Breaking Down Shandong Pharmaceutical Glass Co., Ltd Financial Health: Key Insights for Investors

Peeling back the numbers on Shandong Pharmaceutical Glass Co., Ltd. reveals a mix of resilience and warning signs that every investor should probe: 2024 revenue reached CNY 5.13 billion (up 2.87% year‑over‑year) while TTM revenue as of Sep 30, 2025 fell to CNY 4.70 billion (an 8.43% decline), Q3 2025 quarterly sales slid to CNY 1.03 billion (down 17.14% YoY) even as management points to a 15.4% annual revenue growth forecast; profitability showed net income of CNY 942.99 million in 2024 (up 21.55% YoY) but TTM net income was CNY 765.01 million with Q3 2025 net profit margin at 16.69% (a 15.71% drop YoY), diluted TTM EPS of CNY 1.43, ROA of 6.52% and operating margin of 20.28%; balance sheet and valuation metrics include total assets of CNY 9.88 billion, liabilities of CNY 1.73 billion (debt‑to‑equity ~0.21), total equity of CNY 8.15 billion, enterprise value‑to‑revenue of 2.34, EV/EBITDA of 8.35, P/B of 1.78 and a market capitalization of CNY 13.52 billion (down 18.90% year‑over‑year); liquidity signals show cash and short‑term investments of CNY 2.52 billion (down 9.94% YoY), Q3 2025 operating cash flow of CNY 211.52 million (down 5.62% YoY) but negative free cash flow of CNY -266.65 million in Q3, with an effective Q3 tax rate of 17.18%; valuation multiples include a TTM P/E of 15.40, forward P/E of 12.37 and P/S of 2.87, while operational metrics - revenue per employee ~CNY 660,600 and exports near CNY 1.1 billion to 90+ countries - underscore both efficiency and international reach, leaving investors to weigh the recent revenue and margin declines alongside a solid equity base, moderate leverage and potential upside from forecasted growth and relative valuation.

Shandong Pharmaceutical Glass Co., Ltd (600529.SS) - Revenue Analysis

• 2024 revenue: CNY 5.13 billion (+2.87% vs 2023)
• TTM revenue (Sep 30, 2025): CNY 4.70 billion (-8.43% YoY)
• Q3 2025 revenue: CNY 1.03 billion (-17.14% YoY)
• Revenue per employee: ~CNY 660,600
• Export scale: ~CNY 1.1 billion annually to 90+ countries and regions
• Consensus/management annual revenue growth forecast: 15.4%

Shandong Pharmaceutical Glass Co., Ltd (600529.SS) - Profitability Metrics

• 2024 net income: CNY 942.99 million (up 21.55% vs. 2023: CNY 775.80 million).
• Q3 2025 net profit margin: 16.69% (down 15.71% year-over-year vs. Q3 2024).
• TTM net income as of Sep 30, 2025: CNY 765.01 million.
• Diluted EPS (TTM ending Mar 31, 2025): CNY 1.43.
• ROA (TTM ending Mar 31, 2025): 6.52% - indicating effective asset utilization.
• Operating margin (TTM ending Mar 31, 2025): 20.28% - reflecting strong operating efficiency.

• Interpretation: the company demonstrates robust operating margin and asset returns, though trailing net income and recent quarter margins show variability investors should monitor.
• Drivers to watch: pricing, cost of goods sold, capacity utilization, and any one-off items affecting quarter-to-quarter net profit margin.

