Breaking Down Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. Financial Health: Key Insights for Investors

Investor brief: Jiangsu Provincial Agricultural Reclamation and Development Co., Ltd. reported H1 2025 revenue of 4.588 billion yuan (down 9.26% year‑over‑year) with TTM revenue of 10.71 billion yuan and revenue per share TTM of 7.87 yuan, while market capitalization stood at 13.60 billion yuan on July 1, 2025 and the price‑to‑sales ratio was 1.27; profitability pressures are evident as H1 2025 net income attributable to shareholders fell to 213 million yuan (‑27.72% YoY), TTM EPS is 0.50 yuan with trailing P/E of 19.74 (forward P/E 13.90), gross margin TTM 13.23% and operating margin 6.22% (EBITDA TTM 1.05 billion yuan, ROE TTM 9.75%, ROA TTM 3.88%); the balance sheet shows total debt of 4.47 billion yuan with a debt‑to‑equity ratio of 66.53%, total cash of 3.44 billion yuan and current ratio of 3.32, supported by operating cash flow TTM of 2.16 billion yuan and book value per share of 5.04 yuan; valuation multiples include P/B 1.96, EV/Revenue 1.45 and EV/EBITDA 13.19, while key risks include commodity price volatility, a debt reliance reflected in the 66.53% D/E, a 12% YoY rise in operational costs in Q2 2023, digital transformation spend at 8% of CAPEX versus a 15% benchmark, potential regulatory water‑reduction cost increases of ~10% and possible market‑share erosion up to 5%; growth levers cited are crop diversification (projected +5% gross margin over two years), a cost‑reduction program targeting a 10% operating expense cut, the July 2025 acquisition of the remaining 28.75% stake in Dongguan Golden Sun Abrasives, and investments in sustainability and digital agriculture-read on for a detailed breakdown of what these figures mean for investors

Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. (601952.SS) - Revenue Analysis

• Reported revenue (1H 2025): 4.588 billion yuan (down 9.26% vs. 1H 2024).
• Primary drivers of the decline: low and narrow fluctuations in agricultural product prices and a decrease in agricultural input prices.
• TTM revenue (as of 2025-03-31): 10.71 billion yuan.
• Revenue per share (TTM): 7.87 yuan.
• Quarterly revenue growth: -8.70%.
• Market capitalization (2025-07-01): 13.60 billion yuan; P/S ratio: 1.27.

• Revenue sensitivity: narrow price swings in crops limit upside; lower input costs reduce gross revenue per unit even if volume is stable.
• Investor valuation context: P/S of 1.27 implies the market values each yuan of TTM revenue at ~1.27 yuan of equity value, suggesting moderate revenue-based valuation relative to peers.

Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. (601952.SS) - Profitability Metrics

Key profitability indicators for Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. reveal pressure on recent earnings while operational margins and asset returns remain positive. Below are the core figures investors should note for valuation, trend analysis, and comparative assessment.

• Net income attributable to shareholders (1H 2025): 213 million yuan - down 27.72% vs. 1H 2024.
• Net profit margin (TTM): 6.38%.
• Operating margin (TTM): 6.22%.
• Gross profit margin (TTM): 13.23%.
• EBITDA (TTM): 1.05 billion yuan.
• Earnings per share (EPS, TTM): 0.50 yuan; quarterly EPS growth: -36.20%.
• Return on assets (ROA, TTM): 3.88%.
• Return on equity (ROE, TTM): 9.75%.

For quick reference, key profitability metrics are summarized in the table below.

Implications for investors include margin stability relative to gross profit (13.23%) versus compressed net income and EPS decline, suggesting cost, volume, or non-operating factors impacted recent quarterly performance. For further investor-oriented context and shareholder composition details, see: Exploring Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. Investor Profile: Who's Buying and Why?

Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. (601952.SS) - Debt vs. Equity Structure

• Total debt: 4.47 billion yuan (as of 2025-03-31).
• Debt-to-equity ratio: 66.53% - debt equals roughly two-thirds of reported equity.
• Current ratio: 3.32 - current assets are 3.32 times current liabilities, indicating strong short-term solvency.
• Total cash: 3.44 billion yuan; cash per share: 2.50 yuan.
• Book value per share: 5.04 yuan.
• Operating cash flow (TTM): 2.16 billion yuan - providing ongoing internal funding for operations and debt service.

