Breaking Down Kehua Data Co., Ltd. Financial Health: Key Insights for Investors

Kehua Data's latest results present a mix of momentum and valuation questions that any investor should study closely: Q3 2025 revenue hit CNY 1.97 billion (+18.65% YoY) with TTM revenue of CNY 8.07 billion (+0.46% YoY) after a 2024 decline to CNY 7.76 billion (-4.71%), while revenue per employee is about CNY 1.90 million across 4,250 staff; profitability shows a dramatic turnaround with Q3 net income of CNY 100.96 million (up 711.41% YoY), TTM net income of CNY 421.61 million and EPS of CNY 0.89, alongside a gross margin of 23.03% and ROE of 7.76%; the balance sheet reports total assets of CNY 14.16 billion, liabilities of CNY 7.70 billion and equity of CNY 6.46 billion for a conservative debt-to-equity ratio of 0.29, though the quick ratio of 0.92 and net cash per share of -CNY 0.93 warrant attention; liquidity and valuation metrics show operating cash flow of CNY 1.49 billion, free cash flow of CNY 1.14 billion, an enterprise value of CNY 29.89 billion with EV/EBITDA at 34.02 and a trailing P/E of 63.87, while credit signals (Altman Z‑Score 2.57, Piotroski F‑Score 5) and market volatility (52‑week range CNY 22.46-79.15) frame the risk landscape as the firm pursues growth-allocating 10% of revenue to R&D-against competition from players like CATL and LG Chem; dive into the full breakdown to weigh these figures, margins, ratios, and strategic levers for a clearer investor view.

Kehua Data Co., Ltd. (002335.SZ) - Revenue Analysis

• Q3 2025 revenue: CNY 1.97 billion (up 18.65% year-over-year).
• Trailing twelve months (TTM) revenue: CNY 8.07 billion (up 0.46% vs. prior TTM).
• Full-year 2024 revenue: CNY 7.76 billion (down 4.71% year-over-year).
• Revenue per employee: ~CNY 1.90 million; total employees: 4,250.

Kehua Data Co., Ltd. (002335.SZ) - Profitability Metrics

• Q3 2025 net income: CNY 100.96 million (YoY +711.41%).
• Q3 2025 net profit margin: 5.12% (substantial improvement YoY).
• TTM net income: CNY 421.61 million; TTM diluted EPS: CNY 0.89.
• Gross margin: 23.03%.
• Operating margin: 4.92%; EBITDA margin: 9.44%.
• Profit margin (reported): 5.22%.
• Return on equity (ROE): 7.76%; Return on assets (ROA): 1.87%.

• Sharp YoY net income jump in Q3 2025 signals either revenue recovery, margin expansion, one-off gains, or cost control - useful when paired with TTM figures (CNY 421.61M, EPS CNY 0.89).
• Gross margin at 23.03% provides a buffer for operating expenses; EBITDA margin of 9.44% suggests reasonable cash-operating performance despite modest operating margin (4.92%).
• ROE 7.76% vs ROA 1.87% implies leverage and equity efficiency; compare with peers for context.

Kehua Data Co., Ltd. (002335.SZ) - Debt vs. Equity Structure

Kehua Data's balance-sheet profile as of September 2025 shows a moderate leverage position with ample operating liquidity but a negative net cash posture per share. Key headline figures:

What these numbers imply for investors:

• Leverage: With liabilities of CNY 7.70 billion against equity of CNY 6.46 billion, the debt-to-equity ratio of 0.29 indicates conservative use of debt relative to equity, leaving room to raise additional debt if needed.
• Liquidity: A current ratio of 1.25 signals adequate short-term liquidity to cover current liabilities, but the quick ratio of 0.92 highlights reliance on inventory or other less liquid current assets to meet near-term obligations.
• Interest burden: An interest coverage ratio of 6.95 suggests earnings comfortably cover interest expenses, reducing near-term refinancing risk.
• Cash position: Negative net cash per share (-CNY 0.93) points to a net borrowings position at the per-share level, which may constrain dividend flexibility or require capital raises for large investments.

Balance-sheet composition and trend considerations investors should track:

• Absolute size of liabilities versus liquid assets - monitor changes to current and quick ratios quarter-to-quarter.
• Interest coverage sensitivity - watch operating profit margins and interest expense movements that could compress the 6.95 coverage buffer.
• Net cash trajectory - whether per-share net cash improves with free cash flow generation or deteriorates if capex or working capital expands.

For further context on shareholders and holder activity, see: Exploring Kehua Data Co., Ltd. Investor Profile: Who's Buying and Why?

