Breaking Down Jangho Group Co., Ltd. Financial Health: Key Insights for Investors

Jangho Group's latest figures paint a nuanced picture for investors: quarter revenue slid to 5.14 billion CNY (-11.97% YoY) while TTM revenue of 21.82 billion CNY shows only a slight decline (-0.91% YoY), annual 2024 sales were 22.41 billion CNY (up 6.93% from 2023), operating income in Q2 fell sharply to 829.5 million CNY (down 29% YoY) even as trailing net income remains at 662.27 million CNY with EPS of 0.58 CNY and a modest net margin of 3.07%; balance-sheet metrics reveal a balanced capital structure (total debt/equity 0.5, long-term debt/equity 0.3) with comfortable liquidity (current ratio 1.5, quick ratio 1.2, cash ratio 0.8) and positive operating cash flow of 1.417 billion CNY TTM plus free cash flow of 800 million CNY, while valuation multiples like a P/E of 13.12, forward P/E 12.56, P/S 0.38 and EV/EBITDA 5.0, alongside a 6.60% dividend yield (0.55 CNY/share) but a high payout ratio of 115.90%, highlight trade-offs between income appeal and payout sustainability-read on for granular analysis of risks (industry cycles, raw-material swings, regulatory and real-estate exposure) and growth levers from international expansion to smart-building and renewable-project opportunities.

Jangho Group Co., Ltd. (601886.SS) Revenue Analysis

Jangho Group reported mixed top-line dynamics across quarterly, annual and trailing periods, with notable implications for valuation and productivity metrics.

• Quarter (Q2) ending June 30, 2025: revenue = 5.14 billion CNY, down 11.97% YoY.
• Trailing twelve months (TTM) revenue: 21.82 billion CNY, down 0.91% YoY.
• Full year 2024 revenue: 22.41 billion CNY, up 6.93% vs. 2023.
• Revenue per employee: ~2.13 million CNY (10,231 employees).
• Price-to-sales (P/S) ratio: 0.38; Market capitalization: 8.25 billion CNY.

Key observations for investors:

• The sharp quarterly decline (-11.97% YoY) contrasts with a near-flat TTM trajectory (-0.91%), indicating recent softness concentrated in the latest quarter rather than an extended revenue collapse.
• Full-year 2024 growth of 6.93% shows the company can still expand annually, but Q2 2025 performance raises questions about seasonality, backlog timing or order flows.
• A revenue per employee of ~2.13 million CNY suggests moderate operational productivity for a building-products / façade contractor profile; compare to peers for context.
• P/S of 0.38 and market cap of 8.25 billion CNY imply the market is pricing the company conservatively relative to sales - potential undervaluation if margins and cash flow stabilize.

Further detail and investor context: Exploring Jangho Group Co., Ltd. Investor Profile: Who's Buying and Why?

Jangho Group Co., Ltd. (601886.SS) - Profitability Metrics

• Quarter ended June 30, 2025 - Operating income: 829.5 million CNY (down 29% year-over-year).
• Trailing twelve months (TTM) net income: 662.27 million CNY; Basic EPS (TTM): 0.58 CNY.
• Net profit margin (TTM): ~3.07% (net income ÷ revenue).
• Return on equity (ROE): 7.5%.
• Dividend per share (annual): 0.55 CNY; Dividend yield: 6.60%.
• Payout ratio: 115.90% (dividends exceeding net income).

• The 29% YoY decline in operating income for Q2 2025 is a material driver behind compressed margins and lower operating leverage.
• ROE at 7.5% signals moderate capital efficiency relative to peers in building materials and façade integration sectors.
• The payout ratio above 100% indicates dividends are being funded from sources other than current-year net income (e.g., retained earnings, asset disposals, or cash reserves), which may affect sustainability metrics.
• High dividend yield (6.60%) makes the stock income-attractive but should be weighed against margin pressure and payout sustainability.

