Daewon Chemical Co Ltd

Daewon Chemical's capital structure is characterized by a debt-to-equity ratio of 1.63, indicating a relatively high reliance on debt financing. The company's liquidity position is moderate, with a current ratio of 0.8 and negative net cash after subtracting total debt. The price-to-book ratio of 0.83 suggests the company's market value is below its book value, while the price-to-tangible-book ratio is also 0.83, indicating a similar valuation relative to tangible assets [doc:024890.KS]. In terms of profitability, Daewon Chemical's return on equity (ROE) is 7.87%, which is below the typical benchmark for strong ROE in the industry. The return on assets (ROA) is 2.36%, also below the industry median for companies in the Textiles & Leather Goods sector. The company's gross profit margin is 16.52%, and its operating margin is 0.69%, both of which are below the median for the industry [doc:024890.KS]. The company's revenue is derived from two segments: the Synthetic Leather Business and the Refining Business. The Synthetic Leather Business segment is the primary revenue driver, with applications in footwear, clothing, balls, furniture, automobiles, and general merchandise. The Refining Business segment focuses on the production and sale of dimethylformamide (DMF) organic chemical solvents. The geographic exposure is primarily concentrated in South Korea, with no significant international revenue disclosed [doc:024890.KS]. Daewon Chemical's growth trajectory is mixed. The company's free cash flow is negative at -2.83 billion KRW, and capital expenditures are -1.13 billion KRW, indicating ongoing investment in operations. The outlook for the current fiscal year shows a modest increase in revenue, but the company's net income is expected to remain relatively flat. The company's operating cash flow is positive at 3.54 billion KRW, which supports its liquidity position [doc:024890.KS]. The company faces moderate liquidity risk, as indicated by its current ratio of 0.8 and negative net cash after subtracting total debt. The risk assessment also notes a low dilution potential, with no significant dilution sources identified in the recent filings. The company's debt structure is dominated by long-term debt, which accounts for a large portion of its total liabilities [doc:024890.KS]. Recent events and filings indicate that Daewon Chemical has maintained a stable financial position, with no major regulatory or operational disruptions reported. The company's last actual EPS was 104.00 KRW, which is in line with analyst estimates. The company's financial performance is closely tied to the demand for synthetic leather and DMF solvents, which are influenced by broader economic conditions and industry trends [doc:024890.KS].