Yijia Group Corp (YJGJ) QQ3 2025 Earnings Analysis – Industrials/Consulting Services: Revenue Surge, Margin Expansion and Robust Balance Sheet
Executive Summary
Yijia Group Corp (YJGJ) reported Q3 2025 results with USD 308.3 million in revenue, yielding a gross profit of USD 189.3 million and a gross margin of 61.4%. Operating income reached USD 108.9 million (operating margin 35.3%), with net income of USD 72.98 million (net margin 23.7%) and basic EPS of USD 0.0029. The quarter delivered a dramatic YoY improvement across key Profitability metrics: revenue up 1,081.3%, gross profit up 625.3%, operating income up 1,729.8%, and net income up 1,126.9%, while QoQ gains were also solid (revenue +5.6%, gross profit +21.5%, operating income +73.9%, net income +123.5%; EPS +190%). Cash flow momentum was strong, with USD 208.9 million of cash from operations and an identical level of free cash flow, contributing to a cash balance of USD 405.2 million. The balance sheet remains highly liquid and conservatively leveraged: total assets USD 1.321 billion, total liabilities USD 0.213 billion, and owners’ equity USD 1.109 billion, with cash and equivalents of USD 405.2 million and no long-term debt. The liquidity profile is reinforced by a robust current ratio of 6.21 and a quick ratio of 5.33. However, inventory performance shows a notable elongation of days inventory outstanding (141.2 days), underscoring working capital intensity that warrants continued monitoring. Valuation metrics appear reasonable relative to peers (P/E 15.4x, P/S 14.6x, P/B 4.06x), supported by strong profitability and cash flow. Management commentary from the earnings call is not available in the provided data; as such, qualitative guidance and quotes could not be incorporated. Overall, YJGJ presents a compelling cash-generative profile with meaningful margins and no debt, but investors should remain vigilant on inventory risk and sustainability of the revenue trajectory.
Key Performance Indicators
Revenue
308.32K
QoQ: 5.55% | YoY:1 081.30%
Gross Profit
189.31K
61.40% margin
QoQ: 21.48% | YoY:625.33%
Operating Income
108.87K
QoQ: 73.92% | YoY:1 729.82%
Net Income
72.98K
QoQ: 123.54% | YoY:1 126.93%
EPS
0.00
QoQ: -19.44% | YoY:190.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: USD 308.3 million; YoY +1,081.3%; QoQ +5.6% (Q3 2025 vs Q3 2024 and Q2 2025 respectively).Rounded from 308,318 to 308.3 million.
- Revenue: USD 308.3 million; YoY +1,081.3%; QoQ +5.6% (Q3 2025 vs Q3 2024 and Q2 2025 respectively).Rounded from 308,318 to 308.3 million.
- Gross Profit: USD 189.3 million; Gross Margin 61.4%; YoY +625.3%; QoQ +21.5%.
- Operating Income: USD 108.9 million; Operating Margin 35.3%; YoY +1,729.8%; QoQ +73.9%.
- Net Income: USD 72.98 million; Net Margin 23.7%; YoY +1,126.9%; QoQ +123.5%.
- EPS (basic/diluted): USD 0.0029; YoY +190.0%; QoQ -19.4%.
- EBITDA: USD 109.1 million; EBITDA Margin 35.3% (EBITDA as a proxy for operating profitability).
- Cash Flow: Operating cash flow USD 208.9 million; Free cash flow USD 208.9 million; Net change in cash USD +182.4 million; Cash at end of period USD 405.2 million.
- Balance Sheet: Total assets USD 1,321.1 million; Total liabilities USD 212.8 million; Total equity USD 1,108.4 million; Cash and equivalents USD 405.2 million; Inventory USD 186.7 million; Accounts receivable USD 54.0 million; DSO 15.8 days; Days of inventory outstanding 141.2 days; Current ratio 6.21; Debt-free balance sheet (Long-term debt: 0).
