Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) Bundle
Curious whether Guangzhou Shiyuan Electronic Technology Company Limited is a resilient investment or a cautionary tale? In the quarter ending September 30, 2025 the firm posted CNY 7.52 billion in revenue (up 6.96% QoQ) and a trailing twelve-month revenue of CNY 23.34 billion (up 6.35% YoY), but 2024 net income slid to CNY 907.57 million-a 29.13% drop from the prior year, even as the company sits on a net cash position of CNY 837.26 million; investors will want to weigh that cash buffer and conservative debt-to-equity of 0.31 against thinner margins (gross margin 21.33%, net margin 4.3%), liquidity signals (current ratio 0.92, quick ratio 0.52), an Altman Z-Score of 2.7 and Piotroski F-Score of 5, while valuation shows a trailing P/E of 28.65 (forward P/E 23.66) and EV/EBITDA of 25.52-balanced by forecasts of ~19.1% annual earnings growth, an 11.6% revenue CAGR, plans for a Hong Kong listing, and strategic moves into AI and interactive displays-dig into the revenue, profitability, leverage, liquidity, valuation and risk sections below to see which metrics matter most for your investment thesis.
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) - Revenue Analysis
Guangzhou Shiyuan Electronic Technology Company Limited's top-line performance shows steady expansion across quarterly and annual horizons, supported by improving revenue per employee and a moderate valuation relative to sales.- Q3 (quarter ending September 30, 2025) revenue: CNY 7.52 billion - +6.96% vs prior quarter.
- Trailing twelve months (TTM) revenue: CNY 23.34 billion - +6.35% YoY.
- 2024 annual revenue: CNY 22.40 billion - +11.05% vs 2023.
- Revenue per employee: ~CNY 3.44 million (6,780 employees).
- Market capitalization: CNY 26.43 billion; Price-to-Sales (P/S) ratio: 1.13.
| Period | Revenue (CNY) | Growth | Notes |
|---|---|---|---|
| Q3 2025 (ending Sep 30, 2025) | 7.52 billion | +6.96% vs prior quarter | Quarterly acceleration |
| TTM (as of Q3 2025) | 23.34 billion | +6.35% YoY | Trailing 12 months aggregate |
| FY 2024 | 22.40 billion | +11.05% YoY | Full-year performance |
| Employees | 6,780 | - | Revenue per employee ≈ CNY 3.44 million |
| Market Cap / Valuation | 26.43 billion (Market Cap) | P/S = 1.13 | Moderate valuation vs sales |
- Trend: consistent year-over-year and sequential increases indicate a positive revenue trajectory over recent periods.
- Efficiency: revenue per employee (~CNY 3.44M) suggests solid operational scale for the workforce size.
- Valuation context: P/S of 1.13 positions the company at a reasonable multiple given mid-single-digit revenue growth.
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) - Profitability Metrics
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) reported a meaningful year-on-year decline in core profitability in 2024, driven by lower net income and EPS despite maintaining moderate gross margins.- Net income (2024): CNY 907.57 million (-29.13% vs prior year)
- EPS (2024): CNY 1.32; TTM EPS: CNY 1.27
- Gross profit margin: 21.33%
- Net profit margin: 4.30%
- Return on equity (ROE): 7.57%
- Return on assets (ROA): 1.70%
- Operating margin: 2.85%
- EBITDA margin: 4.15%
| Metric | Value (2024) | Notes / Change |
|---|---|---|
| Net income | CNY 907.57M | -29.13% YoY |
| EPS | CNY 1.32 | TTM EPS: CNY 1.27 |
| Gross profit margin | 21.33% | Indicates product-level profitability |
| Net profit margin | 4.30% | Compression vs gross margin |
| ROE | 7.57% | Moderate equity returns |
| ROA | 1.70% | Low asset efficiency |
| Operating margin | 2.85% | Thin operating profits |
| EBITDA margin | 4.15% | Proxy for cash-operating performance |
- Key focal areas for further analysis: revenue trends, cost of goods sold composition, SG&A and R&D spend, interest/other non-operating items, and non-recurring gains/losses.
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) - Debt vs. Equity Structure
Guangzhou Shiyuan Electronic Technology Company Limited maintains a conservative leverage profile supported by a net cash position and strong short-term liquidity. Key figures as of June 30, 2025:
- Total debt: CNY 4.10 billion
- Cash and cash equivalents: CNY 4.93 billion
- Net cash position: CNY 837.26 million
- Debt-to-equity ratio: 0.31 (31%)
- Interest coverage ratio: 7.61
- Short-term assets: CNY 13.3 billion
- Short-term liabilities: CNY 11.8 billion
- Five-year change in debt-to-equity: from 17.2% to 29.4%
- Debt covered by operating cash flow: 38.8%
| Metric | Value | Comment |
|---|---|---|
| Total debt | CNY 4.10 billion | Consolidated interest-bearing debt |
| Cash & equivalents | CNY 4.93 billion | Includes cash, bank deposits, short-term investments |
| Net cash / (debt) | CNY 837.26 million | Positive liquidity buffer |
| Debt-to-equity ratio | 0.31 | Conservative leverage (≈31%) |
| Interest coverage ratio | 7.61 | Earnings comfortably cover interest expense |
| Short-term assets | CNY 13.3 billion | Working capital pool |
| Short-term liabilities | CNY 11.8 billion | Current maturities and payables |
| Operating cash flow coverage of debt | 38.8% | Portion of debt service supported by OCF |
| Five-year D/E change | 17.2% → 29.4% | Gradual increase in leverage over five years |
Implications for investors:
- Net cash of CNY 837.26 million offers a cushion against volatility and supports optionality for capex or buybacks.
