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Credit Rating Report for Jiangyin Electric Alloy Co., Ltd.'s 2025 Issuance of Convertible Corporate Bonds to Unspecified Qualified Investors
CSCI Pengyuan [2025] No. Z [2337] 01
Credit Rating Report Disclaimer
Jiangyin Electric Alloy Co., Ltd. 2025 Credit Rating Report for Issuance of Convertible Corporate Bonds to Unspecified Qualified Investors
Rating Results
Issuer Credit Rating: AA-
Rating Outlook: Stable
Bond Credit Rating: AA-
Rating Date: 2025-12-19
Rating Rationale: This rating considers the development of China's copper processing industry and the favorable outlook for downstream sectors. Jiangyin Electric Alloy Co., Ltd. (hereinafter referred to as the "Company", stock code 300697.SZ) has competitive advantages in copper products for electrified railway contact networks, with stable production and operating income. However, CSCI Pengyuan also notes that rising raw material prices have increased accounts receivable and inventory, putting pressure on working capital. The company also faces significant capital expenditure for projects under construction, leading to increased debt and potential pressure on production capacity absorption and capital.
Bond Overview
Issuance Scale: Not exceeding 545 million yuan (inclusive)
Issuance Term: 6 years
Repayment Method: Interest paid annually, principal and final interest repaid at maturity
Purpose: 388 million yuan for the 350,000-ton high-performance copper and copper alloy material production project; 157 million yuan for working capital and bank loan repayment
Company Key Financial Data and Indicators (Unit: 100 million yuan)
| Item | 2025.9 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Total Assets | 21.64 | 18.39 | 15.60 | 15.09 |
| Equity Attributable to Parent | 12.26 | 11.23 | 10.56 | 9.78 |
| Total Debt | 7.95 | 5.99 | 4.06 | 4.52 |
| Operating Income | 22.93 | 25.93 | 23.92 | 21.27 |
| Net Profit | 1.29 | 1.32 | 1.37 | 1.13 |
| Net Cash Flow from Operating Activities | 0.53 | -0.26 | 1.58 | 1.24 |
| Net Debt/EBITDA | -- | 2.07 | 1.13 | 1.54 |
| EBITDA Interest Coverage Ratio | -- | 15.50 | 14.50 | 9.80 |
| Total Debt/Capital | 39.25% | 34.71% | 27.75% | 31.58% |
| FFO/Total Debt | -- | 36.57% | 59.75% | 38.26% |
| EBITDA Profit Margin | -- | 7.59% | 8.26% | 8.66% |
| Return on Total Assets | -- | 9.49% | 11.45% | 9.84% |
| Current Ratio | 1.57 | 1.65 | 1.96 | 1.65 |
| Cash to Short-term Debt Ratio | 0.45 | 0.44 | 0.61 | 0.50 |
| Sales Gross Margin | 11.23% | 10.65% | 11.57% | 11.72% |
| Asset-Liability Ratio | 43.14% | 38.76% | 32.19% | 35.07% |
Contact Information
Project Manager: Bi Liu
Email: bil@cspengyuan.com
Project Team Member: Yang Hui
Email: yanghs@cspengyuan.com
Rating Director: [blank]
Contact Number: 0755-82872897
Positive Factors
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In 2024, China's copper processing output grew well, with a favorable downstream outlook. From 2022 to 2024, China's total copper processing output grew from 20.25 million tons to 21.25 million tons, with a compound annual growth rate of 2.44%.
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The company has high entry barriers in the electrified railway contact network market and possesses competitive advantages. It is a leading manufacturer of copper contact wires and load-bearing cables for electrified railways certified by China Railway.
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The company has maintained steady growth in production and operations, with increasing operating income and stable profitability.
Concerns
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Accounts receivable and inventory have occupied a large amount of working capital. In 2024, due to rising copper prices, the company's product prices increased, leading to growth in accounts receivable and inventory.
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The company has large-scale capital expenditure for projects under construction, posing risks of capacity absorption and capital expenditure pressure.