Breaking Down Zhejiang Windey Co.,Ltd. Financial Health: Key Insights for Investors

Investors watching Zhejiang Windey Co., Ltd. will want to dig into the numbers: in Q3 ending September 30, 2025 the company posted revenue of 7.59 billion CNY (a striking +43.22% year-over-year jump), with TTM revenue at 26.76 billion CNY (+24.89% YoY) while market capitalization sits at 13.38 billion CNY and a reported share price of 16.53 CNY (Nov 17, 2025); yet profitability remains thin (TTM net profit margin 1.68%, operating margin 1.51%, EBITDA margin 2.39%) amid a mixed balance sheet - total debt 4.75 billion CNY versus cash of 6.53 billion CNY (net cash ~1.77 billion CNY, net cash per share 2.26 CNY), a debt-to-equity ratio of 70.32% and liquidity ratios below 1 (current ratio 0.91, quick ratio 0.56) - while risk metrics warn (Altman Z‑Score 0.72) even as Piotroski F‑Score reads 7; valuation tensions are evident with TTM P/E 28.82, forward P/E 20.36, P/S 0.50 and a fair value estimate of 14.28 CNY versus a cited market price of 18.18 CNY (implying a potential downside of 21.45%), and yet growth drivers like $200 million in government wind contracts, AI partnerships to cut downtime 30% and an 18% domestic market share promise upside-read on for a granular, chapter-by-chapter breakdown.

Zhejiang Windey Co.,Ltd. (300772.SZ) - Revenue Analysis

• Quarter ending 2025-09-30 revenue: 7.59 billion CNY (+43.22% YoY)
• TTM revenue as of 2025-09-30: 26.76 billion CNY (+24.89% YoY)
• Full-year 2024 revenue: 22.20 billion CNY (+18.54% YoY)
• Revenue per employee: ~10.23 million CNY (2,615 employees)
• Price-to-Sales (P/S) ratio: 0.50
• Market capitalization: 13.38 billion CNY; share price: 16.53 CNY (as of 2025-11-17)

• Implication for valuation: A P/S of 0.50 implies the market values the company at roughly half its annual sales, which can indicate either undervaluation relative to peers or market concerns about margins or growth sustainability.
• Operational leverage: Revenue per employee of ~10.23 million CNY signals high productivity; monitoring margin trends will show if revenue growth translates into profit expansion.
• Recent acceleration: The 43.22% surge in the latest quarter outpaces the TTM and 2024 growth rates, suggesting recent demand/price improvements or successful new product ramps.

Zhejiang Windey Co.,Ltd. (300772.SZ) - Profitability Metrics

The following metrics summarize Zhejiang Windey Co.,Ltd.'s recent profitability profile (trailing twelve months unless noted):

• Margins indicate modest profitability: gross margin (8.10%) shows limited pricing power or material cost sensitivity.
• Operating margin (1.51%) and EBITDA margin (2.39%) point to thin operating cushions after overhead and non-cash charges.
• Net profit margin at 1.68% implies most revenue is absorbed by operating, financing, and tax costs.
• ROE of 7.34% signals a moderate return to shareholders relative to capital employed.
• EPS (0.59 CNY) and diluted EPS (0.63 CNY) reflect modest absolute earnings per share - dilution impact appears limited.

Key drivers and considerations for these metrics:

• Revenue mix and product margins: an 8.10% gross margin suggests narrow unit economics; improvements would require either price gains or COGS reductions.
• Cost structure and operational efficiency: low operating margin implies sensitivity to SG&A and production overhead; scale or process gains could boost operating leverage.
• Non-operating items and tax/interest: the gap between EBITDA margin and net margin shows finance and tax impacts that constrain net profitability.
• Capital efficiency: ROE near 7% is positive but leaves room for enhancement via margin expansion or more efficient capital allocation.

For broader context on the company's background, strategy, and how it generates revenue, see: Zhejiang Windey Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Zhejiang Windey Co.,Ltd. (300772.SZ) - Debt vs. Equity Structure

Key balance-sheet and liquidity metrics provide a snapshot of Zhejiang Windey's financial leverage, solvency and short-term coverage.

• Debt-to-equity ratio: 70.32% - moderate leverage relative to equity.
• Total debt: ¥4.75 billion; Cash & cash equivalents: ¥6.53 billion → Net cash: ¥1.77 billion.
• Shareholders' equity (book value): ¥6.76 billion; Book value per share: ¥8.39.
• Current ratio: 0.91 - below the ideal 1.0 benchmark, signaling potential short-term liquidity pressure.
• Quick ratio: 0.56 - limited immediate coverage of short-term liabilities by liquid assets.
• Interest coverage ratio: 6.53 - operating income covers interest expense by a comfortable margin.

