Breaking Down Yunnan Shennong Agricultural Industry Group Co.,LTD. Financial Health: Key Insights for Investors

Dig into Yunnan Shennong Agricultural Industry Group Co., Ltd. with eye-opening figures: Q3 2025 revenue dropped to CNY 1.13 billion (a sequential decline of 28.90%) while trailing twelve months revenue sits at CNY 5.43 billion-up 6.48% YoY-and full-year 2024 revenue reached CNY 5.58 billion (a 43.51% jump from 2023); the company swung to a CNY 686.82 million net income in 2024 from a CNY 401.28 million loss in 2023, delivering a net profit margin of 12.3%, gross margin of 24.8% and ROE of 13.45%, while its balance sheet shows total debt of CNY 825.48 million against cash equivalents of CNY 1.07 billion (net cash CNY 244.20 million), an Altman Z-Score of 7.18 and Piotroski F-Score of 7 signaling robust liquidity and solvency; investors will want to weigh valuation metrics (market cap CNY 16.00 billion, enterprise value CNY 15.76 billion, EV/EBITDA 10.99, EV/FCF 19.69), EPS and cash generation (TTM operating cash flow CNY 1.79 billion, free cash flow CNY 800.08 million), and sector risks-commodity volatility, disease and regulatory shifts-against growth levers like sustainable pig production targets, international expansion and nearly CNY 995 million in TTM capex to decide whether to read on and explore the full financial picture

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) Revenue Analysis

• Q3 2025 revenue: CNY 1.13 billion (down 28.90% QoQ)
• TTM revenue (through Q3 2025): CNY 5.43 billion (up 6.48% YoY)
• Annual revenue 2024: CNY 5.58 billion (up 43.51% vs 2023)
• Revenue per employee: CNY 1.63 million (total employees: 3,335)
• Price-to-sales (P/S) ratio: 2.64
• Market capitalization: CNY 14.33 billion

• Five-year revenue pattern: volatile with a 57.20% spike in 2020, followed by steadier expansion and the notable 43.51% jump in 2024.
• Investor valuation context: at a P/S of 2.64, the market prices the company at CNY 2.64 per CNY 1 of sales - moderate relative to many peers in specialty agriculture and food processing.
• Operational efficiency: revenue/employee indicates relatively high labor productivity for an agricultural conglomerate, supporting margin leverage if cost structure remains controlled.

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) - Profitability Metrics

Yunnan Shennong reported a strong profitability turnaround in 2024, moving from a net loss in 2023 to solid earnings in 2024. Key headline figures illustrate improved margins, earnings power and a conservative capital-return stance.

• Net income (2024): CNY 686.82 million (vs. net loss of CNY 401.28 million in 2023)
• Net profit margin (2024): ~12.3%
• Gross margin: 24.80%
• Operating margin: 16.92%
• Profit margin: 16.14%
• EPS (TTM): CNY 1.28; Trailing P/E: 23.5
• ROE: 13.45%
• Dividend yield: 1.37%; Payout ratio: 1.28% (conservative, retaining earnings)

For company background, ownership and how the business operates, see: Yunnan Shennong Agricultural Industry Group Co.,LTD.: History, Ownership, Mission, How It Works & Makes Money

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) - Debt vs. Equity Structure

• Total debt: CNY 825.48 million
• Cash & cash equivalents: CNY 1.07 billion
• Net cash position: CNY 244.20 million
• Debt-to-equity ratio: 15.53%
• Interest coverage ratio: 34.22
• Equity (book value): CNY 5.12 billion
• Book value per share: CNY 9.88
• Current ratio: 2.12
• Quick ratio: 0.97
• Capital expenditures (TTM): CNY 994.84 million

Key implications for investors:

• A net cash position (CNY 244.20M) and a low debt-to-equity (15.53%) signal conservative leverage and financial flexibility.
• High interest coverage (34.22) indicates operating earnings comfortably cover interest expense, reducing solvency risk.
• Current ratio (2.12) supports short-term liquidity; quick ratio (0.97) shows near-liquid assets nearly cover current liabilities.
• Significant capex (CNY 994.84M TTM) points to reinvestment in growth or modernization-monitor ROI and cash conversion.
• Book value per share (CNY 9.88) provides a baseline for valuation comparisons versus market price.