Kehua Data Co., Ltd. (002335.SZ) - Liquidity and Solvency

Kehua Data's recent liquidity and solvency profile shows a company generating robust operating cash flow but carrying a net debt position and valuation metrics that compress returns. Key quantified indicators below provide a snapshot of cash generation, leverage, and bankruptcy risk.

• Operating cash flow: CNY 1.49 billion
• Capital expenditures (CAPEX): CNY 350.32 million
• Free cash flow (FCF = OCF - CAPEX): CNY 1.14 billion
• Enterprise value (EV): CNY 29.89 billion
• EV/EBITDA: 34.02
• EV/FCF: 26.17
• Altman Z-Score: 2.57 (moderate bankruptcy risk)
• Piotroski F-Score: 5 (neutral financial health)
• Net cash per share: -CNY 0.93 (net debt position)

The positive free cash flow of CNY 1.14 billion demonstrates internal funding capacity for operations, investment or deleveraging. However, the negative net cash per share (-CNY 0.93) confirms a net debt posture that offsets the cash-generating strength.

Investors should weigh the company's solid free cash flow against elevated valuation multiples (EV/EBITDA 34.02, EV/FCF 26.17) and a moderate Altman Z-score of 2.57. Operational cash generation provides flexibility, but the net debt position and neutral Piotroski score warrant monitoring of leverage reduction and margin stability. For context on strategic direction, see Mission Statement, Vision, & Core Values (2026) of Kehua Data Co., Ltd.

Kehua Data Co., Ltd. (002335.SZ) - Valuation Analysis

• Trailing P/E: 63.87
• Forward P/E: 34.44
• Price-to-Book (P/B): 4.53
• Price-to-Sales (P/S): 3.63
• Price-to-Free Cash Flow (P/FCF): 25.63
• Price-to-Operating Cash Flow (P/OCF): 19.61

• Valuation context: the gap between trailing (63.87) and forward P/E (34.44) signals expected earnings acceleration - investors should verify analyst assumptions and near-term catalysts.
• Balance-sheet view: EV ≈ Market Cap (CNY 29.89bn vs. 29.28bn) implies low net debt; P/B of 4.53 underscores intangible or long-duration earning power.
• Cash conversion: P/FCF 25.63 and P/OCF 19.61 suggest operating cash generation supports part of the valuation premium but requires monitoring of capex and working capital trends.

Kehua Data Co., Ltd. (002335.SZ) - Risk Factors

• Intense competition: competitors such as CATL and LG Chem pressure pricing, margins and customer share across energy-storage and power-electronics segments.
• Policy/regulatory risk: changes to feed-in tariffs, subsidy schemes, grid interconnection rules or export controls in China could materially affect project economics and order timing.
• Geopolitical demand swings: export restrictions, tariffs or trade frictions can reduce order volumes or delay projects in key overseas markets.

• Liquidity and solvency: the modest leverage (D/E 0.29) provides financial flexibility, yet investors should track short-term liquidity metrics, covenant exposure and maturities if debt-funded expansion continues.
• Margin pressure: competitor scale and pricing strategies could compress gross and operating margins, increasing sensitivity of net income to revenue swings.
• Order book concentration: dependence on a limited number of large projects or OEM customers would amplify revenue volatility if contracts are delayed or lost.
• Execution risk: rapid capacity expansion or new product commercialization carries execution and capex-overrun risks.

Kehua Data Co., Ltd. (002335.SZ) - Growth Opportunities

• R&D commitment: 10% of annual revenue allocated to energy storage and power electronics innovation, targeting next-gen battery management and inverter systems.
• Supplier diversification: aiming to reduce top-3 supplier concentration from ~60% to below 40% within 24 months.
• Market expansion: piloting entry into EV-charging and microgrid projects across Southeast Asia and EMEA to smooth demand cycles tied to domestic geopolitics.
• Regulatory alignment: dedicated compliance team to implement new renewable energy rules in China, with quarterly regulatory-impact reviews.
• Competitive differentiation: roadmap to deploy advanced cell-balancing algorithms and modular ESS designs that reduce system LCOE by an estimated 8-12% versus current offerings.
• Product portfolio extension: broadened SKUs for utility-scale, commercial & industrial (C&I), and residential segments to capture cross-selling opportunities.

• Scale R&D centers and recruit battery systems engineers to accelerate commercialization of modular ESS platforms.
• Establish strategic procurement partnerships and dual-sourcing contracts to lock pricing and availability for key raw materials.
• Pilot cross-border projects with local EPC partners to validate product-market fit and fast-track regional certifications.
• Align product specs to forthcoming grid-interconnection standards to ensure first-mover advantages on compliance-required upgrades.
• Develop bundled offerings (hardware + lifecycle services + remote monitoring) to increase recurring revenue share.