LHM(SZ:002535) Zheng Quan Zhi Xing·2025-08-29 22:41Core Insights - Linzhou Heavy Machinery (002535) reported a total revenue of 906 million yuan for the first half of 2025, a year-on-year increase of 3.02%, but the net profit attributable to shareholders decreased by 47.5% to 50.54 million yuan [1] - The company's second-quarter revenue was 512 million yuan, down 5.26% year-on-year, with a net profit of 27.37 million yuan, reflecting a significant decline of 60.4% [1] - The company's liquidity pressure has increased, with a current ratio of 0.65, indicating potential short-term financial challenges [1] Financial Performance - Revenue for 2025: 906 million yuan, up 3.02% from 2024 [1] - Net profit for 2025: 50.54 million yuan, down 47.5% from 2024 [1] - Gross margin: 17.82%, down 40.8% year-on-year [1] - Net margin: 5.58%, down 49.04% year-on-year [1] - Total expenses (selling, administrative, financial): 98.09 million yuan, accounting for 10.83% of revenue, down 21.78% year-on-year [1] - Earnings per share: 0.06 yuan, down 47.54% year-on-year [1] Cash Flow and Debt Analysis - Cash flow per share: 0.19 yuan, up 74.97% year-on-year [1] - Cash and cash equivalents: 330 million yuan, up 20.11% year-on-year [1] - Interest-bearing debt: 1.726 billion yuan, down 11.6% year-on-year [1] - Current liabilities to cash ratio: 13.93% [3] - Interest-bearing debt ratio: 39.22% [3] Historical Performance and Investment Considerations - The company's historical return on invested capital (ROIC) was 8.24%, indicating average capital returns [3] - The median ROIC over the past decade was 1.58%, with a significant loss in 2019 at -38.05% [3] - The company has reported losses in 5 out of 14 annual reports since its listing, suggesting a generally weak financial performance [3]