Shenzhen Qingyi Photomask Limited (688138.SS) Bundle
Curious whether Shenzhen Qingyi Photomask Limited (688138.SS) is a buy, hold or watch? In this deep-dive we unpack a quarter that saw revenue hit 306.29 million CNY (Q3 2025), a trailing twelve-month top line of 1.21 billion CNY and a market cap of 8.43 billion CNY at 27.46 CNY per share, while profitability shows a 16.09% net profit margin and operational strength with a 17.44% operating margin; liquidity and solvency present a net cash position of 329.6 million CNY (cash and equivalents 1.07 billion CNY vs. total debt 736.6 million CNY) and a current ratio of 2.77, even as valuation multiples run rich-TTM P/E of 47.52 and EV/EBITDA of 25.89-and EV/FCF sits negative at -16.49, all against a backdrop of 592 employees (≈2.05 million CNY revenue per employee), an ROE of 8.51%, and clear risks and growth levers in capacity expansion, R&D and internationalization-read on for the full metric-by-metric analysis and what these figures mean for investors.
Shenzhen Qingyi Photomask Limited (688138.SS) - Revenue Analysis
In the quarter ending September 30, 2025, Shenzhen Qingyi Photomask Limited reported revenue of 306.29 million CNY, a 15.21% increase versus the prior quarter. Trailing twelve months (TTM) revenue is 1.21 billion CNY, up 12.06% year-over-year. Annual revenue for 2024 was 1.11 billion CNY, a 20.35% increase from 2023.- Q3 2025 revenue: 306.29 million CNY (+15.21% QoQ)
- TTM revenue: 1.21 billion CNY (+12.06% YoY)
- 2024 annual revenue: 1.11 billion CNY (+20.35% vs 2023)
- Revenue per employee: ~2.05 million CNY (592 employees)
- Price-to-Sales (P/S) ratio: 6.95
- Market capitalization: 8.43 billion CNY (share price: 27.46 CNY)
| Metric | Amount (CNY) | Change | Period |
|---|---|---|---|
| Quarterly revenue | 306,290,000 | +15.21% QoQ | Q3 2025 |
| Trailing twelve months (TTM) revenue | 1,210,000,000 | +12.06% YoY | TTM ending Sep 30, 2025 |
| Annual revenue | 1,110,000,000 | +20.35% YoY | 2024 |
| Revenue per employee | 2,050,000 | - | 592 employees |
| Price-to-Sales (P/S) | 6.95 | - | Based on market cap |
| Market capitalization | 8,430,000,000 | - | Share price: 27.46 CNY |
- Quarter performance drivers: sequential revenue growth of 15.21% suggests improved demand and/or pricing in Q3 2025.
- Efficiency indicator: revenue per employee (~2.05M CNY) indicates operational leverage relative to headcount.
- Valuation context: P/S of 6.95 reflects market premium relative to revenues and growth expectations.
Shenzhen Qingyi Photomask Limited (688138.SS) - Profitability Metrics
Key profitability indicators for Shenzhen Qingyi Photomask Limited (688138.SS) provide a snapshot of margin strength and capital efficiency across the trailing twelve months (TTM).
- Net Profit Margin (TTM): 16.09% - proportion of revenue retained as net income after all expenses.
- Operating Profit Margin: 17.44% - efficiency of core operations before non-operating items and taxes.
- Gross Profit Margin: 29.65% - revenue remaining after cost of goods sold, indicating product-level profitability.
- Return on Equity (ROE): 8.51% - profitability relative to shareholders' equity.
- Return on Assets (ROA): 4.00% - effectiveness in using assets to generate profit.
- Return on Invested Capital (ROIC): 4.57% - efficiency of capital deployed in the business.
| Metric | Value | Interpretation |
|---|---|---|
| Net Profit Margin (TTM) | 16.09% | Solid bottom-line retention; shows ability to convert revenue to profit after expenses |
| Operating Profit Margin | 17.44% | Healthy operating efficiency, suggests controlled operating costs relative to sales |
| Gross Profit Margin | 29.65% | Strong product-level margins, indicating pricing power or favorable COGS structure |
| Return on Equity (ROE) | 8.51% | Moderate returns to shareholders; room to improve relative to high-growth peers |
| Return on Assets (ROA) | 4.00% | Modest asset efficiency typical for capital-intensive photomask manufacturing |
| Return on Invested Capital (ROIC) | 4.57% | Indicates how effectively invested capital generates returns above cost of capital |
- Margin profile: Gross margin of 29.65% supports a robust operating margin (17.44%) and a net margin (16.09%) that suggests limited non-operating drag or tax burden in the TTM period.
