Breaking Down Kingclean Electric Co.,Ltd Financial Health: Key Insights for Investors

Kingclean Electric's recent numbers demand attention: revenue of 7.313 billion yuan in the first three quarters of 2025 (TTM revenue 9.83 billion yuan), a market cap near 16.32 billion yuan with a P/S of 1.66, and 2024 net income of 1.23 billion yuan paired with a 17.68% ROE-yet juxtaposed with a rising leverage profile (debt-to-equity reported up to 122.48%) and a cash buffer of 6.72 billion yuan, while valuation metrics (TTM P/E 15.35, forward P/E 12.17, analyst 12-month target 30.71 yuan) and liquidity indicators (Altman Z-Score 2.27, current ratio 1.39, quick ratio 1.10) paint a nuanced picture of profitability, solvency and potential upside-read on to parse revenue trends, profitability margins, debt dynamics, cash flow strength and the key risks and growth levers that investors should weigh.

Kingclean Electric Co.,Ltd (603355.SS) - Revenue Analysis

Kingclean Electric reported 7.313 billion yuan in revenue for the first three quarters of 2025, a year-on-year increase of 0.92%. The trailing twelve months (TTM) revenue is 9.83 billion yuan (up 2.76% versus the prior TTM). For full-year 2024 the company recorded 9.76 billion yuan, an 11.06% increase over 2023. Key headline metrics and context follow.

• Q1-Q3 2025 revenue: 7.313 billion yuan (+0.92% YoY)
• TTM revenue: 9.83 billion yuan (+2.76% vs. prior TTM)
• FY 2024 revenue: 9.76 billion yuan (+11.06% vs. 2023)
• Revenue per employee: ~1.03 million yuan
• Market capitalization: ~16.32 billion yuan; P/S ratio: 1.66
• Revenue growth trend: decelerating (11.06% in 2024 → 0.92% in first 9 months of 2025)

The data show a notable slowdown in revenue growth: after double-digit expansion into 2024, momentum weakened through 2025 with single-digit and sub-1% growth in the first nine months. Investors should weigh current valuation (P/S 1.66) and revenue-per-employee efficiency (≈1.03M CNY) against the decelerating top-line trend and any company-specific drivers.

Further background on the company and its business model: Kingclean Electric Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Kingclean Electric Co.,Ltd (603355.SS) - Profitability Metrics

• Net income (2024): 1.23 billion yuan (+10.17% YoY)
• TTM net income: 972.81 million yuan
• EPS (TTM): 1.69 yuan
• Net profit margin: 9.89%
• Operating margin: 8.43%
• Return on equity (ROE): 17.68%
• Consistent profitability trend: 10.17% net income growth in 2024

Kingclean Electric Co.,Ltd (603355.SS) - Debt vs. Equity Structure

• Leverage level: A debt-to-equity ratio around 1.22 (122.48%) signals material reliance on debt financing; debt of 6.84bn vs. equity supporting the business implies higher financial risk relative to lower-levered peers.
• Trend: The increase from 113.32% to 122.48% indicates rising leverage quarter-over-quarter, suggesting either faster growth in borrowings or slower equity growth/retained earnings accumulation.
• Balance-sheet structure: With total assets of 13.623bn and liabilities of 8.653bn, the asset-liability ratio of 63.52% reflects that liabilities consume a significant portion of assets.

• Short-term liquidity: Current ratio 1.39 and quick ratio 1.10 both exceed 1.0, indicating the company generally has sufficient short-term resources to meet immediate obligations.
• Interest coverage: A ratio of 5.45 suggests operating income covers interest expense multiple times over-comfortably servicing debt today but sensitive to operating margin compression.
• Risk considerations: Elevated leverage increases sensitivity to rising rates or revenue shocks; monitoring cash flow generation and debt maturities is essential.

Kingclean Electric Co.,Ltd (603355.SS) - Liquidity and Solvency

• Cash & cash equivalents: 6.72 billion yuan - a strong immediate liquidity cushion.
• Net cash position: -116.46 million yuan - a slight net debt (net borrowings exceeding cash by ~0.12 billion yuan).
• Operating cash flow: 1.25 billion yuan; Capital expenditures: 511.98 million yuan; Free cash flow: 736.96 million yuan.
• Altman Z-Score: 2.27 - indicates moderate bankruptcy risk (zones between healthy and distressed).
• Piotroski F-Score: 5 - average financial strength by F-Score metrics.
• Liquidity ratios: remained relatively stable year-over-year, showing consistent short-term financial health.

