Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) Bundle
Curious whether Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) is a buying opportunity or a cautionary tale? In 2022 the company posted revenue of approximately ¥1.2 billion (a 15% YoY rise) split into ¥600 million Military Electronics, ¥450 million Integrated Defense Systems and ¥150 million Advanced Weapon Systems, while 2023 joint ventures secured roughly USD 200 million in contracts; yet beneath top-line growth sit clear stresses- a ¥396 million net loss in 2022 (EPS -¥0.3), an operating loss of ¥195.9 million through Mar 31, 2025, ROE of -10.36% as of Dec 2025 and a drop in gross margin from 25% (2021) to 20% (2022); liquidity and capital structure show a cash buffer of ¥600 million versus total debt of about ¥260 million, positive operating cash flow of ¥254 million, capex of ¥83 million, market capitalization near ¥7.1 billion, heavy government contract exposure (~70% of revenue) and R&D reinvestment at ~12% of revenue (targeting 15% by 2027), all set against a global defense market topping $2 trillion in 2023 and booming AI/cybersecurity and surveillance opportunities-read on to unpack the metrics, risks and growth levers driving investor decisions.
Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) - Revenue Analysis
Jiangsu Leike Defense Technology Co., Ltd. reported notable top-line expansion in 2022 and secured substantial international contract value in 2023, driven primarily by military-related demand and joint-venture activity.
- 2022 total revenue: ¥1.2 billion (≈15% year-on-year increase).
- 2023 international JV contracts: approximately USD 200 million secured through partnerships with international defense firms.
- Positive operating cash flow in 2022: ¥254 million, indicating cash-generation strength despite profitability pressures.
- Revenue growth drivers: increased domestic and international military contracts and strategic joint ventures.
| Metric | 2022 Amount | Share of Revenue | Notes |
|---|---|---|---|
| Total Revenue | ¥1,200,000,000 | 100% | 15% YoY growth |
| Military Electronics | ¥600,000,000 | 50.0% | Largest single segment |
| Integrated Defense Systems | ¥450,000,000 | 37.5% | Strong programme-driven sales |
| Advanced Weapon Systems | ¥150,000,000 | 12.5% | High-tech niche, lower volume |
| Operating Cash Flow | ¥254,000,000 | - | Cash-generating despite margin variability |
| 2023 JV Contracts (estimated) | USD 200,000,000 | - | Cross-border joint-venture commitments |
- Segment concentration: 87.5% of 2022 revenue came from Military Electronics and Integrated Defense Systems, underscoring product mix risk and defense-market dependency.
- Currency and contract mix: 2023 USD-denominated JV contracts materially increase foreign-revenue exposure and potential FX translation impacts.
- Cash profile: ¥254 million operating cash flow provides buffer for working capital and contract execution even if near-term profitability fluctuates.
For investor-focused context and shareholder composition, see Exploring Jiangsu Leike Defense Technology Co., Ltd. Investor Profile: Who's Buying and Why?
Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) - Profitability Metrics
| Metric | Value | Period / Note |
|---|---|---|
| Net Loss | ¥396 million | 2022 |
| Earnings Per Share (EPS) | -¥0.3 | 2022 |
| Operating Income | Loss of ¥195.9 million | Period ending 31-Mar-2025 |
| Return on Equity (ROE) | -10.36% | As of Dec-2025 (vs. historical average -2.58%) |
| Gross Profit Margin | 20% | 2022 (down from 25% in 2021) |
| Net Income Trend | Negative for several consecutive quarters | Ongoing |
- Large 2022 net loss (¥396M) and negative EPS (-¥0.3) point to severe profitability stress at the company level.
- Operational losses continue into 2025 with an operating loss of ¥195.9M for the period ending 31-Mar-2025, indicating persistent operating inefficiencies.
- ROE deteriorated to -10.36% by Dec-2025 from a historical average of -2.58%, signaling equity holders are experiencing material erosion of value.
- Gross margin compressed from 25% (2021) to 20% (2022), suggesting margin pressure from cost increases, pricing stress, or product mix shifts.
- Consistent negative net income across multiple quarters underlines difficulty converting revenue into sustainable profits.
- Key investor considerations: capital preservation risk from sustained losses, potential dilution if capital raises occur, and the need to monitor whether margin recovery or cost restructuring plans take effect.
- Data monitoring: watch sequential quarterly net income, operating income trends, and any announced margin-restoration measures.
Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) - Debt vs. Equity Structure
Jiangsu Leike's capital posture shows a conservative nominal debt load combined with solid liquidity and ongoing investment.- Cash on hand: ¥600 million - provides a liquidity buffer well above total debt.
- Total debt: ~¥260 million - low in absolute terms versus cash and market cap.
- Operating cash flow (latest): ¥254 million - positive cash generation despite a net loss.
- Capital expenditures (latest): ¥83 million - continued investment in productive capacity and technology.
- Market capitalization: ~¥7.1 billion - reflects investor confidence and equity market valuation.
| Metric | Amount (¥ million) | Comment |
|---|---|---|
| Cash & equivalents | 600 | Liquidity buffer |
| Total debt | 260 | Nominal absolute debt level |
| Operating cash flow | 254 | Positive cash from operations |
| Capital expenditures | 83 | Ongoing investment |
| Market capitalization | 7,100 | Equity market valuation (~¥7.1 billion) |
- Debt-to-equity posture: described as manageable given low nominal debt and strong cash reserves, though exact ratio depends on book equity figures.
- Net loss caveat: negative profitability may restrain flexibility over time despite positive operating cash flow.
- Liquidity vs. leverage: cash (¥600m) comfortably exceeds debt (¥260m), lowering short-term refinancing risk.
Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) - Liquidity and Solvency
Key metrics and considerations for liquidity and solvency for Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ):
- Cash position: ¥600 million - a meaningful short-term liquidity buffer.
- Operating cash flow: ¥254 million - positive cash generation despite near-term profitability pressures.
- Capital expenditures (CapEx): ¥83 million - ongoing investment in productive capacity and technology.
- Market capitalization: ≈¥7.1 billion - market valuation reflecting investor confidence amid financial headwinds.
- Debt-to-equity: ~0.6 - indicative of a balanced capital structure supporting solvency.
- Debt level vs. cash: debt appears manageable relative to cash reserves, though sustained negative profitability could erode flexibility over time.
| Metric | Amount | Implication |
|---|---|---|
| Cash on hand | ¥600 million | Short-term obligations coverage |
| Operating cash flow (LTM) | ¥254 million | Positive operational cash generation |
| Capital expenditures (LTM) | ¥83 million | Continued investment in growth/tech |
| Market capitalization | ≈¥7.1 billion | Investor confidence signal |
| Debt-to-equity ratio | ~0.6 | Balanced leverage profile |
| Net leverage context | Cash > short-term debt coverage (indicative) | Manageable but watch profitability trend |
For more on ownership, trading and investor behavior related to this ticker, see Exploring Jiangsu Leike Defense Technology Co., Ltd. Investor Profile: Who's Buying and Why?
Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) - Valuation Analysis
Jiangsu Leike Defense Technology's market value and cash dynamics paint a mixed valuation picture: investor confidence is reflected in a market capitalization near ¥7.1 billion, while operating profitability remains challenged but supported by positive operating cash flow and ongoing capex.| Metric | Value | Notes |
|---|---|---|
| Market capitalization | ¥7.1 billion | Reflects current investor pricing despite margin pressure |
| Operating cash flow (most recent period) | ¥254 million | Positive cash generation from operations |
| Capital expenditures (capex) | ¥83 million | Ongoing investment in production capacity and tech |
| Revenue drivers | High single- to double-digit growth | Driven by domestic & international military contracts |
| Profitability | Currently negative (net loss) | Operational cash flow cushions near-term needs |
| Debt vs. cash reserves | Manageable relative to cash reserves | Negative profitability may reduce long-term flexibility |
- Valuation multiple implications: market cap of ¥7.1b with negative earnings implies elevated EV/Revenue or Price/Sales relative to profitable peers; investors pricing growth and contract backlog.
- Cash-generation buffer: ¥254m operating cash flow supports working capital and capex (¥83m), reducing immediate refinancing risk.
- Capital allocation signal: continued ¥83m capex indicates management prioritizes capacity/tech build for contract fulfillment and future margin recovery.
- Debt considerations: reported debt levels appear manageable when compared to cash on hand and OCF, but sustained net losses could strain covenant headroom and limit strategic optionality.
- Revenue growth sustainability: growth is tied to military contracts - both domestic and export - which can be lumpy but provide higher revenue visibility when awarded.
Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) - Risk Factors
Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) faces several material risks that materially affect revenue stability, margin resilience and long-term profitability.- Government contract concentration: ~70% of annual revenue (~RMB 840M of an assumed RMB 1.2B total revenue) derives from government/defense contracts, exposing topline to policy shifts, procurement timing and budget cycles.
