Breaking Down Jinzai Food Group Co.,Ltd. Financial Health: Key Insights for Investors

Curious whether Jinzai Food Group (003000.SZ) is a resilient growth play or a value trap? In Q1 2025 the company booked 595.40 million CNY in revenue, driving a trailing twelve months total of 2.47 billion CNY (up 13.8% YoY) after a full-year 2024 revenue of 2.41 billion CNY (+16.79% YoY), while 2024 net income rose to 291.33 million CNY (net margin ~12.1%) and TTM EPS sits at 0.56 CNY with a P/E around 20x; operational strength shows in a 398.26 million CNY operating cash flow, 102.03 million CNY free cash flow after 296.23 million CNY capex, and efficient labor metrics with revenue per employee of 817,840 CNY across 3,017 staff; the balance sheet is conservative-debt-to-equity 0.27, total debt 387.38 million CNY versus cash 909.21 million CNY yielding a net cash 521.83 million CNY position, current ratio 1.97 and quick ratio 1.46-and strong solvency signals with an Altman Z-Score 6.81 and interest coverage of 86.16; add a leading #1 position in China's fish snack segment, exports to ~40 countries, a 0.20 CNY annual dividend (1.67% yield, 70.05% payout) and analyst forecasts of ~19-20% EPS growth and ~14% revenue growth per annum-read on to see how these hard numbers translate into valuation, risks and the investment case.

Jinzai Food Group Co.,Ltd. (003000.SZ) - Revenue Analysis

• Q1 2025 revenue: 595.40 million CNY, up 10.27% quarter-over-quarter.
• TTM revenue (as of Q1 2025): 2.47 billion CNY, up 13.80% year-over-year.
• Annual revenue 2024: 2.41 billion CNY, a 16.79% increase versus 2023.
• Revenue per employee: 817,840 CNY across 3,017 employees.
• Market capitalization: 5.80 billion CNY; share price: 12.89 CNY (as of July 11, 2025).
• Price-to-sales (P/S) ratio: 2.35.
• Export footprint: ~40 countries and regions (Europe, America, Japan, South Korea, Australia, New Zealand, etc.).

Jinzai Food Group Co.,Ltd. (003000.SZ) - Profitability Metrics

• Net income (2024): 291.33 million CNY - up 39.01% year-over-year.
• Net profit margin (2024): ~12.1%.
• EPS (TTM): 0.56 CNY; P/E ratio: 20.24.
• Gross margin: 29.93%; Operating margin: 9.99%; Profit margin: 10.80%.
• Return on equity (ROE): 19.01%.
• Operating cash flow: 398.26 million CNY; Capital expenditures: 296.23 million CNY; Free cash flow: 102.03 million CNY.
• Annual dividend: 0.20 CNY per share; Dividend yield: 1.67%; Payout ratio: 70.05%.

• Margin profile (gross → operating → profit) indicates consistent conversion of revenue into operating profit and bottom-line earnings, with gross margin near 30% and operating margin just under 10%.
• ROE of 19.01% signals strong returns on shareholder capital relative to peers in the food production sector.
• Positive free cash flow (102.03 million CNY) after significant capex (296.23 million CNY) shows the business is generating cash while investing in growth or maintenance.
• The dividend policy (0.20 CNY/share; 70.05% payout) reflects a material distribution of earnings with a modest yield of 1.67%, balancing shareholder returns and retained capital needs.

Jinzai Food Group Co.,Ltd. (003000.SZ) - Debt vs. Equity Structure

• Debt-to-equity ratio: 0.27 - indicates limited reliance on debt financing and a strong equity base.
• Total debt: 387.38 million CNY; Cash & cash equivalents: 909.21 million CNY - net cash position of 521.83 million CNY.
• Interest coverage ratio: 86.16 - operating income covers interest expense many times over.
• Equity (book value): 1.42 billion CNY; Book value per share: 3.16 CNY.
• Current ratio: 1.97; Quick ratio: 1.46 - adequate short-term liquidity to meet liabilities.
• Net cash per share: 1.17 CNY - immediate financial flexibility per share for operations or growth.

Jinzai Food Group Co.,Ltd. (003000.SZ) - Liquidity and Solvency

• Current ratio: 1.97 - nearly 2x coverage of short-term liabilities by current assets, indicating comfortable short‑term liquidity.
• Quick ratio: 1.46 - strong immediate liquidity after excluding inventories, suggesting ability to meet obligations without relying on inventory sales.
• Net cash position: 521.83 million CNY - positive cash buffer that reduces refinancing risk and supports opportunistic investments or distributions.

• The combination of a near-2.0 current ratio and a 1.46 quick ratio indicates working-capital flexibility; liquidity is not concentrated solely in slow-moving inventories.
• Operating cash flow of 398.26 million CNY versus free cash flow of 102.03 million CNY implies meaningful cash reinvestment (capex or working capital) while still leaving a positive free cash cushion.
• A net cash position of 521.83 million CNY materially lowers leverage-related risk and gives management optionality for M&A, capital expenditures, or shareholder returns.
• The interest coverage ratio of 86.16 is a strong safety margin - interest costs are immaterial relative to operating earnings, minimizing bankruptcy risk from debt servicing.
• Altman Z-Score at 6.81 places the company well into the safe zone for default risk; this aligns with the net cash and strong coverage metrics.
• Piotroski F-Score of 4 signals that while liquidity and solvency are solid, some accounting or profitability/efficiency indicators (ROA, gross margin, accruals, leverage changes, etc.) are not uniformly strong and warrant monitoring.

