Breaking Down Sunrise Group Company Limited Financial Health: Key Insights for Investors

If you're sizing up Sunrise Group Company Limited (002752.SZ), start with the hard facts: Q1 2025 revenue was CNY 1.62 billion (down 3.23% QoQ), TTM revenue sits at CNY 7.08 billion (down 2.19% YoY) after an annual 2024 revenue of CNY 7.13 billion (+0.50%), while profitability shows a striking contrast-2024 net income of CNY 423.3 million (up 27.10%) with a net profit margin of 5.9% and ROE of 8.74%; valuation and investor metrics include a TTM P/E of 28.97 (forward P/E 22.03), P/S of 0.77 and P/B of 2.44, EV/EBITDA of 11.78 and a high EV/FCF of 115.82, liquidity and solvency read with a current ratio of 1.09, quick ratio of 0.72 and an Altman Z‑Score of 2.06, leverage and cash profile show total debt of CNY 1.81 billion against cash of CNY 1.25 billion (net position ≈ -CNY 567.41 million), debt-to-equity at 50.6% with net debt/equity at 14.7% and interest coverage of 14.2x, operational cash generation covers capex (CNY 524.4 million operating cash flow vs CNY 314.0 million capex) while revenue per employee is about CNY 1.86 million across 3,807 staff, shareholder returns include a CNY 0.10 dividend (≈23% payout ratio), and market action shows the stock up 50.78% over 52 weeks with a low beta (~0.21)-read on to unpack what these figures mean for risk, valuation and near-term growth prospects.

Sunrise Group Company Limited (002752.SZ) - Revenue Analysis

• Q1 2025 revenue: CNY 1.62 billion (QoQ -3.23%)
• TTM revenue: CNY 7.08 billion (YoY -2.19%)
• 2024 revenue: CNY 7.13 billion (YoY +0.50%)
• Revenue per employee: CNY 1.86 million
• Employees: 3,807
• Market cap: CNY 5.42 billion; P/S: 0.77
• Trend: Declining revenue growth rate over recent years

Sunrise Group Company Limited (002752.SZ) - Profitability Metrics

• Net income growth of 27.10% in 2024 signals improving bottom-line performance and potential operational leverage.
• A net profit margin of 5.9% together with a 5.54% operating margin suggests Sunrise maintains tight control over operating costs while converting sales into profit.
• ROE at 8.74% implies the company generates a reasonable return on shareholders' equity, supportive for long-term investors seeking steady returns.
• Gross margin of 9.42% points to moderate pricing power or a cost structure that leaves limited headroom-monitor input cost trends and pricing dynamics.
• Consistent positive net income across recent years reduces earnings volatility risk and supports dividend or reinvestment policies.

• Investors should track margin trends (gross → operating → net) to assess whether improvements are driven by revenue mix, cost reductions, or one-off items.
• Compare ROE against peers and the industry average to gauge capital efficiency relative to competitors.
• Monitor future quarterly reports for sustainability of the 27.10% net income growth and any margin compression risks.

Sunrise Group Company Limited (002752.SZ) - Debt vs. Equity Structure

Key balance-sheet and leverage metrics for Sunrise Group Company Limited (002752.SZ) highlight a conservative-to-moderate capital structure for a capital-intensive manufacturer, improved leverage over recent years, and strong interest coverage.

• Net debt to equity ratio: 14.7% (latest available)
• Debt-to-equity ratio five-year trend: from 72.5% down to 50.6%
• Total debt: CNY 1.81 billion
• Cash and cash equivalents: CNY 1.25 billion
• Net cash position (Net debt): CNY -567.41 million
• Operating cash flow covers 28.9% of total debt
• EBIT interest coverage ratio: 14.2x
• Beta: 0.272 (low volatility vs. market)

Implications for stakeholders:

• Credit risk: Reduced relative to five years ago due to falling debt-to-equity and net cash position.
• Liquidity: CNY 1.25 billion in cash provides near-term flexibility; operating cash flow covers ~29% of debt annually.
• Serviceability: Interest obligations are comfortably covered by operating profit (14.2x EBIT coverage).
• Market sensitivity: Low beta (0.272) suggests earnings and equity value are less sensitive to market swings, which can appeal to risk-averse investors.

For further context on strategy and corporate priorities, see Mission Statement, Vision, & Core Values (2026) of Sunrise Group Company Limited.

Sunrise Group Company Limited (002752.SZ) - Liquidity and Solvency

• Current ratio: 1.09 - short-term assets slightly exceed short-term liabilities, indicating marginal short-term coverage.
• Quick ratio: 0.72 - without inventory, liquid resources may be insufficient to cover immediate obligations.
• Short-term asset base: CNY 4.5 billion vs. short-term liabilities: CNY 4.1 billion - a CNY 400 million buffer.
• Long-term assets: CNY 4.5 billion vs. long-term liabilities: CNY 656.4 million - significant long-term solvency cushion.
• Operating cash flow: CNY 524.4 million vs. capital expenditures: CNY 314.0 million - operating cash comfortably covers capex.
• Altman Z-Score: 2.06 - moderate bankruptcy risk (in the zone between safe and distressed).

