Breaking Down Jiangsu Changshu Automotive Trim Group Co., Ltd. Financial Health: Key Insights for Investors

Investors eyeing Jiangsu Changshu Automotive Trim Group Co., Ltd. will find a mixed but data-rich picture: in Q3 2025 the company posted 1.89 billion CNY in revenue, up 38.67% year-on-year, with trailing twelve-month revenue of 6.60 billion CNY (+25.53% YoY) and 2024 annual sales of 5.67 billion CNY (+23.23%); profitability shows nine-month net income of 348.05 million CNY (down from 385.45 million CNY), EPS of 0.94 CNY (vs. 1.01 CNY), ROE 7.03%, net margin 5.88% and gross margin 13.15% while valuation and market metrics include a market capitalization of 5.97 billion CNY, P/E 14.46, P/S 0.90, EV 7.66 billion CNY and P/B 1.05; the balance sheet reflects total debt of 1.82 billion CNY (March 2025) with cash 424.1 million CNY and net debt 1.39 billion CNY, debt-to-equity 36.35%, current ratio ~1.2 and quick ratio ~0.8, interest coverage 5.0, cash and short-term investments 540.68 million CNY, positive operating cash flow and a conservative dividend payout of 1.90%; key drivers include stronger demand for interior parts (dashboards, door panels), revenue per employee ~1.31 million CNY across 5,030 staff, and growth initiatives such as a planned 24 million euro Spain subsidiary plus expansion in Europe/North America (estimated to contribute 25% of revenue), set against risks from currency, raw material swings, geopolitical and regulatory exposure and competitive technological shifts-analysts list 1 Buy and 1 Hold with an average 12-month target of 17.35 CNY.

Jiangsu Changshu Automotive Trim Group Co., Ltd. (603035.SS) - Revenue Analysis

• Q3 2025 revenue: 1.89 billion CNY (+38.67% year-over-year).
• TTM revenue (as of Sept 30, 2025): 6.60 billion CNY (+25.53% YoY).
• Full-year 2024 revenue: 5.67 billion CNY (+23.23% YoY vs 2023).
• Workforce: 5,030 employees; revenue per employee ≈ 1.31 million CNY.
• Market capitalization: ~5.97 billion CNY; P/S ratio: 0.90.

• Primary growth drivers: expanded OEM orders for interior trim components (dashboards, door panels), capacity utilization gains, and pricing/mix improvements in higher-value product lines.
• Operational signals: revenue per employee indicates reasonable productivity for heavy parts manufacturing; P/S ~0.90 suggests market pricing aligned with modest valuation relative to sales growth.
• Near-term monitoring items for investors: sustaining OEM demand, raw material cost trends, capacity expansion timelines, and conversion of order book into recognized revenue.

Jiangsu Changshu Automotive Trim Group Co., Ltd. (603035.SS) - Profitability Metrics

• Net income (9M ended Sep 30, 2025): 348.05 million CNY (down from 385.45 million CNY in 9M 2024)
• Earnings per share (EPS, 9M ended Sep 30, 2025): 0.94 CNY (versus 1.01 CNY in 9M 2024)
• Return on equity (ROE): 7.03%
• Net profit margin: 5.88%
• Gross margin: 13.15%
• Price-to-earnings (P/E) ratio: 14.46

• Profitability context: Gross margin of 13.15% combined with a net margin of 5.88% shows that while manufacturing costs consume a significant portion of revenue, operating and non-operating controls keep a meaningful portion of revenue as profit.
• Investor signal: A P/E of 14.46 suggests the market prices the stock at a moderate premium to earnings; with ROE at 7.03%, investors should weigh capital efficiency against growth prospects.
• Year-over-year trends: The ~9.7% decline in net income and the EPS drop from 1.01 CNY to 0.94 CNY warrant monitoring of revenue drivers, input cost pressures, and one-off items.

Jiangsu Changshu Automotive Trim Group Co., Ltd. (603035.SS) - Debt vs. Equity Structure

Key balance-sheet figures (as of March 2025):

• Total debt: 1.82 billion CNY (up from 1.50 billion CNY year-over-year).
• Cash on hand: 424.10 million CNY.
• Cash + short-term investments: 540.68 million CNY (implying short-term investments ≈ 116.58 million CNY).
• Net debt (total debt minus cash): 1.39 billion CNY.
• Debt-to-equity ratio: 36.35%.
• Total liabilities due within 12 months: 4.68 billion CNY; liabilities due beyond 12 months: 747.8 million CNY.

• Primary drivers of the debt increase: investments to expand production capacity and market-entry costs for new regions/products.
• Liquidity posture: 540.68 million CNY in cash and short-term investments provides a buffer against the 4.68 billion CNY of near-term liabilities, but working-capital management and receivables turnover will be critical.
• Leverage context: a 36.35% debt-to-equity ratio reflects moderate leverage for a manufacturing/supply-chain business; net-debt-to-equity of ~27.8% indicates the company's debt burden after liquidity is moderate.
• Risk considerations: concentration of large near-term liabilities (4.68bn) increases refinancing/liquidity risk if operating cash flow weakens or if capital markets tighten.

For more on the company's background and business model, see: Jiangsu Changshu Automotive Trim Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Changshu Automotive Trim Group Co., Ltd. (603035.SS) - Liquidity and Solvency

Key metrics indicate the company's short-term and long-term financial positioning, balancing operational liquidity with conservative capital management.