Practical implications for investors:

• Liquidity cushion: With 6.72 billion yuan in cash, the company can cover short-term needs and support working capital requirements.
• Leverage focus: The slight net debt (-116.46 million yuan) suggests leverage is small but should be monitored if borrowing increases.
• Cash generation: Positive free cash flow (736.96 million yuan) supports reinvestment or deleveraging without relying on new financing.
• Credit risk: Altman Z-Score of 2.27 and Piotroski F-Score of 5 call for monitoring operational trends and profitability to avoid deterioration.

Further background on the company's strategy and ownership that contextualizes these liquidity and solvency metrics is available here: Kingclean Electric Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Kingclean Electric Co.,Ltd (603355.SS) - Valuation Analysis

• TTM P/E: 15.35 - current market price trades at 15.35 times trailing earnings.
• Forward P/E: 12.17 - analysts expect earnings growth that compresses the multiple, implying potential upside.
• P/B: 2.66 - the stock trades at 2.66 times book value, indicating a premium to net assets.
• EV/EBITDA: 13.18 - reflects enterprise value relative to operating cash-profit generation.
• EV/Sales: 1.53 - moderate valuation versus revenue, neither deeply discounted nor richly priced.
• Shiller P/E: 19.62 vs industry median 17.295 - higher cyclically-adjusted valuation than peers.
• Analyst consensus: Strong Buy with 12-month avg. price target 30.71 CNY - consensus implies upside from current levels.

• Lower forward P/E vs TTM P/E highlights expected near-term earnings improvement or recent EPS weakness being reversed.
• P/B >2.5 and Shiller P/E > industry median point to a valuation premium that could compress if growth disappoints.
• EV/EBITDA ~13 and EV/Sales ~1.5 place Kingclean in a middle ground - not deeply expensive relative to earnings or sales but not a deep value either.
• Analyst price target (30.71 CNY) and 'Strong Buy' consensus provide a market-implied upside that should be weighed against execution risk and macro sensitivity.

Kingclean Electric Co.,Ltd (603355.SS) - Risk Factors

• High leverage: debt-to-equity ratio at 122.48% signals significant financial leverage and limited equity cushion against shocks.
• Bankruptcy risk: Altman Z-Score of 2.27 places the company in a moderate bankruptcy-risk zone (near the distress threshold of 1.8-3.0).
• Average fundamental health: Piotroski F-Score of 5 indicates middling operational and accounting strength-neither robust nor critically weak.
• Negative net cash: net cash position of -116.46 million yuan (net debt) reduces liquidity and flexibility for capex or strategic investments.
• Slowing top-line growth: revenue growth decelerated from 11.06% in 2024 to 0.92% in the first three quarters of 2025, suggesting challenges in sustaining momentum.
• Refinancing and rate sensitivity: reliance on debt financing increases exposure to interest-rate volatility and refinancing risk if markets tighten.

• Interest coverage and cash flow volatility: with elevated leverage and net debt, any decline in EBITDA or operating cash flow could quickly pressure interest coverage ratios and covenant compliance.
• Market and demand risk: slowing revenue growth indicates potential weakening demand or competitive pressure in core markets.
• Refinancing timing risk: upcoming maturities could force refinancing at higher rates or dilute shareholders if equity is used to reduce leverage.
• Execution risk for corrective measures: improving Piotroski components (profitability, leverage, liquidity, and operating efficiency) will require sustained operational execution.

Kingclean Electric Co.,Ltd (603355.SS) - Growth Opportunities

• Projected earnings CAGR: 17.2% per annum (analyst consensus).
• National savings rate (for comparison): 2.6%.
• Analyst sentiment: Strong Buy; average 12-month price target: 30.71 yuan.

• R&D commitment: 536.15 million yuan in 2024 supports new product development, smart-home integration, and efficiency improvements.
• Product diversification: Home appliances, kitchen appliances, and garden tools allow cross-selling and resilience to shifting demand.
• Distribution strategy: Robust domestic channels combined with targeted exports expand addressable markets and revenue streams.
• Market sentiment: 'Strong Buy' consensus and a 30.71 yuan price target indicate analyst confidence in execution and growth realization.