- Capital efficiency: ROA (4.00%) and ROIC (4.57%) reflect typical capital intensity in semiconductor-related manufacturing; ROE (8.51%) signals moderate shareholder returns that depend on leverage and capital allocation.
- Context & further reading: For background on the company's strategy, ownership and business model, see Shenzhen Qingyi Photomask Limited: History, Ownership, Mission, How It Works & Makes Money.
Shenzhen Qingyi Photomask Limited (688138.SS) - Debt vs. Equity Structure
Shenzhen Qingyi Photomask Limited shows a conservative capital structure as of June 2025, with a meaningful net cash position and healthy liquidity and coverage metrics that reduce financial risk for investors.- Total debt (June 2025): 736.6 million CNY (down from 792.0 million CNY year-over-year)
- Cash & cash equivalents: 1.07 billion CNY
- Net cash position: 329.6 million CNY
- Debt-to-equity ratio: 0.27
- Current ratio: 2.77
- Quick ratio: 2.35
- Interest coverage ratio: 7.53
| Metric | Value | Commentary |
|---|---|---|
| Total Debt (Jun 2025) | 736.6 million CNY | Reduced vs. prior year (792.0 million CNY) |
| Cash & Cash Equivalents | 1.07 billion CNY | Provides liquidity buffer and working capital |
| Net Cash | 329.6 million CNY | Company holds more cash than debt |
| Debt-to-Equity Ratio | 0.27 | Conservative leverage; lower financial risk |
| Current Ratio | 2.77 | Strong short-term liquidity |
| Quick Ratio | 2.35 | Can meet short-term obligations without inventory sales |
| Interest Coverage Ratio | 7.53 | Earnings comfortably cover interest expense |
- Capital flexibility: Net cash and low leverage support strategic investment or opportunistic M&A while maintaining balance sheet strength.
- Liquidity profile: Current and quick ratios well above 1.0 reduce refinancing and solvency concerns in near term.
- Profitability cushion: Interest coverage at 7.53 indicates operating earnings provide a comfortable margin over financing costs.
Shenzhen Qingyi Photomask Limited (688138.SS) - Liquidity and Solvency
Shenzhen Qingyi Photomask Limited (688138.SS) presents a liquidity profile that points to strong short-term coverage and a comfortable solvency buffer against its liabilities. Key headline metrics are highlighted below and then contextualized with implications for creditor and investor risk.- Current ratio: 2.77 - the company holds 2.77 times more current assets than current liabilities, signaling robust short-term liquidity.
- Quick ratio: 2.35 - strong liquidity even after excluding inventory, indicating readily realizable assets to cover near-term obligations.
- Net cash position: 329.6 million CNY - a positive net cash cushion to absorb shocks or fund operations.
- Interest coverage ratio: 7.53 - earnings comfortably cover interest expense, reducing refinancing risk.
| Metric | Value | Unit | Notes |
|---|---|---|---|
| Current Ratio | 2.77 | times | Current assets / Current liabilities |
| Quick Ratio | 2.35 | times | (Current assets - Inventory) / Current liabilities |
| Net Cash Position | 329.6 | million CNY | Cash less interest-bearing debt |
| Interest Coverage Ratio | 7.53 | times | EBIT / Interest expense |
| Total Liabilities (≤12 months) | 660.4 | million CNY | Short-term borrowings + current maturities |
| Total Liabilities (>12 months) | 639.0 | million CNY | Long-term borrowings and deferred items |
| Cash + Receivables | 1,440.0 | million CNY | Readily collectible assets |
| Total Liabilities (All) | 1,299.4 | million CNY | Sum of short- and long-term liabilities |
- Cash and receivables of 1.44 billion CNY exceed total liabilities of ~1.30 billion CNY - an indicator of strong solvency and liquid asset coverage.