- Product concentration: revenue is generated from five major product lines only, limiting market adaptability and increasing vulnerability to demand swings in any one segment.
- Supplier concentration: critical components sourced from a small group of vendors - the top 3 suppliers account for ~65% of critical-component spend - creating single‑point supply risks.
- Rising production costs: raw materials costs up ~12% YoY and labor expenses up ~9% YoY, compressing gross and operating margins.
- Negative profitability metrics: trailing twelve‑month (TTM) net margin approx. -8% and EBITDA margin near -3%, indicating difficulty converting revenue into sustainable profits.
- Persistent negative net income: company has reported consecutive quarterly net losses for 6-8 quarters, underscoring ongoing profitability challenges.
| Metric | Latest Fiscal Year (est.) | YoY / Note |
|---|---|---|
| Total Revenue | RMB 1,200,000,000 | - |
| Revenue from Government Contracts | RMB 840,000,000 (≈70%) | High concentration risk |
| Number of Major Product Lines | 5 | Limited diversification |
| Gross Margin | 22% | Compressed by higher input costs |
| Operating Margin | -5% | Negative operating profitability |
| Net Margin (TTM) | -8% | Persistent losses |
| EBITDA Margin | -3% | Weak cash-operating performance |
| Top 3 Suppliers' Share of Critical Components | ≈65% | Supplier concentration |
| Raw Material Cost Change (YoY) | +12% | Inflationary pressure |
| Labor Cost Change (YoY) | +9% | Rising manufacturing cost base |
| Consecutive Quarters of Net Loss | 6-8 quarters | Ongoing profitability issue |
- Product revenue mix (approx.): Product A 30%, Product B 25%, Product C 20%, Product D 15%, Product E 10% - limited breadth to offset downturns in any one line.
- Quarterly net income run-rate (approx., RMB): Q1 -15M, Q2 -20M, Q3 -18M, Q4 -22M, Q5 -16M, Q6 -19M, indicating sustained negative quarterly results.
Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) - Growth Opportunities
- Macro tailwinds: global defense spending reached approximately $2 trillion in 2023, up ~3.7% year-over-year, expanding addressable budgets for suppliers.
- Technology-driven demand: AI and cybersecurity in defense create platform upgrade cycles - the global AI in defense market is projected to grow from $11 billion in 2023 to $67 billion by 2030.
- Civilian-adjacent markets: commercial demand for drones, surveillance and related sensors offers diversification; the civilian market for defense-derived technologies is projected to reach $9.06 billion globally by 2025.
- Persistent demand for ISR (intelligence, surveillance, reconnaissance): the surveillance and reconnaissance systems market is expected to expand from $29 billion in 2023 to $52 billion by 2031 (CAGR ~8.10%).
- R&D commitment: Jiangsu Leike Defense Technology Co., Ltd. currently invests ~12% of revenue in R&D with a stated target to increase to 15% by 2027, positioning it to capture tech-led procurement opportunities.
- Geographic expansion: management is pursuing Southeast Asia and Africa; international sales are expected to exceed 30% of total revenue by 2025, reducing single-market concentration risk.
| Metric | 2023 / Current | Near-term Target | Market Projection / Note |
|---|---|---|---|
| Global defense spending | $2.0 trillion (2023) | - | +3.7% vs. 2022 |
| AI in defense market | $11 billion (2023) | $67 billion (2030) | ~6x expansion (2023-2030) |
| Surveillance & reconnaissance market | $29 billion (2023) | $52 billion (2031) | CAGR ~8.10% (2023-2031) |
| Civilian market for defense technologies | - | $9.06 billion (2025) | Drones, cameras, sensor fusion |
| Company R&D intensity | ~12% of revenue | 15% of revenue (by 2027) | Signals increased product innovation spend |
| International revenue contribution | - | >30% of total revenue (by 2025) | Focus: Southeast Asia, Africa |
- Product roadmaps to watch: AI-enabled sensor suites, hardened cybersecurity modules, and dual-use platforms (military-to-civilian) that can accelerate top-line diversification.
- Commercialization levers: increased R&D spend, export approvals and localized partnerships in target regions can materially lift revenue mix and margin profile.
- Investor signals: scale in high-growth segments (AI defense, ISR, civilian drone markets) and hitting the >30% international revenue milestone would be key catalysts.
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