Yinlun Co., Ltd. (002126.SZ) Asset-Liability Ratio and Financial Leverage Analysis

Yinlun Co., Ltd.'s 2024 asset-liability ratio was

, significantly higher than the auto parts industry average of approximately , a difference of about 13 percentage points[0][1]. From an industry comparison perspective, the company’s liability ratio is in the medium-to-high range:

Company	Asset-Liability Ratio	Current Ratio	ROE	Net Profit Margin
Yinlun Co., Ltd.	61.49%	1.17	12.61%	5.85%
Sanhua Intelligent Controls	40.25%	1.85	16.50%	12.80%
Tuopu Group	45.80%	1.45	18.20%	10.50%
Desay SV	38.50%	1.62	15.80%	8.20%
Joyson Electronics	68.50%	1.02	8.50%	3.20%

1. Controllable Risk Rating
   : Financial analysis shows the company’s debt risk is classified as ‘Low Risk’[0], with an interest coverage ratio of approximately 4.4x, ensuring debt-servicing capacity

2. Effective Leverage Use
   : DuPont analysis indicates the company’s equity multiplier of 2.60 is higher than the industry average of 1.93, with high leverage
   effectively translating into shareholder returns
   and ROE reaching 12.61%

3. Favorable Liability Ratio Trend
   : Brokerage forecasts show the asset-liability ratio will
   decrease year by year
   —2025E:60.83%, 2026E:59.89%,2027E:58.56%[1][2]

4. Business Growth Support
   : The company’s new energy thermal management business grew rapidly—2024 revenue reached 12.7 billion yuan, a year-on-year increase of15.3%, and net profit reached7.8 billion yuan, a year-on-year increase of28%[1][2]

1. Tight Short-Term Debt Servicing
   : Current ratio of1.17 and quick ratio of0.94, both below the industry average of1.48, indicating moderate but tight short-term debt-servicing capacity

2. Liability Structure to Be Optimized
   : Compared with industry leaders like Sanhua Intelligent Controls (40.25%) and Tuopu Group (45.80%), the company’s liability ratio is approximately15-20 percentage points higher

3. Risk Benchmarking with Joyson Electronics
   : Joyson Electronics has a liability ratio of68.5% but only an ROE of8.5%, indicating
   high leverage is only meaningful with high growth

###3. Comprehensive Judgment

Evaluation Dimension	Conclusion
Absolute Level	61.49% is in the upper-middle range of the industry, higher than average but not extreme
Risk Level	Low risk rating, sufficient interest coverage
Leverage Efficiency	Effectively translated into ROE, reasonable shareholder returns
Development Trend	Clear continuous downward trend
Business Support	Rapid growth of new energy business provides debt-servicing support

###4. Investment Conclusion

Yinlun Co., Ltd.'s asset-liability ratio of61.49%

, with financial leverage use characterized by the following:

• Controllable Risk
  : Low risk rating, sufficient interest coverage ratio
• Reasonable Efficiency
  : High equity multiplier translated into 12.61% ROE
• Favorable Trend
  : Continuous decrease in liability ratio, optimized financial structure
• Growth Prospects
  : New energy thermal management business expansion supports debt-servicing capacity

: Continuously track the downward trend of the liability ratio, improvements in free cash flow, and whether new energy business growth can cover rising financial costs.

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[0] Gilin API Financial Data (https://www.gilin-ai.com)

[1] Soochow Securities - Yinlun Co., Ltd. 2024 Annual Report Comment (https://pdf.dfcfw.com/pdf/H3_AP202504211660001958_1.pdf)

[2] Guosen Securities - Yinlun Co., Ltd. In-depth Research Report (https://pdf.dfcfw.com/pdf/H3_AP202504251662069645_1.pdf)