Breaking Down Nanya New Material Technology Co.,Ltd Financial Health: Key Insights for Investors

Dive into a data-driven assessment of Nanya New Material Technology Co.,Ltd (688519.SS): with 2024 operating income at 3.362 billion yuan (up 12.70% year-on-year) and TTM revenue of 4.58 billion yuan (a 46.15% YoY increase as of Dec 3, 2025), investors face a mix of momentum and caution-quarterly revenue grew to 1.36 billion yuan (+63.04% vs. Q3 2024) even as Q1 2025 operating revenue fell to NT$7.19 billion from NT$9.50 billion a year earlier; profitability shows a turnaround with 2024 net profit attributable to the parent at 50.3202 million yuan and TTM net margin near 1.50%, while balance-sheet metrics reveal total assets of 5.61699 billion yuan, total liabilities of 2.83328 billion yuan, a conservative debt-to-equity of 18.01%, and a net cash position of 57.96 million yuan-contrasted by liquidity and solvency flags such as an Altman Z-Score of 2.31, negative FCF of -42.52 million yuan (TTM), and an EV/EBITDA of 79.89 that helps explain a high TTM P/E of 97.76 against a market cap near 14.85 billion yuan; with revenue and earnings forecasted to grow at 22.8% and 63.7% annually respectively and strategic focus on lead-free, halogen-free, and high-frequency materials for 5G and automotive electronics, read on for the full breakdown of valuation, cash flow dynamics, risks and upside drivers.

Nanya New Material Technology Co.,Ltd (688519.SS) - Revenue Analysis

Nanya New Material Technology Co.,Ltd (688519.SS) exhibits revenue momentum with marked year-over-year growth in several periods while showing variability across quarters and currencies. Key top-line data points and operational revenue metrics are summarized below to inform investor assessment.

• Operating income (2024): 3.362 billion yuan, up 12.70% vs. 2023.
• Net cash flow from operating activities (2024): 325 million yuan, up 1,154.57% year-on-year.
• Revenue per employee: ~3.48 million yuan across 1,316 employees.

• Recent top-line drivers: strong quarterly acceleration into Q3 2025 (63.04% YoY) lifted TTM revenue to 4.58 billion yuan (+46.15% YoY).
• Seasonality / currency note: Q1 2025 showed a drop in NT$-reported revenue to NT$7.19 billion from NT$9.50 billion in Q1 2024; reconcile with RMB figures when comparing across reports.
• Cash generation improved significantly in 2024, with operating cash flow expanding to 325 million yuan, supporting operational stability despite quarter-to-quarter swings.

For company positioning and strategic context, see: Mission Statement, Vision, & Core Values (2026) of Nanya New Material Technology Co.,Ltd.

Nanya New Material Technology Co.,Ltd (688519.SS) - Profitability Metrics

• 2024 net profit attributable: 50.3202 million yuan (turned from loss to profit)
• Basic EPS (2024): 0.22 yuan
• Weighted average ROE (2024): 2.06%
• Reported ROE: 3.26%
• ROIC: 1.30%

• Margins: Gross margin (9.44% TTM) provides limited buffer; operating margin (1.49%) and profit margin (2.03%) indicate tight operating leverage.
• Returns: ROE and ROIC under 4% suggest low capital efficiency; EPS of 0.22 yuan signals modest per-share earnings after the turnaround.
• Trend note: Recovery to 50.3202 million yuan profit is positive, but margin and return levels imply continued need for margin expansion or operational improvement to achieve stronger shareholder returns.

Nanya New Material Technology Co.,Ltd (688519.SS) - Debt vs. Equity Structure

• Total assets: 5,616.99 million yuan
• Total liabilities: 2,833.28 million yuan
• Total debt: 465.25 million yuan
• Cash and cash equivalents: 523.21 million yuan
• Net cash position (Cash - Debt): 57.96 million yuan
• Equity (book value): 2,583.71 million yuan
• Book value per share: 11.44 yuan

• Leverage perspective: Debt-to-equity at 18.01% signals conservative financial leverage versus industry averages that are often higher for manufacturing and materials firms.
• Liquidity perspective: Current ratio 1.35 and quick ratio 1.15 point to adequate short-term liquidity without relying excessively on inventory liquidation.
• Coverage perspective: Interest coverage of 5.81 indicates ability to service interest from operating earnings comfortably, reducing solvency risk.

Nanya New Material Technology Co.,Ltd (688519.SS) - Liquidity and Solvency

Nanya New Material Technology Co.,Ltd's recent cash flow and solvency metrics show mixed signals: operating cash generation has strengthened year-over-year, but free cash flow is negative and the Altman Z‑Score points to elevated bankruptcy risk. Key figures and implications are summarized below.

