Breaking Down Jiangsu Shentong Valve Co., Ltd. Financial Health: Key Insights for Investors

Jiangsu Shentong Valve's recent financial snapshot packs contrasts that demand a closer read: revenue in the first three quarters of 2025 was 1.638 billion yuan (up 0.22% YoY) while TTM revenue as of Sept. 30, 2025 slipped to 2.15 billion yuan (down 3.45%), net profit for Q1-Q3 2025 reached 234 million yuan (up 2.86% YoY) against a 2024 full-year net profit attributable to shareholders of 295 million yuan (+9.68%); profitability shows a 31.16% gross profit margin and a TTM operating margin of 9.62% with ROE at 8.61% and EPS of 0.59 yuan, while the balance sheet reflects conservative leverage with total debt of 1.04 billion yuan (debt/equity 0.25), a current ratio of 1.57, quick ratio 1.05, cash of 456.02 million yuan and operating cash flow TTM of 422.95 million yuan-valuation multiples hint at market expectations with a TTM P/E of 22.90, forward P/E 18.49, P/S 3.18 and market cap of 6.83 billion yuan, and growth levers include 1.072 billion yuan of new nuclear power orders in H1 2025 plus strategic moves into semiconductor, hydrogen and military valves even as risks from competition, raw material swings, sectoral demand declines, FX exposure and regulatory or technological shifts loom large, enticing investors to dive into the full analysis.

Jiangsu Shentong Valve Co., Ltd. (002438.SZ) - Revenue Analysis

• First three quarters 2025 revenue: 1.638 billion yuan (▲ 0.22% YoY).
• TTM revenue as of 2025-09-30: 2.15 billion yuan (▼ 3.45% YoY).
• Full-year 2024 revenue: 2.14 billion yuan (▲ 0.48% YoY).
• Revenue per employee: ~1.30 million yuan (1,653 employees).
• Market capitalization (2025-11-28): 6.83 billion yuan; P/S ratio: 3.18.

• Growth context: modest year-over-year top-line changes (small increase in 2024, near-flat through Q3 2025) but a declining TTM trend to 2025-09-30 indicates deceleration in trailing revenues.
• Per-employee productivity (~1.30M RMB) suggests capital/labor efficiency consistent with mid-sized industrial manufacturing peers; monitor for changes if headcount or automation initiatives shift.
• Valuation note: market cap of 6.83B RMB and P/S of 3.18 imply the market is paying a premium relative to sales-investors should compare margins and growth prospects to justify valuation.
• Near-term monitoring points: order backlog, segment mix (industrial vs. municipal), and any pricing or raw-material cost pressures that could reverse the slight revenue decline in the TTM figure.

Jiangsu Shentong Valve Co., Ltd. (002438.SZ) - Profitability Metrics

Key profitability indicators for Jiangsu Shentong Valve Co., Ltd. (002438.SZ) show steady top-line conversion and modest returns to shareholders. The following figures summarize recent performance and trailing metrics investors commonly use to assess operational efficiency and shareholder value generation.

• Net profit (first three quarters of 2025): 234 million yuan, up 2.86% year-on-year.
• Net profit attributable to shareholders (full year 2024): 295 million yuan, up 9.68% year-on-year.
• Gross profit margin: 31.16% - proportion of revenue remaining after cost of goods sold.
• Operating margin (TTM): 9.62% - operating income as a share of revenue.
• Return on equity (ROE): 8.61% - annualized profit relative to shareholders' equity.
• Earnings per share (EPS, TTM): 0.59 yuan.

Further context on the company's background, ownership and how it generates revenue can be found here: Jiangsu Shentong Valve Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Shentong Valve Co., Ltd. (002438.SZ) - Debt vs. Equity Structure

Jiangsu Shentong Valve's balance-sheet posture shows conservative leverage, solid short-term liquidity and strong capacity to service interest. Key metrics for the most recent quarter are presented below and contextualized for investors assessing capital structure risk and valuation sensitivity.

• Total debt: 1.04 billion yuan
• Debt-to-equity ratio: 0.25 - conservative leverage
• Current ratio: 1.57 - adequate short-term coverage
• Quick ratio: 1.05 - can meet short-term obligations without relying on inventory
• Interest coverage ratio: 15.37 - strong ability to cover interest expense
• Enterprise value (EV): 7.43 billion yuan - incorporates debt and equity value
• Book value per share: 7.067 yuan - net asset backing per share

For historical context on ownership, mission and how the company operates within its market, see: Jiangsu Shentong Valve Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Shentong Valve Co., Ltd. (002438.SZ) - Liquidity and Solvency

• Total cash (most recent quarter): 456.02 million yuan
• Trailing twelve months operating cash flow: 422.95 million yuan
• Current ratio: 1.57
• Quick ratio: 1.05
• Interest coverage ratio: 15.37
• Enterprise value: 7.43 billion yuan

• Liquidity posture: Cash plus TTM operating cash flow indicates a runway for near-term operations and working capital needs.
• Solvency posture: High interest coverage reduces refinancing and default risk under current earnings.
• Valuation context: Enterprise value of 7.43 billion yuan should be compared with market cap and net debt for acquisition or relative-value analysis.