- Valuation (as of QQ3 2025): P/E ~15.42x; P/B ~4.06x; P/S ~14.60x; Enterprise value multiple ~37.56x; Price fair value approximately USD 4.06 per share.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
308.32K
1 081.30%
5.55%
Gross Profit
189.31K
625.33%
21.48%
Operating Income
108.87K
1 729.82%
73.92%
Net Income
72.98K
1 126.93%
123.54%
EPS
0.00
190.00%
-19.44%
Key Financial Ratios
currentRatio
6.21
grossProfitMargin
61.4%
operatingProfitMargin
35.3%
netProfitMargin
23.7%
returnOnAssets
5.52%
returnOnEquity
6.58%
operatingCashFlowPerShare
$0.01
freeCashFlowPerShare
$0.01
priceToBookRatio
4.06
priceEarningsRatio
15.42
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: The provided data set includes an empty earnings transcript (earningsTranscript: []). As management quotes and transcript content are not available, this section could not be populated with actual quotes or management themes. Investors should rely on the reported financials and any subsequent public disclosures for color on strategy, execution, and market conditions. Potential themes to look for in a follow-up transcript include: (1) utilization and revenue mix, (2) client concentration and renewal rates, (3) price realization and service line profitability, (4) commentary on international expansion and headcount discipline, and (5) outlook for demand in the Industrials consulting space.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward guidance was provided in the supplied data for YJGJ QQ3 2025. In the absence of formal targets, the near-term outlook should be framed around: (a) sustaining the current margin profile (gross margin ~61.4%, operating margin ~35.3%) through scale and operating leverage, (b) managing working capital efficiently given the elevated inventory days (141.2 days) and modest DSO (15.8 days), and (c) preserving liquidity with a zero-debt balance sheet while deploying excess cash for strategic investments or shareholder-friendly actions if opportunities arise. Investors should monitor quarterly trajectory in revenue, gross profit, and operating income, as well as any commentary on client mix, pricing, and geographic exposure that could influence sustained profitability.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
YJGJ Focus
61.40%
35.30%
6.58%
15.42%
TRU
58.60%
14.40%
1.61%
74.91%
EFX
55.30%
17.10%
2.88%
64.42%
EXPO
22.90%
19.00%
6.35%
56.63%
BAH
55.20%
9.98%
15.50%
21.93%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Bullish on the cash-generative ability and margin discipline demonstrated in QQ3 2025, with no debt reducing financial risk and a strong equity base supporting strategic moves. The key to a positive long-term stance will be sustaining the revenue growth without triggering excessive working capital pressures and converting gross margin gains into durable, recurring operating income. Given the current multiples (P/E ~15.4x, P/B ~4.06x, P/S ~14.6x) and a robust balance sheet, YJGJ could trade at a premium if the QQ3 2025 results reflect a sustainable growth trajectory and improving service mix. Investors should monitor: (1) cadence of revenue growth and client diversification, (2) inventory management and cash conversion cycles, (3) any guidance on pricing, mix, and international expansion, and (4) potential uses of cash allocation (capex, acquisitions, or returns).
Key Investment Factors
Growth Potential
Strong revenue growth in QQ3 2025 (YoY +1,081.3%) suggests a scalable consulting services model with potential for continued expansion as client bases broaden and service offerings mature. Margin resilience (gross 61.4%, operating 35.3%) supports capital-light growth.
Profitability Risk
Excessive working capital intensity evidenced by 141.2 days inventory outstanding could compress cash flow if demand decelerates; reliance on a single or narrow client set may create concentration risk; the absence of disclosed debt may limit balance-sheet flexibility to fund growth if working capital cycles normalize unfavorably.
Financial Position
Robust liquidity with USD 405.2 million in cash and no long-term debt; strong equity base (USD 1,108.4 million) supports potential strategic investments or share repurchases; current ratio of 6.21 underscores ample short-term liquidity.
SWOT Analysis
Strengths
High gross margin (61.4%) and strong operating margin (35.3%) indicating durable service profitability.
Net cash position with USD 405.2 million and no long-term debt supports optionality for growth initiatives or capital returns.
Very high current liquidity (current ratio 6.21) and solid working capital capacity.
Weaknesses
Significant inventory build (days of inventory outstanding 141.22) suggesting working capital intensity and potential risk if demand softens.
Small-cap, OTC listing with relatively modest EPS and potentially limited liquidity in down markets.
Opportunities
Potential to monetize excess cash through selective acquisitions or strategic partnerships in the consulting space.
Expansion into higher-margin service lines or geographic diversification to broaden client base and reduce concentration risk.
Threats
Macro volatility affecting consulting demand within the Industrials sector; competition pressure from larger global consulting firms.
Inventory risk and potential obsolescence if product/service offerings require update or if client cycles slow down.