Breaking Down Aerospace Hi-Tech Holding Group Co., Ltd. Financial Health: Key Insights for Investors

Dive into a data-driven look at Aerospace Hi‑Tech Holding Group Co., Ltd. (000901.SZ), where Q3 2025 revenue fell to CNY 1.14 billion (down 31.82% year‑over‑year after the sale of overseas subsidiary AC), the TTM revenue stands at CNY 6.00 billion (a 15.19% YoY decline) despite a full‑year 2024 revenue of CNY 6.90 billion (+1.37% vs. 2023); profitability shows a rebound with Q3 2025 net income of CNY 5.93 million (+140.16% YoY) and a TTM net income of CNY 117.99 million (TTM net margin 1.97%), yet valuation and leverage paint a mixed picture-market cap CNY 19.48 billion, enterprise value CNY 18.94 billion with EV/EBITDA 43.25 and EV/revenue 3.16, total assets of CNY 7.11 billion versus liabilities of CNY 2.62 billion (debt‑to‑equity ~0.10) and total equity CNY 4.49 billion; liquidity and cash show strengths and strains with a current ratio of 2.23, quick ratio 1.34, cash and short‑term investments at CNY 1.16 billion (up 55.17% YoY) and operating cash flow of CNY 402 million but negative free cash flow of CNY -275.42 million-against risks like ~60% revenue concentration in the top five customers, a <5% revenue footprint in emerging markets, and raw material pressure after a 20% aluminum price jump in 2022-read on for the detailed breakdown of metrics such as ROE (2.87%), EPS (TTM CNY 0.15) and P/E (around 161-165x) to decide how these figures shape the investment case.

Aerospace Hi-Tech Holding Group Co., Ltd. (000901.SZ) Revenue Analysis

• Q3 2025 revenue: CNY 1.14 billion (down 31.82% year‑over‑year).
• TTM revenue (most recent twelve months): CNY 6.00 billion (down 15.19% YoY).
• Full‑year 2024 revenue: CNY 6.90 billion (up 1.37% vs. 2023).

• Asset disposal impact: The sale of overseas subsidiary AC materially reduced current-period revenue, explaining a significant portion of the Q3 2025 decline.
• Customer concentration: Top five customers contribute ~60% of total revenue, raising exposure to client churn or contract renegotiation.
• Commodity pressure: Volatile raw material costs-e.g., a ~20% increase in aluminum prices in 2022-have compressed margins and made pricing pass‑through challenging.

• High concentration suggests single‑customer or sector shocks can swing top line by a large percentage.
• Disposals can produce sharp quarter‑level declines even if underlying operations are stable; analysts should normalize for one‑off asset sales when assessing organic growth.

Aerospace Hi-Tech Holding Group Co., Ltd. (000901.SZ) - Profitability Metrics

• Q3 2025 net income: CNY 5.93 million (up 140.16% YoY vs Q3 2024).
• Q3 2025 net profit margin: 0.52% (up 159.09% YoY).
• TTM net income: CNY 117.99 million with a TTM net profit margin of 1.97%.
• Return on equity (ROE): 2.87%, indicating modest returns on shareholders' equity.
• Full year 2024 net income: CNY 12.28 million (vs a net loss of CNY 145.74 million in 2023).
• TTM EPS: CNY 0.15; P/E ratio: 161.82, implying a high market valuation versus current earnings.

• Profitability trajectory: swing from a CNY 145.74 million loss in 2023 to positive net income in 2024 and continued YoY quarterly recovery into Q3 2025.
• Margin context: Q3 2025 margin of 0.52% remains thin, despite a large percentage improvement, while TTM margin of 1.97% indicates still-limited operating leverage.
• Valuation note: EPS of CNY 0.15 versus a P/E of 161.82 signals that the market is pricing significant growth expectations into the stock relative to current earnings.

Aerospace Hi-Tech Holding Group Co., Ltd. (000901.SZ) - Debt vs. Equity Structure

• Total assets: CNY 7.11 billion
• Total liabilities (total debt incl. other liabilities): CNY 2.62 billion
• Total equity: CNY 4.49 billion
• Reported total debt-to-equity ratio: 9.30% (0.10 when expressed as debt/equity)
• Debt-to-EBITDA: 1.00
• Interest coverage ratio: 1.19
• Enterprise value: CNY 18.94 billion; EV/Revenue: 3.16

• A low debt-to-equity (0.10 / 9.30%) signals a conservative balance sheet with limited financial risk from leverage.
• Debt-to-EBITDA of 1.00 implies manageable debt relative to operating cash generation; repayment capacity appears adequate under normal operating conditions.
• Interest coverage at 1.19 is narrow-operating income covers interest, but with limited cushion if earnings decline or interest costs rise.
• Enterprise value of CNY 18.94 billion and EV/Revenue of 3.16 place valuation in a moderate band relative to revenue; investors should compare this to peers and growth expectations.

Aerospace Hi-Tech Holding Group Co., Ltd. (000901.SZ) - Liquidity and Solvency

Aerospace Hi-Tech Holding Group shows a conservative short-term coverage profile with meaningful cash increases but faces pressure from negative free cash flow. Key figures and implications are summarized below.

