Breaking Down Hangzhou Steam Turbine Co., Ltd. Financial Health: Key Insights for Investors

Investors tracking Hangzhou Steam Turbine Co., Ltd. will want to examine the hard numbers: fiscal 2024 revenue of HK$6.64 billion (+12.06% year-over-year) and TTM revenue of HK$7.29 billion (quarterly revenue HK$1.38 billion), a market capitalization of HK$14.33 billion at a share price of HK$13.30, and valuation multiples including a trailing P/E of 20.96 and P/S of 2.31; profitability shows a TTM net profit margin of 8.60% and ROE of 6.83% while operating margin trends (TTM 4.29%) raise questions given a five-year average annual decline of 15.8%, balance sheet metrics reveal conservative leverage with a debt-to-equity ratio of 11.21%, total assets of HK$17.55 billion, cash and equivalents of HK$2.25 billion and solid liquidity (current ratio 1.65, quick ratio 1.17) even as operating cash flow is HK$451 million and the latest quarter recorded a net cash outflow of -HK$131.64 million; valuation vs. cashflow is underscored by an EV/EBITDA of 28.55 and enterprise-value-to-revenue of 1.82, while operational efficiency (revenue per employee HK$1.58 million, EPS TTM HK$0.53) and growth catalysts-contracts for 9 ethylene projects including a 1.8 million t/yr unit, breakthroughs in large-scale air separation turbines, expanding overseas drive business surpassing power generation in revenue share, multiple fertilizer-sector contracts, and an R&D pipeline (42 projects, 38 completed, 23 invention patents, 6 utility model patents)-must be weighed against tangible risks such as competition from Siemens and GE, regulatory exposure, energy-price sensitivity, a jump in inventory-to-revenue from 1.22 to 2.48 in early 2025, and recent cash outflows

Hangzhou Steam Turbine Co., Ltd. (200771.SZ) - Revenue Analysis

Hangzhou Steam Turbine Co., Ltd. reported steady top-line growth through FY2024 and into mid-2025, supported by rising order intake and improved unit realizations. Key reported figures and per-share metrics provide a clear picture of scale, market valuation, and operational efficiency.

• Fiscal year revenue (ending 2024): HK$6.64 billion (up 12.06% from HK$5.92 billion in 2023).
• Trailing twelve months (TTM) revenue (as of 30-Jun-2025): HK$7.29 billion.
• Quarterly revenue (quarter ending 30-Sep-2025): HK$1.38 billion.
• Revenue per share (TTM ending 30-Jun-2025): HK$5.56; quarterly revenue per share (30-Sep-2025): HK$7.80.
• Price-to-Sales (P/S) ratio (TTM ending 30-Jun-2025): 2.31.
• Revenue per employee: HK$1.58 million.
• Market capitalization (as of 06-Nov-2025): HK$14.33 billion; share price: HK$13.30.

Interpretation notes and investor-focused pointers:

• Growth trajectory: A 12.06% year-over-year increase in FY2024 revenue indicates durable demand and successful revenue conversion from backlog.
• TTM vs. FY: TTM revenue of HK$7.29 billion suggests continuing momentum beyond FY2024;
• Valuation context: A P/S of 2.31 places the stock in a moderate valuation band relative to peers in heavy equipment and power-engineering sectors - investors should compare with peer P/S medians.
• Per-share dynamics: Revenue per share metrics (HK$5.56 TTM; HK$7.80 quarterly) help assess dilution trends and guide EPS sensitivity analysis.
• Operational efficiency: HK$1.58 million revenue per employee signals scale efficiency; pair with margins and SG&A to evaluate productivity quality.
• Market cap and liquidity: HK$14.33 billion market cap at HK$13.30/share sets the basis for market-implied growth expectations versus achieved top-line expansion.

For corporate direction and stated priorities, see Mission Statement, Vision, & Core Values (2026) of Hangzhou Steam Turbine Co., Ltd.

Hangzhou Steam Turbine Co., Ltd. (200771.SZ) - Profitability Metrics

Key profitability indicators for Hangzhou Steam Turbine Co., Ltd. reflect moderate margins and modest returns on capital and assets through the trailing twelve months (TTM) ending June 30, 2025, and recent quarter snapshots.

