Breaking Down Aecc Aero Science and Technology Co.,Ltd Financial Health: Key Insights for Investors

Investors scrutinizing Aecc Aero Science and Technology Co., Ltd. will find a mix of striking growth and cautionary signals: in the quarter ending September 30, 2025 revenue surged 117.41% year‑over‑year to 1.43 billion CNY, with TTM revenue at 4.32 billion CNY (up 5.32% YoY) despite a 2024 annual revenue decline of 14.77% to 3.85 billion CNY; profitability shows strain-net income in the quarter ending June 30, 2025 fell to 6.65 million CNY (down 61.92% YoY) and net margin compressed to 0.74% (down 50.99%), while EBITDA for June 2025 was 108.07 million CNY (‑22.45%); market metrics include a market cap of 8.84 billion CNY (P/S 2.05) and a lofty P/E of 141.88, enterprise value of 11.97 billion CNY with EV/EBITDA 22.29; the balance sheet shows total assets of 8.58 billion CNY, liabilities of 5.70 billion CNY, total equity of 2.88 billion CNY and a debt‑to‑equity ratio of 0.56 (current ratio 1.17, quick ratio 0.61, debt/EBITDA 3.03), while foreign trade revenue grew 16.23% to 1.16 billion CNY and market cap rose 77.14% over the past year-compelling data points that warrant a close read of the full analysis.

Aecc Aero Science and Technology Co.,Ltd (600391.SS) - Revenue Analysis

Key reported figures:

• Quarter ending September 30, 2025 revenue: 1.43 billion CNY (+117.41% YoY)
• Trailing twelve months (TTM) revenue: 4.32 billion CNY (+5.32% YoY)
• 2024 annual revenue: 3.85 billion CNY (down 14.77% from 4.52 billion CNY in 2023)
• Revenue from foreign trade in 2024: 1.16 billion CNY (+16.23% YoY)
• Revenue per employee: ~1.12 million CNY (3,860 employees)
• Market capitalization: 8.84 billion CNY; Price-to-Sales (P/S): 2.05

Distribution and per-capita metrics:

• Total employees: 3,860
• Revenue per employee: ~1.12 million CNY
• Market cap / Revenue (P/S): 2.05 (Market cap 8.84 billion CNY)

Implications for investor focus:

• Quarterly momentum: Q3 2025 surge (117.41% YoY) indicates either backlog conversion, project seasonality, or one-off contracts-monitor sustainability across subsequent quarters.
• Annual volatility: 14.77% decline in 2024 followed by a modest TTM recovery (+5.32%) suggests partial stabilization; track order book and backlog disclosures.
• Export exposure: Foreign trade growth (16.23% in 2024) provides diversification of demand drivers and potential FX/international-market sensitivity.
• Operational efficiency: Revenue per employee (~1.12M CNY) offers a benchmark vs. peers for productivity and scale economics.

Reference for corporate direction and strategic context: Mission Statement, Vision, & Core Values (2026) of Aecc Aero Science and Technology Co.,Ltd.

Aecc Aero Science and Technology Co.,Ltd (600391.SS) - Profitability Metrics

Key profitability indicators for the quarter ending June 30, 2025 and trailing twelve months (TTM):

• Sharp decline in net income (-61.92%) and margin compression (-50.99%) signal near-term profitability stress.
• EBITDA contraction (-22.45%) points to weakening operating performance before non-cash and financing items.
• Low ROA (1.58%) and return on capital (2.71%) indicate limited efficiency in generating returns from assets and invested capital.
• EPS of 0.14 CNY with a P/E of 141.88 suggests market pricing is high relative to current earnings-implying investor expectations of future improvement or potential overvaluation.

For contextual company background and how Aecc Aero Science and Technology Co.,Ltd operates and makes money, see: Aecc Aero Science and Technology Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Aecc Aero Science and Technology Co.,Ltd (600391.SS) - Debt vs. Equity Structure

As of June 2025, Aecc Aero Science and Technology Co.,Ltd (600391.SS) shows a capital structure with meaningful leverage but manageable coverage metrics. The headline balance-sheet figures and leverage multiples are provided below to give investors a clear snapshot of solvency, liquidity and enterprise valuation context.

• Leverage profile: Debt-to-equity of 0.56 indicates a conservative-to-moderate use of debt relative to equity capital.
• Liquidity posture: Current ratio 1.17 shows short-term assets slightly exceed short-term liabilities; quick ratio 0.61 warns reliance on inventories or receivables for liquidity.
• Coverage: Interest coverage at 3.32 provides reasonable cushion to service interest, but not a wide margin against stress.
• Debt paydown horizon: Debt-to-EBITDA of 3.03 implies roughly three years of EBITDA would be required to eliminate the debt, absent reinvestment or cash flow changes.
• Valuation context: Enterprise value of 11.97B and EV/EBITDA of 22.29 suggests investors are paying a premium multiple for earnings relative to peers (sector-dependent).

For corporate purpose and strategic orientation details that may influence capital allocation and financing choices, see: Mission Statement, Vision, & Core Values (2026) of Aecc Aero Science and Technology Co.,Ltd.

Aecc Aero Science and Technology Co.,Ltd (600391.SS) - Liquidity and Solvency

• Current ratio: 1.17 - sufficient short-term assets to cover current liabilities, indicating basic working-capital adequacy.
• Quick ratio: 0.61 - potential difficulty meeting short-term obligations without converting inventory to cash.
• Interest coverage ratio: 3.32 - a comfortable buffer to cover interest expenses from operating earnings.
• Debt-to-equity ratio: 0.56 - a balanced capital structure with moderate reliance on debt financing relative to equity.
• Debt-to-EBITDA ratio: 3.03 - moderate leverage relative to operating cash-flow proxy; manageable but warrants monitoring.