Jiangsu Shentong Valve Co., Ltd. (002438.SZ) - Valuation Analysis

• Trailing twelve months (TTM) P/E: 22.90 - the market is paying 22.9x of last 12 months' earnings.
• Forward P/E: 18.49 - implies the market expects earnings to rise, compressing the multiple by ~19.2% versus TTM P/E.
• Price-to-Book (P/B): 1.88 - equity is trading at 1.88x book value, signaling moderate premium to net asset value.
• EV/EBITDA: 10.86 - valuation relative to operating profitability, useful for capital-structure-neutral comparisons.
• EV/Sales: 3.46 - market values each RMB/CNY of revenue at ~3.46x.
• EV/Free Cash Flow: 69.13 - a high multiple, indicating the market assigns significant value relative to current free cash generation.

• Relative emphasis: Lower forward P/E versus TTM P/E points to earnings momentum expectations; contrast with high EV/FCF suggests earnings growth may not yet fully translate into free-cash conversion.
• Balance-sheet lens: P/B at 1.88 shows equity investors pay a moderate premium to net asset value, important where tangible assets matter for valves/manufacturing.
• Enterprise multiples (EV/EBITDA, EV/Sales) indicate valuation neutrality to capital structure and a moderate premium for revenue quality.

Jiangsu Shentong Valve Co., Ltd. (002438.SZ) - Risk Factors

• Competition pressure: Jiangsu Shentong Valve operates in a crowded industrial machinery and valve market with both domestic peers and international suppliers pushing on price, quality and service. Market-share erosion could compress ASPs and margins.
• Raw material volatility: Steel and alloy inputs represent a large share of production costs; recent industry data show raw materials account for roughly 35-45% of cost of goods sold for typical valve manufacturers, making margins sensitive to commodity swings.
• Demand concentration risk: A meaningful portion of revenue derives from sectors such as nuclear power, metallurgy and petrochemical; a slowdown or project deferral in these industries would hit order flow and utilization.
• Foreign exchange exposure: With export sales and cross‑border procurement, FX moves (RMB vs USD/EUR) create translation and transaction exposure-management estimates suggest export sales around 15-25% of revenue, so currency swings can materially affect reported results.
• Regulatory and compliance shifts: Changes in safety, environmental, export control or product certification rules can increase compliance costs and delay new product entry.
• Technology and product obsolescence: Faster technological innovation by competitors (materials, actuation, smart valve/IoT integration) could reduce demand for legacy product lines if the company underinvests in R&D.

• Scenario sensitivities:
  • Raw material +10%: estimated gross margin decline 150-250bps; estimated net profit decline ~6-9% (all else equal).
  • Export currency depreciation (RMB weaker by 5%): potential FX gain for exporters but imported inputs cost rises if inputs priced in USD - net effect depends on hedging.
  • 10% drop in core-sector orders (nuclear/metallurgy): utilization decline could reduce operating profit by >20% in the short term due to high fixed costs.

• Mitigants and monitoring triggers investors should watch:
  • Quarterly order backlog and single large-project exposure disclosures;
  • Trend in raw-material procurement contracts and hedging activities;
  • R&D spending trajectory and new product commercialization timelines;
  • FX hedging policy, effective tax rate shifts and export policy statements;
  • Regulatory filings and certification updates for nuclear/petroleum-related products.

Jiangsu Shentong Valve Co., Ltd. (002438.SZ) - Growth Opportunities

• Significant nuclear power momentum: new orders of 1.072 billion yuan secured in H1 2025, establishing a strong backlog for nuclear-valve supply chains.
• Semiconductor equipment expansion: ability to supply critical valves and components to semiconductor and photovoltaic equipment manufacturers, tapping higher-margin industrial segments.
• Hydrogen energy positioning: a comprehensive product range across hydrogen fueling, storage and distribution valves aligns the company with accelerating clean-energy demand.
• Domestic production scale-up: higher domestic production rates of nuclear power valves create the potential for increased market share and improved gross margins via localized manufacture.
• R&D-driven innovation: R&D expense ratio of 4.71% in 2024 supports new-product development and technical certification for specialized valve applications (nuclear, military, semiconductor).
• Strategic diversification: targeted investments in military- and semiconductor-grade valves open avenues for new revenue streams and tighter long-term customer relationships.

• Commercial implications: large nuclear orders can smooth revenue volatility, justify capacity expansion and improve pricing leverage with OEMs and EPC contractors.
• Margin outlook: moving into semiconductor and hydrogen niches may yield higher ASPs (average selling prices) if technical certification and supply reliability are maintained.
• R&D and certification pipeline: maintaining ~4.7% R&D intensity is critical to secure nuclear and military approvals and to design precision valves for semiconductor fabs.
• Execution risks: scaling to serve semiconductor and military customers requires cleanroom-compatible production, quality controls and supply-chain qualification-areas tied directly to further capex and operational discipline.