China A-share · SSE · 601012
LONGi Green Energy (601012) stock analysis: valuation and financials
电气机械和器材制造业
¥10.99 +0.4% Price as of Oct 21, 2026
The photovoltaic core business accounts for 94.5% of revenue, but gross margin is only 0.8%, ROIC is -22.8%, and revenue is -14.8% YoY; net cash of RMB 19.33 billion provides a buffer; base-case valuation is roughly in line with the current price, and risk/reward is skewed negative.
- Market cap
- ¥83.3B
- P/E
- —
- EV/Sales
- 1.0x
- FCF yield
- -5.2%
- 52-week range
- ¥10.77 – ¥22.80
Research as of Oct 21, 2026 · Translated from the Chinese report
Business quality scorecard
- Growth0
- Profitability0
- Cash flow0
- Balance sheet47
- Capital allocation25
- Innovation6
- Valuation0
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Global PV module manufacturers, power plant developers and distributed customers purchase its monocrystalline silicon wafers, cells and modules; this business accounts for 94.5% of revenue and is the sole source of revenue and profit; FY2025 gross margin is only 0.81%, and the core business is already loss-making.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | ¥80.6B | ¥129.0B | ¥129.5B | ¥82.6B | ¥70.3B |
| Revenue growth | +47.7% | +60.0% | +0.4% | -36.2% | -14.8% |
| Gross margin | 20.2% | 15.4% | 18.5% | 7.4% | 0.8% |
| Operating margin | 13.2% | 12.9% | 9.4% | -11.8% | -10.4% |
| Net income | ¥9.1B | ¥14.8B | ¥10.8B | -¥8.6B | -¥6.4B |
| Free cash flow | ¥7.4B | ¥19.4B | -¥1.1B | -¥12.7B | -¥1.5B |
| FCF margin | 9.2% | 15.0% | -0.9% | -15.4% | -2.2% |
Amounts in CNY · What is free cash flow?
Margins FY2025 gross margin 0.8% (-6.6pp YoY), operating margin -10.4% (+1.4pp YoY); TTM gross margin 1.9%, operating margin -13.2%; Q2 FY2026 gross margin rebounded to 3.1%. Main reasons: price decline and insufficient utilization.
- Cash flow ConcernFY2025 operating cash flow +RMB 4.36 billion, higher than net loss of RMB 6.42 billion; but TTM operating cash flow -RMB 970 million, free cash flow -RMB 4.32 billion, FCF margin -6.7%.
- Debt LowNet cash RMB 19.33 billion: total interest-bearing debt RMB 29.31 billion, cash RMB 48.63 billion, net debt/EBITDA -17.7x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- ¥48.6B
- Total debt
- ¥29.3B
- Net cash
- ¥19.3B
- Current ratio
- 1.3x
As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet
Management and track record
- Management AdequateROIC fell from 46.5% in 2020 to -22.8% in FY2025, gross margin fell from 24.6% to 0.8%; capacity expansion at the cyclical peak led to a sharp decline in returns.
Valuation range
Implied value per share · Price when researched: ¥10.99
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
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