Pyung Hwa Industrial Co Ltd
Pyung Hwa Industrial Co Ltd maintains a debt-to-equity ratio of 1.29, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.94, suggesting that its current liabilities slightly exceed its current assets. The firm's cash and equivalents amount to KRW 2,170,796,410, which is significantly lower than its long-term debt of KRW 80,398,081,410, resulting in a negative net cash position after subtracting total debt [doc:HA-latest]. The company's profitability is reflected in a return on equity (ROE) of 25.28% and a return on assets (ROA) of 6.14%. These figures are above the industry median for ROE and ROA in the auto parts sector, indicating strong capital efficiency and asset utilization. The operating margin, calculated as operating income of KRW 13,342,639,920 on revenue of KRW 626,062,341,680, is 2.13%, which is in line with the industry average [doc:HA-latest]. The company operates through two segments: Automotive Parts and Special Vehicle Parts. The Automotive Parts segment focuses on consumer vehicles, while the Special Vehicle Parts segment serves the defense industry. Revenue concentration data is not explicitly provided, but the dual-segment model suggests diversification across both commercial and defense markets [doc:verified_market_data]. The company's growth trajectory is supported by a positive free cash flow of KRW 10,843,487,150 and an operating cash flow of KRW 18,996,433,460. Capital expenditures for the period were KRW 15,290,742,910, indicating ongoing investment in production capacity. The outlook for the current fiscal year suggests continued revenue growth, supported by stable demand in both domestic and international markets [doc:HA-latest]. Risk factors include the company's high debt load and the potential for dilution, although the dilution risk is currently assessed as low. The risk assessment highlights the negative net cash position as a key flag, which could impact the company's ability to meet short-term obligations without additional financing [doc:HA-latest]. Recent events include the company's financial performance as disclosed in its latest financial statements. No significant regulatory or legal events were reported in the provided data. The company's exposure to geopolitical risks is not explicitly detailed, but its defense-related segment may be affected by changes in government procurement policies or defense spending [doc:verified_market_data].
Business. Pyung Hwa Industrial Co Ltd is a Korea-based company engaged in the manufacture and sale of automotive components, including anti-vibration parts, air suspension systems, and hoses, as well as parts for special vehicles used in the defense industry [doc:verified_market_data].
Classification. Pyung Hwa Industrial Co Ltd is classified under the industry "Auto, Truck & Motorcycle Parts" within the business sector "Automobiles & Auto Parts" and economic sector "Consumer Cyclicals," with a confidence level of 0.92 [doc:verified_market_data].
- Pyung Hwa Industrial Co Ltd has a strong return on equity (25.28%) and return on assets (6.14%), indicating efficient use of capital and assets.
- The company's liquidity position is medium, with a current ratio of 0.94 and a negative net cash position after subtracting total debt.
- The firm operates in two segments: Automotive Parts and Special Vehicle Parts, with the latter serving the defense industry.
- Free cash flow of KRW 10,843,487,150 and operating cash flow of KRW 18,996,433,460 support ongoing operations and capital expenditures.
- The company's debt-to-equity ratio of 1.29 suggests a moderate reliance on debt financing.
- The risk assessment highlights the negative net cash position as a key flag, which could impact short-term liquidity.
- --
- ## RATIONALES
- Net cash is negative after subtracting total debt.