Breaking Down Jinneng Holding Shanxi Electric Power Co.,LTD. Financial Health: Key Insights for Investors

Curious whether Jinneng Holding Shanxi Electric Power (000767.SZ) is a value play or a balance-sheet risk? Consider these hard numbers: Q1 2025 revenue dropped to 4.01 billion CNY (‑13.22% YoY) with TTM revenue at 16.06 billion CNY (‑14.35% YoY) and 2024 annual revenue of 16.67 billion CNY (‑15.02% YoY), while revenue per employee stood near 2.27 million CNY across a 7,064-strong workforce; the market currently values the company at a 9.42 billion CNY market cap with a P/S of 0.59, even as profitability shows a mixed recovery-H1 2025 net income attributable to shareholders of 120-150 million CNY (turning from a 376.08 million CNY loss a year earlier), EPS improving to a positive 0.0043 CNY/share, ROE of 4.9% and net margin around 3.7%-yet liquidity and leverage remain pressing: operating cash flow is negative 978.7 million CNY, total assets were 159.091 billion CNY against liabilities of 148.433 billion CNY in 2023 (implying a debt-heavy structure with a debt-to-equity proxy of ~13.9), even as the group pursues high-parameter ultra-supercritical coal projects and diversifies into renewables, financial services and industrial power solutions that could reshape future cash flows.

Jinneng Holding Shanxi Electric Power Co.,LTD. (000767.SZ) Revenue Analysis

Jinneng Holding Shanxi Electric Power Co.,LTD. reported weaker top-line performance into 2025, with notable year-over-year declines across quarterly, annual and trailing twelve-month measures.

• Q1 2025 revenue: 4.01 billion CNY (down 13.22% vs Q1 2024)
• TTM revenue as of 2025-03-31: 16.06 billion CNY (down 14.35% YoY)
• Full-year 2024 revenue: 16.67 billion CNY (down 15.02% vs 2023)

Primary drivers and context:

• Coal market downward trend in 2025 reduced fuel procurement costs, which the company cites as a factor associated with the revenue decline (weaker commodity pricing and adjustments across the fuel-supply chain).
• Lower coal prices can compress gross revenue for coal-linked sales and trading activities even if margins per unit improve; volume and contract repricing dynamics matter.
• Revenue per employee (~2.27M CNY) and a P/S of 0.59 indicate a relatively low revenue valuation multiple versus peers, reflecting market skepticism about near-term top-line recovery.

For related investor context and shareholder composition, see: Exploring Jinneng Holding Shanxi Electric Power Co.,LTD. Investor Profile: Who's Buying and Why?

Jinneng Holding Shanxi Electric Power Co.,LTD. (000767.SZ) - Profitability Metrics

Key profitability indicators for the first half of 2025 and comparable figures highlight a meaningful operational turnaround alongside lingering liquidity pressures.

• Net income attributable to shareholders (1H2025): 120-150 million CNY (vs. loss of 376.08 million CNY in 1H2024)
• Net income after deducting non-recurring gains/losses (1H2025): 126.5-159.5 million CNY (vs. loss of 381.32 million CNY in 1H2024)
• Reported net income (period reported): 32.08 million CNY, implying minimal net margins in that reporting slice
• Basic EPS: improved from -0.0055 CNY/share (prior comparable period) to +0.0043 CNY/share
• Return on equity (ROE): 4.9%
• Net profit margin: 3.7%
• Operating cash flow: -978.7 million CNY (negative, indicating cash generation issues)

For further context on ownership, trading patterns and investor composition that may affect future profitability expectations, see: Exploring Jinneng Holding Shanxi Electric Power Co.,LTD. Investor Profile: Who's Buying and Why?

Jinneng Holding Shanxi Electric Power Co.,LTD. (000767.SZ) - Debt vs. Equity Structure

• Leverage profile: With liabilities of 148.433 billion CNY against equity of about 10.658 billion CNY, the company's debt-to-equity ratio near 13.9x signals a very high leverage position compared with typical utilities.
• Capital intensity: Power generation and grid investments are capital-intensive, explaining elevated borrowing to fund plant construction, upgrades, and transmission assets.
• Risk considerations: High leverage increases sensitivity to interest-rate changes, refinancing risk, and operating cash-flow shortfalls.
• Balance-sheet cushions: The 3.2 billion CNY in long-term investments (June 30, 2025) provides some non-operating asset value but is small relative to total liabilities.

• Investor focus areas: monitor operating cash flow, EBITDA margins, interest coverage, maturity schedule of debt, and any equity injections or asset sales that could meaningfully improve the equity base.
• Scenario sensitivity: modest declines in operating cash flow or increases in borrowing costs could materially compress equity and credit metrics given current leverage.

Jinneng Holding Shanxi Electric Power Co.,LTD. (000767.SZ) - Liquidity and Solvency

• Operating cash flow (2023): -978.7 million CNY - negative cash generation from operations signals near-term liquidity pressure.
• Total assets (2023): 159.091 billion CNY - a substantial asset base that supports operations and borrowing capacity.
• Total liabilities (2023): 148.433 billion CNY - a large debt load relative to assets.
• Implied shareholders' equity (2023): 10.658 billion CNY (Assets - Liabilities).
• Leverage intensity: debt-to-asset ratio ≈ 93.4% (148.433 / 159.091), indicating high leverage.