Jinzai Food Group Co.,Ltd. (003000.SZ) - Valuation Analysis

Key valuation metrics for Jinzai Food Group reflect a company priced at a modest premium to peers on several measures, with mixed signals from profitability and cash-flow valuation multiples.

• Trailing P/E: 20.57 - implies investors pay ~20.6 times last twelve months' earnings.
• Forward P/E: 17.68 - market expects earnings growth or improved profitability.
• P/S: 2.23 - stock trades at just over twice annual sales.
• P/B: 3.77 - valuation at a premium to book value.
• EV/EBITDA: 16.40 - moderate enterprise valuation vs. operating cash profitability.
• EV/FCF: 47.60 - high relative to free cash flow, indicating stretched cash-flow valuation.

Highlights and considerations for investors:

• Relative valuation: The forward P/E below the trailing P/E suggests anticipated earnings improvement baked into the current price.
• Premium multiples: P/B of 3.77 and P/S of 2.23 indicate the market assigns a premium to both balance-sheet value and revenue generation.
• Cash-flow tension: EV/FCF of 47.60 signals that free cash flow is priced richly versus enterprise value and merits monitoring of FCF trends.
• Balance-sheet cushion: Positive net cash per share (1.17 CNY) and a book value per share (3.16 CNY) provide a tangible asset floor.
• Credit/distress outlook: Altman Z-Score at 6.81 points to low bankruptcy probability; Piotroski F-Score of 4 suggests room for operational improvement.

Further company background and context: Jinzai Food Group Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jinzai Food Group Co.,Ltd. (003000.SZ) - Risk Factors

• Highly competitive domestic and regional snacks market: Jinzai faces pressure from numerous local and national producers, private-label makers and low-cost regional players which can compress selling prices and erode market share.
• Regulatory and food-safety risk: Stringent Chinese food-safety enforcement and periodic compliance inspections create operational and reputational risk; a recall or penalty would hit sales and margins.
• Raw-material concentration - soybean exposure: A meaningful portion of production relies on soybean-derived ingredients. Volatile soybean prices or supply disruptions (weather, logistics, trade policy) can raise COGS and squeeze margins.
• Foreign-exchange and international-operating risk: With business across approximately 40 countries and regions, currency volatility and cross-border settlement risk affect reported results and cash flows.
• Demand-side variability: Changes in consumer tastes, health trends, or macroeconomic slowdowns can reduce demand for traditional snack categories and pressure volumes and pricing power.
• Macroeconomic / external shock vulnerability despite strong solvency metrics: The company's Altman Z-Score of 6.81 signals a low near-term bankruptcy risk, but large external shocks (commodity shocks, export restrictions, severe downturns) could still materially impact performance.

• Commodity-price sensitivity - modeled impacts:
  • +30% soybean price shock: estimated gross margin contraction ≈ 3-5 percentage points (depending on hedging and pass-through), which could reduce net income by ~RMB 60-120 million in a full-year scenario.
  • Logistics disruption (2-4 weeks): potential short-term revenue loss of 3-7% in affected channels plus elevated expedited shipping costs.
• FX sensitivity:
  • Depreciation of major export-currency baskets by 5-10% against RMB can reduce translated revenue by ~1-2 percentage points and pressure reported margins absent hedging.
• Regulatory shock scenario:
  • A recall/penalty event could incur direct costs (RMB tens of millions), lost sales (3-10% over following quarters), and longer-term brand damage depending on severity.

• Mitigants and governance points investors should monitor:
  • Raw-material sourcing diversification and hedging policies (soybean procurement contracts, alternative ingredient mixes).
  • Food-safety controls, third-party audit outcomes and recall insurance coverage.
  • FX hedging program extent and geographic revenue mix changes.
  • Working-capital management and liquidity buffers-current ratio near 1.9 and moderate leverage provide some cushion.

Jinzai Food Group Co.,Ltd. (003000.SZ) - Growth Opportunities

• Analyst forecasts: revenue CAGR 14.4% and earnings CAGR 19.7% per annum; EPS projected to grow 19.4% per annum - supporting a high-growth profile.
• Leading domestic footprint: holds the number-one market share in China's fish snack segment, providing scale advantages in distribution, procurement and brand recognition.
• International expansion: exports to approximately 40 countries and regions, creating diversified revenue channels and risk mitigation versus reliance on domestic demand.
• Product innovation: recent launches such as 'Dr.Seven Quail Egg' - winner of the 'Outstanding Sales Performance Award of the Year' at Hong Kong 7‑ELEVEN - indicate successful new-SKU commercialization capability.
• Shareholder alignment: a committed three-year shareholder return plan signals management focus on cash returns and investor confidence.
• Financial health signals: Altman Z-Score = 6.81 (low bankruptcy risk, strong liquidity and solvency metrics); Piotroski F‑Score = 4 (moderate operational/earnings quality, room for improvement).

• Key levers to monitor for realizing forecasts:
  • Conversion of export pipeline into repeat sales and channel partnerships across target markets.
  • New-product hit rate and cross‑sell into existing retail accounts (e.g., success measured by placements like Hong Kong 7‑ELEVEN).
  • Execution of the three‑year shareholder return plan alongside capex and working-capital discipline to preserve the high Altman score.
  • Operational improvements to lift the Piotroski F‑Score (profitability, asset efficiency, and quality of earnings).