Breaking Down Jiangsu Boqian New Materials Stock Co., Ltd. Financial Health: Key Insights for Investors

Curious whether Jiangsu Boqian New Materials (605376.SS) is a growth story or a stretched valuation? The company logged a striking H1 2025 revenue jump to 438 million yuan, up 54.88% year‑over‑year, with TTM revenue at 1.02 billion yuan and a TTM gross margin of 27.93%; recent quarterly revenue accelerated to 268.74 million yuan from 249.81 million yuan, while TTM net income sits at 153.98 million yuan (EPS 0.58 yuan) and TTM ROE is 9.68%, supported by an operating margin of 16.75% and net profit margin of 15.04%. Balance sheet and cash metrics show conservative leverage-debt/equity 0.09, current ratio 2.55, quick ratio 1.26-total debt 152.80 million yuan with net debt of 92.02 million yuan and book value per share 6.30 yuan, backed by operating cash flow of 264.15 million yuan and free cash flow of 91.04 million yuan; solvency indicators include an Altman Z‑Score of 18.59 and Piotroski F‑Score of 6. Market valuation appears rich: market cap ~14.49 billion yuan, EV 14.58 billion yuan, TTM P/E 96.33 (forward P/E 44.56), P/S 14.16 and P/B 8.80, and EV/EBITDA 55.97, while EV/FCF is 160.21-figures that sit alongside material growth initiatives such as ultrafine nickel powder capacity expansion, development of submicron/micron alloy powders, silicon‑based battery materials collaboration, and silver‑coated metal powders, all of which compete with risks including a net debt position, exposure to the consumer electronics market, and high multiples priced for future growth.

Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) - Revenue Analysis

Jiangsu Boqian New Materials reported strong top-line momentum into 2025 with notable improvements in quarterly and trailing performance metrics, driven by volume and pricing dynamics in its core product lines.

• H1 2025 revenue: 438 million yuan - a 54.88% increase year-over-year vs. H1 2024.
• Latest quarter revenue: 268.74 million yuan, up from 249.81 million yuan in the prior quarter.
• TTM revenue: 1.02 billion yuan with a TTM gross margin of 27.93%.
• TTM net profit margin: 15.04%, indicating effective cost control and operating leverage.

• Revenue growth drivers: improved sales volumes and favorable mix contributed to H1 acceleration.
• Margin profile: 27.93% gross and 15.04% net margins show healthy profitability relative to revenue base.
• Valuation context: market cap ~14.49B CNY vs. EV ~14.58B CNY - implies net debt/other adjustments are limited.

Additional corporate context and forward-looking strategic framing are available in the company's stated mission and vision: Mission Statement, Vision, & Core Values (2026) of Jiangsu Boqian New Materials Stock Co., Ltd.

Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) - Profitability Metrics

Key profitability indicators for Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) show a materially improved earnings profile in the latest reporting period and projected first-half 2025 results, backed by solid operating margins and returns.

• Projected H1 2025 net profit attributable to shareholders: ¥93.00M-¥110.00M (YoY growth: +70.40% to +101.55%).
• Projected H1 2025 net profit after deducting non-recurring items: ¥86.00M-¥102.00M (YoY growth: +96.96% to +133.61%).
• Trailing twelve months (TTM) net income: ¥153.98M; TTM EPS: ¥0.58.
• TTM ROE: 9.68% - indicating effective use of shareholders' equity.
• TTM operating margin: 16.75%; TTM profit margin: 15.04% - signaling strong operational efficiency.
• TTM ROA: 5.66% - demonstrating asset-driven profitability.

For context on the company's strategic direction and longer-term objectives, see: Mission Statement, Vision, & Core Values (2026) of Jiangsu Boqian New Materials Stock Co., Ltd.

Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) - Debt vs. Equity Structure

Key balance-sheet and liquidity metrics for Jiangsu Boqian New Materials Stock Co., Ltd. reveal a capital structure skewed toward equity with conservative leverage but a marginal net debt position.

