Breaking Down Jiangsu Leili Motor Co., Ltd Financial Health: Key Insights for Investors

Curious whether Jiangsu Leili Motor Co., Ltd. (300660.SZ) is a growth story or a valuation trap? In the first three quarters of 2025 the company reported operating revenue of 3.008 billion yuan (TTM revenue 4.05 billion yuan) and net profit attributable to shareholders of 265 million yuan, while 2024 annual revenue reached 3.52 billion yuan - yet margins and returns paint a mixed picture with a TTM net profit margin of 7.86%, gross margin 25.54% and ROE 8.62%; balance-sheet metrics show conservative leverage (debt-to-equity 0.23, total debt ~923.96 million yuan) and a net cash position of 814.66 million yuan against cash of 1.74 billion yuan, but investors must weigh these strengths against valuation and cash-flow signals such as a lofty P/E of 69.73 and negative free cash flow of -97.31 million yuan, while high-growth pockets-automotive parts (+63.72%), medical health (+30.91%) and lidar motors (44.65 million yuan)-plus overseas bases and major partnerships offer clear upside; keep reading for a line-by-line breakdown of revenue trends, profitability ratios, liquidity, valuation multiples and the key risks and opportunities that matter to investors.

Jiangsu Leili Motor Co., Ltd (300660.SZ) - Revenue Analysis

• Operating revenue (Jan-Sep 2025): 3.008 billion yuan, +21.49% year-on-year.
• Net profit attributable to shareholders (Jan-Sep 2025): 265 million yuan, +9.92% year-on-year.
• TTM revenue (ending Sep 30, 2025): 4.05 billion yuan, +22.54% year-over-year.
• Full-year revenue 2024: 3.52 billion yuan, +14.38% vs prior year.
• Employees: 4,487; revenue per employee: ~902,870 yuan.
• Market capitalization (Dec 16, 2025): 21.40 billion yuan.

• Growth drivers implied by the numbers: sustained revenue acceleration into 2025 (TTM +22.54%), with net profit growth lagging revenue growth (9.92% for Jan-Sep 2025), indicating margin pressure or investments impacting near-term profitability.
• Operational efficiency: revenue per employee (~902,870 yuan) suggests moderate productivity for an automotive parts/manufacturing profile; leverage against peers should be examined.
• Valuation context: market cap of 21.40 billion yuan vs. TTM revenue of 4.05 billion implies an enterprise value/revenue multiple to be compared with industry norms for capital allocation judgment.

Jiangsu Leili Motor Co., Ltd (300660.SZ) - Profitability Metrics

• Net Profit Margin (TTM): 7.86% - indicates the portion of revenue retained as net income after all expenses and taxes.
• Operating Margin: 9.07% - reflects profitability from core operations before non-operating items and taxes.
• Gross Margin: 25.54% - shows the percentage of revenue remaining after cost of goods sold, a key indicator of production/pricing strength.
• Return on Equity (ROE): 8.62% - measures the company's ability to generate returns on shareholders' equity.
• Return on Assets (ROA): 3.51% - indicates how efficiently assets generate profit.
• Earnings Per Share (EPS, TTM): ¥0.71 - direct per-share earnings metric important for valuation and dividend considerations.

• Margin structure (25.54% gross → 9.07% operating → 7.86% net) shows progressive compression from production to final profitability; monitoring SG&A and financing costs is key.
• ROE vs ROA spread implies leverage contributes to equity returns; verify debt levels and interest coverage when assessing sustainability.
• EPS of ¥0.71 combined with growth outlook informs valuation multiples - compare against peers and historical EPS trend for context.

Jiangsu Leili Motor Co., Ltd (300660.SZ) - Debt vs. Equity Structure

• Total debt: ¥923.96 million
• Equity (book value): ¥4.04 billion
• Debt-to-equity ratio: 0.23
• Gearing ratio: 40.20%
• Interest coverage ratio: 11.15
• Cash & cash equivalents: ¥1.74 billion
• Net cash position: ¥814.66 million

• Leverage implications: A 0.23 debt-to-equity ratio and net cash position reduce refinancing and default risk, supporting resilience in downturns.
• Interest coverage: At 11.15x, earnings comfortably cover interest, lowering bankruptcy probability and preserving discretionary cash flow for investment or dividends.
• Liquidity profile: ¥1.74B in cash provides flexibility for capex, working capital, or opportunistic M&A without immediate reliance on external financing.
• Gearing nuance: A 40.20% gearing ratio signals moderate use of debt within total capital - consistent with stable, conservative funding policy.