Shandong Pharmaceutical Glass Co., Ltd (600529.SS) - Debt vs. Equity Structure

Key balance-sheet and valuation metrics for Shandong Pharmaceutical Glass Co., Ltd (600529.SS) as of the latest reported dates:

• Total assets (Sep 30, 2025): CNY 9.88 billion
• Total liabilities (Sep 30, 2025): CNY 1.73 billion
• Total equity (Sep 30, 2025): CNY 8.15 billion
• Debt-to-equity ratio (Sep 30, 2025): ~0.21
• Enterprise value / Revenue: 2.34
• Enterprise value / EBITDA: 8.35
• Price-to-book (Jul 4, 2025): 1.78
• Market capitalization (Nov 26, 2025): CNY 13.52 billion (down 18.90% YoY)

Interpretive highlights:

• The low debt-to-equity ratio (~0.21) signals a conservative capital structure with limited leverage relative to equity.
• A strong equity base (CNY 8.15 billion) supports balance-sheet resilience and financial flexibility.
• EV/Revenue of 2.34 implies a moderate revenue multiple; EV/EBITDA of 8.35 suggests valuation is neither deeply discounted nor richly priced relative to operating earnings.
• P/B of 1.78 indicates the market values the company notably above its book equity but not at extreme premiums common in high-growth sectors.
• Market cap decline of 18.90% over the prior year may reflect market sentiment, sector pressure, or company-specific developments worth monitoring.

Context and reference: Shandong Pharmaceutical Glass Co., Ltd: History, Ownership, Mission, How It Works & Makes Money

Shandong Pharmaceutical Glass Co., Ltd (600529.SS) - Liquidity and Solvency

Key liquidity and solvency metrics for Shandong Pharmaceutical Glass Co., Ltd (600529.SS) through Q3 2025 indicate a company with meaningful cash reserves but some near-term cash pressure reflected in negative free cash flow for the period. Below are the principal figures and implications for investors.

• Cash and short-term investments (Sep 30, 2025): CNY 2.52 billion (down 9.94% YoY)
• Operating cash flow (Q3 2025): CNY 211.52 million (down 5.62% YoY)
• Free cash flow (Q3 2025): CNY -266.65 million (negative)
• Effective tax rate (Q3 2025): 17.18%

The company's current and quick ratios are not explicitly disclosed in the provided figures, but several qualitative and quantitative indicators can be highlighted:

• Strong equity base and year-end cash buffer (CNY 2.52 billion) suggest adequate short-term coverage of liabilities, despite the YoY decline in liquid assets.
• Negative free cash flow in Q3 2025 implies capital expenditures or working-capital usage exceeded operating inflows, which may warrant monitoring if sustained.
• Operating cash flow remaining positive (CNY 211.52 million) indicates core operations are generating cash, though growth in operating cash is decelerating.
• Effective tax rate of 17.18% is within common corporate ranges in China and modestly supports after-tax cash retention.

For additional context on shareholder composition and investor activity, see: Exploring Shandong Pharmaceutical Glass Co., Ltd Investor Profile: Who's Buying and Why?

Shandong Pharmaceutical Glass Co., Ltd (600529.SS) - Valuation Analysis

Key market valuation metrics for Shandong Pharmaceutical Glass Co., Ltd (600529.SS) as of July 4, 2025 show a company trading at moderate multiples with forward expectations of earnings growth. Below are the primary ratios and what they imply for different investor perspectives.

• Trailing twelve months (TTM) P/E: 15.40 - indicates current market price is 15.4× last 12 months' earnings, a middle-ground valuation versus typical industrial and specialty materials peers.
• Forward P/E: 12.37 - implies the market expects earnings to rise; forward multiple is ~19.7% lower than TTM P/E, signaling anticipated EPS improvement.
• Price-to-Sales (P/S): 2.87 - market values each yuan of revenue at 2.87, useful where margins fluctuate or one-time items affect earnings.
• Price-to-Book (P/B): 1.78 - equity valued at 1.78× book, showing modest premium to accounting net assets.
• Enterprise Value / Revenue (EV/Rev): 2.34 - EV places total capital market valuation at 2.34× revenue, helpful when comparing firms with different capital structures.
• Enterprise Value / EBITDA (EV/EBITDA): 8.35 - indicates the company's operating cash-profit multiple; sub-10 often viewed as relatively attractive depending on growth and margin profile.

