Breaking Down Jiangsu Guotai International Group Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven examination of Jiangsu Guotai International Group Co., Ltd. where headline figures demand attention: first-half 2025 revenue jumped to RMB 45.43 billion-up ~105.18% year-on-year-while net profit attributable to shareholders surged to RMB 15.74 billion (+213.74%) even as the trailing twelve-month revenue sits at RMB 39.49 billion (YoY +4.64%); the balance sheet shows a net cash position of RMB 14.3 billion with total debt down to RMB 8.48 billion and a conservative debt-to-equity ratio of 0.39, liquidity metrics such as a current ratio of 2.08 and quick ratio of 1.85 signal short-term resilience, profitability metrics include an ROE of 8.95% and a net profit margin of 2.91%, valuation indicators point to potential upside with an intrinsic value of RMB 13.74 per share versus a market price of RMB 8.63 (~59.20% upside), trailing P/E 15.01, forward P/E 10.75 and P/S ~0.36, and growth forecasts project earnings and revenue CAGR of ~16.5% and 5.5% respectively-read on for the full breakdown of risks, cash-flow dynamics, valuation drivers and strategic levers that investors should weigh.

Jiangsu Guotai International Group Co., Ltd. (002091.SZ) - Revenue Analysis

• Total revenue (H1 2025): RMB 45.43 billion (vs. RMB 22.14 billion H1 2024), growth ~105.18%.
• Operating revenue (9 months ending Sep 30, 2025): RMB 29.60 billion, YoY +2.06%.
• Trailing twelve months (TTM) revenue: RMB 39.49 billion, YoY +4.64%.
• Revenue per employee: ~RMB 705,500.
• Market capitalization: ~RMB 14.11 billion; Price-to-Sales (P/S): 0.36.
• Recent revenue growth (4.64% TTM) trails industry average, indicating opportunities for market share recovery.

• Drivers behind H1 2025 surge: concentrated revenue recognition events, commodity/product price realization, or large one-off contracts (investors should verify recurring vs. non-recurring components).
• Near-term caution: 9M figure and TTM growth moderate vs H1 spike - monitor sustainability of margin and order pipeline.
• Valuation note: P/S 0.36 vs. peers suggests upside if growth normalizes; downside if H1 gains were non-recurring.

Jiangsu Guotai International Group Co., Ltd. (002091.SZ) - Profitability Metrics

Key profitability indicators for Jiangsu Guotai International Group Co., Ltd. (002091.SZ) show marked year-on-year improvement in 2025 driven by strong operating gains, while margins remain moderate relative to absolute profit growth.

• Revenue-to-profit conversion: Operating profit of RMB 18.35 billion in H1 2025 drove the large net profit increase, yet net margin at 2.91% implies revenue scale is very large relative to margins.
• ROE context: ROE of 8.95% indicates mid-single-digit efficiency in converting equity into returns-improved profits but not yet premium equity returns.
• EPS trend: EPS of RMB 0.57 for the nine months to Sep 30, 2025, up 3.07% YoY, signals gradual per-share improvement despite large absolute swings in interim profits.

For historical context, ownership and mission details relevant to assessing long-term profitability drivers can be found here: Jiangsu Guotai International Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Guotai International Group Co., Ltd. (002091.SZ) - Debt vs. Equity Structure

• Total debt: RMB 8.48 billion (down from RMB 9.06 billion year-on-year)
• Cash and cash equivalents: RMB 22.8 billion
• Net cash position: RMB 14.3 billion
• Debt-to-equity ratio: 0.39
• Interest coverage ratio: 8.27
• Enterprise value: RMB 7.98 billion
• Market capitalization: RMB 14.88 billion

• The net cash position (RMB 14.3 billion) provides room for acquisitions, capex, or return-of-capital programs without increasing leverage materially.
• Debt reduction from RMB 9.06 billion to RMB 8.48 billion signals active liability management and reduces refinancing risk.
• An interest coverage ratio of 8.27 implies operating income comfortably covers interest expense, lowering default risk under moderate earnings volatility.
• Debt-to-equity at 0.39 places the company in a low-leverage bucket relative to many industrials and trading peers, supporting creditworthiness.
• EV (RMB 7.98 billion) vs. market cap (RMB 14.88 billion) suggests the market values equity significantly above net enterprise obligations - a sign of positive investor sentiment or premium on earnings/asset quality.