Jangho Group Co., Ltd. (601886.SS) - Debt vs. Equity Structure

• Total debt-to-equity ratio: 0.5 - moderate leverage, ¥0.50 of debt per ¥1.00 of equity.
• Long-term debt-to-equity ratio: 0.3 - conservative long-term financing, reducing refinancing risk.
• Interest coverage ratio: 4.0 - operating income covers interest expense four times, indicating comfortable interest serviceability.
• Debt-to-assets ratio: 0.4 - 40% of assets financed by debt.
• Equity ratio: 0.6 - 60% of assets financed by equity.

• Balance considerations: 60% equity supports stability; 40% debt allows tax-efficient financing and return enhancement.
• Refinancing risk: Low-to-moderate given conservative long-term debt proportion but attention to short-term maturities is needed.
• Operational buffer: Interest coverage of 4.0 provides a reasonable margin against cyclical downturns.

Jangho Group Co., Ltd. (601886.SS) - Liquidity and Solvency

• Current ratio: 1.5 - sufficient short-term assets to cover short-term liabilities.
• Quick ratio: 1.2 - adequate liquidity when inventory is excluded.
• Cash ratio: 0.8 - strong immediate ability to meet current liabilities with cash and equivalents.
• Operating cash flow (TTM): 1,417,000,000 CNY - positive and sizable cash from operations.
• Free cash flow: 800,000,000 CNY - cash remaining after capital expenditures for reinvestment or debt reduction.
• Solvency ratio: 0.5 - moderate financial leverage, indicating balance between debt financing and equity.

Jangho Group Co., Ltd. (601886.SS) - Valuation Analysis

This valuation-focused chapter breaks down the key multiples and intrinsic-value estimates that shape investor perspectives on Jangho Group Co., Ltd. (601886.SS). The presented figures combine market multiples with model-driven valuations to highlight where the market currently positions the company relative to earnings, book value, cash flow and dividend expectations.

• Price-to-Earnings (P/E): 13.12 - indicates a moderate market pricing relative to trailing earnings, implying neither deep discount nor premium versus broader markets.
• Forward P/E: 12.56 - the market expects modest earnings growth or margin improvement over the next twelve months.
• Price-to-Book (P/B): 1.2 - the market values the company slightly above its reported net asset base, consistent with stable asset utilization or modest growth expectations.
• EV/EBITDA: 5.0 - a conservative valuation on an enterprise basis, often seen as attractive for capital-intensive industrials if EBITDA is sustainable.
• Dividend Discount Model (DDM) intrinsic value: 8.00 CNY/share - reflects a dividend-driven view of value assuming the projected payout stream and required return used in the model.
• Discounted Cash Flow (DCF) intrinsic value: 7.50 CNY/share - reflects a free-cash-flow based valuation under the analyst assumptions embedded in the model.

Key valuation implications and investor considerations:

• Relative multiples (P/E ~13, EV/EBITDA 5.0) suggest the market is pricing Jangho as a value-oriented industrial play rather than a high-growth story.
• The small gap between trailing and forward P/E (13.12 vs 12.56) signals modest expected earnings improvement; downside risk rises if revenue or margin recovery stalls.
• P/B at 1.2 implies limited pricing premium for intangible growth - investors should monitor asset writedowns, working-capital swings, and capex needs that can affect book value.
• DDM and DCF mid-single-digit intrinsic estimates (8.00 and 7.50 CNY) provide anchor points; differences reflect model sensitivity to payout ratios, discount rates and terminal-growth assumptions.
• EV/EBITDA of 5.0 typically appeals to value investors seeking cash-flow stability; verify EBITDA quality by adjusting for one-offs, non-cash items and related-party transactions.
• Sensitivity to assumptions: small changes in discount rate (±100 bp), terminal growth (±0.5%), or margin trajectory can materially shift DCF/DCM outputs - run scenario analyses before acting.

For more context on stakeholder activity and who is buying or selling, see: Exploring Jangho Group Co., Ltd. Investor Profile: Who's Buying and Why?

