Breaking Down Ningbo Yunsheng Co., Ltd. Financial Health: Key Insights for Investors

Investors watching Ningbo Yunsheng Co., Ltd. will want to dig into the numbers: in H1 2025 the company booked operating revenue of CNY 2.349 billion and a parent-net profit of CNY 108 million (a staggering +179.83% YoY), while TTM figures as of 12 Dec 2025 show revenue of CNY 5.30 billion with net income of CNY 301.83 million; profitability metrics include a gross margin of 11.6%, a net margin around 5.7% and H1 EBITDA of CNY 86.64 million (+105.77% YoY), liquidity and cash strength are notable with cash and short-term investments of CNY 2.18 billion and free cash flow of CNY 631.40 million (+93.13% YoY), the balance sheet shows total assets of CNY 9.70 billion versus liabilities of CNY 3.71 billion (debt-to-equity ~21.7%, net-debt-to-equity 2.3%), valuation multiples are elevated (TTM P/E 91.99, P/B 2.49, EV/EBITDA 83.04) even as analysts model strong growth (forecasted earnings CAGR ~39.8% and revenue CAGR ~17.8% over three years); jump into the full analysis to weigh these facts-rapid profit rebound, robust cash generation, rising leverage and premium valuation-against the company's risks and sector dynamics.

Ningbo Yunsheng Co., Ltd. (600366.SS) Revenue Analysis

• H1 2025 operating revenue: CNY 2.349 billion, up 1.85% year-on-year.
• H1 2025 net profit attributable to parent: CNY 108 million, up 179.83% year-on-year.
• H1 2025 net profit margin: 5.75%, an 89.14% increase year-on-year.
• Q3 2025 revenue: CNY 1.56 billion; Q3 2025 net income: CNY 168 million.
• TTM (as of 2025-12-12) revenue: CNY 5.30 billion; TTM net income: CNY 301.83 million.
• Revenue growth (past year): 11.64% vs. electronic industry average 10.93%.

• Margin dynamics: Net profit margin rising from prior-year levels to 5.75% in H1 2025 reflects operating leverage and margin expansion initiatives.
• Quarterly momentum: Q3 2025's CNY 168 million net income signals continued quarterly improvement and contributes materially to TTM profitability.
• Growth context: Annual revenue growth of 11.64% outpaced the electronic industry average (10.93%), indicating competitive top-line performance.
• Key metric alignment: TTM revenue of CNY 5.30 billion with net income of CNY 301.83 million yields a TTM net margin consistent with mid-single-digit profitability typical for the sector.

Ningbo Yunsheng Co., Ltd. (600366.SS) - Profitability Metrics

Ningbo Yunsheng Co., Ltd. reported a set of profitability indicators for the first half of 2025 and trailing twelve months that point to recovering margins, improved EBITDA performance, and efficient tax and cost management.

• Gross profit margin (1H2025): 11.6%
• Net profit margin (1H2025): 5.70%
• Operating margin (1H2025): 0.43%
• EBITDA (1H2025): CNY 86.64 million (YoY +105.77%)
• Effective tax rate (1H2025): 3.07%
• ROE (TTM as of 12-Dec-2025): 5.05%

Key numeric context in a snapshot:

For background on the company's origins, ownership and business model, see Ningbo Yunsheng Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Ningbo Yunsheng Co., Ltd. (600366.SS) - Debt vs. Equity Structure

Ningbo Yunsheng Co., Ltd. shows a generally conservative leverage profile as of June 2025, with total assets of CNY 9.70 billion and total liabilities of CNY 3.71 billion. Key ratios illustrate capital structure, coverage and recent trend in leverage.

• Total assets: CNY 9.70 billion (June 2025)
• Total liabilities: CNY 3.71 billion (June 2025)
• Reported debt-to-equity ratio: 21.7%
• Net debt-to-equity ratio: 2.3% - indicating minimal net leverage after cash and equivalents
• Operating cash flow coverage of debt: 25.3% - operating cash flow materially covers debt service
• Interest coverage: favorable (company earns comfortably more operating income than interest expense)
• Gearing ratio: 40.22% - reflects balanced use of debt and equity in financing
• Five-year total debt-to-equity trend: increased from 19.3% to ~21.6%, showing a gradual rise in leverage

• Implication: low net-debt (2.3%) provides flexibility for capex or dividends while keeping interest burden moderate.
• Implication: operating cash flow covering ~25% of debt indicates healthy internal capacity to service obligations, reducing refinancing risk.
• Trend note: gradual rise in total debt-to-equity (19.3% → ~21.6%) warrants monitoring for potential acceleration in leverage.

