Daily Brief Credit: China Jinmao – Earnings Flash – FY 2023 Results – Lucror Analytics and more

China Jinmao has released FY 2023 numbers that were weak in our view, as the company reported a lower top line and reduced margins. However, the earnings decline was in line with expectations, as it reflected industry trends and the company had issued a profit warning in March 2024.

Negatively, leverage further deteriorated to a very weak level. In addition, we are concerned about whether Jinmao would be able to maintain access to domestic bond markets. This is as the company has seemingly stopped issuing domestic notes since July 2023. Instead, it issued perpetual bonds to immediate parent Sinochem HK in December. Going forward, Jinmao may have to increase its reliance on Sinochem for financing.