• Current ratio: 1.2 - current assets cover current liabilities with a modest buffer for short-term needs.
• Quick ratio: 0.8 - excluding inventory, liquid assets fall below current liabilities, highlighting reliance on inventory conversion or operational cash flow.
• Interest coverage ratio (EBIT / Interest expense): 5.0 - earnings provide a comfortable cushion to service interest obligations.
• Operating cash flow: positive - cash generated from operations supports working capital and debt servicing without immediate reliance on external financing.
• Solvency ratio (Total assets / Total liabilities): 2.2 - asset base is more than double liabilities, indicating strong long-term solvency.
• Dividend payout ratio: 1.90% - conservative distribution policy, prioritizing reinvestment and debt reduction.

Practical considerations for investors:

• Monitor inventory turnover and days sales of inventory: with a quick ratio below 1.0, slower inventory movement could strain short-term liquidity.
• Watch operating cash flow trends quarter-over-quarter to confirm sustainable liquidity independent of working capital fluctuations.
• Track interest expense and EBIT trajectory: a stable or rising interest coverage ratio preserves debt service safety even if leverage changes.

For broader context on shareholder composition and buying dynamics, see: Exploring Jiangsu Changshu Automotive Trim Group Co., Ltd. Investor Profile: Who's Buying and Why?

Jiangsu Changshu Automotive Trim Group Co., Ltd. (603035.SS) - Valuation Analysis

• Market capitalization: ~5.97 billion CNY.
• P/E ratio: 14.46 - valuation relative to reported earnings.
• P/S ratio: 0.90 - trading below one times annual sales.
• Enterprise value (EV): 7.66 billion CNY - reflects total business value including debt, excluding cash.
• Price-to-book (P/B): 1.05 - slightly above book value.
• Dividend yield: 1.90% - modest cash return to shareholders.
• Analyst coverage: 1 Buy, 1 Hold; average 12-month target: 17.35 CNY.

• The P/E of 14.46 suggests earnings are being valued at a modest multiple versus many industrial peers; combined with a P/S below 1, this can indicate relative undervaluation when revenue quality is stable.
• EV at 7.66 billion CNY versus market cap of 5.97 billion CNY implies net debt position or other non‑equity claims increasing total enterprise value.
• A P/B near 1.05 indicates the market price is close to reported net asset value-limited premium for intangible growth or brand valuation.
• Dividend yield of 1.90% offers modest income but is secondary to valuation and growth considerations for investor return.
• Analyst average target of 17.35 CNY provides a quantifiable upside reference relative to the current market price and is consistent with one Buy and one Hold view.

Jiangsu Changshu Automotive Trim Group Co., Ltd. (603035.SS) - Risk Factors

• Currency exchange risk: with an estimated export share of ~28% of revenue and overseas operations in Southeast Asia and Eastern Europe, currency moves materially affect reported revenue and margins.
• Raw material price volatility: polymer resins, steel, and PU leather account for roughly 30-40% of cost of goods sold (COGS), so commodity swings translate to margin compression unless passed on to OEM customers.
• Demand cyclicality: automobile production downturns in China, Europe, or the U.S. can reduce OEM orders quickly-revenue sensitivity to global auto production is high given the company's focus on interior trim components.
• Geopolitical exposure: manufacturing or JV operations in politically sensitive regions expose the company to abrupt tariff, export-control, or operational interruption risks.
• Competitive/technological risk: rapid adoption of lightweight materials, integrated electronics, or new seating/interior architectures by competitors can erode market share and require higher R&D or CAPEX.
• Regulatory and environmental risk: tightening VOC, emissions, and waste-disposal standards in China and export markets can increase upgrade costs for production lines and input materials compliance.

• Quarterly gross margin swings greater than 150-300 bps tied to resin/steel price moves.
• Significant FX translation losses or hedging costs when RMB weakens >5% vs major trade currencies.
• Orders backlog or OEM release schedules - abrupt cancellations or push-outs signal demand risk.
• Increasing environmental capex announcements or one-off remediation charges.
• Rising receivable days or inventory days indicating slowing OEM demand or overproduction.

Jiangsu Changshu Automotive Trim Group Co., Ltd. (603035.SS) - Growth Opportunities

Jiangsu Changshu Automotive Trim Group Co., Ltd. (603035.SS) is positioning for international expansion, product innovation and sustainable manufacturing to capture higher-margin interior components across global OEMs. Key initiatives and numerical milestones underpinning growth potential are summarized below.

• European foothold: planned wholly-owned subsidiary in Spain with an investment of €24,000,000 to serve existing international customers and accelerate local vehicle program wins.
• Geographic revenue mix: management targets Europe and North America to account for ~25% of total revenue over the medium term, up from current levels (management disclosure: target horizon 3-5 years).
• R&D emphasis: increased R&D spend to develop lightweight, sustainable interior trim systems and integrated electronic features-current annual R&D budget reported/envisaged in the range of RMB 100-200 million (approx. RMB 150m midpoint used for planning).
• Strategic partnerships: pursuing OEM collaboration agreements and Tier‑1 partnerships to secure program content and reduce customer concentration risk.
• Emerging markets: commercial expansion initiatives in Southeast Asia and Latin America aimed at diversifying end markets and growing share of global platform programmes.
• Sustainability: investments in low-VOC materials, circular-material sourcing and energy-efficiency in plants to appeal to OEM ESG procurement requirements and premium EV interior programs.

Practical levers to realize growth include local engineering teams in Europe to support program intimacy, focused sales targets to grow higher-value EV interior content, and measurable sustainability KPIs (energy use per unit, recycled content percentage) to qualify for OEM ESG sourcing. For corporate purpose and longer-term strategic framing see: Mission Statement, Vision, & Core Values (2026) of Jiangsu Changshu Automotive Trim Group Co., Ltd.