Breaking Down Jinan Shengquan Group Share Holding Co., Ltd. Financial Health: Key Insights for Investors

Curious whether Jinan Shengquan Group is a growth story or a steady-value play? The numbers tell a striking tale: Q1 2025 revenue rose to CNY 2.46 billion (up 15.1% year‑over‑year) and trailing twelve‑month revenue reached CNY 10.74 billion (a 14.55% Y/Y lift), while Q1 net income jumped to CNY 206.71 million (a 50.4% surge) contributing to a TTM net income of CNY 1.05 billion and an EPS of CNY 1.24; profitability is solid with a ROE of 10.08% and a net margin near 9.6%, valuation mixes P/E ~21.6 (forward 16.4), P/S around 2.0 and market caps near CNY 22-23 billion, balance sheet metrics show conservative leverage with a debt‑to‑equity of 0.28, strong interest coverage (42.34), adequate liquidity (current ratio 1.89, quick ratio 1.12) despite cash of CNY 1.02 billion and rising receivables of CNY 3.82 billion, and the firm's steady revenue-per-employee (~CNY 2.89 million), share buybacks and low debt underline conservative financing - yet exposure to raw material swings, regulatory risks and customer concentration sits alongside clear expansion levers like international growth, R&D, sustainable product development and M&A, so read on to see how these precise metrics shape potential investment outcomes

Jinan Shengquan Group Share Holding Co., Ltd. (605589.SS) - Revenue Analysis

• Q1 2025 revenue: CNY 2.46 billion (up 15.1% YoY).
• 2024 full-year revenue: CNY 10.02 billion (up 9.87% YoY vs. 2023).
• TTM revenue (as of Oct 24, 2025): CNY 10.74 billion (up 14.55% YoY).
• Revenue per employee: ~CNY 2.89 million; headcount: 3,712 employees.
• Market capitalization (Oct 24, 2025): CNY 23.38 billion; P/S ratio: 2.18x.
• Five-year revenue growth: positive and consistently upward.

• Scale and efficiency: revenue per employee (~CNY 2.89M) indicates solid productivity for a diversified industrial group.
• Valuation context: with P/S ~2.18x (market cap CNY 23.38B vs. TTM revenue CNY 10.74B), investors are pricing moderate growth and profitability expectations into the stock.
• Growth trend: sequential and YoY increases (Q1 2025 +15.1%; TTM +14.55%) suggest the company is capturing market share or benefiting from pricing/volume tailwinds.
• Data & further corporate context: Jinan Shengquan Group Share Holding Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jinan Shengquan Group Share Holding Co., Ltd. (605589.SS) - Profitability Metrics

Jinan Shengquan Group Share Holding Co., Ltd. (605589.SS) demonstrates solid profitability backed by recent earnings growth and improving operational efficiency.

• Q1 2025 net income: CNY 206.71 million (up 50.4% year-over-year vs Q1 2024).
• Trailing twelve months (TTM) net income (as of 2025-10-24): CNY 1.05 billion.
• Return on equity (ROE): 10.08%, indicating efficient use of shareholders' equity.
• Net profit margin: ~9.6%, reflecting solid profitability relative to revenue.
• TTM earnings per share (EPS): CNY 1.24; Price-to-earnings (P/E) ratio: 21.75.
• Operating profit: sustained positive trend over recent years, signaling improving operational efficiency.

For further context on ownership and investor behavior, see: Exploring Jinan Shengquan Group Share Holding Co., Ltd. Investor Profile: Who's Buying and Why?

Jinan Shengquan Group Share Holding Co., Ltd. (605589.SS) - Debt vs. Equity Structure

• Debt-to-Equity Ratio: 0.28 - indicates limited use of debt relative to equity.
• Interest Coverage Ratio: 42.34 - reflects a very strong ability to service interest expenses from operating earnings.
• Total Assets: CNY 14.5 billion - provides scale context for the balance sheet.
• Total Liabilities: not specified - reported figures emphasize asset base and equity growth, while detailed liabilities breakdown is unavailable in the provided data.
• Equity Base: steadily growing - driven by retained earnings and capital contributions.
• Share Repurchases: active programs undertaken - signals management confidence in intrinsic value.
• Financing Mix: balanced with no significant reliance on debt financing.

• Key investor takeaway: the combination of a 0.28 debt-to-equity ratio and a 42.34 interest coverage ratio positions Jinan Shengquan Group (605589.SS) as financially conservative with strong liquidity to meet interest obligations, while equity growth and buybacks signal management's confidence in long-term value creation.
• Disclosure note: absence of detailed liabilities breakdown means investors should review full financial statements for maturity profile, contingent liabilities, and off-balance-sheet exposures.

Jinan Shengquan Group Share Holding Co., Ltd. (605589.SS) - Liquidity and Solvency

• Current ratio: 1.89 - adequate short-term liquidity.
• Quick ratio: 1.12 - sufficient ability to cover immediate liabilities without inventory.
• Cash and cash equivalents (Sep 2025): CNY 1.02 billion (down 5.43% vs. prior period).
• Accounts receivable (latest): CNY 3.82 billion - +22.5% year-over-year.
• Solvency profile: supported by a strong equity base and low debt levels; stable operating cash flows maintain liquidity.

