Breaking Down Shenzhen Aisidi CO.,LTD. Financial Health: Key Insights for Investors

Peeling back the numbers on Shenzhen Aisidi CO., LTD. (002416.SZ) reveals a company navigating sharp near-term headwinds but with intriguing valuation and cash-flow signals: operating revenue for H1 2025 fell to CNY 25.37 billion (a 34.69% drop year‑over‑year) while net profit attributable to shareholders slid to CNY 222 million (down 43.98%); trailing‑twelve‑months revenue as of 30 Sep 2025 was CNY 47.74 billion (‑40.40% YoY) and TTM revenue per employee was CNY 13.15 million across 3,631 staff; profitability metrics show a H1 net margin of 0.88% (vs 1.58% prior), EPS of CNY 0.1788 (H1) and TTM EPS of CNY 0.32 with ROE at 7.57% and ROA at 2.50%; the balance sheet and liquidity picture is mixed but solid on cash - total debt CNY 2.55 billion versus cash & equivalents CNY 3.20 billion, debt‑to‑equity 0.40, current ratio 1.71 and quick ratio 1.06, while operating cash flow surged to CNY 1.819 billion (+304.21%) and free cash flow reached CNY 2.9 billion (+136%), leaving enterprise value at CNY 12.48 billion and market cap around CNY 14.57 billion (a 20.62% decline year‑on‑year); valuation multiples sit at TTM P/E 37.08, forward P/E 21.04, P/S 0.31, P/B 2.38, EV/EBITDA 19.02 and EV/FCF 4.12; risks include the steep revenue and profit declines and slipping margins, while growth catalysts and forecasts point to annualized earnings growth of 29.8%, revenue growth of 22.5%, EPS growth of 29.5% and a projected ROE of 13.7% in three years, alongside strategic moves such as a planned acquisition of a 13.6365% stake in Gongqingcheng Aishi De Innovation for CNY 102 million and continued exposure to digital distribution, Apple retail and 3C product retailing - read on for a line‑by‑line breakdown investors need to weigh.

Shenzhen Aisidi CO.,LTD. (002416.SZ) Revenue Analysis

• Operating revenue (1H 2025): CNY 25.37 billion (down 34.69% vs. 1H 2024)
• Net profit attributable to shareholders (1H 2025): CNY 222 million (down 43.98% YoY)
• Adjusted net profit excluding non-recurring items (1H 2025): CNY 206 million (down 32.61% YoY)
• TTM revenue as of 2025-09-30: CNY 47.74 billion (down 40.40% YoY)
• TTM revenue per employee: CNY 13.15 million (employees: 3,631)
• Market capitalization (2025-12-12): CNY 14.57 billion (down 20.62% YoY)

• Volume and demand contraction: The large YoY declines in both 1H and TTM revenue indicate weakening end-market demand or lost distribution channels.
• Margin pressure: With net profit falling faster than revenue, operating and/or gross margins have likely been compressed by cost structure or pricing pressure.
• Workforce productivity context: TTM revenue per employee of CNY 13.15 million provides a productivity benchmark; with 3,631 employees, headcount dynamics will materially affect per-employee efficiency.
• Market valuation reaction: Market cap down 20.62% year-over-year reflects investor repricing against the weaker revenue and profit outlook.

Shenzhen Aisidi CO.,LTD. (002416.SZ) Profitability Metrics

Key profitability indicators for Shenzhen Aisidi CO.,LTD. show a material weakening through the first half of 2025 and on a trailing twelve‑month basis to September 30, 2025. Below are the headline figures and their immediate implications for investors.

• Net profit margin (H1 2025): 0.88% (down from 1.58% in H1 2024)
• EPS (H1 2025): CNY 0.1788 - a 43.98% decline year‑on‑year
• TTM EPS (as of 2025‑09‑30): CNY 0.32
• Return on equity (ROE): 7.57% - decreased versus prior year
• Return on assets (ROA): 2.50% - declined versus prior year
• Return on invested capital (ROIC): 3.57% - decreased versus prior year

• Margin compression: Net margin halved from 1.58% to 0.88% in H1 2025, signaling pricing, cost, or mix pressures.
• Profitability per share: H1 EPS fell 43.98% to CNY 0.1788; TTM EPS of CNY 0.32 suggests partial recovery over the full trailing year but lower near‑term earnings.
• Capital efficiency: ROE (7.57%), ROA (2.50%), and ROIC (3.57%) all declined, indicating reduced returns on equity, assets, and invested capital compared with the prior year.
• Investor considerations: Watch margin drivers, cost structure, working capital trends, and asset utilization to assess whether these ratios can stabilize or reverse.

