DH Autolead Co Ltd

DH Autolead Co Ltd maintains a debt-to-equity ratio of 0.62, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized as medium, with a current ratio of 1.18, suggesting it has sufficient short-term assets to cover its short-term liabilities, but with limited buffer. The negative net cash position, after subtracting total debt, raises concerns about short-term liquidity.

Profitability metrics show a return on equity (ROE) of 3.9% and a return on assets (ROA) of 1.71%. These figures are below the industry median for ROE and ROA in the automobile parts sector, indicating that the company is underperforming in terms of capital efficiency and asset utilization.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and industry-specific risks. The absence of segment or geographic breakdown in the financial data limits the ability to assess the company's exposure to different markets.

Looking ahead, the company's growth trajectory is uncertain. While the most recent fiscal year reported revenue of 63.96 billion KRW, there is no disclosed revenue growth rate or forward-looking guidance. The capital expenditure of -9.20 billion KRW suggests a significant investment in infrastructure or expansion, but the negative operating and free cash flows indicate that the company is not currently generating sufficient cash to fund operations without external financing.

The risk assessment highlights liquidity as a medium concern, with the company's negative net cash position after debt subtraction being a key flag. The dilution risk is assessed as low, with no immediate pressure from share issuance or dilution events. However, the company's reliance on debt financing and negative cash flows could increase the likelihood of future dilution if capital needs rise.

Recent events include the filing of the latest financial results, which show a net income of 3.49 billion KRW and an EPS of 730 KRW. The company's operating cash flow remains negative, and there are no disclosed earnings call transcripts or investor relations updates in the available data. The absence of recent communication with investors may limit transparency and market confidence.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value.

Credit risk is flagged as high, signaling significant potential for loan losses or financial instability.

Cash conversion ratio of -2.0 ranks in the bottom quartile, highlighting poor cash flow management.

Debt-to-equity ratio of 0.62 is below the median, but high credit risk flags offset this leverage metric.

Revenue KRW 96.03B, +39,1% YoY; Operating income −6,4% YoY.

• ▍Revenue KRW 96.03B, +39,1% YoY
• ▍Operating income −6,4% YoY
• ▍Net income +141,9% YoY
• ▍Free cash flow −1,7% YoY
• ▍Net margin 1.9%

Revenue KRW 87.40B, +33,1% YoY; Operating income +101,2% YoY.

• ▍Revenue KRW 87.40B, +33,1% YoY
• ▍Operating income +101,2% YoY
• ▍Net income +3 730,1% YoY
• ▍Free cash flow +248,1% YoY
• ▍Net margin 7.2%

Revenue KRW 88.90B, +23,9% YoY; Operating income +31,1% YoY.

• ▍Revenue KRW 88.90B, +23,9% YoY
• ▍Operating income +31,1% YoY
• ▍Net income −24,9% YoY
• ▍Free cash flow −386,0% YoY
• ▍Net margin 2.4%

Revenue KRW 83.26B, +30,2% YoY; Operating income +8,8% YoY.

• ▍Revenue KRW 83.26B, +30,2% YoY
• ▍Operating income +8,8% YoY
• ▍Net income +5,5% YoY
• ▍Free cash flow +131,8% YoY
• ▍Net margin 4.4%

Revenue KRW 355.59B, +31,5% YoY; Operating income +32,1% YoY.

• ▍Revenue KRW 355.59B, +31,5% YoY
• ▍Operating income +32,1% YoY
• ▍Net income +511,4% YoY
• ▍Free cash flow +45,8% YoY
• ▍Net margin 3.9%

Revenue KRW 270.40B, +14,8% YoY; Operating income +4,4% YoY.

• ▍Revenue KRW 270.40B, +14,8% YoY
• ▍Operating income +4,4% YoY
• ▍Net income +130,3% YoY
• ▍Free cash flow +51,9% YoY
• ▍Net margin 0.8%