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

Investors watching Jiangsu Shemar Electric (603530.SS) should note a string of hard numbers that tell a dynamic story: quarterly revenue hit 458.72 million CNY for the period ending September 30, 2025, driving a trailing twelve months revenue of 1.61 billion CNY (up 36.46% YoY) after a 2024 full-year revenue of 1.34 billion CNY (a 40.22% increase from 2023), while profitability remains robust with a TTM net profit margin of 23.08% and an operating margin of 26.87%; the market is pricing growth at a premium - market capitalization stands at 17.67 billion CNY (stock price 43.12 CNY) with P/S of 10.95 and a range of P/E metrics reflecting elevated expectations - even as balance-sheet and liquidity signals show a current ratio of 2.75, total debt-to-equity of 37.55%, cash of 434.29 million CNY, and a levered free cash flow of -153.18 million CNY amid heavy investment; add in major project wins like the Kimal‑Lo Aguirre ±600kV and Belo Monte ±800kV UHVDC contracts and you have the key figures and catalysts that make a closer, chapter-by-chapter read essential for assessing risk, valuation, and upside.

Jiangsu Shemar Electric Co.,Ltd (603530.SS) - Revenue Analysis

• Quarterly performance: revenue for the quarter ending September 30, 2025 was 458.72 million CNY, up 33.38% sequentially.
• Annual and trailing growth: 2024 revenue reached 1.34 billion CNY (a 40.22% increase versus 959.10 million CNY in 2023); TTM revenue stands at 1.61 billion CNY, a 36.46% YoY rise.
• Operational efficiency: revenue per employee is 883,180 CNY based on 1,826 employees, indicating relatively high productivity for the sector.

• Implications of the P/S ratio: at 10.95, investors are pricing strong future growth or high margins into the equity - valuation requires scrutiny relative to peers and margin sustainability.
• Productivity and scalability: revenue per employee of 883,180 CNY suggests capital-light scaling or high-value product mix; monitor SG&A and R&D spend to confirm leverage.
• Short-term trend: a 33.38% sequential uptick signals seasonality or order phasing; verify order backlog and channel inventory to assess durability.

Jiangsu Shemar Electric Co.,Ltd (603530.SS) - Profitability Metrics

Key profitability indicators for Jiangsu Shemar Electric show strong margins and solid returns, with investor-priced expectations reflected in valuation multiples. Essential figures (TTM and latest quarter) are summarized below.

• Net profit margin (TTM): 23.08%
• Operating margin (TTM): 26.87%
• Return on assets (TTM): 9.83%
• Return on equity (TTM): 18.01%
• Earnings per share (TTM): 0.87 CNY
• Latest quarter net income: 116.74 million CNY
• Latest quarter EPS: 0.27 CNY
• Earnings yield (TTM): 2.06%
• Price-to-earnings (P/E): 48.44

For broader context on the company's background and how it generates revenue, see: Jiangsu Shemar Electric Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Shemar Electric Co.,Ltd (603530.SS) - Debt vs. Equity Structure

• Total debt-to-equity ratio: 37.55% - a moderate leverage level that signals the company uses debt but remains equity-capitalized.
• Current ratio: 2.75 - indicates strong short-term liquidity and ability to cover near-term liabilities.
• Total cash on hand (Mar 31, 2025): 434.29 million CNY; cash per share: 1.01 CNY.

• Leverage context: with a 37.55% D/E the company has room to raise additional debt for growth without appearing over-levered versus many industrial peers.
• Valuation signals: EV of 18.02 billion CNY versus a market cap of 17.78 billion CNY and a P/E of 47.73 imply investors are pricing future earnings growth; compare P/E to sector peers before acting.
• Balance-sheet cushions: book value per share (4.31 CNY) and cash per share (1.01 CNY) provide tangible-net-asset and liquidity buffers for shareholders.

Jiangsu Shemar Electric Co.,Ltd (603530.SS) - Liquidity and Solvency

Key financial indicators point to solid short-term liquidity, moderate leverage and mixed free cash flow dynamics as the company balances operations and growth investments.