Jiangsu Guotai International Group Co., Ltd. (002091.SZ) - Liquidity and Solvency

• Current ratio: 2.08 - short-term assets are more than double short-term liabilities, indicating a comfortable buffer for working capital needs.
• Quick ratio: 1.85 - excluding inventories, the company still retains substantial liquid assets to cover immediate liabilities.
• Operating cash flow: Positive - core business activities generate cash, supporting day-to-day operations and reducing dependence on external financing.
• Free cash flow: Covers capital expenditures - ongoing investments are funded from internal cash generation.
• Net cash position: RMB 14.3 billion - a strong liquidity reserve that enhances financial resilience and flexibility.

• Financial flexibility: Positive operating cash flow plus net cash allows self-funding of expansion and reduces refinancing risk.
• Credit profile: Elevated liquidity ratios and cash reserves support a stable solvency outlook and negotiating leverage with lenders.
• Investment capacity: Free cash flow coverage of CapEx signals capacity to pursue growth projects without immediate external capital.

Jiangsu Guotai International Group Co., Ltd. (002091.SZ) - Valuation Analysis

• Intrinsic value estimate: RMB 13.74 per share vs. market price RMB 8.63 - implied upside ~59.20%.
• Trailing P/E: 15.01; Forward P/E: 10.75 - forward multiple materially lower than trailing.
• P/S ratio: 0.37 (company-level) and reported P/S ~0.36 alongside market cap - low valuation relative to sales.
• P/B ratio: 0.66 - trading below book value.
• EV/EBITDA: 2.90 - very low enterprise-value-to-operating-earnings multiple.
• Market capitalization: ~RMB 14.11 billion.

• Low P/S, P/B and EV/EBITDA collectively point to a valuation profile suggesting potential undervaluation versus peers and historical averages.
• Forward P/E materially below trailing P/E signals expected earnings growth or one-time factors improving forward profitability.
• Intrinsic value gap vs. market price highlights potential margin of safety for value-oriented investors, subject to business and macro risks.

Jiangsu Guotai International Group Co., Ltd. (002091.SZ) - Risk Factors

• Net profit margin: 2.91% - a modest margin that limits cushion against cost shocks or revenue pressure.
• Return on equity (ROE): 8.95% - below the industry average, indicating room to improve capital efficiency and shareholder returns.
• Debt-to-equity ratio: 0.39 - a conservative leverage profile that reduces financial risk but may also signal underutilized capital structure.
• Interest coverage ratio: 8.27 - generally adequate today but potentially strained if earnings decline materially.
• Operating cash flow vs. capex: operating cash flow covers capital expenditures, supporting maintenance and select investment needs.
• Free cash flow conversion: FCF ≈ 46% of EBIT - weaker conversion suggesting operational cash generation lags accounting profitability.
• Net cash position: RMB 14.3 billion - a significant liquidity buffer, though reliance on reserves for strategic or cyclical support may be unsustainable long-term.
• Revenue growth (YoY): 4.64% - slightly below industry peers, pointing to potential challenges in market expansion or competitiveness.

Jiangsu Guotai International Group Co., Ltd. (002091.SZ) - Growth Opportunities

• Analyst forecasts: earnings growth of 16.5% p.a., revenue growth of 5.5% p.a., and EPS growth of 16.7% p.a., indicating margin expansion and operational leverage.
• Market valuation: market capitalization ≈ RMB 14.11 billion with a P/S ratio of 0.36, suggesting potential undervaluation relative to peers and room for re-rating.
• Balance sheet strength: net cash position of RMB 14.3 billion provides a strong liquidity buffer for M&A, capex, or to weather market volatility.
• Cash generation: positive operating cash flow and free cash flow consistently cover capital expenditures, supporting organic growth and reinvestment.
• Portfolio diversification: presence in supply chain services and chemical new energy allows the company to capture cross-sectoral growth trends and reduce single-segment risk.
• Valuation upside: estimated intrinsic value RMB 13.74 per share vs. market price RMB 8.63 - implied upside of 59.20%.

• Strategic levers to realize growth:
  • Deploy net cash for targeted acquisitions in supply chain and chemical new energy to accelerate revenue and margin growth.
  • Invest incremental CapEx funded by free cash flow to scale high-margin services and new-energy production capacity.
  • Operational improvements to convert revenue growth into higher EPS via cost control and efficiency gains.
  • Leverage supply-chain integration to cross-sell services and improve working-capital turns.
• Key risks to monitor:
  • Commodity-price and input-cost swings affecting margins in chemical and trading segments.
  • Execution risk on M&A and integration of new-energy assets.
  • Macro demand cycles that could slow revenue growth below the projected 5.5% p.a.