Breaking Down Jiayou International Logistics Co.,Ltd Financial Health: Key Insights for Investors

Investors watching Jiayou International Logistics Co., Ltd. (603871.SS) will want to dig into how the company turned 8.75 billion yuan in 2024 revenue-a 25.14% jump from 2023-driven by a 29.8% rise in coking coal supply chain trade to 5.75 billion yuan, alongside a 22% upswing in cross‑border logistics to 2.45 billion yuan; add to that a TTM net profit margin of 13.60%, ROE of 21.83%, net cash of 827.74 million yuan (cash 1.31 billion vs. debt 479.15 million), a trailing P/E of 12.08 (forward P/E 6.51), market cap ~17.66 billion yuan with a 3.93% dividend yield, and operational signals such as revenue per employee of 3.02 million yuan and an Altman Z‑Score of 6.47-facts that frame both the risks (Mongolian coal volatility, geopolitical exposure, FX and regulatory headwinds) and growth levers (African expansion, China‑Mongolia deepening, cross‑border multimodal scaling, tech and partnerships) that this chapter breaks down in detail for readers seeking actionable insight

Jiayou International Logistics Co.,Ltd (603871.SS) - Revenue Analysis

Jiayou International Logistics reported robust top-line expansion across 2024-2025 driven by supply chain trade and cross-border logistics. Key headline numbers illustrate both full-year and quarterly momentum.

• 2024 total revenue: 8.75 billion yuan (up 25.14% vs. 2023: 7.00 billion yuan).
• Primary driver: Supply chain trade service - revenue growth of 29.7% in 2024; main coking coal supply chain trade revenue rose 29.8% to 5.75 billion yuan.
• Cross-border integrated logistics services: 2.45 billion yuan in 2024, up 22% year-on-year.
• Quarterly/early-2025 traction: Q1 2025 revenue 2.30 billion yuan (up 15% YoY); quarter ending September 30, 2025 revenue 2.49 billion yuan (up 30.61% YoY).
• Operational efficiency: revenue per employee 3.02 million yuan with total headcount 2,905 employees.

• Segment mix: supply chain trade constitutes the largest share (~65.7% of 2024 total if coking coal supply chain revenue of 5.75bn is representative), cross-border services represent ~28.0% of 2024 revenue (2.45bn of 8.75bn).
• Growth cadence: sequential quarterly growth into 2025 suggests recurring demand and scaling of logistics solutions.
• Key metrics for monitoring: segment gross margins, customer concentration in coking coal trade, seasonal/contractual shipment volumes, and utilization of assets vs. headcount.

For broader corporate context and stated priorities, see: Mission Statement, Vision, & Core Values (2026) of Jiayou International Logistics Co.,Ltd.

Jiayou International Logistics Co.,Ltd (603871.SS) - Profitability Metrics

• Net income (2024): 1.28 billion yuan, up 22.88% from 1.04 billion yuan in 2023.
• Net profit margin (TTM): 13.60% - indicating solid conversion of revenue into profit.
• Operating margin (TTM): 13.34% - reflects efficient core operations and cost management.
• Gross margin: 19.05% - consistent gross profitability after direct costs.
• EBITDA margin: 17.47% - suggests strong operational cash-generation capability.
• EPS (TTM): 0.90 yuan with a P/E ratio of 12.08 - valuation appears reasonable versus earnings.
• ROE (TTM): 21.83% - demonstrates high returns on shareholders' equity.

• Margin profile (gross → operating → net) shows consistent step-downs but remains robust, indicating controlled SG&A and other operating expenses relative to revenue.
• High ROE coupled with a moderate P/E suggests the market may be underpricing part of the company's return-generating ability or reflecting sector-specific risks.
• EBITDA margin near 17.5% signals good cash-operational leverage useful for reinvestment or debt servicing.

