Singtex Industrial Co Ltd

Singtex Industrial Co Ltd has a market price of TWD 20.8 and a market capitalization of TWD 1.26 billion, with a price-to-book ratio of 0.67 and a price-to-tangible-book ratio of 0.67, indicating that the company is trading at a discount relative to its book value. The company's liquidity position is assessed as medium, with a current ratio of 0.78, suggesting that it has less than one unit of current assets for every unit of current liabilities. The company's cash and equivalents amount to TWD 192.0 million, which is significantly lower than its long-term debt of TWD 3.49 billion, resulting in a negative net cash position.

In terms of profitability, Singtex reported a net loss of TWD 24.3 million and an operating loss of TWD 50.6 million in the latest period, with a return on equity of -1.29% and a return on assets of -0.39%, both of which are below the industry median for the Textiles & Leather Goods sector. The company's gross profit of TWD 133.9 million represents a gross margin of 21.8%, which is in line with the industry median, but its operating margin is negative, indicating that the company is not generating sufficient operating income to cover its operating expenses.

Singtex's revenue is primarily concentrated in the textile manufacturing segment, with no disclosed geographic breakdown in the latest financial data. The company does not report revenue by geographic region, which limits the ability to assess its exposure to different markets. The company's capital structure is heavily leveraged, with a debt-to-equity ratio of 1.86, indicating that it is financed more by debt than by equity.

Looking at the company's growth trajectory, there is no disclosed revenue growth in the latest period, and the company is currently operating at a loss. The company's operating cash flow is negative at TWD -119.5 million, and its free cash flow is also negative at TWD -10.98 million, indicating that the company is not generating sufficient cash from operations to fund its capital expenditures. The company's capital expenditures amounted to TWD -24.55 million in the latest period, which is a reduction in capital spending.

The company's risk assessment indicates a medium liquidity risk, with a current ratio of 0.78 and a negative net cash position. The company's dilution risk is assessed as low, with no significant dilution potential in the near term. The company's key financial flags include a negative net cash position after subtracting total debt, which could impact its ability to meet short-term obligations.

There are no recent events or filings disclosed in the latest data that would significantly impact the company's financial position or operations. The company's financial performance is primarily driven by its ability to manage its debt and improve its operating performance.

Revenue grew 12.1% year-over-year to TWD 3.6 billion, demonstrating strong top-line expansion momentum.

Operating income surged 385.1% year-over-year, indicating a significant and rapid improvement in core operational profitability.

Net income increased 46.6% year-over-year, reflecting substantial bottom-line growth driven by improved operating efficiency.

Cash conversion ratio of 4.91 ranks best-in-class among peers, highlighting superior cash generation capabilities.

Four-year revenue CAGR of 4.9% suggests consistent long-term growth trajectory within the textile sector.

Debt-to-equity ratio of 1.86 places the company in the bottom quartile, signaling excessive financial leverage.

High credit risk flag suggests significant concerns regarding the company's ability to meet its financial obligations.

Negative return on equity of -1.29% falls in the bottom quartile, showing poor capital efficiency.

Persistent negative free cash flow indicates ongoing cash burn despite recent improvements in operating income.

Revenue TWD 2.98B, −7,3% YoY; Operating income −76,5% YoY.

• ▍Revenue TWD 2.98B, −7,3% YoY
• ▍Operating income −76,5% YoY
• ▍Net income −76,8% YoY
• ▍Free cash flow −100,6% YoY
• ▍Net margin 1.1%