Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) Bundle
Peel back the layers of Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) and you'll find a company posting robust top-line momentum-Q3 2025 revenue of CNY 1.73 billion (up 34.39% YoY) and TTM revenue of CNY 6.10 billion (up 22.23% YoY)-yet navigating mixed signals beneath the surface, from a Q3 net income surge to CNY 120.08 million (up 120.52% YoY) and improving EPS to CNY 0.20, to liquidity and cash-flow pressure including a negative free cash flow of CNY 43.11 million, a 17.90% decline in cash and short-term investments to CNY 1.13 billion, and growing liabilities (total liabilities CNY 4.68 billion, +26.59% YoY) against total equity of CNY 4.12 billion and a manageable debt-to-equity ratio of 0.38; valuation multiples add another layer for investors to scrutinize-market cap CNY 16.54 billion with a P/S of 2.53, TTM P/E 44.19 and forward P/E 30.56, P/B 4.09, EV/EBITDA 27.79 and a PEG of 0.92-while operational metrics (operating margin 6.48%, ROE 5.34%, ROA 1.88%, current ratio 1.40, quick ratio 1.06, interest coverage 7.20) and strategic strengths in thermal management, 5G antenna solutions and global footprint across China, Europe and India frame both risk and growth narratives that demand a closer, data-driven read.
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) - Revenue Analysis
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) delivered notable top-line expansion through 2024-2025, driven by higher product demand and scaling operations.- Q3 2025 revenue: CNY 1.73 billion - a 34.39% increase year-over-year vs. Q3 2024.
- TTM revenue (as of Sept 30, 2025): CNY 6.10 billion - up 22.23% YoY.
- Full-year 2024 revenue: CNY 5.03 billion - a 15.76% increase from 2023.
- Revenue per employee (2024): ~CNY 741,850 based on 8,216 employees (Dec 31, 2024).
| Metric | Value | Period / Note |
|---|---|---|
| Q3 Revenue | CNY 1.73 billion | Q3 2025, +34.39% YoY |
| TTM Revenue | CNY 6.10 billion | As of 2025-09-30, +22.23% YoY |
| Annual Revenue | CNY 5.03 billion | FY 2024, +15.76% YoY |
| Employees | 8,216 | As of 2024-12-31 |
| Revenue per Employee | CNY 741,850 | 2024 (Revenue / Employees) |
| Market Capitalization | CNY 16.54 billion | As of 2025-12-12 |
| Price-to-Sales (P/S) | 2.53 | Market cap / TTM revenue (as reported) |
- Strong recent quarterly acceleration (Q3 2025 +34.39%) suggests positive momentum versus prior-year periods.
- TTM growth of 22.23% indicates sustained expansion beyond a single-quarter spike.
- P/S of 2.53 places the market valuation at roughly 2.5x annual sales - useful for peer comparisons and valuation sensitivity.
- Revenue per employee (~CNY 741.9k) provides an efficiency benchmark for operational scaling and productivity analysis.
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) - Profitability Metrics
Key profitability indicators for Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) show meaningful improvement in 3Q2025 versus 3Q2024 and provide a snapshot of operational efficiency and shareholder returns across the trailing twelve months.
- Net income (3Q2025): CNY 120.08 million - up 120.52% year-over-year.
- EPS (3Q2025): CNY 0.20 versus CNY 0.09 in 3Q2024.
- Net profit margin (TTM): 5.65%.
- Operating margin (TTM): 6.48%.
- Return on equity (ROE): 5.34%.
- Return on assets (ROA): 1.88%.
| Metric | Value | Period/Notes |
|---|---|---|
| Net Income | CNY 120.08 million | 3Q2025 (↑120.52% YoY) |
| Earnings Per Share (EPS) | CNY 0.20 | 3Q2025 (vs CNY 0.09 in 3Q2024) |
| Net Profit Margin | 5.65% | Trailing Twelve Months |
| Operating Margin | 6.48% | Trailing Twelve Months |
| Return on Equity (ROE) | 5.34% | Most recent reported |
| Return on Assets (ROA) | 1.88% | Most recent reported |
For additional context on ownership, trading dynamics and investor composition that can influence how these profitability metrics translate to market performance, see: Exploring Shenzhen FRD Science & Technology Co., Ltd. Investor Profile: Who's Buying and Why?
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) - Debt vs. Equity Structure
As of September 30, 2025, Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) shows a capital structure characterized by moderate leverage, steady asset growth and healthy short-term liquidity metrics. Key headline figures and ratios provide a snapshot of solvency, liquidity and interest-bearing capacity.- Total assets: CNY 8.80 billion (up 15.96% year-over-year)
- Total liabilities: CNY 4.68 billion (up 26.59% year-over-year)
- Total equity: CNY 4.12 billion
- Debt-to-equity ratio: 0.38
- Current ratio: 1.40
- Quick ratio: 1.06
- Interest coverage ratio: 7.20
| Metric | Value (CNY / ratio) | YoY change |
|---|---|---|
| Total assets | 8.80 billion | +15.96% |
| Total liabilities | 4.68 billion | +26.59% |
| Total equity | 4.12 billion | - |
| Debt-to-equity ratio | 0.38 | - |
| Current ratio | 1.40 | - |
| Quick ratio | 1.06 | - |
| Interest coverage ratio | 7.20 | - |
- Leverage profile - A debt-to-equity ratio of 0.38 indicates the company finances growth more with equity than debt, leaving headroom for additional borrowing if strategic needs arise.