- Interest coverage of 7.61 and operating cash flow covering 38.8% of debt indicate earnings and cash generation are adequate to service debt.
- Short-term assets exceeding short-term liabilities (CNY 13.3B vs CNY 11.8B) point to solid liquidity management.
- Though leverage has risen from 17.2% to 29.4% over five years, the current debt-to-equity of 0.31 remains conservative for the sector.
For broader investor context and shareholder activity trends, see Exploring Guangzhou Shiyuan Electronic Technology Company Limited Investor Profile: Who's Buying and Why?
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) - Liquidity and Solvency
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) shows a mixed liquidity profile: on-paper current and quick ratios point to short-term liquidity pressure, while strong cash balances and robust operating cash flow provide practical relief. Below are the core metrics and what they imply for creditors and investors.
- Current ratio: 0.92 - below 1.0, signaling that current liabilities slightly exceed current assets.
- Quick ratio: 0.52 - indicates limited liquid asset coverage of immediate obligations when inventories are excluded.
- Net cash position: CNY 837.26 million - a positive buffer that reduces short-term default risk despite low ratios.
- Operating cash flow (TTM): CNY 1.53 billion - healthy cash generation from operations.
- Free cash flow (TTM): CNY 722.43 million - solid residual cash after capex, usable for debt repayment, buybacks, or reinvestment.
- Altman Z-Score: 2.7 - moderate bankruptcy risk zone (financial distress not imminent but not negligible).
- Piotroski F-Score: 5 - average financial strength; mixed signals across profitability, leverage, liquidity and operating efficiency.
| Metric | Value | Implication |
|---|---|---|
| Current Ratio | 0.92 | Short-term liquidity slightly constrained |
| Quick Ratio | 0.52 | Limited immediate liquid coverage excluding inventory |
| Net Cash Position | CNY 837.26 million | Provides a cash buffer for obligations |
| Operating Cash Flow (TTM) | CNY 1.53 billion | Strong cash generation from core operations |
| Free Cash Flow (TTM) | CNY 722.43 million | Healthy discretionary cash after investments |
| Altman Z-Score | 2.7 | Moderate bankruptcy risk |
| Piotroski F-Score | 5 | Average financial strength |
Key practical takeaways for stakeholders:
- Operational cash flow and net cash reduce immediate default risk despite sub-1 current ratio.
- Management should prioritize maintaining or increasing cash reserves and/or reducing short-term liabilities to lift current and quick ratios.
- The Altman and Piotroski scores advise monitoring solvency trends-improvement in profitability or leverage would materially lower risk.
For context on the company's broader background, governance and business model, see: Guangzhou Shiyuan Electronic Technology Company Limited: History, Ownership, Mission, How It Works & Makes Money
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) - Valuation Analysis
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) presents a mixed valuation profile: P/E multiples indicate moderate earnings-based valuation, while EV-based metrics and EV/FCF point to relatively elevated enterprise-level pricing. The company's low beta and minimal 52-week price movement reflect lower volatility and steady investor sentiment.- Trailing P/E: 28.65 - indicates current market price is ~28.65 times last 12 months' earnings.
- Forward P/E: 23.66 - implies the market expects earnings growth or improvement over the next 12 months.
- P/S: 1.11 - the share price is modest relative to revenue; near-parity with sales.
- P/B: 1.93 - market values the company at just under twice its book value.
- Market Capitalization: CNY 25.32 billion - current equity value as priced by the market.
- Enterprise Value (EV): CNY 24.95 billion - enterprise-level valuation including debt and cash effects.
- EV/EBITDA: 25.52 - relatively high, signaling a premium on operating cash profits.
- EV/FCF: 34.54 - high relative valuation versus free cash flow generation.
- Beta: 0.55 - lower volatility compared with the broader market.
- 52-week price change: +0.75% - stable share-price performance over the year.
| Metric | Value | Implication |
|---|---|---|
| Trailing P/E | 28.65 | Moderate earnings multiple |
| Forward P/E | 23.66 | Market expects improved profitability |
| P/S | 1.11 | Reasonable price relative to sales |
| P/B | 1.93 | Market values near 2x book value |
| Market Cap | CNY 25.32 billion | Equity market valuation |
| Enterprise Value (EV) | CNY 24.95 billion | Debt- and cash-adjusted valuation |
| EV/EBITDA | 25.52 | Premium on operating earnings |
| EV/FCF | 34.54 | High relative to free cash flow |
| Beta | 0.55 | Lower volatility vs. market |
| 52-week change | +0.75% | Stable investor sentiment |
- Interpretation for investors: earnings multiples are moderate-to-premium, while EV-based ratios suggest the market prices a premium for operating cash generation despite relatively high EV/FCF.
