Breaking Down Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd Financial Health: Key Insights for Investors

Jiangxi Lianchuang Opto‑Electronic's latest figures demand attention: revenue hit CN¥3.19 billion for FY2024 with quarterly growth of 11.50% year‑over‑year and revenue per share (TTM) of CN¥7.01, while Q1 2025 gross profit of CN¥150.92 million delivered an improved gross margin of 18.84% (a 48.67% uplift vs. the prior period), supported by CN¥2.25 billion in total cash, operating cash flow (TTM) of CN¥400.99 million and a conservative total debt/equity of 27.59%; profitability shows net income of CN¥252.29 million (net margin 7.92%) and EPS (TTM) of CN¥0.56, yet ROA (TTM) sits at -0.49% even as market sentiment prices the stock at a market cap of CN¥26.02 billion with a trailing P/E of 104.33 and forward P/E of 45.90-read on for a granular breakdown of valuation, liquidity, debt structure, risks tied to export exposure and R&D intensity, and the growth levers behind its push into the global optical components market.

Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (600363.SS) - Revenue Analysis

• Total revenue (FY 2024): CN¥3.19 billion
• Previous quarter revenue: CN¥800.98 million
• Quarterly revenue growth (YoY): 11.50%
• Revenue per share (TTM): CN¥7.01
• Q1 2025 gross profit: CN¥150.92 million
• Q1 2025 gross profit margin: 18.84%
• Gross profit margin improvement vs. prior period: +48.67%

• Drivers: product innovation, targeted market expansion, and operational efficiency gains.
• Per-share economics: CN¥7.01 revenue/share (TTM) supports earnings scalability as margins improve.
• Margin trajectory: a 48.67% uplift in gross margin points to better cost management and pricing/leverage benefits.

Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (600363.SS) - Profitability Metrics

Key profitability indicators for the fiscal year ending December 31, 2024, and trailing twelve months (TTM) provide a snapshot of operational efficiency, shareholder returns, and per-share earnings as the company balances ongoing R&D investments with core business performance. Relevant context and historical/company background can be found here: Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

• Net income (FY 2024): CN¥252.29 million - net profit margin: 7.92%.
• Operating margin (FY 2024): 4.61% - reflects profit generation from core operations.
• Return on assets (TTM): -0.49% - indicates challenges in extracting returns from total asset base.
• Return on equity (TTM): 6.20% - moderate return to shareholders.
• Earnings per share (EPS, TTM): CN¥0.56.
• R&D spend (2023): CN¥30 million - a 15% year-on-year increase, weighing on short-term margins but supporting long-term competitiveness.

• Interpretation: positive net income and EPS coexist with a weak ROA, suggesting capital or asset bases are large relative to current returns.
• R&D lift (CN¥30M, +15% YoY) likely contributes to depressed near-term operating margin but targets technological competitiveness.
• Investors should weigh a 7.92% net margin and 6.20% ROE against the negative ROA when assessing capital efficiency and future growth potential.

Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (600363.SS) - Debt vs. Equity Structure

Jiangxi Lianchuang maintains a conservative capital structure, prioritizing liquidity and low leverage while supporting operations and growth through robust operating cash generation.

• Total debt to equity ratio (as of 2025-03-31): 27.59%
• Current ratio: 1.49
• Book value per share: CN¥9.41
• Total cash per share: CN¥4.96
• Operating cash flow (TTM): CN¥400.99 million

The company's debt profile is consistent with a conservative financial policy: manageable leverage, a healthy current ratio, and meaningful cash per share - all underpinned by CN¥400.99 million in trailing twelve-month operating cash flow. For related investor positioning and shareholder activity, see Exploring Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd Investor Profile: Who's Buying and Why?

Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (600363.SS) Liquidity and Solvency

• Total cash position: CN¥2.25 billion - a significant liquidity buffer.
• Operating cash flow (TTM): CN¥400.99 million - healthy cash generation from core operations.
• Levered free cash flow (TTM): CN¥729.72 million - cash available after financing costs.
• Current ratio: 1.49 - short-term assets exceed short-term liabilities.
• Total debt to equity: 27.59% - moderate leverage indicating manageable solvency risk.
• Consistent profitability and prudent financial management reinforce solvency.