• Notes for investors:
  • Rising accounts receivable (+22.5% YoY) warrants monitoring of collection cycles and credit exposure.
  • Cash dip (-5.43%) is modest given overall size and stable cash flows, but trend tracking is advised.
  • Strong current and quick ratios provide a buffer against short-term shocks.

Jinan Shengquan Group Share Holding Co., Ltd. (605589.SS) - Valuation Analysis

• Trailing P/E: 21.60 - reflects recent profitability and current market pricing.
• Forward P/E: 16.40 - implies earnings growth expectations and potential undervaluation versus trailing P/E.
• P/S ratio: 1.99 - indicates the market values the company at just under 2× annual sales, a moderate sales multiple.
• P/B ratio: 2.00 - suggests the stock trades at roughly twice book value, consistent with a company showing profitable reinvestment.
• Market capitalization (as of 20 Oct 2025): CNY 22.43 billion; Enterprise Value: CNY 25.11 billion - EV includes debt and minority interests, narrowing the premium over market cap.
• Valuation vs. peers: metrics align with industry averages, pointing to fair market valuation rather than a stretched premium.

• Reasonableness of valuation: The gap between trailing and forward P/E signals expected earnings improvement, supporting the lower forward multiple.
• Sales and book-value context: P/S ~2.0 and P/B ~2.0 are typical for established manufacturers/services in the sector and align with industry medians.
• Market-cap vs. EV: EV premium (~CNY 2.68 billion) indicates net debt or other enterprise adjustments are moderate and priced in.

Jinan Shengquan Group Share Holding Co., Ltd. (605589.SS) Risk Factors

• Regulatory and environmental compliance: tightening emissions, waste-handling standards, and chemical safety regulations can require significant capital expenditure and may lead to fines or capacity curtailment.
• Raw material price volatility: feedstock inputs (e.g., petrochemical derivatives, sulfuric acid intermediates) drive gross margins; sudden price spikes compress profitability.
• Competition: pressure from both domestic specialty-chemical peers and lower-cost international suppliers can force price concessions or require increased R&D and marketing spend.
• Demand cyclicality and macro sensitivity: downstream demand (e.g., coatings, textiles, pharmaceuticals intermediates) falls in economic downturns, producing revenue volatility.
• FX exposure: export sales and imported inputs expose margins to currency swings, particularly RMB vs. USD and RMB vs. EUR.
• Customer concentration: reliance on a limited set of large buyers increases counterparty risk if procurement strategies change or orders decline.

• Regulatory shock scenarios: a sudden tightening that requires retrofitting plants could result in capital expenditure equivalent to 6-12% of annual revenue and temporary production halts.
• Commodity shock scenarios: a 20% sustained rise in key feedstock costs without pass-through could reduce net margin by 2-4 percentage points.
• Customer-loss scenario: loss of a single top-5 client (approx. 8-12% of revenue) would likely force capacity underutilization and margin pressure until new contracts are secured.

• CapEx guidance and environmental spending disclosures-watch announced timelines and funding sources.
• Inventory and receivables trends-rising days sales outstanding or inventory build can strain liquidity.
• Hedging and FX policy-presence of FX/commodity hedges reduces volatility risk.
• Customer and product diversification-progress on expanding the client base or higher-margin product mix lowers concentration risk.

Jinan Shengquan Group Share Holding Co., Ltd. (605589.SS) - Growth Opportunities

• International expansion: moving beyond domestic demand to Asia, Europe, and North America can diversify revenue streams and reduce single‑market exposure.
• R&D investment: accelerating formulation, high‑purity grades, and application‑specific excipients can unlock premium pricing and new end‑market entry.
• Strategic acquisitions: bolt‑on acquisitions in adjacent chemistries or distribution networks can deliver rapid scale and cross‑sell synergies.
• Sustainable product development: low‑carbon, bio‑based, and recyclable intermediates meet growing regulatory and buyer preferences, command premiums, and support long‑term contracts.
• Digital and operational transformation: advanced process control, predictive maintenance, and sales‑force digitalization can boost margins by reducing downtime and improving conversion.
• Brand and customer‑service emphasis: stronger brand equity and technical support elevate switching costs for customers and expand penetration in regulated industries (pharma, nutraceuticals).

• Targeted international commercialization: establish distribution partnerships in EU/US and regulatory dossiers (e.g., DMFs, CEPs) to accelerate pharma market access.
• Prioritize R&D projects with clear ROI: focus on high‑value grades, co‑development with lead customers, and translational R&D that shortens time‑to‑market.
• Pursue strategic M&A: acquire complementary tech, capacity, or market access rather than only capacity‑add deals.
• Launch sustainable product lines: quantify lifecycle benefits (e.g., LCA improvements) and obtain third‑party sustainability credentials to win procurement mandates.
• Invest in digital tools: ERP/SCM upgrades, process analytics, and customer‑facing portals to reduce working capital and improve service levels.
• Elevate technical service and regulatory support: build a global technical application team to convert trials into long‑term supply contracts.