Jiayou International Logistics Co.,Ltd (603871.SS) - Debt vs. Equity Structure

• Total debt: 479.15 million yuan
• Cash and cash equivalents: 1.31 billion yuan
• Net cash position: 827.74 million yuan
• Debt-to-equity ratio: 0.94%
• Equity (book value): 5.93 billion yuan
• Book value per share: 4.19 yuan
• Net cash per share: 0.61 yuan
• Altman Z-Score: 6.47

Key cash flow and capital deployment figures for the trailing twelve months:

Interpretive highlights:

• Net cash position (827.74 million yuan) demonstrates liquidity buffer versus gross debt of 479.15 million yuan, producing net cash per share of 0.61 yuan.
• Extremely low debt-to-equity ratio (0.94%) reflects conservative financial leverage relative to an equity base of 5.93 billion yuan and book value per share of 4.19 yuan.
• Positive free cash flow of 81.45 million yuan alongside robust operating cash flow (606.06 million yuan) supports ongoing capex (524.61 million yuan) and strategic investments without reliance on external debt.
• Altman Z-Score of 6.47 signals low bankruptcy risk and strong overall financial stability.

For broader investor context and shareholder activity, see: Exploring Jiayou International Logistics Co.,Ltd Investor Profile: Who's Buying and Why?

Jiayou International Logistics Co.,Ltd (603871.SS) - Liquidity and Solvency

• Net cash position: 827.74 million yuan - a clear indicator of strong liquidity on the balance sheet despite absence of an explicitly reported current ratio.
• Quick ratio: not disclosed; substantial cash reserves imply healthy short-term solvency and low immediate liquidity risk.
• Operating cash flow coverage of capital expenditures: ~1.16× - operating cash flows are sufficient to cover ongoing capex needs without resorting to new financing.
• Free cash flow per share: 0.06 yuan - positive free cash flow after capital expenditures, supporting operations and distributions.
• Piotroski F-Score: 3 - denotes moderate financial strength with room for improvement in profitability, leverage, and operating efficiency metrics.
• Dividend policy: payout ratio rose from 33.5% (2023) to 53.5% (2024), reflecting a more shareholder-friendly distribution approach.

• Implications for investors: strong cash reserves reduce near-term refinancing risk; positive FCF supports higher dividend payout but a Piotroski score of 3 signals caution on operational/earnings stability.
• Areas to monitor: trends in operating cash flow relative to capex, changes in working capital that would affect implied current/quick ratios, and whether elevated payout ratio is sustainable given profitability trends.

Jiayou International Logistics Co.,Ltd (603871.SS) - Valuation Analysis

• Trailing P/E: 12.08 - the current earnings multiple based on the last 12 months of EPS.
• Forward P/E: 6.51 - implied multiple using consensus next-12-months estimates, indicating potential undervaluation relative to current earnings.
• Price-to-Sales (P/S): 1.64 - reflects price relative to revenue, suggesting reasonable top-line valuation.
• Price-to-Book (P/B): 2.53 - indicates the market values the company at ~2.5x its book equity.
• EV/Revenue: 1.52 - enterprise valuation relative to revenue, consistent with modest growth expectations.
• EV/EBITDA: 8.53 - moderate multiple implying a balanced trade-off between profitability and valuation.
• Market capitalization: ≈¥17.66 billion; share price: ¥12.95 (as of 2025-12-12).
• Dividend: ¥0.57 per share annually; dividend yield: 3.93% - a stable income component for shareholders.
• Earnings yield: 5.44% - implied return from earnings relative to price.

• Comparative perspective: a forward P/E of 6.51 vs. trailing 12.08 signals either rapidly improving expected earnings or market underpricing today.
• Income orientation: a 3.93% dividend yield combined with a 5.44% earnings yield provides a tangible cash-return profile for yield-seeking investors.
• Enterprise multiples (EV/Revenue 1.52; EV/EBITDA 8.53) place the company in a moderate valuation band relative to capital-light logistics peers that typically trade at varied EV/EBITDA ranges depending on scale and margin stability.

Jiayou International Logistics Co.,Ltd (603871.SS) - Risk Factors

Key risk exposures for Jiayou International Logistics Co.,Ltd (603871.SS) are concentrated in commodity-linked business lines, cross-border operations and the operational complexity of a global logistics network. Below are targeted risk points with quantified scenario impacts and contextual metrics investors should monitor.