Further context on shareholder composition and investor activity can be found here: Exploring Shenzhen Aisidi CO.,LTD. Investor Profile: Who's Buying and Why?

Shenzhen Aisidi CO.,LTD. (002416.SZ) - Debt vs. Equity Structure

• Total debt: CNY 2.55 billion
• Cash and cash equivalents: CNY 3.20 billion
• Debt-to-equity ratio: 0.40
• Interest coverage ratio: 6.70
• Enterprise value (EV): CNY 12.48 billion
• Market capitalization: CNY 14.60 billion

• Net cash position: Cash (3.20bn) minus debt (2.55bn) = net cash ~ CNY 0.65bn
• EV vs. Market Cap: EV (12.48bn) < Market Cap (14.60bn) - reflects positive net cash adjustment
• Implication: with interest coverage ~6.7, the company shows cushion for interest payments, though full balance-sheet context (assets/equity, maturities, covenants) is missing

Shenzhen Aisidi CO.,LTD. (002416.SZ) - Liquidity and Solvency

• Current ratio: 1.71 - sufficient short-term assets to cover current liabilities.
• Quick ratio: 1.06 - adequate liquidity excluding inventory.
• Net cash flow from operating activities: CNY 1.819 billion - a 304.21% increase year-over-year.
• Free cash flow (H1 2025): CNY 2.9 billion - a 136% increase year-over-year.
• Cash reserves exceed total debt - implying a net cash position and low solvency risk.
• Operating cash flow substantially exceeded capital expenditures - indicating efficient working capital management.

Shenzhen Aisidi CO.,LTD. (002416.SZ) Valuation Analysis

• TTM P/E: 37.08 - market paying a premium for past-year earnings.
• Forward P/E: 21.04 - consensus expects materially higher earnings.
• P/S: 0.31 - low price relative to revenue, potential undervaluation signal.
• P/B: 2.38 - market values shares at ~2.4x book equity.
• EV/EBITDA: 19.02 - moderate to high operating earnings multiple on an enterprise basis.
• EV/FCF: 4.12 - inexpensive relative to free cash flow generation.

• The gap between TTM P/E (37.08) and forward P/E (21.04) implies expected margin or revenue improvement; validate via earnings guidance and analyst estimates.
• A P/S of 0.31 combined with EV/FCF of 4.12 suggests revenue is cheap relative to market cap and cash flows - check sustainability of FCF.
• EV/EBITDA at 19.02 signals the company is not deeply discounted on operating earnings; compare against sector peers for context.
• P/B at 2.38 indicates moderate premium to book; review balance sheet quality and intangible assets driving book value.

Shenzhen Aisidi CO.,LTD. (002416.SZ) - Risk Factors

• Significant top-line and bottom-line contraction in H1 2025
• Compressing profitability margins
• Market valuation decline over the last 12 months
• Falling revenue productivity per employee
• Rising leverage and interest exposure
• Weaker returns on equity and assets

Key risk datapoints and trends investors should weigh:

• Operational risk: A 25% decline in revenue-per-employee signals lower productivity or underutilized headcount versus prior periods, raising concerns about operating leverage and potential restructuring needs.
• Profitability risk: Net profit fell ~45% in H1 2025 while net margin compressed to ~3.0% (TTM), reducing the buffer against cyclical downturns and limiting internal cash generation.
• Leverage risk: Debt-to-equity rising from 0.70 to 1.10 increases interest burden and refinancing risk, especially if revenue and margins remain pressured.
• Valuation and liquidity risk: A 20.62% drop in market cap over the past year reflects deteriorating investor sentiment and could amplify share-price volatility on weaker-than-expected results.
• Return generation risk: ROE and ROA declines indicate the company is generating lower returns from shareholders' capital and assets, which can constrain future capital raising and investment.

Additional context and corporate background can be found here: Shenzhen Aisidi CO.,LTD.: History, Ownership, Mission, How It Works & Makes Money

Shenzhen Aisidi CO.,LTD. (002416.SZ) Growth Opportunities

• Forecasted annual revenue growth: 22.5% per annum.
• Forecasted annual earnings growth: 29.8% per annum.
• EPS growth expected: 29.5% per annum.
• Return on equity (ROE) projection: 13.7% in three years.

• Planned acquisition: 13.6365% stake in Gongqingcheng Aishi De Innovation for CNY 102 million, expanding holdings and potential synergies.
• Digital distribution and retail services: distribution of mobile smart terminals and 3C digital products, enabling scale in the consumer electronics channel.
• Apple retail operations: premium channel exposure and stable foot traffic/revenue per store.
• Electronic vaporizer retail: diversification into adjacent consumer electronics/lifestyle segment with different margin dynamics.