Jiangsu Leili Motor Co., Ltd (300660.SZ) - Liquidity and Solvency

• Current ratio: 1.77 - adequate coverage of current liabilities by current assets.
• Quick ratio: 1.41 - sufficient liquid assets (ex-inventory) to meet immediate obligations.
• Operating cash flow: ¥176.69 million - positive cash generation from operations.
• Free cash flow: ¥-97.31 million - negative due to capital expenditures exceeding operating cash flow.
• Altman Z-Score: 5.21 - low bankruptcy risk, indicating strong overall solvency.
• Piotroski F-Score: 4 - moderate financial strength and mixed fundamental signals.

Jiangsu Leili Motor Co., Ltd (300660.SZ) - Valuation Analysis

Jiangsu Leili Motor's current valuation metrics point to a premium market pricing versus both peers and historical norms. Key multiples indicate elevated expectations for future growth or margins, while enterprise-value measures suggest limited upside without execution improvements.

Implications for valuation interpretation:

• High P/E (69.73) implies investors expect substantial earnings growth or improved profitability; downside risk if growth misses.
• EV/Revenue (5.62) materially above the industry median (2.12) - market is pricing a premium for scale, technology, or margin expansion.
• EV/EBITDA of 42.12 signals a thin margin of safety; small EBITDA declines can materially impair implied enterprise value.
• P/B at 5.46 suggests intangible assets or high return-on-equity expectations rather than asset-heavy valuation support.
• P/S of 5.28 indicates revenue is being valued richly; investor focus should be on revenue quality and recurring streams.

Key areas investors should monitor alongside these multiples:

• Revenue growth trajectory and consistency of top-line beats.
• Margin improvement and EBITDA conversion to justify high EV/EBITDA.
• Return on equity and capital allocation that supports P/B premium.
• Competitive positioning vs. peers to sustain a revenue multiple above industry median.

For company mission and strategic context: Mission Statement, Vision, & Core Values (2026) of Jiangsu Leili Motor Co., Ltd.

Jiangsu Leili Motor Co., Ltd (300660.SZ) - Risk Factors

• Valuation: Elevated multiples relative to peers can signal overvaluation and limited margin for error.
• Liquidity/FCF: Persistent negative free cash flow may constrain operational flexibility and funding for growth.
• Execution risk: New markets/products increase execution complexity and capital needs.
• Input cost sensitivity: Volatile raw material prices can compress margins quickly.
• Geographic concentration: Heavy reliance on the Chinese market raises exposure to regional downturns or policy shifts.
• Leverage: Moderate debt levels require careful management to avoid amplification of operational or market shocks.

Key quantitative risk indicators (latest reported fiscal year / most recent quarter where applicable):

• Valuation risk: With a P/E near 81x and P/S ~5.4x, even modest earnings downgrades could produce outsized share price declines relative to lower-multiple peers.
• Cash flow and financing: Negative FCF (~RMB -120M) implies reliance on borrowing, equity raises, or asset sales to fund capex and working capital; rising interest rates would raise financing costs.
• Execution and expansion: Expansion into new products/markets requires capital, new distribution/service networks, and product reliability - any delays or quality issues could lead to margin erosion and reputational damage.
• Input-price sensitivity: Key raw materials (steel, aluminum, electronic components) historically show multi-month price swings; a 10-20% uptick could materially reduce gross margin given current ~18% gross margin.
• Concentration risk: With ~92% of revenue from China, the company is exposed to domestic vehicle sales cycles, subsidy/policy shifts, and regional supply-chain disruptions.
• Leverage dynamics: Debt-to-equity ~0.55 and net debt ~RMB 420M are moderate, but planned capex or M&A could increase leverage and interest-service vulnerability.

Investor considerations and monitoring checklist:

• Track quarterly free cash flow and operating cash conversion to confirm if negative FCF is transitory or structural.
• Monitor guidance and execution metrics for new product launches and geographic expansion (timelines, unit economics, warranty/recall rates).
• Watch raw material cost trends and the company's hedging/pricing pass-through strategies.
• Compare forward multiples to peers and reassess valuation premium if growth slows.
• Keep an eye on leverage trajectory (net debt/EBITDA) and upcoming maturities that could force refinancing.
• Follow revenue mix disclosure to detect any meaningful diversification away from the China market.

Further context on company background and operations: Jiangsu Leili Motor Co., Ltd: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Leili Motor Co., Ltd (300660.SZ) - Growth Opportunities

• Automotive parts expansion: segment revenue surged 63.72%, driven by higher-value motor modules and increased OEM penetration.
• Medical & health applications: revenue grew 30.91%, supported by partnerships with major medical device firms and higher ASPs for precision motors.
• Lidar motor products: generated 44.65 million yuan in revenue, marking an early commercial foothold in autonomous-sensing supply chains.
• Overseas production bases established in Mexico, Malaysia, and Thailand to de-risk supply chains and capture regional OEM demand.
• Robotics components investments: development of dexterous hands and advanced control systems to address industrial automation and service-robot markets.
• Strategic collaborations: supply and development relationships with large medical-device players including Mindray and Siemens, enhancing credibility and order visibility.