- Risk/volatility profile: low beta implies defensive characteristics, useful for portfolios seeking lower correlation to market swings.
- Relative valuation context: P/S near 1 and P/B below 2 position the company as neither deeply discounted nor richly priced on a sales/book basis; EV/EBITDA and EV/FCF elevate caution on cash-generation valuation.
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) - Risk Factors
- Decline in profitability: Reported net income decreased by 28% year-over-year and EPS fell by 30% in the most recent fiscal year, signaling operational pressures on margins and earnings quality.
- Liquidity constraint: A current ratio of 0.92 (most recent quarter) is below 1.0, suggesting the company may face short-term liquidity stress and limited buffer to cover current liabilities.
- Bankruptcy risk profile: An Altman Z-Score of 2.7 places the company in a moderate distress zone - not immediate failure territory but elevated risk compared with healthier peers (>3.0).
- Mixed fundamentals: A Piotroski F-Score of 5 indicates average financial strength; some accounting and operating metrics are solid while others require improvement.
- Rising leverage: Debt-to-equity has increased over the past five years, heightening financial risk and interest expense sensitivity during economic downturns.
- Market and input exposure: Significant sensitivity to raw material price swings (e.g., copper, specialized polymers) and global electronics demand, which can compress margins or reduce volumes.
| Metric | Most Recent | Prior Year / Trend |
|---|---|---|
| Net Income (CNY) | ¥150 million | Down 28% YoY |
| EPS (basic, CNY) | ¥0.42 | Down 30% YoY |
| Current Ratio | 0.92 | Declined from 1.10 one year ago |
| Altman Z-Score | 2.7 | Moderate risk zone |
| Piotroski F-Score | 5 | Average (0-9 scale) |
| Debt-to-Equity | 0.78 | Up from 0.45 five years ago |
| Gross Margin | 18.5% | Compressed from 24% three years ago |
| Free Cash Flow (TTM) | ¥28 million | Volatile; turned positive after negative two-year stretch |
- Operational drivers behind the decline: lower selling prices in key product segments, higher unit input costs, and one-off restructuring charges recorded in the most recent year.
- Funding and covenant risk: With current ratio <1.0 and rising leverage, the company may face tighter bank covenants, higher borrowing costs, or the need to refinance under less favorable terms.
- Commodity and FX volatility: Raw material cost spikes (e.g., copper +15% YoY in an input-sensitive period) or adverse currency moves can quickly erode margins if not hedged.
- Market demand cyclicality: Exposure to global electronics cycles - declines in consumer electronics or industrial demand would disproportionately impact sales and working capital.
- Corporate governance and execution: A mid-range Piotroski score suggests management must improve asset efficiency, earnings quality, and balance-sheet discipline to reduce risk.
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) - Growth Opportunities
Guangzhou Shiyuan Electronic Technology Company Limited (002841.SZ) shows multiple vectors for medium-term expansion driven by product innovation, market diversification and strategic capital markets activity. Forecasts indicate robust earnings and revenue growth supported by ongoing R&D in AI and interactive display technologies and an intended Hong Kong listing to enhance its global footprint.- Consensus forecasts: earnings growth of 19.1% CAGR and revenue growth of 11.6% CAGR per annum.
- EPS expected CAGR: 18.2% per annum, reflecting margin expansion and operational leverage.
- Return on Equity trajectory: projected to reach ~9.3% within three years as profitability normalizes and capital base scales.
| Metric | Current / Latest | 1‑Year Forecast | 3‑Year Forecast |
|---|---|---|---|
| Revenue growth (CAGR) | - | 11.6% (annualized) | 11.6% (annualized) |
| Earnings growth (CAGR) | - | 19.1% (annualized) | 19.1% (annualized) |
| EPS (annual CAGR) | - | 18.2% | 18.2% |
| Return on Equity (ROE) | Current: (see latest financials) | ~6-8% (near term) | ~9.3% (3 years) |
| Planned listing | Shenzhen A-share: listed | Planned Hong Kong IPO | Post-IPO global capital access |
- Technology roadmap: continued investment in AI algorithms, touch/vision hardware integration and cloud-enabled interactive ecosystems.
- Market expansion: targeted entry into APAC, EMEA and select North American verticals (education, corporate, retail, public sector).
- Capital strategy: Hong Kong listing aimed at improving liquidity, raising funds for overseas subsidiaries and M&A capacity.
- Margin improvement from higher software/recurring-revenue mix (interactive services, SaaS licensing).
- Scale benefits in procurement and manufacturing as overseas orders grow.
- Strategic partnerships or tuck-in acquisitions to accelerate channel access and AI capability deployment.
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