How these ratios interact for investor decisions:

• Growth vs. value: The gap between TTM and forward P/E (15.40 → 12.37) signals expected EPS growth; investors should verify drivers (volume, pricing, margin expansion, or one-off items).
• Capital structure and cash flow: EV/EBITDA of 8.35 combined with EV/Rev of 2.34 suggests reasonable operating cash profitability relative to revenue; check debt levels and free cash flow conversion to confirm.
• Asset backing: P/B at 1.78 implies some premium for intangibles, brand, or ROE above cost of capital - validate with return-on-equity trends and asset revaluations.
• Revenue quality: P/S of 2.87 is meaningful where margins change; reconcile with gross and EBITDA margins to see if revenue multiple is justified.

Contextual steps investors should run in tandem with these multiples:

• Compare these multiples to direct industry peers and regional Chinese pharmaceutical glass producers to gauge relative cheapness or premium.
• Overlay the company's historical multiple range and forward estimates to assess mean reversion risk.
• Analyze recent earnings drivers, one-time items, and management guidance to confirm forward P/E assumptions.

Further background on the company's operations, strategy and ownership that helps interpret these valuation metrics is available here: Shandong Pharmaceutical Glass Co., Ltd: History, Ownership, Mission, How It Works & Makes Money

Shandong Pharmaceutical Glass Co., Ltd (600529.SS) - Risk Factors

• Revenue contraction: Quarterly revenue declined 17.14% in Q3 2025 versus Q3 2024, pointing to weakening top-line momentum and potential market demand or pricing pressures.
• Profitability squeeze: Net profit margin fell by 15.71% in Q3 2025 year-over-year, indicating margin compression from cost increases, pricing pressure, or product-mix shifts.
• Negative free cash flow: Free cash flow was negative CNY 266.65 million in Q3 2025, implying operating cash outflows exceeded inflows and raising short-term liquidity concerns.
• Reduced liquid reserves: Cash and short-term investments decreased 9.94% as of September 30, 2025, potentially limiting the company's ability to cover near-term obligations or finance opportunistic investments.
• Market sentiment decline: Market capitalization dropped 18.90% over the trailing year, reflecting diminished investor confidence and greater vulnerability to market shocks.
• Trailing revenue deterioration: TTM revenue fell 8.43% year-over-year as of September 30, 2025, suggesting challenges sustaining revenue growth across recent quarters.

• Operational risks: Continued margin pressure and negative FCF may force cost-cutting, capital expenditure deferrals, or additional financing that could dilute equity or increase leverage.
• Liquidity risks: Nearly 10% decline in liquid assets combined with negative FCF heightens short-term liquidity risk, especially if working capital needs or payables accelerate.
• Market & valuation risks: An 18.90% drop in market cap signals heightened sensitivity to negative news, making share price recovery dependent on tangible improvements in revenue and cash generation.
• Revenue sustainability: The 8.43% TTM revenue decline and 17.14% quarterly drop call for monitoring order pipelines, customer retention, and pricing trends to assess recovery prospects.
• Investor considerations: Given margin compression and cash outflows, investors should watch quarterly operating cash flow, margin stabilization, changes in capital structure, and management guidance.

Shandong Pharmaceutical Glass Co., Ltd (600529.SS) - Growth Opportunities

• Market capitalization (26 Nov 2025): CNY 13.52 billion - down 18.90% year-over-year, potentially indicating undervaluation and a tactical buying opportunity for long-term investors.
• Enterprise value to revenue (EV/Revenue): 2.34 - suggests room for valuation expansion if top-line growth is realized.
• Enterprise value to EBITDA (EV/EBITDA): 8.35 - implies that earnings growth or margin improvement could materially enhance valuation multiples.
• International reach: products sold to over 90 countries and regions; annual export scale near CNY 1.1 billion - a strong base for further penetration into high-growth markets.
• Balance-sheet and equity positioning: strong equity base and market position that support strategic acquisitions, capacity investments, or R&D expansion.
• Analyst/management 15.4% annual revenue growth forecast - indicates meaningful compound growth potential over the coming years.