• Trailing twelve months (TTM) operating cash flow: 138.28 million yuan
• TTM capital expenditures: 180.81 million yuan
• TTM free cash flow: -42.52 million yuan
• Altman Z‑Score: 2.31 (increased bankruptcy risk territory)
• Piotroski F‑Score: 6 (moderate financial health)

• Positive: Large YoY jump in operating cash flow to 325M in 2024 suggests improved core cash generation.
• Negative: Persistent negative free cash flow (-42.52M TTM) driven by capex > operating cash; investing outflows widened to -103M from -80.03M.
• Financing: Outflow of -92.3953M in 2024 with a substantial YoY reduction in financing cash suggests reduced external funding or increased repayments.
• Solvency signals: Altman Z of 2.31 raises caution; Piotroski F‑Score of 6 is middling - monitor leverage and working capital trends.

Further context on the company's background and strategy is available here: Nanya New Material Technology Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Nanya New Material Technology Co.,Ltd (688519.SS) - Valuation Analysis

• Market capitalization: 14.85 billion CNY (12-Dec-2025)
• TTM P/E: 97.76
• Forward P/E: 61.21
• Price-to-Sales (P/S): 3.24
• Price-to-Book (P/B): 6.36
• Enterprise Value (EV): 16.36 billion CNY
• EV/EBITDA: 79.89
• EV/EBIT: 270.59
• EV/FCF: -384.77 (negative FCF base)
• Earnings yield (2024): 1.03%

• High TTM and forward P/E indicate investors are pricing significant future earnings growth - any shortfall could compress multiples rapidly.
• Elevated EV/EBITDA and EV/EBIT reflect weak current operating profitability versus enterprise value; sensitivity to margin improvements is high.
• Negative EV/FCF signals recent free cash flow deficits - cash conversion risk and potential need for external financing.
• Low earnings yield (1.03% for 2024) implies limited current income return relative to price, increasing reliance on growth realization for total returns.

Nanya New Material Technology Co.,Ltd (688519.SS) - Risk Factors

• Net profit margin: ~1.5% - indicates intense competition and pricing pressure compressing profitability.
• Altman Z-Score: 2.31 - in the zone of increased bankruptcy risk (below the safe threshold of ~2.99).
• Piotroski F-Score: 6 - suggests moderate financial health with room for improvement in fundamentals.
• Beta: 0.99 - stock volatility nearly mirrors the broader market, implying market-driven price movements.
• TTM P/E: 97.76 - high trailing valuation, raising sensitivity to earnings disappointments.
• Operating cash flow (TTM): 138.28 million CNY - positive operational cash generation.
• Free cash flow (TTM): -42.52 million CNY - negative FCF indicates capital spending or working capital demands outpacing cash from operations.

• Cash-flow risk: Despite positive operating cash flow, negative free cash flow signals ongoing capital intensity or working capital strain that may require external financing.
• Valuation risk: A P/E near 98 implies market expectations are high; any earnings miss could trigger sharp downside.
• Credit/liquidity risk: Altman Z-Score in the gray zone means access to credit or refinancing could become constrained under stress.
• Operational/competitive risk: Low net margins point to margin vulnerability from raw material cost swings, customer concentration, or pricing competition.
• Market risk: Beta ~0.99 means macro and sector-wide shocks will likely translate directly to the stock price.

Nanya New Material Technology Co.,Ltd (688519.SS) - Growth Opportunities

• Revenue CAGR forecast: 22.8% per year (company) vs. 14.4% per year (Chinese market).
• Earnings growth forecast: 63.7% per year (company) vs. 27.4% per year (market).
• Market capitalization: ~16.1 billion yuan, reflecting investor confidence in growth prospects.
• TTM revenue (as of 2025-12-03): 4.58 billion yuan, +46.15% YoY.
• Net profit margin (TTM): 2.03%, indicating room for margin expansion as scale and product mix improve.

• Product innovation - emphasis on lead-free, halogen-free, and high-frequency materials tailored for next-gen PCB and substrate applications.
• Secular demand from 5G deployment and automotive electronics (EVs, ADAS) that require low-loss, high-reliability dielectric materials.
• Scale effects from rapidly rising revenue (TTM +46.15% YoY) that can enable improved gross margins and R&D reinvestment.
• Strong earnings leverage implied by a forecasted 63.7% earnings CAGR - small margin improvements and higher ASPs could meaningfully boost net income.

• Current net profit margin (2.03%) is modest; margin expansion depends on cost control, product mix shift to higher-value materials, and pricing power.
• Execution risk in scaling manufacturing while maintaining quality for automotive/5G specifications.
• Competitive pressures and raw material cost volatility can compress margins if not managed.