Shanghai Qingpu Fire Fighting Equipment Co., Ltd. Class H (8115) AI Stock Analysis

• Market Cap: HK$2.55B
• Dividend Yield: N/A
• Average Volume (3M): 4.93K
• Price to Earnings (P/E): 39.5
• Beta (1Y): -0.31
• Revenue Growth: 16.33%
• EPS Growth: -98.54%
• Country: HK
• Employees: 98
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 83,560,000
• 10 Day Avg. Volume: 2,800
• 30 Day Avg. Volume: 4,933
• PEG Ratio: -4.17
• Price to Book (P/B): 5.91
• Price to Sales (P/S): 10.53
• P/FCF Ratio: 338.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: HK$6.50 ▲(35.42% Upside)
• Action: Upgraded Date: 01/28/26
• Date: Action: Upgraded 01/28/26

The score is driven primarily by solid financial stability (low leverage, high equity ratio) and supportive technical momentum (price above major averages, positive MACD). These positives are tempered by weakening profitability and the absence of operating cash flow in 2024, while the extremely high P/E significantly drags the valuation component.

Positive Factors

Strong balance sheet / low leverage

Extremely low leverage and a 74% equity ratio provide durable financial resilience: reduces refinancing and insolvency risk, supports funding for capex or working capital internally, and gives strategic flexibility to pursue investments or withstand demand shocks over months.

Consistent revenue growth

Double-digit top-line growth reflects sustained demand or market share gains. Persistent revenue expansion supports economies of scale, ability to invest in product/service improvements, and provides a base for margin recovery if cost control follows, benefiting medium-term fundamentals.

Healthy gross and EBITDA margins

A near-30% gross margin and positive EBITDA margin signal structural product/service economics that can absorb SG&A and R&D. If management restores operating leverage, these core margins justify reinvestment and support sustainable earnings power over the coming quarters.

Negative Factors

Material net margin deterioration

A greater-than-50% drop in net margin suggests persistent cost pressures, pricing erosion, or non-operating losses that reduce profitability. If margins remain compressed, return generation and cash conversion will be impaired, weakening long-term earnings durability.

No operating cash flow in 2024

Absence of operating cash flow undermines self-funded growth and liquidity cushions. Even with past free cash flow, continued cash generation weakness may force external financing or capex cuts, constraining sustainable operations and investment over the medium term.

Low and declining ROE

ROE under 3% indicates the company is not efficiently converting equity into profits. With a large equity base but weak returns, shareholder value creation is limited unless profitability or asset turnover improves, posing a structural challenge for investors.

Shanghai Qingpu Fire Fighting Equipment Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Shanghai Qingpu Fire Fighting Equipment Co., Ltd. specializes in the manufacturing and distribution of fire fighting equipment and safety solutions. Operating within the Class H (8115) sector, the company provides a wide range of products, including fire extinguishers, fire hoses, fire protection systems, and emergency safety equipment. With a commitment to quality and innovation, the company serves various industries, ensuring compliance with safety regulations and offering tailored solutions to meet client needs.

How the Company Makes Money

The company generates revenue primarily through the sale of its fire fighting equipment and safety products to commercial, industrial, and governmental clients. Key revenue streams include direct sales of products, maintenance and servicing contracts for fire safety equipment, and training programs for fire safety compliance. Additionally, partnerships with construction firms and safety organizations help secure contracts for large-scale projects, further enhancing revenue opportunities. The company also benefits from ongoing demand for safety equipment due to regulatory requirements and increasing awareness of fire safety across various sectors.

Shanghai Qingpu Fire Fighting Equipment Co., Ltd. Class H Financial Statement Overview

Summary

Revenue grew 13.92% (2023→2024) and the balance sheet is strong with very low leverage (debt-to-equity 0.05; equity ratio 74.36%). Offsetting this, profitability weakened materially (net margin down to 5.15% from 11.49%) and 2024 shows a lack of operating cash flow, raising near-term quality-of-earnings and liquidity concerns.

Income Statement

The company has shown commendable revenue growth from 2023 to 2024, with an increase of 13.92%. The gross profit margin for 2024 is 29.67%, indicating strong profitability. However, the net profit margin decreased significantly from the previous year, falling to 5.15% from 11.49% in 2023. The EBIT margin and EBITDA margin for 2024 are 8.10% and 9.79%, respectively, showing a decrease from 2023. While the company is growing its revenue, declining margins indicate potential cost pressures or investment in growth initiatives.

Balance Sheet

The company maintains a strong financial position with a debt-to-equity ratio of 0.05, reflecting low leverage. The equity ratio of 74.36% indicates a solid equity base compared to total assets. Return on Equity (ROE) is 2.89%, down from previous periods, suggesting that while equity is strong, returns on it have declined. Overall, the balance sheet shows stability and low financial risk.

Cash Flow

Cash flow analysis shows a lack of operating cash flow in 2024, which raises concerns about the company's ability to generate cash from its core operations. This follows a positive free cash flow in 2023 of $13.298 million. The absence of free cash flow in 2024 highlights potential challenges in maintaining liquidity without additional financing or operational improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.39M	84.46M	74.14M	62.20M	72.83M	72.52M
Gross Profit	25.53M	25.07M	21.55M	16.91M	23.36M	20.46M
EBITDA	5.12M	8.27M	10.00M	5.25M	8.04M	1.64M
Net Income	159.00K	4.35M	8.52M	5.59M	59.75M	-1.40M
Balance Sheet
Total Assets	195.54M	202.43M	193.91M	181.35M	171.90M	109.36M
Cash, Cash Equivalents and Short-Term Investments	137.98M	148.43M	143.39M	129.64M	121.00M	30.60M
Total Debt	2.30M	8.23M	7.55M	9.39M	10.49M	13.51M
Total Liabilities	18.75M	28.48M	30.89M	31.24M	31.87M	35.98M
Stockholders Equity	150.61M	150.54M	145.21M	135.70M	129.62M	69.87M
Cash Flow
Free Cash Flow	0.00	2.62M	13.30M	7.98M	9.55M	9.64M
Operating Cash Flow	0.00	3.42M	13.78M	9.32M	11.38M	9.79M
Investing Cash Flow	0.00	2.49M	2.44M	842.00K	81.15M	-11.98M
Financing Cash Flow	0.00	-874.00K	-2.47M	-1.52M	-2.12M	6.19M

Shanghai Qingpu Fire Fighting Equipment Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8115, the sentiment is Positive. The current price of 4.8 is below the 20-day moving average (MA) of 11.04, below the 50-day MA of 7.37, and below the 200-day MA of 5.67, indicating a bullish trend. The MACD of 1.62 indicates Positive momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 23.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8115.

Shanghai Qingpu Fire Fighting Equipment Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0057	69 Neutral	HK$1.05B	4.73	4.79%	7.16%	17.21%	29.75%
8115	67 Neutral	HK$2.55B	39.54	1.80%	―	16.33%	-98.54%
3348	66 Neutral	HK$590.00M	2.77	8.36%	3.34%	-21.28%	-29.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1597	50 Neutral	HK$880.00M	-9.43	-18.61%	―	-30.04%	-116.46%
1645	48 Neutral	HK$2.18B	14.64	-6.34%	―	-2.88%	44.39%
1673	39 Underperform	HK$478.84M	-3.85	-2.71%	―	-4.33%	55.43%