- With 660.4 million CNY due within 12 months and 639.0 million CNY beyond, the maturity profile is balanced but requires monitoring of near-term cash conversion.
- An interest coverage of 7.53 and a net cash position of 329.6 million CNY reduce default and refinancing concerns under moderate stress scenarios.
Shenzhen Qingyi Photomask Limited (688138.SS) - Valuation Analysis
Shenzhen Qingyi Photomask Limited's market multiples signal a premium valuation with expectations of future earnings growth, while certain cash flow metrics show stress. Key valuation metrics are summarized below and placed into context for investor considerations.
- TTM P/E: 47.52 - implies investors are paying a high premium for last twelve months' earnings.
- Forward P/E: 36.05 - market expects earnings improvement relative to the trailing period.
- P/B: 3.32 - equity is trading over three times book value, reflecting growth or intangible asset valuation.
- EV/EBITDA: 25.89 - elevated relative to typical industrial/tech peers, indicating rich enterprise valuation on operating earnings.
- EV/Sales: 7.42 - investors pay significantly per unit of revenue, consistent with high-margin/expected-growth narratives.
- EV/FCF: -16.49 - negative free cash flow drives a negative ratio, flagging cash generation shortfalls despite valuation premiums.
| Metric | Value | Implication |
|---|---|---|
| Price-to-Earnings (TTM) | 47.52 | High historical earnings multiple |
| Forward P/E | 36.05 | Expected earnings growth priced in |
| Price-to-Book (P/B) | 3.32 | Market values assets well above book |
| EV/EBITDA | 25.89 | Premium on operating earnings |
| EV/Sales | 7.42 | High revenue multiple |
| EV/FCF | -16.49 | Negative free cash flow pressure |
For further investor context and shareholder composition details, see: Exploring Shenzhen Qingyi Photomask Limited Investor Profile: Who's Buying and Why?
Shenzhen Qingyi Photomask Limited (688138.SS) - Risk Factors
- Intensified market competition in high-precision photomasks
- Exchange-rate volatility from international sales and procurement
- Trade tensions and geopolitical risks affecting suppliers and customers
- Operational disruptions to production capacity and technology obsolescence
- Regulatory changes in semiconductor/electronics sectors increasing compliance costs
- Macroeconomic downturns reducing demand for electronic components
Key quantitative sensitivities and illustrative impacts on Shenzhen Qingyi Photomask Limited (688138.SS):
| Risk | Estimated Likelihood | Typical Short-term P&L Impact | Balance Sheet / Cash Flow Effect | Primary Mitigant |
|---|---|---|---|---|
| Market competition - pricing pressure | Medium-High (40-60%) | Gross margin compression 2-6 percentage points | Lower retained earnings; working capital stress if volumes fall | Product differentiation, scale-up of higher-margin masks |
| FX fluctuations (USD/CNY, JPY/CNY exposure) | Medium (30-50%) | EBIT swing ~1-3% per 5% FX move depending on natural hedges | Foreign-currency receivables/payables volatility | Hedging, currency invoicing alignment |
| Trade restrictions / tariffs | Medium (25-45%) | Incremental costs 1-4% of COGS; potential revenue loss from market access limits | Supply-chain reconfiguration capex; inventory build-up | Dual-sourcing, onshore substitutes |
| Operational disruption (plant downtime, capacity constraints) | Medium (20-40%) | Short-term revenue loss equal to daily capacity × order backlog; example: 1 week downtime ≈ 2-4% monthly revenue loss | Delayed receivables, potential penalty costs | Redundancy, preventive maintenance, capacity buffer |
| Technology obsolescence | Medium (30-50%) | Market share erosion; R&D spending rise 10-30% to catch up | Increased capital expenditure; potential impaired assets | Ongoing R&D, partnerships with fabs and OEMs |
| Regulatory change (environmental, export control) | Medium (25-40%) | Compliance costs rising by 0.5-2% of revenue depending on scope | Capex for compliance; increased operating expense | Proactive compliance programs, scenario planning |
| Economic downturn (global electronics demand fall) | Medium-High (35-60%) | Revenue decline 10-30% in severe cyclical troughs; margins compress sharply | Free cash flow reduction; greater reliance on liquidity reserves | Flexible cost structure, diversified end-market exposure |
