Breaking Down Jiangsu Cai Qin Technology Co., Ltd Financial Health: Key Insights for Investors

Dive into a data-driven look at Jiangsu Cai Qin Technology Co., Ltd (688182.SS): in Q3 2025 the company posted revenue of CNY 203.75 million (a 151.38% Y/Y surge) and TTM revenue of CNY 632.79 million (+68.17% Y/Y), while its market capitalization sat near CNY 9.64 billion (P/S ~15.24) as investors priced lofty growth expectations against a trailing P/E of 133.28; profitability shows a TTM gross margin of 29.71% and net income of CNY 65.88 million (net margin 14.07%), balance sheet strength is evident with total assets of CNY 2.615 billion, cash and equivalents of CNY 920.73 million vs. minimal debt (debt-to-equity 0.01), liquidity metrics (current ratio 3.67, quick ratio 3.13) and an Altman Z-Score of 13.1 underscore low bankruptcy risk even as heavy capex (CNY 385.98 million, FCF -CNY 331.96 million) and a high EV/EBITDA (100.75) flag valuation and cash-flow pressures worth weighing alongside sector concentration, customer exposure, and growth levers such as R&D, market expansion and strategic partnerships

Jiangsu Cai Qin Technology Co., Ltd (688182.SS) - Revenue Analysis

• Q3 2025 (quarter ending Sep 30, 2025) revenue: CNY 203.75 million - up 151.38% year-over-year.
• TTM revenue as of Sep 30, 2025: CNY 632.79 million - up 68.17% year-over-year.
• Full-year 2024 revenue: CNY 410.90 million - up 11.09% vs. 2023.

• Primary growth engine in 2025: increased demand from semiconductor and electronic components customers, contributing to the outsized quarterly and TTM growth rates.
• Scale and productivity: revenue per employee ≈ CNY 734,940 (861 employees).
• Valuation context as of Nov 12, 2025: market capitalization CNY 9.64 billion, implying a price-to-sales (P/S) ratio of 15.24 on TTM revenue.

Jiangsu Cai Qin Technology Co., Ltd (688182.SS) - Profitability Metrics

• Net income: CNY 65.88 million (period ended 2025-03-31)
• Net profit margin: 14.07%
• Operating income: CNY 36.95 million; operating margin: 8.82%
• TTM gross margin: 29.71%
• Return on equity (ROE): 3.52%
• Return on assets (ROA): 1.11%
• TTM earnings per share (EPS): CNY 0.16; trailing P/E: 133.28

• Profitability profile: A 14.07% net margin on recent period results and a near-30% gross margin indicate solid product-level profitability; operating margin (8.82%) shows some margin compression after operating costs.
• Capital efficiency: ROE of 3.52% and ROA of 1.11% are relatively low versus peers, suggesting the firm generates modest returns from equity and asset bases-important when assessing growth financing needs.
• Valuation signal: The trailing P/E of 133.28, given a TTM EPS of CNY 0.16, implies the market is pricing substantial future growth or limited earnings visibility; investors should reconcile this multiple with revenue growth and margin sustainability.
• Short-term vs. structural strength: Strong TTM gross margin (29.71%) points to cost control or favorable product mix, while lower operating and net margins highlight operating leverage limits or SG&A/R&D impacts.

Jiangsu Cai Qin Technology Co., Ltd (688182.SS) - Debt vs. Equity Structure

• Total assets: CNY 2,615.00 million
• Total liabilities: CNY 375.57 million
• Equity (book value): CNY 2,220.00 million
• Cash & equivalents: CNY 920.73 million
• Total debt: CNY 31.38 million

• Extremely low debt-to-equity (0.01) indicates minimal reliance on external borrowings and limited interest burden.
• High current (3.67) and quick (3.13) ratios confirm strong short-term liquidity - the company can meet obligations without liquidating long-term assets or depending on inventory conversions.
• Net cash position (CNY 920.73M cash vs. CNY 31.38M debt) provides strategic flexibility for capex, R&D, M&A or shareholder returns.
• Book value per share of CNY 5.51 offers a tangible equity floor relative to market pricing considerations.

Jiangsu Cai Qin Technology Co., Ltd (688182.SS) - Liquidity and Solvency

• Operating cash flow (TTM): CNY 54.02 million - positive cash generation from core operations.
• Capital expenditures (TTM): CNY 385.98 million - substantial capex tied to capacity expansion.
• Free cash flow (TTM): -CNY 331.96 million - negative due to elevated investment outlays.
• Interest coverage ratio: 346.29 - very strong ability to service interest expenses.
• Altman Z-Score: 13.1 - indicates very low bankruptcy risk and robust financial stability.
• Piotroski F-Score: 4 - suggests moderate financial strength across profitability, leverage, and efficiency metrics.
• Net cash per share: CNY 2.22 - provides a liquidity cushion on a per-share basis.

• The company is generating cash from operations but free cash flow is negative due to strategic capex - monitor return on invested capital and timeline for capex to translate into incremental cash flows.
• Extremely high interest coverage and a strong Altman Z-Score reduce solvency concerns in the near term.
• A Piotroski F-Score of 4 signals room for operational and profitability improvement; watch margin trends and working capital management.
• Net cash per share of CNY 2.22 offers a per-share liquidity cushion, useful if investment spending or external financing needs shift.