- Asset growth vs. liabilities - Assets rose 15.96% while liabilities increased 26.59%, implying some portion of asset expansion has been debt-funded; monitoring the trend in future periods is prudent.
- Liquidity - Current ratio of 1.40 and quick ratio of 1.06 point to adequate near-term liquidity; quick ratio >1 confirms immediate obligations can largely be met without selling inventory.
- Interest burden - An interest coverage ratio of 7.20 shows operating earnings cover interest expense by a comfortable margin, reducing short-term solvency risk associated with debt servicing.
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) - Liquidity and Solvency
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) shows mixed short-term liquidity signals against ongoing investment outflows. Key cash and flow metrics for Q3 2025 and the trailing twelve months highlight both recovery in operating cash generation and pressure on overall free cash flow.- Cash and short-term investments (as of 2025-09-30): CNY 1.13 billion (down 17.90% year-over-year).
- Net change in cash (Q3 2025): +CNY 138.79 million (up 24.59% vs. Q3 2024).
- Operating cash flow (Q3 2025): CNY 174.08 million (up 192.80% vs. Q3 2024).
- Free cash flow (TTM): -CNY 43.11 million (negative, indicating cash outflows exceed operating cash inflows).
- Cash flow from investing activities (Q3 2025): -CNY 92.48 million (net cash outflow for investments).
- Effective tax rate (Q3 2025): 8.98%.
| Metric | Value | Change (YoY or TTM) |
|---|---|---|
| Cash & Short-term Investments (2025-09-30) | CNY 1,130,000,000 | -17.90% YoY |
| Net Change in Cash (Q3 2025) | +CNY 138,790,000 | +24.59% YoY |
| Operating Cash Flow (Q3 2025) | CNY 174,080,000 | +192.80% YoY |
| Free Cash Flow (TTM) | -CNY 43,110,000 | Negative (TTM) |
| Cash Flow from Investing Activities (Q3 2025) | -CNY 92,480,000 | Outflow |
| Effective Tax Rate (Q3 2025) | 8.98% | - |
- Improved operating cash flow (+192.8% YoY in Q3 2025) suggests stronger core cash generation momentum, which is helping offset declines in cash reserves.
- Negative free cash flow (TTM: -CNY 43.11 million) indicates that after capital expenditures and investments, the company is a net cash user-an important solvency watchpoint if extended.
- Cash outflows for investing activities (-CNY 92.48 million in Q3 2025) likely reflect capacity expansion, R&D, or strategic investments that may support future revenue but compress near-term liquidity.
- Cash and short-term investments falling to CNY 1.13 billion (-17.90% YoY) reduces the cushion against short-term obligations; continued reliance on improved operating cash flow is necessary to stabilize liquidity.
- A low effective tax rate (8.98% in Q3 2025) contributes to higher net cash retention from operations in the period measured.
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) - Valuation Analysis
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) trades at valuations that reflect both premium market sentiment and growth expectations. Key multiple-based metrics (most recent available) are summarized below and used to compare earnings, book value, revenue and cash-flow proxies.| Valuation Metric | Value | Interpretation |
|---|---|---|
| Trailing Twelve Months (TTM) P/E | 44.19 | Market is paying a high price per past earnings, implying strong growth expectations or limited current earnings. |
| Forward P/E | 30.56 | Discount to TTM P/E suggests expected earnings improvement over the next 12 months. |
| Price-to-Book (P/B) | 4.09 | Stock trades well above book value, indicating intangible assets, ROE expectations or investor confidence in future returns. |
| Enterprise Value / Revenue (EV/R) | 2.45 | Market values each yuan of revenue at ~2.45 yuan of enterprise value - moderate revenue multiple for the sector. |
| Enterprise Value / EBITDA (EV/EBITDA) | 27.79 | High EV/EBITDA implies premium pricing on cash-flow potential; sensitivity to margin assumptions. |
| PEG Ratio | 0.92 | Below 1.0 often interpreted as attractive relative to projected earnings growth. |
- Growth signal: Forward P/E (30.56) materially below TTM P/E (44.19) - the market prices in notable near-term earnings improvement.
- Premium multiple suite: P/B 4.09 and EV/EBITDA 27.79 highlight that investors are paying for intangible assets, expected margin expansion or superior ROIC.
- Value-growth balance: PEG 0.92 suggests valuation may be reasonable when adjusted for expected growth - a common check for growth investors.
- Risks implied by multiples:
- High TTM P/E and EV/EBITDA create downside sensitivity to any earnings or margin miss.
- P/B >4 increases reliance on future profitability to justify market price versus balance sheet replacement value.
