Breaking Down Western Mining Co.,Ltd. Financial Health: Key Insights for Investors

Curious whether Western Mining Co., Ltd. (601168.SS) is a bargain or a risk? In Q1 2025 the company posted 16.542 billion yuan in revenue (up 50.74% YoY), with first nine-month revenue at 48.44 billion yuan (+31.90% YoY) and TTM revenue of 61.74 billion yuan (+30.70% YoY); profitability shows a TTM net income of 3.14 billion yuan and a net margin of 5.09% alongside a 25.18% ROE, while cash generation is notable with free cash flow of 5.58 billion yuan and an operating cash flow margin of 1,963.42%; balance sheet and liquidity present trade-offs-debt-to-equity at 92.75% with net debt of 14.73 billion yuan, current ratio 1.10 and quick ratio 0.55, Altman Z-Score 2.54-valuation sits at a TTM P/E of 19.88 (forward 16.29), P/B 2.58, P/S 0.86, market cap 62.51 billion yuan and EV 83.79 billion yuan, and analysts forecast earnings growth of 16.3% annually as revenue is projected to grow 5.3% per year; read on for a deep dive into these figures and what they mean for investors.

Western Mining Co.,Ltd. (601168.SS) - Revenue Analysis

• Q1 2025 revenue: 16.542 billion yuan - up 50.74% year-over-year.
• First nine months 2025 revenue: 48.44 billion yuan - up 31.90% vs. same period 2024.
• TTM (trailing twelve months) revenue: 61.74 billion yuan - up 30.70% year-over-year.
• Full-year 2024 revenue: 50.03 billion yuan - up 17.02% vs. 2023.
• Revenue per employee: ~8.91 million yuan (6,931 employees).
• Price-to-Sales (P/S) ratio: 0.86, indicating a relatively low market valuation versus sales.

• Revenue trajectory: a clear acceleration from 2024 into 2025, with TTM growth near +31% signaling sustained topline expansion.
• Per-employee productivity is high (~8.91M yuan), reflecting capital- and volume-driven efficiency in operations.
• Valuation context: P/S = 0.86 suggests market does not fully price in current revenue growth, which may reflect commodity cyclicality or margin/earnings uncertainties.

Western Mining Co.,Ltd. (601168.SS) - Profitability Metrics

Key profitability indicators for Western Mining Co.,Ltd. (601168.SS) show solid earnings generation and improving margins driven by operational efficiency and cost control.

• TTM net income: 3.14 billion yuan
• TTM net profit margin: 5.09% (up from 4.52% in 2022)
• Return on equity (ROE): 25.18%
• Operating margin: 12.79%
• Gross margin: 17.96%
• TTM earnings per share (EPS): 1.32 yuan

Investors evaluating profitability should consider margin trends, ROE sustainability, and EPS trajectory alongside operational drivers such as commodity prices, mine output, and cost structure. For broader strategic context, see Mission Statement, Vision, & Core Values (2026) of Western Mining Co.,Ltd.

Western Mining Co.,Ltd. (601168.SS) - Debt vs. Equity Structure

• Debt-to-equity ratio: 92.75% - debt nearly equals total equity, indicating higher leverage.
• Total debt: ¥22.48 billion; reported net cash position: -¥14.73 billion (net debt of ¥14.73 billion).
• Equity (book value): ¥24.23 billion; book value per share (BVPS): ¥7.42.
• Interest coverage ratio: 11.81 - operating income covers interest expense by ~11.8x.
• Gearing ratio: 57.92% - proportion of debt in total capital is material.
• Piotroski F-Score: 6 - moderate financial health by fundamental score metrics.

• Implications for investors: leverage amplifies returns but increases vulnerability to commodity price swings and interest rate increases; an interest coverage near 12x provides a cushion for current interest costs.
• Balance-sheet considerations: book equity of ¥24.23 billion vs. total debt of ¥22.48 billion points to a capital structure where debt is sizable but not dominant in absolute terms; gearing near 58% underscores meaningful leverage.
• Operational-financial alignment: maintain monitoring of free cash flow and capex needs to assess whether net debt (¥14.73 billion) is being reduced or trend-stabilized.