Contextual considerations:

• The net cash position (¥1.77bn) cushions financial flexibility despite a current ratio under 1.0.
• A debt-to-equity of 70.32% combined with an interest coverage of 6.53 suggests leverage is manageable given operating earnings, but working-capital metrics (current and quick ratios) warrant monitoring.
• Book value per share (¥8.39) offers a baseline for shareholders' capital; compare to market price for valuation perspective.

Further corporate background and structural details: Zhejiang Windey Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Zhejiang Windey Co.,Ltd. (300772.SZ) - Liquidity and Solvency

• Cash & cash equivalents: 6.53 billion CNY - a significant immediate liquidity buffer.
• Operating cash flow (TTM): 2.80 billion CNY - positive operating cash generation.
• Free cash flow (TTM): 335.62 million CNY after capital expenditures of 2.47 billion CNY.
• Altman Z-Score: 0.72 - below the safe threshold (3.0), indicating elevated bankruptcy risk.
• Piotroski F-Score: 7 - suggests relatively strong fundamentals across nine accounting-based criteria.
• Net cash per share: 2.26 CNY - a per-share liquidity cushion.

• Implication: ample cash and positive operating cash flow support ongoing operations, but heavy capex has compressed free cash flow and the low Altman Z-Score flags solvency risk under stress scenarios.
• Consider monitoring liquidity trends, capex trajectory, and balance-sheet improvements alongside profitability metrics and operational cash conversion.

Zhejiang Windey Co.,Ltd. (300772.SZ) - Valuation Analysis

• TTM P/E: 28.82 - indicates investors are paying ~29x trailing earnings.
• Forward P/E: 20.36 - market expects earnings growth or improvement versus TTM.
• P/B: 1.98 - equity valued at nearly 2x book value.
• EV/EBITDA: 17.42 - enterprise-level valuation relative to operating cash earnings.
• P/S: 0.50 - the market price equals roughly half the company's revenue per share.
• P/FCF: 39.86 - free cash flow is valued at a premium relative to current price.
• Fair value estimate: 14.28 CNY; Current market price: 18.18 CNY; Implied downside: 21.45%.

• Valuation drivers to watch: earnings beat/miss versus forward P/E expectations, balance sheet changes affecting P/B, and FCF trends impacting P/FCF.
• Relative signals: low P/S alongside higher P/FCF suggests revenue scale but tighter cash conversion or capex pressures.

Zhejiang Windey Co.,Ltd. (300772.SZ) - Risk Factors

• Altman Z-Score: 0.72 - well below the safe threshold of 3, indicating elevated bankruptcy risk and financial distress vulnerability.
• Debt-to-Equity Ratio: 70.32% - a moderate leverage level that increases sensitivity to earnings volatility and interest-rate movements.
• Liquidity Ratios: Current Ratio 0.91; Quick Ratio 0.56 - both under the 1.0 benchmark, signaling potential short-term liquidity constraints to meet liabilities.
• Piotroski F-Score: 7 - a relatively strong score suggesting decent accounting and operational fundamentals, but not sufficient alone to offset the low Z-Score.
• Net Cash per Share: 2.26 CNY - provides a modest cash cushion per share to absorb shocks or support operations.
• Valuation: Fair Value Estimate 14.28 CNY vs Market Price 18.18 CNY - implies a potential downside of 21.45% from current market pricing.

• Primary risks arise from the low Altman Z-Score combined with liquidity ratios under 1.0, increasing bankruptcy and short-term funding risk.
• Leverage near 70% means earnings declines or higher interest costs could materially impact equity value and solvency metrics.
• While a Piotroski F-Score of 7 and net cash per share (2.26 CNY) offer partial mitigation, they do not eliminate downside suggested by the fair value gap (14.28 CNY vs 18.18 CNY).
• Investors should monitor cash flow generation, working capital trends, interest coverage, and any balance sheet changes that affect the Z-Score and liquidity ratios.

Zhejiang Windey Co.,Ltd. (300772.SZ) - Growth Opportunities

• Secured domestic government contracts worth $200 million for new wind farm installations, providing a sizable near-term revenue backlog.
• Strategic partnership to embed AI into turbine monitoring, projected to cut operational downtime by ~30%, lowering O&M expenses and increasing energy yield.
• Proprietary design and manufacturing efficiencies delivering a ~10% reduction in levelized cost of energy (LCOE), improving bid competitiveness.
• Strong domestic brand with an estimated market share of ~18% in the Chinese wind turbine sector, supporting scale advantages and repeat order flow.
• Vertical integration enabling lower input and assembly costs, contributing to current gross margins around 15% and scope for margin expansion with volume.
• Market tailwinds: a sector rebound (illustrated by peers like Jixin Technology hitting daily trading limits) that strengthens demand sentiment for Windey's products and services.