• Practical investor takeaways: maintain focus on working capital trends, monitor inventory turnover (given the quick ratio), and track operating cash flow consistency relative to capex and debt service.
• Key monitoring triggers: deterioration of current ratio below 1.0, falling operating cash flow under capex for consecutive periods, or a declining Altman Z-Score toward or below 1.8.

Sunrise Group Company Limited (002752.SZ) - Valuation Analysis

• TTM P/E: 28.97 - implies the market pays ~29 times trailing earnings.
• Forward P/E: 22.03 - market expects earnings improvement or multiple compression.
• P/B: 2.44 - equity valued at ~2.4× book value.
• EV/EBITDA: 11.78 - moderate enterprise valuation versus operating profitability.
• EV/FCF: 115.82 - materially high, signaling limited free cash flow relative to enterprise value.
• Market Cap: CNY 8.50 billion; Enterprise Value: CNY 9.09 billion.
• 52-week price change: +50.78%; Beta: 0.21 - strong recent performance with low market volatility sensitivity.

• Implication for investors: elevated P/E & P/B suggest growth expectations; very high EV/FCF warrants scrutiny of cash conversion and one-off items.
• Relative safety: low beta reduces market-driven downside volatility, but valuation metrics require confirmation via earnings/FCF trajectory.
• Monitor: upcoming earnings guidance, capital expenditure, working capital trends, and any asset disposals or acquisitions that could affect EV and FCF.

Sunrise Group Company Limited (002752.SZ) - Risk Factors

Key financial indicators for Sunrise Group Company Limited (002752.SZ) point to a mix of moderate leverage, liquidity constraints, valuation concerns, slowing top-line momentum and low market volatility. Investors should weigh these risk drivers alongside the company's strategic position and sector outlook.

• Altman Z-Score: 2.06 - indicates moderate risk of financial distress (near the gray zone between healthy and distressed).
• Quick Ratio: 0.72 - suggests potential challenges meeting short-term liabilities without converting inventory to cash.
• EV / Free Cash Flow: 115.82 - implies a high enterprise valuation relative to free cash flow generation, raising valuation risk.
• Debt-to-Equity: 50.6% - moderate financial leverage that increases sensitivity to interest and operating shocks.
• Revenue Trend: Declining growth over recent years - signals potential operational or market-share challenges affecting top-line sustainability.
• Beta: 0.21 - substantially lower volatility than the market, which may limit upside in bullish markets but reduce downside in downturns.

Risk considerations by category:

• Liquidity risk: Quick ratio below 1.0 increases dependence on inventory sales or borrowings to cover near-term liabilities.
• Valuation risk: Very high EV/FCF may make future returns sensitive to even small declines in free cash flow.
• Leverage risk: Debt-to-equity ~50.6% can magnify earnings volatility if margins compress or interest costs rise.
• Operational/top-line risk: Declining revenue growth implies execution, demand or competitive issues that could pressure margins and cash flow.
• Market-return profile: Low beta reduces sensitivity to market rallies, potentially constraining capital appreciation for growth-focused investors.

For context on corporate strategy, ownership and historical positioning, see: Sunrise Group Company Limited: History, Ownership, Mission, How It Works & Makes Money

Sunrise Group Company Limited (002752.SZ) - Growth Opportunities

• Dividend policy: CNY 0.10 per share for FY2024, implying a payout ratio of ~23% based on FY2024 earnings, signaling commitment to returns while retaining room for reinvestment.
• Integrated service model: end-to-end capabilities across design, production, and value‑added services that create customer stickiness and cross‑sell potential.
• Defensive volatility profile: reported betas (short-term 0.272; longer-term 0.21) indicate substantially lower volatility versus the market, attractive for risk‑averse investors.
• Solid cashflow coverage: operating cash flow of CNY 524.4 million versus capital expenditures of CNY 314.0 million, showing free cash flow cushion to fund growth or returns.
• Size and market footprint: market capitalization CNY 8.50 billion and enterprise value CNY 9.09 billion, reflecting meaningful scale in its sector.

• Operational implication: positive operating cash flow covering capex supports both organic expansion (capacity, R&D, value‑added services) and steady dividends without immediate equity dilution.
• Investor appeal: combination of consistent dividends, low beta, and integrated offerings positions the company for interest from income‑seeking and risk‑averse investors.
• Areas to monitor: execution on value‑added service rollouts, margin expansion from integrated offerings, and any shifts in leverage that could affect enterprise value dynamics.