Breaking Down Jilin Electric Power Co.,Ltd. Financial Health: Key Insights for Investors

Curious whether Jilin Electric Power Co., Ltd. (000875.SZ) is a turnaround candidate or a balance-sheet risk? In H1 2025 the company booked operating revenue of CNY 6.569 billion (down 4.63% year‑on‑year) and TTM revenue of CNY 13.505 billion (‑3.84% YoY), with segment splits of coal CNY 2.212B (gross margin 29.12%), wind CNY 1.537B (46.93% margin), solar CNY 1.941B (40.27% margin), heating CNY 714M (‑21.19% margin) and other CNY 165M (14.20% margin); yet profitability slid sharply-H1 net profit attributable to shareholders was CNY 726 million (‑33.72% YoY) and net margin fell to 11.06% from 15.94%-while EPS dropped to CNY 0.20 and ROE sits at 4.54%. On leverage, total assets were CNY 87.85B versus liabilities CNY 60.72B (debt‑to‑equity 2.02) with enterprise value CNY 81.93B and market cap CNY 20.31B, a debt/EBITDA of 8.03 and interest coverage of 2.06; liquidity is tighter (current ratio 0.82, quick ratio 0.76, cash & short‑term investments CNY 2.82B) and free cash flow is negative at CNY ‑1.22B despite operating cash flow outpacing net income. Valuation shows a trailing P/E of 42.09, forward P/E 19.31, P/B 0.75 and EV/EBITDA 12.01, with an intrinsic value estimate of CNY 4.42 (implying ~27% overvaluation) and a cost of equity of 12.57% (market risk premium 6.13%); risks include declining revenue/profitability, high leverage and capex demands from the renewable transition (clean energy capacity 11.35 GW, green ammonia launch and planned wind investments), while shareholders will see a proposed cash dividend of CNY 0.2 per 10 shares (~10% payout ratio)-read on for a detailed, line‑by‑line financial breakdown and what these figures mean for investors.

Jilin Electric Power Co.,Ltd. (000875.SZ) - Revenue Analysis

• H1 2025 total operating revenue: CNY 6.569 billion (-4.63% YoY)
• TTM revenue (ending Mar 2025): CNY 13.505 billion (-3.84% YoY)
• Dividend plan: CNY 0.2 per 10 shares; payout ratio ≈10%

• Segment mix (H1 2025): coal 33.7%, wind 23.4%, solar 29.6%, heating 10.9%, other 2.5% of total revenue.
• Margins: wind and solar are the highest-margin power sources (46.9% and 40.3%), while heating is loss-making at -21.2% gross margin.
• Profit concentration: despite lower revenue overall, renewable segments (wind + solar) contribute ~1.502 billion in gross profit (~74% of segment gross profit before heating loss).
• Key near-term revenue risks: weaker commodity/pricing environment, utilization rates at coal plants, and policy-driven dispatch for renewables and heating.

Jilin Electric Power Co.,Ltd. (000875.SZ) - Profitability Metrics

Key profitability indicators for Jilin Electric Power Co.,Ltd. show a material softening in the first half of 2025 versus the same period in 2024, driven by lower net profit and margin compression while returns on capital and equity remain modest.

• Net profit attributable to shareholders: CNY 726 million in H1 2025, down 33.72% y/y.
• Net profit margin: ~11.06% in H1 2025 vs. 15.94% in H1 2024.
• Basic EPS: CNY 0.20 in H1 2025 vs. CNY 0.39 in H1 2024.
• Return on equity (ROE): 4.54% (latest reported).
• Return on assets (ROA): 2.03% (latest reported).
• Return on invested capital (ROIC): 2.19% (latest reported).

Contextual notes:

• The drop in net profit and EPS signals margin pressure likely from increased operating costs, lower tariffs, or non-recurring items affecting H1 2025.
• ROE and ROIC in the low single digits indicate moderate returns versus peers in higher-margin utility segments; asset intensity keeps ROA low.
• Investors should weigh these profitability metrics alongside operational drivers and capital expenditure plans detailed in the company disclosures and strategic materials: Mission Statement, Vision, & Core Values (2026) of Jilin Electric Power Co.,Ltd.

Jilin Electric Power Co.,Ltd. (000875.SZ) - Debt vs. Equity Structure

• Total assets: CNY 87.85 billion
• Total liabilities: CNY 60.72 billion
• Total equity: CNY 27.14 billion
• Debt-to-equity ratio: 2.02
• Enterprise value (EV): CNY 81.93 billion
• Market capitalization: CNY 20.31 billion
• Debt-to-EBITDA: 8.03
• Interest coverage ratio: 2.06

• The debt-to-equity ratio of 2.02 signals creditors fund roughly two-thirds of the capital structure versus one-third from equity, increasing financial risk during downturns.
• EV (CNY 81.93B) vs. market cap (CNY 20.31B) underscores substantial net debt on the balance sheet; equity markets price the company well below the value of operating assets.
• Debt-to-EBITDA of 8.03 is elevated compared with typical investment-grade thresholds (often <3-4), suggesting reliance on steady cash flows to service debt.
• Interest coverage of 2.06 provides limited headroom - interest costs consume a meaningful portion of operating earnings, reducing flexibility for capex or dividend increases.