Western Mining Co.,Ltd. (601168.SS) - Liquidity and Solvency

• Current ratio: 1.10 - covers current liabilities with modest headroom.
• Quick ratio: 0.55 - suggests difficulty meeting obligations without converting inventory to cash.
• Operating cash flow margin: 1,963.42% - reflects unusually high cash generation relative to revenue in the period reported.
• Free cash flow: ¥5.58 billion; Free cash flow per share: ¥2.34 - material cash available after capital expenditures.
• Altman Z-Score: 2.54 - in the moderate-risk zone for financial distress.
• Net cash position: -¥14.73 billion - net debt position, indicating dependence on debt funding.

Western Mining Co.,Ltd. (601168.SS) - Valuation Analysis

• TTM P/E: 19.88 - current trailing earnings multiple.
• Forward P/E: 16.29 - market-implied lower multiple based on projected earnings.
• P/B: 2.58 - trading above book value, indicating a premium to net asset base.
• EV/EBITDA: 8.26 - valuation relative to operating cash profits.
• Dividend yield: 3.81% - annual dividend of 1.00 yuan per share.
• Market capitalization: 62.51 billion yuan; Enterprise value: 83.79 billion yuan.
• P/S: 0.86 - less than 1x sales, implying low valuation on a revenue basis.

• Income-focused investors may favor the 3.81% yield combined with a 1.00 yuan payout.
• Value investors could find the sub-1x P/S attractive despite a >2x P/B; EV/EBITDA near 8 suggests room for multiple expansion if profitability improves.
• Growth or momentum investors will weigh the drop from TTM to forward P/E (19.88 → 16.29) as a signal of expected earnings improvement.

Western Mining Co.,Ltd. (601168.SS) Risk Factors

• Debt leverage: debt-to-equity ratio = 92.75% - near 1:1 leverage, indicating heavy reliance on borrowed capital and greater sensitivity to interest-rate increases and credit market tightening.
• Liquidity strain: quick ratio = 0.55 - current liquid assets cover only 55% of current liabilities, implying potential difficulty meeting short-term obligations without converting inventory to cash.
• Solvency signal: Altman Z-Score = 2.54 - sits in the "grey" zone suggesting moderate bankruptcy risk if adverse conditions persist.
• Net cash position: -14.73 billion CNY - a significant net debt load that increases financing and refinancing risk.
• Operating/quality check: Piotroski F-Score = 6 - indicates moderate financial strength but leaves room for deterioration under stress.

• Operational risks: commodity price volatility can amplify leverage effects on earnings and cash flow given the company's negative net cash.
• Refinancing risk: significant debt balance increases vulnerability if credit conditions tighten or interest rates rise.
• Working capital risk: low quick ratio forces reliance on inventory turnover and receivables collection-delays could stress liquidity.
• Credit rating/borrowing cost risk: sustained leverage and negative net cash may pressure borrowing terms and covenant compliance.

Western Mining Co.,Ltd. (601168.SS) - Growth Opportunities

• Analysts project earnings growth of 16.3% per year, signaling potential for meaningful EPS expansion.
• Revenue is forecast to grow at 5.3% per year, indicating steady top-line momentum.
• Return on equity (ROE) expected to reach 21.7% within three years, pointing to enhanced shareholder returns.
• Net profit margin has improved from 4.52% in 2022 to 5.09% in 2024, reflecting margin recovery and cost or pricing improvements.
• Revenue per employee is approximately 8.91 million yuan, with a workforce of 6,931 employees, suggesting operational efficiency.

• Capital and valuation: Market cap of 62.51 billion yuan vs. EV of 83.79 billion yuan suggests meaningful non-equity claims (debt/minority interests) and potential leverage-driven returns if earnings expand as forecast.
• Profitability trajectory: Margin uptick from 4.52% to 5.09% supports the EPS growth narrative and contributes to higher ROE when combined with efficient capital usage.
• Operational efficiency: High revenue per employee (≈8.91M yuan) indicates asset- and labor-efficiency relative to peers in capital-intensive mining sectors.