• With total cash of 3.44 billion CNY versus total debt of 4.47 billion CNY, the company holds cash equal to ~77% of its outstanding debt, improving near-term flexibility.
• Cash per share (2.50 CNY) represents a significant portion (~49.6%) of book value per share (5.04 CNY), signaling strong balance-sheet backing per share.
• Operating cash flow TTM at 2.16 billion CNY supports debt servicing and capex without sole reliance on external financing.

Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. (601952.SS) - Liquidity and Solvency

• Current ratio: 3.32 - indicates ample current assets to cover current liabilities (over 3x coverage).
• Operating cash flow (TTM): ¥2.16 billion - demonstrates strong cash generation from operations supporting working capital and capex needs.
• Total cash position: ¥3.44 billion - provides immediate liquidity to absorb short-term shocks or fund opportunistic needs.
• Debt-to-equity: 66.53% - a moderate leverage level suggesting use of debt but not excessive reliance on creditors.
• Book value per share: ¥5.04 - useful for assessing net asset backing per share relative to market price.
• Quick ratio: not provided - excluding inventory would give clearer view of truly liquid current assets.

• Operational cash strength (¥2.16B TTM) supports both working capital and potential debt servicing, reducing refinancing risk despite leverage.
• High current ratio and ¥3.44B cash mitigate short-term liquidity concerns; monitor quick ratio when available to assess inventory dependency.
• Debt-to-equity at ~66.5% signals moderate financial risk - investors should track interest coverage and maturity profile for solvency assessment.

Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. (601952.SS) - Valuation Analysis

• Trailing vs. forward P/E spread (19.74 → 13.90) suggests either expected earnings acceleration or a market re-rating based on near-term catalysts.
• P/B near 2.0 indicates investors pay a premium to book value, signaling confidence in asset utility or intangible value above carrying book.
• EV/EBITDA of 13.19 positions the company in a moderate valuation band relative to many agricultural and land-development peers - not deeply cheap but not expensive for stable cash-generating businesses.
• P/S of 1.27 combined with EV/Revenue of 1.45 shows that both equity and enterprise valuations place a similar, modest premium on revenue streams.
• Market cap of 13.60 billion CNY (as of 2025-07-01) plus EPS of 0.50 CNY implies the current share price is consistent with the reported multiples above.

Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. (601952.SS) Risk Factors

• Commodity price volatility

• A 10-15% decline in average wheat/oilseed realized prices could lower annual revenue by an estimated 6-8% and compress gross margin by 3-4 percentage points.
• Hedging coverage is limited; operational exposure remains concentrated in physical markets during peak seasons, increasing short-term earnings volatility.

• Leverage and liquidity

• Rising operational costs

• Labor costs increased ~9% YoY; inputs (fertilizers, seeds, energy) rose ~14% YoY.
• If costs continue rising at 8-12% annually without offsetting price recovery, EBITDA margin could fall 150-300 basis points.

• Underinvestment in digital transformation

• At current CAPEX levels, the 7-percentage-point gap implies missed efficiency gains and slower productivity improvements.
• Lower tech spend can translate into higher long-term operating costs and weaker yield improvements versus more digitized peers.

• Regulatory and environmental changes

• Estimated incremental operational cost increase: ~10% if new water-use limits and compliance investments are enacted.
• Capital required for compliance could pressure free cash flow and increase short-term leverage needs.

• Market competition and market share risk

• A 5% reduction in market share is modeled to reduce revenue proportionally and lower operating leverage, potentially shaving 4-6% off EBITDA if margins compress.

Jiangsu Provincial Agricultural Reclamation and Development Co.,Ltd. (601952.SS) - Growth Opportunities

• Product diversification: shifting mix toward resilient, higher-demand crops projected to lift gross margins by ~5% over the next two years (management guidance).
• Cost optimization: a cost‑reduction program targeting a 10% decline in operational expenses via process improvements and resource management.
• M&A: planned closing of the remaining 28.75% stake in Dongguan Golden Sun Abrasives (July 2025) to broaden product lines and distribution.

• Sustainability: investments aimed at lowering regulatory and ESG risk and attracting eco‑sensitive buyers; expected qualitative uplift in brand premium and access to green financing.
• Digital adoption: precision agriculture, IoT and data analytics pilots designed to raise yields, reduce input costs and shorten time-to-market.
• Marketing & brand: stronger branding and targeted campaigns to capture greater share of upstream and downstream channels.

• Realized gross margin increase and whether the projected +5% is captured in quarterly results.
• Actual OpEx savings versus the 10% target - impacts EBITDA and free cash flow.
• Post‑acquisition revenue and margin contribution from Dongguan Golden Sun Abrasives after July 2025 integration.