Breaking Down Guangdong Ellington Electronics Technology Co.,Ltd Financial Health: Key Insights for Investors

Curious how Guangdong Ellington Electronics Technology Co., Ltd. (603328.SS) stacks up for investors? In Q1 2025 the company reported operating revenue of 946 million yuan, with first-half 2025 revenue at 2.035 billion yuan and full-year 2024 revenue of 3.51 billion yuan - TTM revenue reached 3.94 billion yuan as of Nov 26, 2025; profitability shows a TTM net profit margin of 12.47% and ROE of 10.71%, while Q1 net profit attributable to shareholders was 116 million yuan, EPS (TTM) 0.44 yuan and operating margin 9.88%; the balance sheet is conservative with a debt-to-equity ratio of 0.13, total debt 557.75 million yuan versus cash equivalents of 1.88 billion yuan (net cash ~1.33 billion yuan), current ratio 1.74 and quick ratio 1.52, operating cash flow (TTM) 715.78 million yuan and free cash flow 328.61 million yuan after capex of 387.17 million yuan; valuation metrics include a market cap of 10.51 billion yuan, EV 9.19 billion yuan, P/E (TTM) 24.68 and P/S 2.74, while risk and opportunity coexist-competitive PCB industry pressures, significant capex for capacity expansion (700,000 sqm multilayer PCB project and a Thailand production base), focus on automotive, computing and communications, and plans to cut supply-chain costs by ~7%-read on for the detailed breakdown and what these figures mean for potential investors

Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) - Revenue Analysis

• Q1 2025 operating revenue: 946 million yuan (+15.58% YoY)
• H1 2025 operating revenue: 2.035 billion yuan (+16.05% YoY)
• Full-year 2024 revenue: 3.51 billion yuan (+10.36% YoY)
• TTM revenue (as of 2025-11-26): 3.94 billion yuan (+16.36% YoY)
• Revenue per employee: ~846,687 yuan
• Market capitalization (2025-11-26): 10.51 billion yuan; Price-to-Sales (P/S): 2.74

Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) Profitability Metrics

Key profitability indicators for Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) show consistent performance with improvements in core earnings and operational efficiency as of Q1 2025 and the trailing twelve months (TTM).

• Q1 2025 net profit attributable to shareholders: 116 million yuan (YoY +11.04%).
• Net profit margin (TTM): 12.47%.
• Return on equity (ROE): 10.71%.
• Operating margin: 9.88%.
• Earnings per share (EPS, TTM): 0.44 yuan.
• Overall profit margin: 11.11%.

Implications for investors:

• Steady YoY net profit growth (+11.04% in Q1 2025) supports earnings momentum.
• Net profit margin (12.47%) and operating margin (9.88%) indicate a healthy gap between revenues and both operating and bottom-line profitability.
• ROE at 10.71% suggests the company is delivering acceptable returns on equity, aligning with its EPS of 0.44 yuan (TTM) for per-share assessment.
• The overall profit margin of 11.11% corroborates a stable profitability profile across the business.

For broader context on the company's background, structure and how it generates revenues, see: Guangdong Ellington Electronics Technology Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) - Debt vs. Equity Structure

• Debt-to-equity ratio: 0.13 - indicates low reliance on debt financing versus shareholders' equity.
• Total debt: ¥557.75 million; Cash and cash equivalents: ¥1.88 billion - net cash position of ¥1.33 billion.
• Interest coverage ratio: 38.78 - strong capacity to service interest expenses from operating earnings.
• Enterprise value / EBITDA: 16.05 - valuation multiple relative to operating profitability.
• Enterprise value / Revenue: 2.40 - how the market values each yuan of revenue.
• Total liabilities: ¥2.384 billion; Total assets: ¥6.808 billion - debt-to-assets ≈ 35.0%.

• Liquidity and solvency: The ¥1.33 billion net cash cushion reduces insolvency risk and provides optionality for capex, M&A, or shareholder returns.
• Cost of debt risk: With an interest coverage of 38.78, EBITDA comfortably covers interest expense, lowering refinancing risk even if rates rise moderately.
• Balance-sheet leverage: A 0.13 debt-to-equity and ~35% debt-to-assets profile point to conservative leverage compared with many peers in electronics manufacturing.
• Valuation context: EV/EBITDA of 16.05 and EV/Revenue of 2.40 suggest the market is pricing growth and/or margin stability into the stock; compare these multiples to peer group medians for relative valuation.

Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) - Liquidity and Solvency

• Current ratio: 1.74 - indicates adequate short-term liquidity to cover current liabilities with current assets.
• Quick ratio: 1.52 - suggests sufficient ability to meet short-term obligations without relying on inventory liquidation.
• Altman Z‑Score: 4.12 - places the company well into the 'safe' zone regarding bankruptcy risk.

