Chonbang Co Ltd

Chonbang Co Ltd operates with a liquidity position that is currently medium risk, as indicated by a current ratio of 4.0 and a debt-to-equity ratio of 0.17. The company's price-to-book ratio is 0.17, suggesting that the market value is significantly below the book value, which may reflect concerns about asset quality or future earnings potential.

Profitability metrics for Chonbang are weak, with a return on equity of 0.0017 and a return on assets of 0.0014. These figures are below the typical thresholds for healthy returns in the Textiles & Leather Goods industry, indicating that the company is not effectively utilizing its equity or assets to generate profit.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification increases exposure to regional economic fluctuations and sector-specific risks.

Chonbang's growth trajectory is uncertain, with a reported operating loss of 990,475,610 KRW and a net income of 320,313,910 KRW. The company's free cash flow of 1,388,597,330 KRW provides some flexibility, but the negative operating income suggests operational challenges that could hinder future growth.

The company faces several risk factors, including a liquidity risk due to negative net cash after subtracting total debt. The dilution risk is currently low, but the company's capital structure and recent financial performance suggest that it may need to raise additional capital in the future, which could lead to share dilution.

Recent events, including the latest financial filings, indicate that Chonbang is experiencing operational difficulties. The company's last actual EPS was -27,845.00 KRW, and its last actual revenue was 225,977,000,000 KRW, both of which are below industry expectations.

Chonbang Co Ltd (000950.KS) has been formally classified within the Textiles & Leather Goods activity and the Consumer Cyclicals economic sector. This taxonomic update provides a clearer framework for understanding the company’s operational context, aligning its business profile with the broader consumer discretionary landscape. In terms of risk assessment, the company now carries a "low" dilution risk rating. This classification suggests that the likelihood of significant share count expansion or equity dilution is currently assessed as minimal, offering a degree of stability for existing shareholders regarding their ownership percentage. Conversely, the liquidity risk has been established at a "medium" level. This indicates that while the company is not facing immediate liquidity crises, there are moderate considerations regarding the ease of trading its shares or accessing liquid capital, a factor investors should monitor alongside its sector-specific dynamics. These updates represent the initial establishment of these specific risk and classification metrics for Chonbang Co, as prior values were not previously tracked. The combination of low dilution risk and medium liquidity risk, set against its new sector classification, offers a foundational baseline for evaluating the company’s financial structure and market positioning.

Free cash flow surged 144.7% year-over-year to 29.3 billion KRW, demonstrating strong cash generation capabilities.

Net income jumped 234.4% to 29.8 billion KRW in FY2009, indicating a significant turnaround in profitability.

Cash conversion ratio of 20.8 ranks best-in-class among 347 peers, highlighting superior operational efficiency.

Long-term debt dropped drastically to 143 million KRW, reducing financial leverage and associated interest risks.

Debt-to-equity ratio of 0.17 is well below the cohort median of 0.43, signaling a conservative capital structure.

The company faces high credit risk, which could impair its ability to secure favorable financing terms.

Return on invested capital remains negative at -0.44%, suggesting the business fails to generate value above cost.

Revenue KRW 40.78B, −28,8% YoY; Operating income +13,8% YoY.

• ▍Revenue KRW 40.78B, −28,8% YoY
• ▍Operating income +13,8% YoY
• ▍Net income +234,4% YoY
• ▍Free cash flow +144,7% YoY
• ▍Net margin 73.1%

Revenue KRW 57.24B, −39,6% YoY; Operating income +73,9% YoY.

• ▍Revenue KRW 57.24B, −39,6% YoY
• ▍Operating income +73,9% YoY
• ▍Net income +146,4% YoY
• ▍Free cash flow +192,2% YoY
• ▍Net margin 15.6%

Revenue KRW 94.77B, −24,1% YoY; Operating income +7,1% YoY.

• ▍Revenue KRW 94.77B, −24,1% YoY
• ▍Operating income +7,1% YoY
• ▍Net income −128,4% YoY
• ▍Free cash flow −117,2% YoY
• ▍Net margin -20.3%

Revenue KRW 124.91B, −6,6% YoY; Operating income −576,5% YoY.

• ▍Revenue KRW 124.91B, −6,6% YoY
• ▍Operating income −576,5% YoY
• ▍Net income +42 082,8% YoY
• ▍Free cash flow +658,4% YoY
• ▍Net margin 54.0%

Revenue KRW 133.75B; Operating income KRW 7.36B.

• ▍Revenue KRW 133.75B
• ▍Operating income KRW 7.36B
• ▍Net margin 0.1%