For broader context on the company's history, ownership and how it makes money, see: Ningbo Yunsheng Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Ningbo Yunsheng Co., Ltd. (600366.SS) - Liquidity and Solvency

• Short-term assets: CNY 7.20 billion
• Short-term liabilities: CNY 3.40 billion
• Long-term liabilities: CNY 706.40 million
• Cash & short-term investments (Jun 2025): CNY 2.18 billion (YoY +36.30%)
• Free cash flow (H1 2025): CNY 631.40 million (YoY +93.13%)
• Net change in cash (H1 2025): CNY 172.26 million (YoY +122.78%)
• Operating cash flow margin: 1,755.34%

• A current ratio of ~2.12x signals comfortable short-term liquidity to meet obligations.
• Short-term assets exceed long-term liabilities by ~10.2x, underscoring solvency resilience.
• Strong YoY increases in cash balances and free cash flow point to improving internal funding capacity.
• The exceptionally high operating cash flow margin highlights unusually strong cash efficiency (validate against revenue mix and one-off items in detailed financials).

Ningbo Yunsheng Co., Ltd. (600366.SS) - Valuation Analysis

Ningbo Yunsheng's current market valuation shows a notably rich pricing relative to earnings and cash‑flow metrics, while revenue and book‑value multiples sit at elevated but less extreme levels. Key market metrics (latest close) are summarized below and followed by implications for investors.

• High TTM P/E (91.99): implies investors are pricing substantial growth or a stretched near‑term earnings base; earnings volatility or one‑off items can make this multiple look extreme.
• Forward P/E (67.86): although lower than TTM, still signals strong growth expectations embedded in the price; the gap between TTM and forward suggests expected earnings improvement.
• P/B at 2.49: indicates the market values the company at about 2.5x its book value - a premium consistent with intangible assets, return on equity above peers, or scarcity value.
• EV/R of 2.21: places the firm at a mid/high revenue multiple compared with many industrials; revenue growth prospects must justify paying ~2.2x sales.
• EV/EBITDA of 83.04: extremely elevated and signals the market is paying a very large premium for current operating cash flow; this can reflect very low reported EBITDA, aggressive forward EBITDA improvement expectations, or accounting timing effects.

Valuation context to examine alongside these multiples:

• Absolute market size: market cap CNY 15.62 billion anchors relative comparisons to sector peers and index constituents.
• Price sensitivity: with share price at CNY 13.79, small percent moves materially affect market cap and multiples for mid‑cap names.
• Growth vs. profitability tradeoff: the wide spread between price multiples and EV/EBITDA suggests investors expect margin expansion or one‑off EBITDA normalization.

For detailed ownership, historical performance, and operational drivers that may justify or challenge these multiples, see: Exploring Ningbo Yunsheng Co., Ltd. Investor Profile: Who's Buying and Why?

Ningbo Yunsheng Co., Ltd. (600366.SS) - Risk Factors

• Profitability pressure: 5.70% net margin leaves limited buffer for cost shocks or margin compression.
• Asset and capital efficiency risk: ROA 1.34% and return on capital 1.76% imply low conversion of assets/capital into earnings.
• Earnings deterioration: average annual earnings decline of -25.1% contrasts with the electronic industry's +0.5% growth, signaling company-specific headwinds.
• Rising leverage: debt-to-equity up from 19.3% to 21.6% over five years increases financial risk, especially if earnings remain weak.
• Valuation vulnerability: TTM P/E of 91.99 means market expectations are high; any earnings disappointment could trigger disproportionate share price downside.
• Sector sensitivity: dependence on electronic industry conditions means macro or cyclical downturns may amplify the above risks.

Ningbo Yunsheng Co., Ltd. (600366.SS) - Growth Opportunities

Ningbo Yunsheng Co., Ltd. sits at the intersection of specialty materials and high-demand end markets, with forecasted top-line and earnings expansion that underpins investor interest.

• Analyst forecasts: earnings growth of 39.8% CAGR and revenue growth of 17.8% CAGR over the next three years.
• EPS growth expected at 39.7% per annum, signaling strong per-share profitability improvement.
• Forward P/E of 67.86 reflects market willingness to pay a premium for anticipated earnings acceleration.
• Market capitalization: CNY 15.62 billion; latest close share price: CNY 13.79.

Product end-market diversification supports resilient demand:

• Application sectors: electronic information, industrial equipment, automotive, medical, and others - broad exposure reduces single-market dependency.
• Recent issuance of streamlined rare earth export licenses may lower friction for overseas sales and expand addressable markets.

Key growth catalysts to monitor:

• Expansion in electronic information and automotive electrification demand boosting volumes and ASPs.
• Improved export efficiency via rare earth export licenses enabling faster international orders and potential margin uplift.
• Operational leverage from EPS outpacing revenue growth - margin expansion and/or share buybacks could amplify returns.

For a deeper look at investor ownership and buying dynamics, see: Exploring Ningbo Yunsheng Co., Ltd. Investor Profile: Who's Buying and Why?