Jangho Group Co., Ltd. (601886.SS) - Risk Factors

Investors in Jangho Group Co., Ltd. (601886.SS) should weigh a set of company- and industry-specific risks that can materially affect cash flows, margins, and valuation. Below are the primary risk vectors with quantitative context where relevant.

• The construction industry is subject to economic cycles, which can impact demand for building services. Jangho's top-line is correlated with new construction starts, commercial real estate investment, and government infrastructure spending; in a downturn, backlog conversion and new contract awards can slow sharply.

• Fluctuations in raw material prices can affect profit margins. Key inputs such as aluminum, glass, silicone and steel represent a material share of project costs; a 10% move in aluminum prices can shift gross margin by several percentage points on large curtain-wall contracts.

• Regulatory changes in the construction industry may impose additional compliance costs. Stricter safety, energy-efficiency or fire-code requirements can increase project design/installation costs and delay permits, compressing margins on existing bids.

• The company has significant exposure to the real estate market, which can be volatile. Client concentration risk is elevated when large real-estate developers slow investment; Jangho's revenue mix often tracks developer activity cycles, amplifying revenue volatility.

• Currency exchange rate fluctuations can impact international project revenues. Overseas projects invoiced in USD, EUR or local currencies expose reported RMB results to FX translation and potential transactional losses when currency markets move quickly.

• The company faces competition from both domestic and international construction firms. Pricing pressure from low-cost domestic peers and technology/brand competition from global suppliers can erode market share and force margin concessions.

Key financial indicators illustrating recent leverage, profitability and liquidity (reported figures, RMB million):

How these figures relate to the risks:

• Leverage (Debt/Equity ~0.6x) increases sensitivity to margin compression and slower receivable turn if new contract flow weakens.
• Net debt rising toward RMB 2.3 billion magnifies refinancing and interest-rate risk if capital markets tighten or if projects are delayed.
• Current ratio below ~1.5x highlights liquidity sensitivity to working-capital swings-common in construction when progress payments lag.

For additional context on strategic positioning and corporate priorities, see Mission Statement, Vision, & Core Values (2026) of Jangho Group Co., Ltd.

Jangho Group Co., Ltd. (601886.SS) - Growth Opportunities

• Geographic expansion: accelerate entry into Middle East markets where large-scale residential, commercial and infrastructure projects are being tendered.
• Diversification into renewables: scale building-integrated photovoltaics (BIPV) offerings to capture demand from net-zero commercial projects.
• Smart buildings: develop integrated façade + IoT systems to tap rising demand for intelligent infrastructure and energy management.
• Strategic partnerships: secure long-term contracts through alliances with major real estate developers and international contractors.
• R&D investment: develop new lightweight/high-strength materials and modular curtain-wall systems to reduce cycle time and improve margins.
• Digital transformation: enhance BIM, cloud project-management and factory automation to improve on-site productivity and gross-margin stability.

• Middle East rollout: target projects where average contract size exceeds RMB 100-300 million - leveraging backlog scale to bid competitively.
• BIPV & renewables: set commercial targets to grow renewables-related revenue from a low base to 10-15% of total within 3-5 years.
• Product development: aim to double R&D investment (as % of revenue) over 3 years to speed modular, lightweight system commercialization.
• Operational efficiency: pursue a 200-400 bps gross-margin uplift via factory automation, supply-chain contracts, and digital BIM-driven workflows.
• Partnerships & contracts: prioritize strategic alliances that secure multi-year frameworks, smoothing revenue and improving working-capital predictability.

• Execution risk: international projects carry higher logistics, compliance and counterparty risks; mitigation via local partnerships is critical.
• Commodity exposure: aluminum/glass price volatility can compress near-term margins; hedging and long-term supplier agreements help stabilize costs.
• Capital allocation: measured use of leverage to fund overseas expansion can preserve credit metrics while enabling growth.