• Asset vs. liability position: Total assets of 8.58 billion CNY offset total liabilities of 5.70 billion CNY, leaving net assets/equity supportive of solvency.
• Operational resilience: Interest coverage above 3x gives room for servicing debt, though sustained earnings are required to maintain this buffer.
• Liquidity watchpoints: The quick ratio under 1 implies working-capital management and inventory turnover will be key to short-term stability.

Aecc Aero Science and Technology Co.,Ltd (600391.SS) Valuation Analysis

• Market cap: 8.84 billion CNY - base scale of equity value.
• P/S (Price-to-Sales): 2.05 - moderate valuation relative to revenue; suggests the market attributes meaningful revenue durability or margin expansion potential.
• P/E (Price-to-Earnings): 141.88 - very high, implying earnings are low today relative to price or investors expect substantial future earnings growth.
• EV/EBITDA: 22.29 - premium to many industrial peers; indicates expectations of superior EBITDA growth or margin profile.
• P/TBV (Price-to-Tangible Book Value): 5.95 - significant premium to tangible equity, highlighting intangible value or anticipated return on capital improvements.
• P/FCF (Price-to-Free Cash Flow): 10.04 - market pays ~10x current free cash flow, a moderate premium consistent with growth expectations.
• P/OCF (Price-to-Operating Cash Flow): 7.42 - investors pay ~7.4x operating cash flow, showing relative preference for cash-generation metrics vs. accounting earnings.

• High P/E (141.88) is the standout - requires either substantial future EPS growth or risk of multiple contraction.
• EV/EBITDA of 22.29 and P/TBV of 5.95 show the market is pricing strategic or intangible advantages beyond current tangible assets and earnings.
• P/FCF (10.04) and P/OCF (7.42) indicate cash-based metrics are healthier relative to earnings, which may mitigate some earnings volatility concerns.

Aecc Aero Science and Technology Co.,Ltd (600391.SS) - Risk Factors

• Significant recent deterioration in profitability
• Valuation stretched relative to earnings
• Moderate leverage with limited coverage buffer
• Short-term liquidity constraints
• Exposure to volatile international markets and geopolitics
• Revenue pressures in domestic aviation and derivatives

Key quantified risk metrics and trend snapshots for Aecc Aero Science and Technology Co.,Ltd (600391.SS):

• Operating and margin risk: Net income fell ~62.5% year-on-year and net margin compressed to ~3.1%, implying either cost pressures, lower pricing on key products, higher input costs, or a mix of all three.
• Valuation risk: A trailing P/E near 48x prices in strong future earnings growth. If recovery stalls, downside risk to the share price is elevated.
• Leverage risk: Debt-to-EBITDA at 3.03x reduces flexibility. In the event of sustained earnings weakness, refinancing risk and interest coverage strain become material.
• Liquidity risk: A quick ratio of 0.61 indicates current liquid assets cover less than two-thirds of immediate liabilities, increasing the company's vulnerability to working capital shocks.
• Market and geopolitical risk: With roughly 40%+ of revenue from foreign trade, changes in global aviation demand, trade restrictions, or geopolitical tensions could meaningfully reduce orders or delay cash conversion.
• Revenue concentration and sector cyclicality: The decline in 2024 revenue (-9.5% YoY) points to weakness in the domestic aviation and derivative products segment; continued sector cyclicality could worsen cash flows and margins.

For deeper context on ownership, flow of funds, and investor composition that can amplify or mitigate these risks, see: Exploring Aecc Aero Science and Technology Co.,Ltd Investor Profile: Who's Buying and Why?

Aecc Aero Science and Technology Co.,Ltd (600391.SS) - Growth Opportunities

• International expansion: 16.23% growth in foreign trade revenue in 2024 signals accelerating export traction and demand from overseas OEMs and MROs.
• Strategic client relationships: established supplier relationships with General Electric, Pratt & Whitney, and Rolls‑Royce create channels for volume growth and co‑development opportunities.
• Product diversification: expansion into aviation bearings and broadened aero‑engine parts portfolio opens incremental aftermarket and OEM revenue streams.
• Technology and cost leverage: investment in digital intelligence manufacturing centers for key aero‑engine components aims to drive quality improvements, cycle‑time reductions, and unit‑cost declines.
• Financial repositioning: planned capital increase and targeted strategic investments designed to reduce leverage and fund capacity/technology upgrades, improving balance‑sheet flexibility.
• Market sentiment: a 77.14% increase in market capitalization over the past year reflects strong investor confidence that can lower cost of equity for future financing and support valuation‑driven M&A or alliances.

• Near‑term catalysts to monitor:
  • Execution and timetable of the capital increase and the allocation of proceeds toward capex, R&D, or debt reduction.
  • Commercialization and throughput improvements from digital intelligence manufacturing centers and measurable unit‑cost declines.
  • Order flow and revenue recognition from major partners (GE, P&W, Rolls‑Royce) and new bearing product launches.
• How investors can track progress:
  • Quarterly export revenue and backlog disclosures to confirm sustained international growth beyond the 16.23% 2024 gain.
  • Announcements on strategic investments, capital increase terms, and capex schedules.
  • Product qualification and initial sales reports for aviation bearings and other expanded offerings.