• Net profit margin (TTM ending 2025-06-30): 8.60%
• Quarterly net profit margin (quarter ending 2025-09-30): 8.13%
• Operating margin (TTM ending 2025-06-30): 4.29%
• Quarterly operating margin (quarter ending 2025-06-30): 6.46%
• Return on equity (ROE) (TTM ending 2025-06-30): 6.83%
• Quarterly ROE (quarter ending 2024-12-31): 5.61%
• Return on assets (ROA) (TTM ending 2025-06-30): 0.96%
• Return on investment (ROI) (TTM ending 2025-06-30): 5.90%
• Earnings per share (EPS) (TTM ending 2025-06-30): HK$0.53
• Quarterly EPS (quarter ending 2025-06-30): HK$0.115

• Margins indicate the company converts a mid-single-digit portion of revenue into operating profit and a high-single-digit portion into net income on a TTM basis.
• ROA at 0.96% signals relatively low asset efficiency versus peers, while ROE of 6.83% shows modest equity returns.
• Quarterly operating margin improvement (6.46%) suggests recent operational leveraging compared with the TTM average (4.29%).
• EPS of HK$0.53 (TTM) provides an investor-facing profitability per share metric; quarterly EPS of HK$0.115 offers a near-term earnings cadence.

Further historical context and corporate background can be found here: Hangzhou Steam Turbine Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Hangzhou Steam Turbine Co., Ltd. (200771.SZ) - Debt vs. Equity Structure

• Total assets: HK$17.55 billion (latest quarter)
• Total liabilities: HK$5.75 billion (latest quarter)
• Cash and equivalents: HK$2.25 billion (latest quarter)
• Debt-to-equity ratio: 11.21%
• Enterprise value / Revenue: 1.82
• Enterprise value / EBITDA: 28.55
• Market capitalization: HK$14.33 billion (as of 6 Nov 2025)
• Share price: HK$13.30 (as of 6 Nov 2025)

• Leverage profile: With total liabilities of HK$5.75 billion against HK$17.55 billion in assets and a low 11.21% debt-to-equity ratio, the company is positioned with conservative financial risk from debt.
• Liquidity and coverage: HK$2.25 billion in cash plus operational cash flows should cover short-term obligations and provide capital flexibility.
• Valuation context: EV/Revenue at 1.82 suggests moderate revenue valuation, while EV/EBITDA of 28.55 signals a relatively rich multiple on operating earnings - investors should reconcile this with margin outlook and capex requirements.
• Market view: Market cap of HK$14.33 billion and the corresponding share price reflect investor sentiment as of 6 Nov 2025 and should be monitored alongside earnings and cash-flow trends.

Hangzhou Steam Turbine Co., Ltd. (200771.SZ) - Liquidity and Solvency

• The current ratio of 1.65 indicates adequate working capital to meet short-term obligations without urgent refinancing.
• A quick ratio of 1.17 shows the company can cover immediate liabilities even excluding inventory, highlighting liquid asset strength.
• HK$2.25 billion in cash and equivalents provides a meaningful buffer for operational needs, capex, or debt servicing.
• Positive operating cash flow (HK$451 million) demonstrates operational cash generation, though the net cash decline (-HK$131.64 million) signals cash used for investing, financing, or seasonal working capital increases.
• Total assets of HK$17.55 billion versus liabilities of HK$5.75 billion imply a conservative balance sheet with significant equity backing.

Hangzhou Steam Turbine Co., Ltd. (200771.SZ) - Valuation Analysis

• Trailing P/E: 20.96 - market valuation of earnings.
• P/B ratio: 1.46 - market valuation relative to book value.
• EV / Revenue: 1.82 - market valuation of revenue.
• EV / EBITDA: 28.55 - valuation versus operating cash profit proxy.
• Market capitalization: HK$14.33 billion (as of 6 Nov 2025); share price: HK$13.30.
• Beta: 0.41 - lower historical volatility versus broader market.

