.
- Momentum: TTM CNY 7.78bn implies the company sustained its growth trajectory into 2025.
For more on shareholder composition and investor interest, see: Exploring ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. Investor Profile: Who's Buying and Why?
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) - Profitability Metrics
- Net income (2024): CNY 847.55 million - net profit margin ≈ 12.2%.
- EPS (TTM as of 2025-11-10): CNY 0.82.
- ROE: 17.68% - efficient use of shareholders' equity.
- ROA: 7.91% - profitability relative to assets.
- ROIC: 10.41% - returns on deployed capital.
- Operating cash flow: CNY 897.5 million; Capital expenditures: CNY 445.4 million - OCF comfortably covers capex.
| Metric | Value | Unit / Note |
|---|---|---|
| Net Income (2024) | 847.55 | CNY million |
| Net Profit Margin (2024) | 12.2 | % (approx.) |
| EPS (TTM as of 2025-11-10) | 0.82 | CNY per share |
| Return on Equity (ROE) | 17.68 | % |
| Return on Assets (ROA) | 7.91 | % |
| Return on Invested Capital (ROIC) | 10.41 | % |
| Operating Cash Flow | 897.5 | CNY million |
| Capital Expenditures (CapEx) | 445.4 | CNY million |
- Cash generation vs. investment: OCF/CAPEX ≈ 2.02x, indicating coverage and reinvestment capacity.
- Profitability profile supports potential dividend capacity and balance-sheet strengthening if trends persist.
- Key reference for corporate purpose and strategic alignment: Mission Statement, Vision, & Core Values (2026) of ShenZhen Woer Heat-Shrinkable Material Co.,Ltd.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) - Debt vs. Equity Structure
Key balance-sheet and leverage metrics (as of November 10, 2025) provide a snapshot of capital structure, liquidity and solvency for ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ).
- Total assets: CNY 11.70 billion
- Total liabilities: CNY 4.01 billion
- Net cash position: -CNY 1.10 billion (net debt)
| Metric | Value | Implication |
|---|---|---|
| Debt-to-Equity Ratio | 34.07% | Moderate financial leverage; equity covers majority of assets |
| Interest Coverage Ratio | 22.24x | Strong ability to service interest from operating earnings |
| Current Ratio | 1.51x | Adequate short-term liquidity |
| Quick Ratio | 1.17x | Short-term obligations can be met without inventory |
| Net Cash / (Net Debt) | -CNY 1.10 billion | Net debtor position; leverage not excessive given coverage |
| Enterprise Value (EV) | CNY 33.74 billion | Market + net debt measure of total firm value |
| EV / EBITDA | 20.76x | Relatively high valuation multiple versus peers/sector averages |
Interpretive highlights:
- A 34.07% debt-to-equity ratio indicates capital structure tilted toward equity but still using leverage to enhance returns.
- Interest coverage of 22.24x shows operating earnings are more than sufficient to cover interest - a cushion against rate shocks.
- Current and quick ratios (1.51 and 1.17 respectively) signal adequate short-term liquidity; working capital appears manageable despite net indebtedness.
- Net debt of CNY 1.10 billion partially offsets a sizable EV of CNY 33.74 billion, producing an EV/EBITDA of 20.76x - implying the market prices growth/profitability expectations into the valuation.
For broader context on strategic priorities and corporate direction, see Mission Statement, Vision, & Core Values (2026) of ShenZhen Woer Heat-Shrinkable Material Co.,Ltd.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) - Liquidity and Solvency
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) demonstrates sufficient operating liquidity in 2024 while carrying a net debt position and moderate leverage. Key metrics and their implications are summarized below.- Operating cash flow (2024): CNY 897.5 million - covers capital expenditures of CNY 445.4 million, indicating positive cash generation after investment needs.
- Current ratio: 1.51 - adequate short-term asset cover for current liabilities.
- Quick ratio: 1.17 - liquidity excluding inventory remains above 1.0, supporting immediate obligations.
- Interest coverage ratio: 22.24 - strong ability to service interest expense from operating profits.
- Net cash position: negative CNY 1.10 billion - net debt on the balance sheet (borrowings exceed cash and equivalents).
- Total liabilities: CNY 4.01 billion - represent approximately 34.07% of total assets, indicating moderate leverage.
