SANYUAN(SH:600429) Zheng Quan Zhi Xing·2025-08-28 22:59Core Viewpoint - The recent financial report of San Yuan Co., Ltd. shows a decline in total revenue but an increase in net profit, indicating mixed performance in the company's financial health [1][2]. Financial Performance - For the first half of 2025, the company reported total revenue of 3.331 billion yuan, a year-on-year decrease of 13.77% [1]. - The net profit attributable to shareholders was 183 million yuan, reflecting a year-on-year increase of 43.33% [1]. - In Q2 2025, total revenue was 1.684 billion yuan, down 7.38% year-on-year, while net profit for the quarter was 95.1 million yuan, up 73.05% year-on-year [1]. - The gross margin was 24.55%, a decrease of 2.73% year-on-year, while the net margin increased to 5.35%, up 47.49% year-on-year [1]. Cost and Efficiency Metrics - Total selling, administrative, and financial expenses amounted to 755 million yuan, accounting for 22.67% of revenue, an increase of 4.62% year-on-year [1]. - The company’s return on invested capital (ROIC) was 1.76%, indicating weak capital returns, with a historical median ROIC of 2.47% over the past decade [2]. - The net profit margin was reported at 0.79%, suggesting low added value from products or services [2]. Cash Flow and Debt Situation - The current ratio stood at 0.92, indicating rising short-term debt pressure [1]. - Cash flow metrics show that cash and cash equivalents to current liabilities ratio is only 56.7%, and the average operating cash flow over the past three years relative to current liabilities is just 5.33% [2]. - The interest-bearing debt ratio reached 22.67%, with total interest-bearing liabilities to average operating cash flow over the past three years at 21.34% [2]. Earnings Forecast - Analysts expect the company's performance in 2025 to yield a net profit of 89 million yuan, with an average earnings per share of 0.06 yuan [3].