For context on ownership trends and broader investor activity, see: Exploring Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd Investor Profile: Who's Buying and Why?

Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (600363.SS) - Valuation Analysis

• Market capitalization: CN¥26.02 billion
• Trailing P/E (TTM): 104.33
• Forward P/E: 45.90
• Price-to-Sales (TTM): 8.16
• Enterprise Value / Revenue: 8.23
• Enterprise Value / EBITDA: 350.47

• High trailing and forward P/E ratios indicate market pricing of significant future earnings growth; forward P/E narrower than trailing P/E suggests expectations of accelerating profitability or one-off impacts in the trailing period.
• Elevated P/S and EV/Revenue multiples show investors are valuing top-line growth and recurring revenue quality.
• Extremely high EV/EBITDA highlights either depressed EBITDA margins or a valuation premium not yet matched by current operating earnings-important to reconcile with margin trends and capex intensity.
• 20% export revenue growth in 2024 is a tangible driver behind multiple expansion and supports the revenue-growth narrative.

Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (600363.SS) - Risk Factors

Investors should weigh several identifiable risks in assessing Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (600363.SS). The following points synthesize key quantitative signals and operational exposures that could affect valuation, earnings volatility, and capital allocation.

• Return on Assets (TTM): -0.49% - negative ROA implies the company is generating losses relative to its asset base, signaling potential inefficiencies in asset utilization and operational underperformance.
• Valuation multiple: Trailing P/E of 104.33 - a very high P/E can reflect market optimism but also raises overvaluation concerns; earnings shocks could trigger sharp repricing.
• Profitability pressure: Operating margin 4.61% - thin operating margins increase sensitivity to rising input costs, labor, or SG&A expenses.
• Leverage profile: Debt-to-equity 27.59% - a conservative leverage stance that limits default risk but may also constrain return-enhancing capital deployment during growth opportunities.
• Export dependence - significant revenue exposure to international customers increases vulnerability to trade restrictions, tariffs, and currency volatility.
• R&D intensity - ongoing investment in innovation is necessary for competitiveness but can strain cash flow and depress near-term profitability if returns are delayed.

Additional considerations for risk monitoring:

• Liquidity and cash flow trends - negative ROA combined with R&D spend can pressure operating cash flow; watch quarterly cash conversion metrics and short-term debt maturities.
• Currency and trade policy sensitivity - scenario-test earnings under adverse currency moves and potential tariff escalations affecting export markets.
• Margin recovery levers - pricing power, supply-chain optimization, and cost control are key to improving the 4.61% operating margin.
• Valuation re-rating risk - with a trailing P/E of 104.33, any earnings miss or guidance downgrade could materially impact share price.

For context on the company's stated strategic priorities that interact with these risks, see: Mission Statement, Vision, & Core Values (2026) of Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd.

Jiangxi Lianchuang Opto-Electronic Science&Technology Co.,Ltd (600363.SS) - Growth Opportunities

• Market opportunity: global optical components market projected to reach $15 billion by 2025; company aiming to increase addressable revenue share through targeted product segments (LED optics, precision lens modules, opto-mechanical components).
• New products & IP: committed to launching ≥10 new products annually and growing patent holdings to 300 patents by 2025; recognized as a National Model Enterprise of Technological Innovation and of Intellectual Property.
• Export growth: target of +20% export revenues in 2024 with focus on Europe and North America to diversify sales mix and improve USD/EUR-denominated revenue exposure.
• Sustainability: plan to reduce carbon footprint by 25% by 2025 via upgraded manufacturing processes and energy-efficient product design-measures include equipment retrofits, process optimization, and materials sourcing.
• Regional momentum: inclusion in the 2024 Jiangxi Top 100 Enterprises and 2024 Jiangxi Top 50 Strategic Emerging Industries Enterprises underscores local scale-up support and preferential policy access.

• Revenue upside if export target and product cadence convert to higher ASPs and volumes in Europe/North America.
• Margin leverage potential from energy efficiency and production upgrades tied to the 25% emissions reduction goal.
• Value creation from IP expansion-moving toward 300 patents increases defensive moat and licensing potential.
• Policy and cluster benefits from Jiangxi provincial recognition may accelerate capex support and talent recruitment.