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) Liquidity and Solvency

• Operating cash flow (TTM): CNY 1.79 billion
• Free cash flow (TTM): CNY 800.08 million
• Working capital: CNY 1.36 billion
• Total assets: CNY 7.16 billion
• Total liabilities: CNY 1.33 billion
• Debt-to-assets ratio: ~18.6%
• Net cash per share: CNY 0.47
• Altman Z-Score: 7.18
• Piotroski F-Score: 7

• The Altman Z-Score of 7.18 places the company well within the "safe" zone, reflecting solid profitability, liquidity, and capitalization.
• A Piotroski F-Score of 7 indicates consistent improvements across profitability, leverage/liquidity, and operating efficiency metrics.
• Positive free cash flow of CNY 800.08 million supports discretionary uses such as debt reduction, dividends, or reinvestment.

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) Valuation Analysis

Key valuation metrics for Yunnan Shennong Agricultural Industry Group Co.,LTD. provide a snapshot of how the market prices the company relative to earnings, book value and cash flows, alongside volatility and recent price performance.

• Market Capitalization: CNY 16.00 billion
• Enterprise Value (EV): CNY 15.76 billion
• Trailing P/E: 17.04
• Forward P/E: 26.27
• P/B Ratio: 2.99
• EV/EBITDA: 10.99
• EV/FCF: 19.69
• Beta: 0.88
• 52-week Price Change: +10.72%

For contextual background on the company's history, ownership and business model, see: Yunnan Shennong Agricultural Industry Group Co.,LTD.: History, Ownership, Mission, How It Works & Makes Money

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) - Risk Factors

• Commodity price volatility: corn, soybean meal and live‑animal prices drive feed and finished‑goods margins. For example, a 15-25% YoY rise in corn/soymeal prices can compress gross margins by an estimated 300-700 basis points for integrated producers like Yunnan Shennong.
• Disease and biosecurity risk: avian/porcine disease outbreaks can trigger sudden herd/stock culls and market access bans. A local outbreak that reduces production volume by 10% can knock 5-12% off annual revenue depending on product mix.
• Adverse weather and climate events: droughts, floods or extreme weather in Yunnan and supply regions can reduce yields and increase input scarcity, raising input costs by double‑digit percentages in severe years.
• Regulatory and policy shifts: tighter environmental controls, waste management requirements, or trade policy changes (tariffs, export restrictions) can raise compliance costs and restrict market channels.
• Feed and input cost volatility: feed accounts for a large share of COGS. Year‑over‑year feed cost increases of 10-20% materially depress margins absent pass‑through pricing.
• Capital intensity of expansion: planned capacity additions require significant CAPEX; aggressive expansion can elevate leverage and interest burdens if funded with debt.
• Competitive and demand shifts: competition from lower‑cost producers and changing consumer preferences (e.g., shift to plant‑based proteins or premium labels) can pressure volumes and product mix.

• Liquidity and interest coverage: in stress scenarios (disease or commodity shock) operating cashflow can turn negative - interest coverage could fall below 2.0x if EBITDA contracts by 40%.
• Expansion funding risk: equity dilution or higher‑cost debt issuance are likely options if CAPEX needs approach the CNY 500-700m range and internal cashflow is weak.
• Supply chain concentration: reliance on regional feed suppliers or single export channels increases vulnerability to local disruptions.
• Market/price risk mitigation: hedging and long‑term supplier contracts can blunt volatility but add cost and complexity; under‑hedging leaves earnings exposed.

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) - Growth Opportunities

• Carbon and sustainability: target of -3-5% carbon intensity by 2025 in pig production; potential access to green financing and premium pricing for lower-carbon products.
• Strategic partnerships: collaboration opportunities with local farmers and agricultural research institutions to raise genetic quality, biosecurity and feed-efficiency.
• International expansion: prioritized markets include Southeast Asia, Japan/Korea, and select European specialty-food channels for pork and value-added products.
• Value-added portfolio: focus on organic food items and traditional Chinese medicinal herbs to capture higher-margin consumer segments (target gross margins +5-10 percentage points vs. commodity pork).
• Supply chain & logistics: adoption of cold-chain, traceability and route-optimization tech to reduce spoilage and logistics cost - management targets logistics cost reduction of roughly 5-8% post-implementation.
• CapEx & capacity: steady capex program to expand breeding and processing capacity, supporting growth in volumes and product mix diversification.

• Revenue mix opportunity: increasing the share of value-added products from an estimated 12% to a target >25% of sales can materially lift blended margins and reduce cyclical exposure to live hog prices.
• Margin levers: improved feed conversion, vertical integration of slaughter/processing, and premium product lines could expand EBIT margins by 3-6 percentage points over 3 years.
• Risk mitigation: biosecurity investments and farmer-partner programs can reduce mortality and disease-driven volatility, improving yield stability.