• Implication: P/E ~21 places the stock in a moderate earnings multiple range relative to high-growth industrial peers; P/B ~1.46 suggests modest premium to book.
• EV/Revenue of 1.82 indicates the market is valuing each revenue dollar at ~1.82x, while EV/EBITDA at 28.55 implies a stretched multiple on operating cash profits-useful when comparing capital intensity and margin profiles with peers.
• Low beta (0.41) signals defensive price behavior; investors seeking lower volatility may consider this characteristic alongside valuation multiples.

Context and additional background on the company can be found here: Hangzhou Steam Turbine Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Hangzhou Steam Turbine Co., Ltd. (200771.SZ) - Risk Factors

Key risk exposures for Hangzhou Steam Turbine Co., Ltd. span competitive pressure, regulatory shifts, commodity volatility and internal operational stresses that are already visible in recent financial metrics.

• Intense global competition: Siemens and GE are exerting pricing and technology pressure that could erode market share and margin.
• Regulatory/environmental risk: New emissions and efficiency standards may require capital-intensive upgrades, raising compliance costs and shortening product lifecycles.
• Energy-price sensitivity: Volatility in coal, gas and oil prices can depress new-build and retrofit spending by utilities and industrial customers, reducing demand for steam turbines.
• Operating margin deterioration: Operating margin has declined over five years, averaging a 15.8% decrease per year, compressing profitability and reducing buffer for shocks.
• Working capital & inventory pressure: Inventory-to-revenue ratio jumped from 1.22 in December 2024 to 2.48 in March 2025, signaling potential inventory build-up, obsolescence risk or slower sales conversion.
• Negative cash flow in the latest quarter: Net change in cash was -HK$131.64 million, indicating cash outflows exceeded inflows and raising short-term liquidity concerns.

Operational and market risks interact: higher inventory levels plus falling margins reduce flexibility to respond to price competition or to invest in compliance. For investor context on strategy and direction, see Mission Statement, Vision, & Core Values (2026) of Hangzhou Steam Turbine Co., Ltd.

Hangzhou Steam Turbine Co., Ltd. (200771.SZ) - Growth Opportunities

Hangzhou Steam Turbine Co., Ltd. (200771.SZ) is leveraging project wins, product scale breakthroughs, overseas expansions, and focused R&D to build multiple growth vectors across petrochemical, air separation, fertilizer, and power drive markets. Key developments point to structurally higher revenue visibility and improved margin profiles as higher-value, engineering-intensive projects scale.

• Ethylene and petrochemical: secured contracts for 9 ethylene projects, including the world's largest single-line 1.8 million tpa ethylene unit - positioning the company in top-tier petrochemical EPC supply chains.
• Air separation segment: achieved milestone deployments with 100,000 kW and 120,000 kW-class steam turbines designed for large-scale air separation plants, enabling relevance in oxy‑fuel and industrial gas markets.
• Fertilizer sector: multiple project contract wins that consolidate market dominance in centrifugal compressor and turbine packages for ammonia/urea complexes.
• Overseas expansion: international drive business revenue surpassed power generation revenue for the first time, evidencing successful global channel development and higher-margin export opportunities.
• Breakthrough international wins: won Spain TR Engineering's Celeno million-ton ethylene compressor-turbine project, marking entry into core petrochemical facilities in open overseas markets.
• R&D and IP pipeline: initiated 42 R&D projects, with 38 completed and accepted; obtained 23 invention patents and 6 utility model patents-underscoring a sustained innovation engine.

• Revenue and backlog dynamics to monitor: the 9 ethylene projects and international drive wins likely translate into multi-year revenue recognition and higher ASPs for engineered turbo-compressor packages.
• Margin levers: scaling large-frame turbines and petrochemical compressor-turbine packages generally carries better gross margin than commodity power units due to engineering content and aftermarket scope.
• Execution risks: concentration of large projects (e.g., 1.8 million tpa unit) intensifies delivery, testing and warranty exposure-mitigants include mature R&D outputs and patent-backed designs.
• R&D productivity: 38 accepted projects and 29 total patents indicate a pipeline to support product upgrades, efficiency gains, and tailored solutions for overseas customers.

For corporate context and strategic orientation see Mission Statement, Vision, & Core Values (2026) of Hangzhou Steam Turbine Co., Ltd.