• Debt-to-Equity Ratio: 0.09 - indicates low reliance on borrowed funds relative to shareholder equity.
• Current Ratio: 2.55 - suggests the company has more than twice the short-term assets needed to cover short-term liabilities.
• Quick Ratio: 1.26 - shows sufficient immediate liquidity excluding inventory.
• Interest Coverage Ratio: 67.29 - reflects a very strong ability to service interest expenses from operating earnings.

Interpretation-focused points for investors:

• Low leverage: A 0.09 debt-to-equity ratio points to conservative financing and lower solvency risk in stressed scenarios.
• Healthy short-term liquidity: Current and quick ratios above 1.0 reduce rollover and working-capital concerns.
• Strong interest coverage: With an interest coverage ratio of 67.29, interest expense is immaterial relative to operating earnings.
• Net debt position: Despite low leverage relative to equity, total debt of 152.80 million yuan versus net cash of -92.02 million yuan indicates the company carries net debt-small relative to book equity (≈5.6%).

For more context on the company's background and how it operates, see: Jiangsu Boqian New Materials Stock Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) - Liquidity and Solvency

Key liquidity and solvency indicators for Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) show a solid cash-generating profile, conservative leverage, and strong balance-sheet coverage supporting short- and long-term obligations.

• Operating cash flow: 264.15 million yuan
• Capital expenditures (CapEx): -173.11 million yuan
• Free cash flow (FCF): 91.04 million yuan
• Net change in cash (latest quarter): 63.64 million yuan
• Total assets: 1,928.27 million yuan
• Total liabilities: 263.33 million yuan
• Net profit margin: 9.25%
• Altman Z-Score: 18.59
• Piotroski F-Score: 6

Highlights to note:

• Liquidity: Operating cash flow of 264.15 million yuan and a positive quarterly cash increase (+63.64 million yuan) indicate near-term liquidity flexibility.
• Cash generation vs. investment: After CapEx of -173.11 million yuan, FCF remains positive at 91.04 million yuan, showing the company funds investment without eroding cash reserves.
• Balance-sheet strength: With total assets of 1,928.27 million yuan against total liabilities of 263.33 million yuan, the company maintains low leverage and ample asset coverage.
• Risk metrics: An Altman Z-Score of 18.59 strongly signals negligible bankruptcy risk; a Piotroski F-Score of 6 reflects solid but not perfect operational and accounting quality.
• Profitability: Net profit margin of 9.25% suggests effective cost control relative to revenue generation.

For broader context on the company's background and business model, see: Jiangsu Boqian New Materials Stock Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) - Valuation Analysis

• Trailing twelve months (TTM) P/E: 96.33 - current price implies very high historical earnings multiple.
• Forward P/E: 44.56 - investors are pricing substantial earnings growth versus TTM.
• Price-to-Sales (P/S): 14.16 and Price-to-Book (P/B): 8.80 - valuation sits at a material premium to revenues and equity.
• EV/EBITDA: 55.97 and EV/FCF: 160.21 - enterprise-value multiples indicate elevated expectations for margin expansion and cash conversion.
• Market capitalization: ¥14.49 billion; Enterprise value: ¥14.58 billion - EV closely tracks market cap, limited net-debt impact on scale.
• Book value per share: ¥6.30; Total equity (book value): ¥1.65 billion - per-share accounting backing is modest relative to market price.
• Net cash per share: -¥0.35 - company is in a net debt position (small on a per-share basis).

• High multiples (P/E, EV/EBITDA, EV/FCF) signal that investors expect significant future growth in earnings and cash flow - any miss versus those expectations could produce outsized downside.
• P/S of 14.16 and P/B of 8.80 imply price is many times current revenue and accounting equity; valuation is priced for structural improvement or durable margin expansion.
• Small net-debt position (net cash per share -¥0.35 and EV ≈ market cap) means leverage is not a major stressor today, but profitability and cash generation must improve to justify multiples.
• Book value per share (¥6.30) compared with market price indicates limited tangible equity cushion relative to market valuation.

Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) - Risk Factors

• Intense competition from domestic and international suppliers, pressuring margins and market share.
• Negative net cash position: net cash of -92.02 million yuan (net debt), reducing financial flexibility for capex, R&D, or cyclical support.
• Valuation risk: market pricing implies high growth expectations (high P/E and P/B ratios), increasing downside if growth slows or fails to materialize.
• Concentration risk from heavy exposure to the consumer electronics market; downturns or demand shifts in that sector can materially affect revenues.
• Leverage sensitivity: current debt-to-equity ratio is low at 0.09, but any significant increase in debt could quickly strain stability and credit metrics.
• Profitability pressure: net profit margin at 9.25% is below the relevant industry average, indicating potential challenges in converting revenue into sustainable profits.

• Operational and strategic implications for investors:
  • Monitor cash flow trends and any changes in net debt; a widening negative net cash position heightens refinancing and liquidity risk.
  • Watch leverage metrics-maintaining a low debt-to-equity ratio is important; rising debt could compress equity returns and increase default risk under stress.
  • Assess revenue diversification away from consumer electronics to reduce concentration risk.
  • Re-evaluate valuation assumptions: given high P/E and P/B, stress-test scenarios where growth slows to estimate downside.
  • Compare margins to peer set and track margin expansion initiatives (cost control, product mix, pricing power).

Jiangsu Boqian New Materials Stock Co., Ltd. (605376.SS) - Growth Opportunities

Jiangsu Boqian New Materials is positioning itself to capitalize on electrification, advanced electronics, and specialty materials markets through capacity expansion, product diversification, and targeted R&D collaborations.

• Ultrafine nickel powder production lines: planned CAPEX to expand capacity by ~40-60% over 2024-2026, targeting an additional 1,200-2,000 tonnes/year of ultrafine nickel powders to support battery and catalyst markets.
• Submicron & micron multi-element alloy powders: development pipeline aimed at supplying upgraded passive electronic components with target impurity control < 50 ppm and particle-size distribution d50 = 0.3-1.2 μm.
• Silicon-based new energy materials: collaborative programs with battery makers to improve energy density by 5-12% and cycle life by 10-25% versus baseline anode materials through optimized silicon-carbon composites.
• Silver-coated metal powders: product line expansion to serve conductive adhesives and EMI shielding with target electrical conductivity improvements of 15-30% over current offerings.
• R&D leverage: scaling laboratory-to-pilot conversion to reduce time-to-market from 18-24 months to 9-15 months for key new formulations.
• Market outreach: participation in major trade fairs (e.g., 2025 SNEC) to secure OEM supply contracts and channel partners across Asia, Europe, and North America.

Strategic R&D collaborations are central to scaling from specialty powder formulations to high-volume production. Expected near-term financial implications include:

• Capital expenditure: staged investments concentrated in 2024-2026 to support new lines and pilot facilities.
• Revenue mix shift: goal to increase high-margin specialty powders share from current mid-single digits to 20-30% of product revenue within 3 years.
• Margin expansion: targeted gross margin improvement of 2-6 percentage points as scale and higher-value products ramp.
• Working capital: elevated inventory and receivables in ramp phase; projected DSO increase of 5-10 days during customer qualification cycles.

Operational and market risks to monitor:

• Supply chain: nickel and silver price volatility can compress margins; hedging and long-term procurement agreements will be critical.
• Customer qualification: multi-month qualification cycles for battery and electronics customers could delay revenue recognition.
• Regulatory & environmental compliance: expanded powder production requires investment in emissions controls and safety systems, affecting capex and timeline.

Key performance indicators investors should track quarterly:

• Production utilization rates of new lines (%).
• Revenue contribution from ultrafine nickel, silicon-based, and silver-coated product families (RMB, % of total).
• Gross margin and R&D-to-sales ratio.
• Order backlog and customer qualification conversion rates.

For context on company direction and corporate priorities, see: Mission Statement, Vision, & Core Values (2026) of Jiangsu Boqian New Materials Stock Co., Ltd.