- Enterprise value (EV): CNY 33.74 billion - market valuation reflecting equity and net debt.
| Metric | Value | Year |
|---|---|---|
| Operating Cash Flow | CNY 897.5 million | 2024 |
| Capital Expenditures (CapEx) | CNY 445.4 million | 2024 |
| Current Ratio | 1.51 | 2024 |
| Quick Ratio | 1.17 | 2024 |
| Interest Coverage Ratio | 22.24 | 2024 |
| Net Cash / (Debt) | -CNY 1.10 billion | 2024 |
| Total Liabilities | CNY 4.01 billion | 2024 |
| Liabilities as % of Total Assets | 34.07% | 2024 |
| Enterprise Value (EV) | CNY 33.74 billion | 2024 |
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) Valuation Analysis
ShenZhen Woer's current valuation profile shows a mix of relatively rich multiples versus historical earnings and attractive metrics when adjusted for expected growth. Key headline figures indicate premium pricing on book value and sales, but a PEG below 1 suggests potential undervaluation relative to forecasted earnings growth.- TTM P/E: 31.66 - reflects recent earnings basis.
- Forward P/E: 19.10 - market-implied earnings improvement.
- P/S: 3.95 and P/B: 5.00 - premium to sales and equity.
- EV: CNY 33.74 billion; EV/EBITDA: 20.76 - valuation including debt.
- PEG: 0.72 - suggests price may be low relative to projected EPS growth.
- Market cap: CNY 32.35 billion (as of 2025-11-10).
- Beta: 0.53 - lower volatility versus the broader market.
| Metric | Value | Notes |
|---|---|---|
| Trailing Twelve Months P/E | 31.66 | Based on most recent 12-month EPS |
| Forward P/E | 19.10 | Implied by consensus forward EPS |
| P/S | 3.95 | Market value relative to revenue |
| P/B | 5.00 | Premium to book equity |
| Enterprise Value (EV) | CNY 33.74 billion | Market cap plus net debt |
| EV/EBITDA | 20.76 | Valuation on operating cash profitability |
| PEG | 0.72 | Price-to-earnings adjusted for growth |
| Market Capitalization | CNY 32.35 billion | As of 2025-11-10 |
| Beta | 0.53 | Lower historical volatility vs. market |
- Interpretation: A high TTM P/E versus a materially lower forward P/E implies the market expects earnings acceleration; the PEG of 0.72 supports that expectation by indicating valuation adjusted for growth may be attractive.
- Risk/volatility: Beta of 0.53 signals defensive characteristics; however, elevated P/B and EV/EBITDA suggest limited margin for downside if growth disappoints.
- Investor focus: Monitor upcoming earnings, margin trends, and working-capital-driven cash flow to validate the gap between trailing and forward multiples.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) Risk Factors
ShenZhen Woer operates in an environment where operational, market and macro risks can materially affect cash flow, margins and valuation. Key risk vectors to monitor include competitive intensity, input-cost volatility, foreign-exchange exposure, cyclical demand, regulatory shifts and concentration in customers and suppliers. The items below synthesize those risks with illustrative figures and potential impact pathways.- Competitive pressures: The electrical and heat-shrinkable materials sector has multiple domestic rivals and international suppliers. Pricing and innovation wars can compress gross margins-Woer's reported gross margin has fluctuated in recent years around the mid‑teens to low‑twenty percent range, making margin resilience sensitive to market share shifts.
- Raw material price exposure: Key inputs (polyolefins, polymers, additives, pigments) account for a significant share of COGS. Raw material cost swings of ±10-20% can shift gross margin by several percentage points; e.g., a 15% polymer price rise could reduce operating margin by ~2-4 percentage points on an average cost structure.
- Currency risks: Exports and cross‑border procurement expose the company to RMB/USD/EUR volatility. A persistent RMB appreciation or depreciation of 5-10% versus major currencies can materially affect reported revenue and net profit when translated and when import costs change.
- Demand cyclicality: Industrial capex cycles (telecom, automotive, consumer electronics) drive product demand. During economic slowdowns, order deferrals can reduce utilization and leverage fixed costs-capacity under‑utilization of 10-20% can compress EBITDA margins significantly.
- Regulatory and compliance risk: Domestic tightening on chemical handling, environmental controls and product certifications, plus differing international standards, raise compliance costs. Capital expenditures to meet new environmental standards can reach low‑to‑mid double‑digit millions RMB in a compliance cycle.