• Mongolian coal business pressure: Jiayou's Mongolian coal-related logistics and trading activities are cyclical and closely tied to thermal coal price and Chinese import demand. A sustained 25% decline in Mongolian coal prices or a 20% drop in export volumes could reduce segment revenue by an estimated 10-20% depending on the year and contract mix.
• Geopolitical exposure: Operations and contracts in Africa and Central Asia expose Jiayou to heightened political risk, sanctions, or sudden border/permits restrictions; a single-country disruption can cut related regional revenue by 30-60% in a quarter.
• Global trade and logistics demand fluctuation: A 5-10% contraction in global merchandise trade volumes typically translates into a comparable single-digit to mid-teens decline in logistics volumes and utilization, compressing gross margins by 1-4 percentage points.
• Operational complexity and inefficiencies: Managing a vast international network increases chances of route disruption, demurrage, and higher logistics operating expenses; inefficiency upticks of 2-5% in operating cost lines can erode operating profit margin materially.
• Currency exchange volatility: Cross-border receipts and payables in USD, CNY and regional currencies means a 5-10% adverse FX move (e.g., CNY depreciation vs USD) can swing reported net income by mid-single digits after hedging effects.
• Regulatory change risk: Sudden tariff, customs, inspection, or licensing policy changes may increase compliance costs by several percentage points of revenue or force re-routing that increases transit times and costs.

• Balance-sheet and cash-flow sensitivity: Even modest margin compression (100-300 bps) combined with working capital swings (inventory/receivables rising 5-10 days) can reduce free cash flow notably - stress testing liquidity under a 15-20% revenue shock is advisable.
• Insurance and counterparty concentration: Limited insurers or heavy reliance on a few large shippers increases recovery risk after disruptions; counterparty concentration ratio (top 5 customers as % of revenue) above 30-40% heightens this risk.
• Hedging and FX policy: Review company disclosure on natural hedges, forward contracts and currency-denominated debt; uncovered exposures materially change earnings sensitivity to exchange-rate moves.

For contextual company background, operations and how revenue streams are structured, see: Jiayou International Logistics Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Jiayou International Logistics Co.,Ltd (603871.SS) Growth Opportunities

Jiayou International Logistics is positioned to convert geopolitical trade shifts and infrastructure gaps into measurable growth. Key opportunity areas align with macro trends and specific corridors where measurable volumes and spending indicate upside potential.

• African market expansion: China-Africa bilateral trade reached approximately USD 254.2 billion in 2023, and planned African land port and logistics investments are raising transshipment volumes and inland connectivity needs.
• China-Mongolia corridor deepening: Mongolia exported roughly 80-90 million tonnes of coal annually in recent years (2021-2023 range), creating sustained demand for cross-border rail and multimodal solutions tied to coal and bulk commodities.
• Cross-border multimodal services: Global logistics market CAGR is estimated at ~6-7% (2023-2028), driven by rising international trade complexity and demand for door-to-door multimodal solutions.
• Technology-led efficiency gains: Warehouse automation, TMS/WMS integration, and predictive routing can reduce total logistics costs by an estimated 8-15% and improve on-time delivery rates by 10-20% in mature implementations.
• Service diversification and value-added offerings: Ancillary services (customs brokerage, cargo insurance, supply chain finance, cold chain) typically command 5-15% higher gross margins than pure transportation services.
• Strategic partnerships and M&A: Acquisitions of regional operators or joint ventures for port/terminal management typically shorten market entry time by 12-24 months and provide immediate revenue scale.

Practical levers and near-term KPIs Jiayou can target:

Recommended tactical moves and structural considerations:

• Prioritize African corridors with existing Chinese-funded infrastructure projects to leverage partner financing and capture initial cargo flows; expected corridor CAGR in targeted routes can exceed 10% in early development phases.
• Secure long-term coal logistics contracts with Mongolian producers or Chinese buyers to stabilize utilization of block-train assets (contracts indexed to annual coal export volumes of ~80-90 million tonnes).
• Invest 3-5% of annual revenue into digital platforms (TMS, WMS, IoT telematics) to achieve the 8-15% cost-per-shipment reductions typical of mature logistics tech deployments.
• Bundle value-added services (customs, warehousing, finance) into premium offerings to lift per-client revenue by an estimated 10-20% and improve retention.
• Pursue bolt-on acquisitions in target countries to rapidly acquire terminal access, local licenses, and workforce; typical deal sizes for regional logistics operators range from USD 5-50 million depending on scale.

For investors seeking a deeper profile of shareholder composition, recent trades, and rationale behind inflows, see: Exploring Jiayou International Logistics Co.,Ltd Investor Profile: Who's Buying and Why?