• Current ratio: 2.23 - more than twice the assets needed to cover short-term liabilities, signaling comfortable short-term solvency.
• Quick ratio: 1.34 - adequate immediate liquidity without relying on inventory.
• Cash & short-term investments: CNY 1.16 billion (+55.17% year-over-year), strengthening the liquidity buffer.
• Operating cash flow: CNY 402 million - positive cash generation from core operations.
• Free cash flow: CNY -275.42 million - indicates capital expenditures or other outflows exceed operating cash inflows.
• Effective tax rate: -17.05% - negative rate suggesting tax credits, benefits, or adjustments materially affecting after-tax results.

Investors should weigh the strong liquidity ratios and the sizable year-over-year cash build against the negative free cash flow and the unusual negative effective tax rate when assessing short-term solvency and the sustainability of cash generation. Additional context on capex, working capital trends, and the drivers of the tax position can be found alongside the company's strategic disclosures: Mission Statement, Vision, & Core Values (2026) of Aerospace Hi-Tech Holding Group Co., Ltd.

Aerospace Hi-Tech Holding Group Co., Ltd. (000901.SZ) - Valuation Analysis

• Market cap: CNY 19.48 billion
• Trailing P/E: 165.27 - indicates a steep premium relative to current earnings
• Enterprise value (EV): CNY 18.94 billion
• EV/EBITDA: 43.25 - implies investors are paying a high multiple for operating cash flow
• Price-to-Sales (P/S): 3.25
• Price-to-Book (P/B): 4.34
• Beta: 0.48 - lower volatility vs. broader market
• ROA: 0.55% and ROIC: 0.80% - modest asset and capital returns
• EV/Revenue: 3.16

• High P/E and EV/EBITDA: These indicate the market either expects meaningful future earnings growth or values non-earnings drivers (strategic assets, contracts, or sector scarcity). A P/E of 165.27 is consistent with either near-zero current EPS or a growth premium.
• Sales- and book-based multiples (P/S 3.25, P/B 4.34): Investors are favoring revenue and asset-light expansion narratives; however, P/B >4 suggests limited tangible equity cushion.
• Low profitability metrics (ROA 0.55%, ROIC 0.80%): Current returns on assets and invested capital are modest, which contrasts with the elevated price multiples and raises questions about the timing and realization of expected growth.
• Beta 0.48: Lower volatility can make the stock attractive to risk-sensitive investors even at higher valuations, but it also implies less leverage to market rebounds.

Aerospace Hi-Tech Holding Group Co., Ltd. (000901.SZ) - Risk Factors

Aerospace Hi-Tech Holding Group Co., Ltd. (000901.SZ) faces several material risks that investors should weigh alongside its financial statements and market position.

• High customer concentration: ~60% of revenue comes from the top five customers, increasing exposure to client loss, pricing pressure, and negotiation leverage shifts.
• Raw material cost volatility: a notable example is a ~20% rise in aluminum prices in 2022, which compressed gross margins and increased input-cost pass-through risk.
• Geographic revenue concentration: emerging markets (Southeast Asia, Africa, Latin America) account for <5% of total revenue, limiting diversification and growth runway in higher-growth regions.
• Regulatory and compliance burden: complex compliance requirements raise operating costs - compliance-related expenses are estimated to consume ~10% of total operational costs.
• Financial statement distortion from non-recurring transactions: the sale of its overseas subsidiary "AC" generated one-time investment income that materially affected pre-tax profit in the reported period.
• Cash-flow stress: reported free cash flow is negative at CNY -275.42 million, indicating cash outflows exceed operating cash inflows and raising liquidity and funding concerns.

Key monitoring triggers for investors:

• Changes in major-customer order patterns or contract renewals.
• Raw-material price trends and the company's hedging/contracting responses.
• Any recurring benefit from disposals-confirm core operating profit excluding one-offs.
• Quarterly cash-flow statements for improvement or further deterioration from CNY -275.42 million FCF.
• Progress on geographic expansion beyond the current <5% emerging-market revenue.

For the company's stated strategic context and values, see: Mission Statement, Vision, & Core Values (2026) of Aerospace Hi-Tech Holding Group Co., Ltd.

Aerospace Hi-Tech Holding Group Co., Ltd. (000901.SZ) - Growth Opportunities

• Core market exposure: automotive electronics & IoV - high secular demand from OEM electrification, connectivity, and software-defined vehicle trends.
• Capital redeployment: proceeds from the sale of overseas subsidiary AC can be reinvested into R&D, capacity expansion, or strategic M&A to accelerate core-business growth.
• Investor profile fit: a reported beta of 0.48 implies lower relative volatility, attractive to risk-averse investors seeking stable exposure to automotive tech.
• Internal funding capacity: positive operating cash flow of CNY 402 million supports organic investment without full reliance on external financing.
• Market validation: market capitalization of CNY 19.48 billion signals investor confidence and provides optionality for equity-financed growth initiatives.
• Valuation signaling growth expectations: an enterprise value-to-revenue (EV/Revenue) ratio of 3.16 indicates the market is pricing in above-average future revenue growth.

• Strategic uses for capital from the AC sale: accelerate IoV product commercialization, scale manufacturing for electronic control units (ECUs), expand software and services for connected vehicles, or pursue targeted acquisitions to fill technology gaps.
• Risk-managed growth: low beta paired with positive operating cash flow allows a balanced approach-pursue growth while maintaining financial stability.
• Valuation watchpoints: EV/Revenue of 3.16 suggests expectations for revenue acceleration; investors should monitor revenue growth rates, gross margins, and R&D-to-sales spend to validate the multiple.