Operational and financial metrics to watch closely:
- Revenue concentration: percentage of sales to top 5 customers (monitor >30% concentration)
- Gross margin trends: watch quarter-on-quarter declines of 1-3 pp as early warning
- R&D and capex as % of revenue: typical industry peer range 6-15%-accelerations signal catch-up spending
- Net debt / EBITDA: levels >2.5x indicate vulnerability to cyclical revenue shocks
- Foreign-currency receivable/payable mix: >20-30% FX exposure merits active hedging
Investor-relevant scenarios (illustrative):
| Scenario | Assumption | Projected 12‑month Revenue Impact | Projected EBITDA Margin Impact |
|---|---|---|---|
| Base | Stable demand, modest pricing pressure | -3% to +2% | -1 to 0 pp |
| Adverse - trade restriction + FX shock | 5% tariff on exports + 10% adverse FX move | -8% to -15% | -3 to -6 pp |
| Downturn - electronics cycle drop | Global demand decline 20% for photomasks | -15% to -30% | -5 to -10 pp |
Risk monitoring checklist for investors:
- Quarterly disclosure of customer concentration, backlog, and utilization rates
- FX exposure breakdown and hedging policy
- Capex plan and R&D pipeline updates
- Supplier/geographic concentration and contingency sourcing plans
- Regulatory filings and environmental/compliance cost estimates
Further reading on investor profile and who's buying the stock: Exploring Shenzhen Qingyi Photomask Limited Investor Profile: Who's Buying and Why?
Shenzhen Qingyi Photomask Limited (688138.SS) - Growth Opportunities
Shenzhen Qingyi Photomask Limited (688138.SS) is positioning itself to capture more value across the semiconductor supply chain by scaling production, deepening R&D, and pursuing strategic partnerships. Key growth levers are capacity expansion in high-end photomasks, technology advancement to serve advanced nodes, broader customer segmentation, and geographic diversification.- Capacity expansion: management has announced phased investments to expand high-end photomask capacity, targeting roughly a 50% increase in advanced-mask output by end-2025 to meet rising wafer fab demand.
- R&D intensity: the firm has been increasing R&D spend to push into sub-28nm mask process technologies; R&D accounted for an estimated 6-9% of revenue in recent years, supporting roadmap development for high-precision masks.
- Automation & process optimization: ongoing automation projects aim to reduce unit production cost and cycle time, with management targets to improve OEE (overall equipment effectiveness) by 10-15% over 24 months.
- Market expansion: stronger vertical integration and partnerships with domestic fab customers aim to convert demand from China's expanding IDM and foundry ecosystem into higher recurring orders.
- International diversification: planned selective overseas marketing and distributor relationships could lower concentration risk and add 10-20% incremental revenue over a multiyear window if executed.
| Metric | FY2021 | FY2022 | FY2023 (Estimate) |
|---|---|---|---|
| Revenue (CNY millions) | 720 | 910 | 1,200 |
| Gross margin | 31% | 33% | 35% |
| Net income (CNY millions) | 64 | 95 | 144 |
| Net profit margin | 8.9% | 10.4% | 12.0% |
| R&D spend (CNY millions) | 45 | 62 | 96 |
| R&D as % of revenue | 6.3% | 6.8% | 8.0% |
| CapEx (CNY millions) | 120 | 180 | 400 (planned/ongoing) |
| Employees | 800 | 1,000 | 1,200 |
- Customer concentration: converting existing relationships with large Chinese foundries and IDMs into long-term supply contracts could materially stabilize revenue visibility and improve cash flow predictability.
- Partnerships & ecosystem plays: collaborations with exposure to EUV-ready or advanced lithography supply chains may accelerate product qualification cycles and open new OEM channels.
- Margin expansion pathways: higher share of advanced masks, better automation, and scale can push gross margins from mid-30s toward low-40s over several years if realized.
- Percent growth in high-end mask revenue (target: +40-60% CAGR for advanced masks over 2023-2025).
- R&D-to-revenue ratio and breakthrough announcements (process node achievements, mask defect density improvements).
- CapEx execution vs. planned (CNY ~400m expansion) and resulting utilization rates.
- Geographic revenue mix shifts - domestic vs. international percent of total revenue.
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