• Current ratio: 2.75 - indicates the company can comfortably cover short-term liabilities with current assets.
• Quick ratio: Not specified - excluding inventory would clarify immediate liquidity; absence of this number warrants caution when inventory levels are significant.
• Operating cash flow (TTM): 63.09 million CNY - positive cash generation from core operations.
• Levered free cash flow (TTM): -153.18 million CNY - negative, signaling substantial net outflows after debt servicing and capital expenditures, consistent with heavy investment for growth.
• Total debt-to-equity ratio: 37.55% - a moderate leverage position that suggests the company uses debt conservatively relative to equity.
• Return on investment (TTM): 22.48% - strong ROI indicative of effective capital deployment.

For additional context on shareholder composition, buying patterns and investor motives, see: Exploring Jiangsu Shemar Electric Co.,Ltd Investor Profile: Who's Buying and Why?

Jiangsu Shemar Electric Co.,Ltd (603530.SS) Valuation Analysis

• Trailing P/E: 36.56 - current investor willingness to pay for last 12 months' earnings.
• Forward P/E: 42.57 - market expects continued earnings expansion or higher future risk-premium.
• P/B ratio: 6.37 - equity valued well above book, indicating growth or intangible value recognition.
• P/S ratio: 10.95 - high price relative to sales, signaling premium revenue valuation.
• EV/Revenue: 7.81 - enterprise value multiple on top-line.
• EV/EBITDA: 25.49 - valuation relative to operating cash earnings, implying limited margin for error.

Jiangsu Shemar Electric Co.,Ltd (603530.SS) - Risk Factors

• Industry cyclicality: Jiangsu Shemar operates in the electrical equipment and parts industry, which is sensitive to macroeconomic cycles and capital expenditure trends in utilities, construction and industrial customers.
• Raw material volatility: Fluctuations in prices for copper, steel and insulating materials can materially affect production costs and gross margins.
• International exposure: Sales and supply-chain activities tied to overseas markets create currency-translation risk and exposure to geopolitical disruptions.
• Regulatory sensitivity: Changes in energy policy, grid standards, subsidy schemes or safety/environmental regulation can alter product demand and require additional compliance investment.
• Financial leverage: A debt-to-equity ratio of 37.55% indicates moderate leverage that could constrain flexibility if earnings decline or interest rates rise.
• Cash flow pressure from growth investment: Levered free cash flow of -153.18 million CNY signals substantial reinvestment or financing outflows, which may pressure short-term liquidity and increase refinancing risk.

• Indicators to monitor: quarterly levered free cash flow trends (current: -153.18 million CNY), changes in debt-to-equity (current: 37.55%), gross margin movements, inventory days, and order backlog by region.
• Scenario triggers: a sustained commodity price rise >15% year-over-year, a GDP contraction in key markets >2%, or persistent negative levered FCF beyond two quarters should prompt reassessment of financial stability and valuation.

Jiangsu Shemar Electric Co.,Ltd (603530.SS) - Growth Opportunities

• Large international project wins: Kimal‑Lo Aguirre ±600kV HVDC (Chile) and Belo Monte ±800kV UHVDC (Brazil) - positioning the company for multi-year revenue visibility and higher-margin project delivery.
• Strong top-line momentum: trailing twelve months (TTM) revenue growth of 36.46%, signaling robust demand for power transmission equipment and related services.
• Positive market re-rating: market capitalization up 75.81% over the past year, reflecting improved investor confidence and re‑valuation for growth prospects.
• Capital efficiency and profitability: return on investment (TTM) at 22.48%, indicating effective deployment of capital into revenue‑generating assets.
• Valuation and expectations: enterprise value of 18.02 billion CNY with a P/E ratio of 47.73, consistent with market expectations of continued earnings growth.
• Cash generation: operating cash flow (TTM) of 63.09 million CNY, demonstrating positive cash conversion from operations during recent periods.

• Near‑term catalysts: recognition of large contract revenue over project timelines, potential margin improvement from scale and engineering premium.
• Risks to monitor: execution risks on large international HVDC/UHV projects, working capital swings during heavy project phases, and valuation sensitivity given elevated P/E.
• Further reading on company context and strategy: Jiangsu Shemar Electric Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money