• Cash conversion and capex coverage: operating cash flow covers capex by roughly 1.85x (715.78 / 387.17), supporting ongoing investment without eroding liquidity.
• Balance between liquidity and leverage: the current and quick ratios indicate a comfortable buffer to meet short-term liabilities while avoiding overreliance on inventory sales.
• Bankruptcy risk profile: Altman Z‑Score of 4.12 signals low default risk and aligns with healthy cash flow metrics.

Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) - Valuation Analysis

A snapshot of Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) valuation metrics provides a concise view of how the market prices the business relative to earnings, book value, cash flow and sales. Key ratios and market measures (trailing twelve months unless noted) are listed below for quick investor reference and comparative analysis.

• TTM Price-to-Earnings (P/E): 24.68 - indicates a moderate earnings multiple relative to peers and historical averages.
• Price-to-Book (P/B): 2.56 - market values the firm at roughly 2.6x its book equity.
• Enterprise Value / Free Cash Flow (EV/FCF): 28.81 - reflects valuation against free cash generation.
• Price-to-Sales (P/S): 2.74 - investors pay ¥2.74 per ¥1 of revenue.
• Price-to-Operating-Cash-Flow (P/OCF): 15.08 - ties price to operating cash conversion.
• Market Capitalization: ¥10.51 billion; Enterprise Value: ¥9.19 billion - useful for capital structure and takeover valuation context.

For context on strategy and corporate direction that may influence valuation drivers, see: Mission Statement, Vision, & Core Values (2026) of Guangdong Ellington Electronics Technology Co.,Ltd.

Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) - Risk Factors

Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) operates within a sector characterized by rapid technological change, intense competition and sensitivity to end-market electronics demand. Below are the primary risk factors investors should weigh alongside the company's financial signals.

• Industry cyclicality: PCB manufacturing is highly cyclical and correlates closely with global electronics capex and consumer electronics cycles.
• End-market exposure: Ellington's revenue is exposed to fluctuations in smartphones, computers, automotive electronics and industrial electronics demand, amplifying top-line volatility.
• Pricing pressure: Competing domestic and international PCB makers, plus technological shifts (e.g., HDI, flexible PCBs), create continuous downward pricing pressure on margins.
• Operational cash dynamics: Operating cash flow of 364 million yuan is notably lower than reported net income, indicating potential cash conversion or working-capital strains.
• Capital intensity: Significant capex (296 million yuan) has reduced free cash flow, limiting near-term financial flexibility for dividends, debt paydown or strategic M&A.
• Market volatility profile: A beta of 0.43 points to lower historical price volatility versus the market - attractive for risk-averse investors but possibly reflecting lower growth beta.

Key implications for investors:

• Liquidity and working capital management require monitoring due to OCF < net income and high capex absorption.
• Margin sustainability depends on maintaining technological differentiation and cost discipline against pricing pressure.
• Lower beta reduces share-price swings but does not eliminate operational or market risks tied to electronics demand cycles.
• Strategic capital allocation choices (capacity upgrades, automation, product mix) will materially affect future free cash flow and leverage.

For context on the company's stated strategic direction, see: Mission Statement, Vision, & Core Values (2026) of Guangdong Ellington Electronics Technology Co.,Ltd.

Guangdong Ellington Electronics Technology Co.,Ltd (603328.SS) Growth Opportunities

• Completion of a 700,000 square meter multi-layer PCB project - core to doubling high-density production capacity for advanced PCBs used in communications, computing and automotive electronics.
• Establishment of a Thailand production base to enhance global service capability, shorten lead times for APAC customers, and reduce logistics exposure.
• Planned incremental capacity expansions at the Zhongshan factory triggered by market demand and order backlog dynamics.
• Targeted product and customer verticals: automotive electronics (ECUs, ADAS), high-performance computing modules, and advanced communications (5G base stations, satellite comms).
• Technology roadmap focused on higher-layer-count PCBs, fine-line HDI processes and improved yield management to strengthen competitive positioning.
• Strategic alliances across suppliers and contract manufacturers aimed at supply-chain resilience and expected cost reductions of ~7% on key BOM items.

• Utilization ramp: how quickly the new 700,000 sqm capacity reaches 70-80% utilization (key for converting CapEx into margin).
• Order book mix: percentage of revenue from automotive electronics vs. computing/communications (automotive typically commands higher ASPs and longer-term contracts).
• Gross margin trajectory: interplay of scale benefits, the ~7% supplier cost savings, and potential near-term ramp inefficiencies.
• Working capital and capex cadence: funding for Thailand and Zhongshan expansions and the pace of receivables/inventory build.