Jiangsu Cai Qin Technology Co., Ltd (688182.SS) - Valuation Analysis

• Trailing P/E: 133.28 - extremely high historical earnings multiple, indicating slim current EPS or strong optimism about future profit expansion.
• Forward P/E: 72.18 - lower than trailing P/E but still very elevated, implying analysts expect earnings to increase materially versus recent trailing levels.
• P/S: 18.68 - investors pay CNY 18.68 for every CNY 1 of revenue, signaling a premium growth pricing environment or scarce comparable peers.
• P/B: 4.28 - market values net assets at over four times book, reflecting confidence in intangible growth drivers or low book equity base.
• EV/EBITDA: 100.75 - suggests enterprise value is very high relative to operating cash earnings, flagging valuation sensitivity to EBITDA improvements.
• EV/FCF: -26.09 - negative free cash flow (FCF) produces a negative multiple; typically driven by large capex or working capital outflows.
• Market capitalization (24-Oct-2025): CNY 10.42 billion; Enterprise value: CNY 9.66 billion.

• Key investor considerations:
  • Growth expectations embedded in multiples require consistent revenue and margin acceleration to justify current price.
  • Negative FCF and high EV/EBITDA increase execution and financing risk-capex recovery and margin expansion are critical.
  • Relative valuation: these multiples place the company in a high-growth/early-profitability valuation bucket versus traditional industrial peers.
• Valuation sensitivity:
  • A modest downgrade to projected EBITDA or EPS would materially raise implied valuations (P/E, EV/EBITDA) and could pressure the share price.
  • Improved FCF from reduced capex or working capital improvements would quickly normalize EV/FCF and de-risk the present valuation.

Jiangsu Cai Qin Technology Co., Ltd (688182.SS) - Risk Factors

• Highly competitive sector: The semiconductor and electronic components market is characterized by rapid technology turnover, aggressive pricing and consolidation. Global semiconductor market size was roughly $600 billion in 2023 with an expected near‑term CAGR of ~6-8%, increasing pressure on margins for smaller suppliers and niche manufacturers.
• Significant capital expenditures: Ongoing investments in fab/assembly/test equipment and automation can compress short‑term profitability and cash flow. For comparable STAR Market equipment-focused peers, annual capex often ranges from 15-35% of revenue in expansion phases, which may force reliance on external financing or delay positive free cash flow.
• Demand cyclicality and global exposure: Revenue is sensitive to swings in end‑market demand (PCs, mobile, automotive, industrial). Industry cycles can produce revenue troughs of 20-40% for suppliers during downcycles, creating sizeable working capital and utilization risks.
• Customer concentration risk: Dependence on a limited number of key customers increases counterparty risk; loss or renegotiation of major contracts can materially reduce near‑term revenue and utilization rates.
• Regulatory and trade policy risk: Changes in domestic or international semiconductor regulation, export controls, subsidy regimes, or standards can affect market access, supplier choices and capital planning.
• Supply chain fragility: Shortages of critical materials (silicon, specialty chemicals, packaging substrates) or single‑source components can disrupt production. Lead‑time shocks and logistics constraints can raise input costs and delay shipments.

• Key quantitative metrics investors should track for Jiangsu Cai Qin Technology Co., Ltd (688182.SS): quarterly revenue growth (%), gross margin (%), R&D and capex as % of revenue, operating cash flow and free cash flow, net debt / EBITDA, top‑5 customer concentration (% of revenue), inventory days and accounts receivable days.
• Stress scenarios to model: a 25% cyclical revenue decline, a 30% temporary utilization drop from customer loss, and a one‑time capex overrun equal to 10-20% of planned expansion - each scenario's effect on liquidity (months of cash runway) and covenant compliance should be quantified.

Jiangsu Cai Qin Technology Co., Ltd (688182.SS) - Growth Opportunities

Jiangsu Cai Qin Technology Co., Ltd (688182.SS) sits at the intersection of rising semiconductor demand and targeted technology investment. The company's path to scale is supported by market dynamics, R&D intensity, and strategic options that can expand revenue, margins, and long-term valuation.

• Addressable market expansion: China's semiconductor components market is estimated at ~RMB 300 billion (2023) with a projected CAGR of ~12% through 2028; select emerging markets (Southeast Asia, India) show device/component CAGRs of ~13-18%.
• Product & technology pipeline: Continued roll-out of higher-margin specialty components (e.g., power management, RF modules) can lift ASPs and gross margins.
• Partnerships & ecosystem play: Collaborations with IDM/foundry partners and packaging houses can accelerate qualification cycles and broaden customer stickiness.
• Policy tailwinds: Domestic support-subsidies, local procurement preferences and semiconductor self-reliance programs-can reduce time-to-market and lower customer acquisition friction.
• R&D-led differentiation: Sustained R&D investment (see table) is critical to move up the value chain and capture systems-level design wins.
• M&A and consolidation: Acquiring specialized smaller vendors or assembly/test capabilities can shorten timelines to new end-markets and increase combined market share.

• Emerging-market expansion: Prioritize distributors and localized engineering support in ASEAN and India where smartphone, automotive and IoT growth is strongest; target a 3-5% revenue mix shift offshore annually to diversify customer concentration.
• New-product commercialization: Accelerate sampling-to-production cycles for next-gen components; aim to move 25-30% of portfolio to differentiated/ patented SKUs over 3 years.
• Strategic alliances: Seek JV or supply agreements with mid-tier foundries and packaging firms to secure capacity, reduce lead times, and co-develop modules for automotive and industrial clients.
• R&D & talent investment: Scale R&D headcount and capital equipment to sustain ~8-10% of revenue investment in R&D, supporting roadmap execution and higher-margin offerings.
• M&A playbook: Target tuck-in acquisitions with annual revenue of RMB 30-150 million that supply complementary technologies (e.g., sensor fusion, power modules) to accelerate addressable market capture.

For deeper context on shareholder composition and investor interest that could influence strategic funding for growth, see: Exploring Jiangsu Cai Qin Technology Co., Ltd Investor Profile: Who's Buying and Why?