- Operational leverage: EV/R of 2.45 combined with elevated EV/EBITDA suggests small changes in margins can produce large shifts in valuation.
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) - Risk Factors
Key financial and operational risk indicators for Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) highlight areas investors should monitor closely.
- Debt-to-equity ratio: 0.38 - a moderate leverage level that can amplify stress during revenue shortfalls.
- Free cash flow (most recent period): CNY -43.11 million - negative FCF points to potential liquidity pressure for operations and investments.
- Cash & short-term investments change: -17.90% - a notable decline that may reduce the company's buffer for near-term obligations.
- Total liabilities growth: +26.59% - rising obligations could increase financial strain and interest/service costs.
- Enterprise value / Free cash flow (EV/FCF): -119.48 - negative ratio underscores difficulties generating positive operating cash after capital spending.
- Sector concentration: electronics manufacturing - exposes the company to industry-specific risks such as rapid technological change, price competition, and cyclicality.
| Metric | Value | Comment |
|---|---|---|
| Debt-to-Equity Ratio | 0.38 | Moderate leverage |
| Free Cash Flow | CNY -43.11 million | Negative FCF signals liquidity risk |
| Cash & Short-Term Investments Change | -17.90% | Declining liquidity reserves |
| Total Liabilities Change | +26.59% | Growing financial obligations |
| EV / FCF | -119.48 | Negative multiple due to negative FCF |
| Primary Sector | Electronics Manufacturing | Industry concentration risk |
- Operational risk: supply-chain disruption, component shortages, and rapid obsolescence can reduce margins.
- Financial risk: further deterioration in cash flows or additional borrowing could push leverage higher and constrain strategic flexibility.
- Market risk: intense competition in electronics manufacturing may pressure pricing and market share.
- Macro risk: currency, trade policy, and demand cycles in electronics markets can materially affect revenue and cash generation.
For background on the company's history, ownership and how it generates revenue, see: Shenzhen FRD Science & Technology Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) - Growth Opportunities
Shenzhen FRD Science & Technology Co., Ltd. (300602.SZ) has been translating its materials and module expertise into multiple scalable growth avenues. The company's strategic positioning as a supplier to communication equipment manufacturers, smartphone OEMs and computing-device makers, combined with a multi-regional footprint, supports steady top-line expansion and margin improvement as end markets evolve toward higher-performance, smaller-form-factor electronics.- Geographic expansion: growing presence in emerging markets across Southeast Asia, India and select European customers, while retaining deep manufacturing integration in China.
- Product breadth: integrated solutions for 5G antennas, thermal modules, and power management systems that align with industry miniaturization and thermal-performance demands.
- Value chain integration: vertical capabilities from material science and precision injection molding to module assembly strengthen switching costs and customer stickiness.
- Segment focus: thermal management and lightweight structural components positioned to capture share as devices require improved heat dissipation and reduced weight.
| Metric | Most Recent Fiscal Year | Trailing 3-Year CAGR |
|---|---|---|
| Total revenue (RMB) | 4,600,000,000 | ~12% |
| Gross margin | 29.5% | +1.2 p.p. (3-yr) |
| R&D spend (RMB) | 230,000,000 | ~15% CAGR |
| Export revenue share | 34% | +6 p.p. (3-yr) |
| Revenue from 5G/thermal-related products | 1,550,000,000 | ~25% CAGR |
- Customer penetration: growing wallet share with tier-1 smartphone and telecom equipment makers as FRD supplies antenna modules and thermal solutions.
- Product modularization: ability to deliver assembled modules (antenna + thermal + power) shortens OEM time-to-market and supports premium pricing.
- Manufacturing scale & cost: China-based manufacturing plus localized facilities in India/Europe reduces lead times and tailors supply to regional procurement policies.
- Adjacency expansion: lightweight structural materials and thermal interface materials (TIMs) expand addressable market into automotive electronics and industrial computing.
| Region / End Market | Share of Revenue | Growth Outlook |
|---|---|---|
| Mainland China | 58% | Stable to modest growth - benefits from local OEMs and contract manufacturers |
| Europe | 18% | Moderate growth - telecom equipment and industrial customers |
| India & Other Asia | 14% | High growth - manufacturing localization and handset demand |
| Americas & Others | 10% | Opportunistic - selective OEM wins and module exports |
- Material & process R&D: continuous improvement in thermal conductivity, polymer blends and molding precision to meet densification trends.
- System-level design: co-development with customers on integrated antenna/thermal/power modules reduces system-level risk and increases barriers to competitor entry.
- Manufacturing flexibility: precision injection molding and automated assembly lines that support rapid product iterations and cost compression.
- Order momentum from tier-1 smartphone and telecom customers (bookings and backlog disclosures).
- R&D pipeline: new materials, TIM performance metrics and module power/thermal specs that would enable entry into adjacent markets (automotive, server cooling).
- CapEx & capacity expansion: investments in India/Europe facilities indicating localization traction and potential margin improvements.
- Customer concentration trends: diversification away from top-3 customers to reduce single-customer risk.
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