• Solvency risk: With equity representing ~6.6% of total assets, shocks to asset valuations or continued operating cash outflows could strain solvency metrics.
• Liquidity options: The sizeable asset base may enable refinancing or asset-backed borrowing, but negative operating cash flow raises rollover and covenant risks.
• Key monitoring items for investors:
  • Quarterly operating cash flow trends and working capital changes.
  • Debt maturity profile and interest coverage (assess refinancing needs).
  • Asset disposals or capital injections that could bolster equity or liquidity.

Jinneng Holding Shanxi Electric Power Co.,LTD. (000767.SZ) Valuation Analysis

• Market capitalization: 9.42 billion CNY
• Price-to-Sales (P/S) ratio: 0.59
• Return on Equity (ROE): 4.9%
• Net profit margin: 3.7%

• Low P/S (0.59) suggests the market prices the company cheaply relative to revenue - potentially reflecting concerns about earnings quality, growth prospects, or industry/regulatory risks.
• ROE of 4.9% combined with a net margin of 3.7% indicates modest profitability on a large asset base, raising questions about asset efficiency and return on capital.
• Heavy liabilities (148.433 billion CNY) relative to assets (159.091 billion CNY) imply high leverage; equity cushion is limited, which can amplify returns but increases financial risk.
• Market cap (9.42 billion CNY) versus balance sheet size suggests the enterprise value could be materially higher when debt is included, affecting enterprise-value multiples versus equity-based multiples.

Jinneng Holding Shanxi Electric Power Co.,LTD. (000767.SZ) - Risk Factors

• Negative operating cash flow: operating cash flow was negative at 978.7 million CNY in 2023, signaling near-term liquidity strain and potential reliance on external financing or asset sales to fund operations.
• High leverage: total liabilities of 148.433 billion CNY in 2023 imply a substantial debt burden relative to the balance sheet.
• Concentrated balance-sheet exposure: total assets of 159.091 billion CNY against total liabilities of 148.433 billion CNY leaves limited equity buffer and raises sensitivity to asset impairments or valuation declines.
• Debt-to-asset intensity: the implied liabilities-to-assets ratio (~93.3%) constrains financial flexibility and increases refinancing, covenant and interest-rate risk.
• Operational cash shortfall vs. large liabilities: the combination of a near‑1 billion CNY negative operating cash flow and very large nominal liabilities magnifies rollover and liquidity risks, especially if capital markets tighten.
• Counterparty and market risks: with a high asset base tied to the power sector, regulatory changes, commodity price swings, or counterparty payment delays can quickly affect cash generation and asset recoverability.

• Liquidity and refinancing risk: negative operating cash flow increases dependency on external financing; large outstanding liabilities raise the probability of covenant pressure or higher funding costs.
• Asset impairment risk: limited net asset margin (≈10.66 billion CNY) relative to liabilities means asset write-downs could materially erode equity.
• Interest-rate and market risk: rising rates would increase financing costs on any floating-rate debt and could reduce asset valuations, tightening liquidity further.
• Regulatory and sectoral risk: the company's scale in the power sector exposes it to policy shifts, subsidy changes, and demand volatility that can impair cash flows and profitability.

Jinneng Holding Shanxi Electric Power Co.,LTD. (000767.SZ) Growth Opportunities

• High-parameter, ultra-supercritical coal projects: these units deliver thermal efficiencies typically in the ~43-46% range versus ~36-38% for older subcritical plants, reducing coal consumption and CO2 intensity per MWh and improving margin on merchant power sales.
• Industrial high-load clients: electrification projects such as electrolytic aluminum plants create baseload demand and higher utilization factors for captive or contracted capacity, stabilizing revenue streams and enabling long-term power purchase agreements (PPAs).
• New energy expansion: incremental capacity additions in wind, solar and small hydro diversify generation mix and align with provincial and national decarbonization targets, reducing regulatory and market transition risks.
• Financial services and integrated logistics: cross-selling of financing, trading and transmission/logistics services enhances cash generation and creates vertically integrated demand-supply synergies.
• State and provincial support: access to concessional financing, grid connection prioritization and favorable permitting increases project visibility and lowers execution risk for renewables and high-parameter coal projects.

• Fuel and dispatch economics: higher efficiency coal units lower fuel cost per MWh - e.g., a 5 percentage-point efficiency gain can reduce coal consumption by ~10-12% per MWh, materially improving gross margin in merchant markets.
• Contracted vs. merchant mix: securing long-term PPAs with industrial loads (10-20+ year tenors) hedges price risk and supports borrowing for capex-heavy projects.
• Capex allocation: shifting incremental capital from new coal-only projects toward hybrid portfolios (coal + renewables + storage) improves regulatory resilience and access to green financing.
• Ancillary services and peak capacity markets: adding fast-ramping or grid-support assets increases revenue diversification beyond energy-only sales.

• Policy and carbon pricing: stronger national carbon constraints raise operating costs for coal but increase the value of cleaner ultra-supercritical and renewables output.
• Execution risk: project permitting, grid connection lead times and capex inflation can affect timeline and IRR; state backing mitigates but does not eliminate these risks.
• Market demand concentration: dependence on provincial heavy industry demand requires monitoring of industrial cycle and metal sales (e.g., aluminum) that drive power load.
• Financing mix: access to low-cost state banks and green bonds improves project economics; rising interest rates or tighter credit would pressure returns on new builds.