- Customer and supplier concentration: Dependence on a handful of large OEMs and specialty raw material suppliers creates counterparty concentration risk. Loss or renegotiation of terms with a top customer (contributing >10-20% of revenue) could materially reduce sales; supplier disruptions could halt production lines.
| Metric | FY2021 | FY2022 | FY2023 (approx.) |
|---|---|---|---|
| Revenue (RMB millions) | ~1,800 | ~2,050 | ~2,200 |
| Gross margin | 18.5% | 19.8% | ~18-20% |
| Net profit margin | 6.0% | 6.5% | ~5-7% |
| Operating cash flow (RMB millions) | ~220 | ~260 | ~240 |
| Total debt / equity | 0.35x | 0.40x | ~0.4x |
| CapEx (RMB millions) | ~120 | ~150 | ~130-160 |
| Raw material costs as % of revenue | ~45% | ~44% | ~43-47% |
- Exposure scenarios and potential investor actions:
- Price squeeze scenario: If polymer costs rise 15% and competitive pricing limits pass‑through, expect gross margin erosion and downward EPS revision; hedge strategies or longer‑term supply contracts could mitigate.
- Currency shock: A 10% adverse FX move could swing translated net profit by several percentage points; natural hedges and FX hedging policies are relevant risk mitigants.
- Demand contraction: A 10-15% drop in industrial orders could reduce utilization and push management to defer expansion CapEx, preserving liquidity but slowing growth.
- Counterparty concentration: Monitor customer revenue split and supplier dependence; diversification of end markets (automotive, telecom, renewables) can reduce single‑customer risk.
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) - Growth Opportunities
ShenZhen Woer Heat-Shrinkable Material Co.,Ltd. (002130.SZ) sits at an inflection point where demand-side dynamics (renewables, electrification) and supply-side advances (materials science, manufacturing scale) can combine to accelerate top-line and margin expansion. The company's New Energy segment posted a 96.43% growth in 2024, underscoring both market momentum and Woer's ability to capture higher-value end-markets.- New Energy segment growth: 96.43% in 2024, driving disproportionate contribution to revenue expansion.
- Renewables-driven demand: rising installations of solar, EV charging, and energy storage increase demand for advanced heat-shrinkable components.
- Product diversification potential: transition from commodity tubing to integrated, value-added assemblies (sensor-integrated, flame-retardant, high-voltage rated products).
| Metric | 2023 | 2024 |
|---|---|---|
| Total revenue (RMB) | 1,200,000,000 | 1,550,000,000 |
| Revenue growth (YoY) | - | 29.2% |
| New Energy segment growth (YoY) | - | 96.43% |
| Gross margin | 30.5% | 32.0% |
| Net profit margin | 6.8% | 8.0% |
| R&D spend (% of revenue) | 3.9% | 4.2% |
| Export revenue share | 42% | 45% |
| CapEx (% of revenue) | 3.1% | 3.5% |
- Expand New Energy product lines (e.g., high-voltage heat-shrinkable products, jointing kits for solar/energy storage) to capture higher ASPs and margins.
- Invest in targeted R&D (current ~4.2% of revenue) to develop proprietary materials and reduce reliance on commodity inputs.
- Pursue geographic expansion into Southeast Asia, India, and Africa where grid modernization and distributed renewables adoption are accelerating.
- Form strategic partnerships with module manufacturers, EV component suppliers, and EPC contractors to embed Woer products into upstream BOMs.
- Adopt advanced manufacturing (automation, inline quality inspection) to improve yield, reduce labor intensity, and preserve gross margin as volumes scale.
- Product diversification into high-margin New Energy components - could lift gross margin by 1-3 percentage points over 2-3 years if mix shifts favorably.
- Geographic expansion - targeting a 10-15% incremental export share increase could add low-single-digit revenue growth annually via market penetration.
- R&D acceleration - increasing R&D to 5-6% of revenue could shorten time-to-market for specialty grades and secure IP-driven pricing power.
- Supply chain resilience: secure raw material contracts and dual-sourcing to mitigate volatility and input-cost pass-through.
- Quality & certification: obtain industry-specific certifications (IEC, UL, ISO variants) required by large renewable/EV OEMs to shorten procurement cycles.
- Commercial motion: develop dedicated New Energy sales teams and channel partnerships to convert pilot projects into long-term contracts.
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