Jilin Electric Power Co.,Ltd. (000875.SZ) - Liquidity and Solvency

Key liquidity and solvency metrics for Jilin Electric Power Co.,Ltd. (000875.SZ) paint a mixed picture: limited short-term coverage by current assets, some cash cushion from liquid holdings, strong operating cash generation but negative free cash flow due to elevated capital spending.

• Current ratio: 0.82 - potential difficulty meeting short-term liabilities with short-term assets.
• Quick ratio: 0.76 - constrained ability to cover immediate liabilities without relying on inventory sales.
• Cash & short-term investments: CNY 2.82 billion - provides a liquidity buffer for near-term obligations.
• Operating cash flow / Net income: Operating cash flow significantly exceeds net income, indicating efficient cash conversion from operations.
• Net change in cash (Q3 2025): CNY 105.87 million - positive quarterly cash flow movement.
• Free cash flow (latest): CNY -1.22 billion - capex outpacing operating cash generation.

Practical considerations for investors:

• Monitor quarterly operating cash flow trends to confirm sustained cash conversion that can offset negative FCF.
• Watch capex plans and timing - continued high capex will pressure free cash flow and may necessitate external financing despite positive cash balances.
• Assess working capital management and receivables/inventory turnover to see if current and quick ratios can improve.
• Keep an eye on liquidity reserves (CNY 2.82 billion) relative to near-term maturities and dividend or payout commitments.

For additional corporate context, see: Jilin Electric Power Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jilin Electric Power Co.,Ltd. (000875.SZ) Valuation Analysis

• Trailing P/E: 42.09 - indicates a premium on recent earnings.
• Forward P/E: 19.31 - reflects expected earnings growth or recovery.
• P/B: 0.75 - suggests stock trades below net asset value.
• EV/EBITDA: 12.01 - mid-range enterprise valuation versus peers.
• Intrinsic value: CNY 4.42 - implied ≈27% overvaluation at current price.
• Market risk premium: 6.13% and Cost of equity: 12.57% - inputs for discount rate and return expectations.

• High trailing P/E can reflect cyclical earnings troughs or one-off adjustments; the forward multiple halves that premium, signaling expected normalization.
• P/B below 1.0 suggests asset backing that could cap downside, but book value quality (asset age, impairment risk) matters.
• EV/EBITDA near 12 implies a mid-market valuation relative to regulated and quasi-regulated peers; comparing to regional power companies can refine this view.
• Using the market risk premium (6.13%) and cost of equity (12.57%) will materially affect DCF outputs-small changes in these assumptions shift intrinsic value significantly.

Jilin Electric Power Co.,Ltd. (000875.SZ) - Risk Factors

• Revenue and profitability trends

• Revenue: -4.63% year-on-year (H1 2025 vs H1 2024)
• Net profit: -33.72% year-on-year (H1 2025 vs H1 2024)
• Net profit margin declined from 15.94% (H1 2024) to 11.06% (H1 2025)

• Liquidity and solvency pressures

• Cash flow and capital intensity

• Operational and margin risks

• Other investor considerations

Jilin Electric Power Co.,Ltd. (000875.SZ) - Growth Opportunities

• Installed clean energy capacity: 11.35 million kW, with a clear emphasis on wind power projects - signaling a quality-over-quantity approach to new energy development.
• Green ammonia project successfully launched, initiating a green hydrogen-based energy platform that can unlock downstream offtake and electrolyzer/hydrogen value chains.
• Planned corporate name change to reflect a green energy focus, aligning branding with the company's evolving asset mix and strategic priorities.
• Subsidiary investment in a new wind power project, indicating ongoing capex allocation toward renewable generation growth.

• Asset mix shift: Wind-heavy capacity and green hydrogen initiatives diversify revenue streams away from traditional thermal generation, potentially improving long-term cash flow stability.
• Value creation runway: The gap between market cap (CNY 20.31bn) and EV (CNY 81.93bn) highlights leverage and minority interests; successful execution on renewables and green ammonia could materially re-rate equity if EBITDA scales.
• Profitability upside: Current ROE 4.54% and ROA 2.03% are modest; targeted improvements in asset utilization, higher-margin green products (ammonia/hydrogen), and fleet optimization could lift returns.
• Execution risk vs. upside: Capex for wind and hydrogen platforms requires disciplined project selection and grid/PPAs to convert capacity additions into predictable earnings.

• Progress and commercialization milestones for the green ammonia/hydrogen platform (capex, commissioning dates, offtake agreements).
• New wind project timelines, expected GW additions, and projected CF% (capacity factor) for incremental generation.
• Balance sheet evolution: debt profile, leverage metrics relative to EV, and how financing for renewables is structured (recourse vs. non‑recourse).
• Regulatory and subsidy environment for renewables and hydrogen in Jilin/China that could materially affect project IRRs.