Hojeon Ltd

Hojeon Ltd maintains a debt-to-equity ratio of 0.96, indicating a balanced capital structure with moderate leverage. The company's liquidity position is characterized by a current ratio of 1.36, suggesting it can cover short-term obligations but with limited surplus. Free cash flow is negative at -2,056,790,400 KRW, reflecting capital expenditure outpacing operating cash flow [doc:HA-latest]. Profitability metrics show a return on equity (ROE) of 6.81% and a return on assets (ROA) of 3.00%, both below the median for the Apparel & Accessories industry. Operating income of 25,012,363,470 KRW and net income of 12,482,702,580 KRW indicate stable but unremarkable performance relative to peers. Gross profit of 89,192,888,510 KRW supports a 17.1% margin, which is in line with industry norms [doc:HA-latest]. The company's revenue is concentrated in its domestic market, with no disclosed international segments. This geographic concentration increases exposure to local economic cycles and regulatory shifts. No material revenue diversification is evident in the financial snapshot [doc:HA-latest]. Outlook for the current fiscal year shows a 5.3% revenue contraction to 498,800,000,000 KRW, with EBIT expected to decline by 6.5% to 299,500,000,000 KRW. These projections suggest a challenging operating environment, with analysts forecasting a 38.7% drop in EPS from 1,332.00 KRW to 2,046.00 KRW [doc:, ]. Risk assessment highlights medium liquidity risk due to negative net cash after subtracting total debt. Dilution risk is low, with no near-term pressure from share issuance. However, the company's capital structure is sensitive to interest rate fluctuations given its long-term debt of 175,684,206,080 KRW [doc:HA-latest]. Recent filings and transcripts indicate no material changes in business strategy or capital allocation. The company remains focused on its core sportswear and outwear segments, with no disclosed R&D or innovation initiatives in the latest financial reports [doc:HA-latest].