Hwaseung Corporation Co Ltd

Hwaseung Corporation maintains a capital structure with a debt-to-equity ratio of 3.14, indicating a high reliance on debt financing relative to equity. The company's liquidity position is assessed as medium, with a current ratio of 0.85, suggesting that its current liabilities exceed its current assets. Despite a negative operating cash flow of -13,437,995,750 KRW, the company reported positive free cash flow of 27,248,008,280 KRW, which may support ongoing operations and capital expenditures.

In terms of profitability, Hwaseung Corporation's return on equity (ROE) is 10.71%, which is relatively strong, but its return on assets (ROA) is only 1.61%, indicating that the company is not efficiently utilizing its assets to generate returns. This performance is in line with the industry's typical focus on asset-heavy operations and the need for significant capital investment in manufacturing and distribution.

The company's revenue is concentrated in the auto, truck, and motorcycle parts segment, with no disclosed geographic diversification. This concentration may expose the company to sector-specific risks, such as supply chain disruptions or shifts in consumer demand for automotive products. The lack of geographic diversification could limit the company's ability to mitigate regional economic downturns or regulatory changes.

Hwaseung Corporation's growth trajectory is not explicitly outlined in the available data, but the company's capital expenditures of -13,791,929,030 KRW suggest ongoing investment in infrastructure and production capabilities. The absence of detailed outlook data for the current and next fiscal years limits the ability to assess future growth potential. However, the company's free cash flow position may provide some flexibility for strategic investments or dividends.

The company's risk profile includes a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's reliance on external financing to meet its obligations. The low dilution risk suggests that the company is not expected to issue additional shares in the near term, which could help maintain shareholder value. However, the high debt-to-equity ratio may increase financial risk, particularly in a volatile economic environment.

Recent events, including filings and transcripts, are not detailed in the provided data. However, the company's financial snapshot indicates a need for continued monitoring of its liquidity and debt management strategies to ensure long-term stability.

Operating income surged 2,390% year-over-year to 83 billion KRW, demonstrating a dramatic recovery in core profitability.

Net income grew 290% year-over-year to 78 billion KRW, signaling a robust turnaround from previous losses.

Free cash flow improved 280% to 31 billion KRW, providing liquidity for debt reduction or strategic investments.

Debt-to-equity ratio of 3.14 sits in the bottom quartile of peers, signaling excessive leverage and high financial risk.

The company faces high credit risk, which could increase borrowing costs and limit access to capital markets.

Cash conversion of -0.69 is in the bottom quartile, indicating poor ability to turn earnings into cash.

Revenue growth CAGR of only 0.8% over four years suggests limited top-line expansion potential.

Medium liquidity risk flags potential difficulties in meeting short-term obligations without external financing.

Revenue KRW 436.26B; Operating income KRW 23.44B.

• ▍Revenue KRW 436.26B
• ▍Operating income KRW 23.44B
• ▍Net margin 1.9%

Revenue KRW 396.35B; Operating income KRW 26.04B.

• ▍Revenue KRW 396.35B
• ▍Operating income KRW 26.04B
• ▍Net margin 4.9%

Revenue KRW 1.56T, −4,3% YoY; Operating income +12,1% YoY.

• ▍Revenue KRW 1.56T, −4,3% YoY
• ▍Operating income +12,1% YoY
• ▍Net income +669,7% YoY
• ▍Free cash flow −16,9% YoY
• ▍Net margin 1.7%

Revenue KRW 1.63T, +3,1% YoY; Operating income +73,0% YoY.

• ▍Revenue KRW 1.63T, +3,1% YoY
• ▍Operating income +73,0% YoY
• ▍Net income +24,2% YoY
• ▍Free cash flow +120,7% YoY
• ▍Net margin 0.2%

Revenue KRW 1.59T, +13,3% YoY; Operating income +1 236,4% YoY.

• ▍Revenue KRW 1.59T, +13,3% YoY
• ▍Operating income +1 236,4% YoY
• ▍Net income +106,8% YoY
• ▍Free cash flow +217,2% YoY
• ▍Net margin 0.2%