Southern Rubber Industry JSC

Southern Rubber Industry JSC has a debt-to-equity ratio of 1.43, indicating a moderate reliance on debt financing. The company's liquidity is assessed 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 company's free cash flow of 33,861,789,130 VND indicates it generates positive cash from operations after capital expenditures, which is a positive sign for financial flexibility.

The company's profitability is reflected in a return on equity of 1.46% and a return on assets of 0.52%, both of which are below the typical thresholds for strong performance in the Tires & Rubber Products industry. These metrics suggest that the company is not generating substantial returns relative to its equity and asset base. The operating income of 14,574,171,180 VND and net income of 19,672,857,070 VND indicate a profitable business, but the gross profit of 147,543,202,360 VND suggests that the company is managing its production costs effectively.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This concentration may expose the company to higher risks if demand in its primary market fluctuates. The company's revenue of 1,147,157,030,650 VND is a key indicator of its market position, but without segment or geographic breakdown, it is difficult to assess the specific drivers of this revenue.

The company's growth trajectory is not explicitly detailed in the available data, but the positive free cash flow and the absence of dilution risk suggest a stable financial position. Analysts have provided a mean price target of 14,800.00 VND, with a single "buy" recommendation and no "strong buy" or "hold" ratings, indicating a cautious but not overly optimistic outlook. The company's capital expenditure of -33,125,742,990 VND suggests that it is investing in its operations, which could support future growth.

The company's risk profile includes a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt indicates that the company's cash reserves are insufficient to cover its long-term debt obligations, which could pose a challenge in the event of a liquidity crunch. The company's operating cash flow of -45,401,205,460 VND is negative, which may be a concern if it persists, as it could indicate difficulties in generating sufficient cash from operations.

Recent events, as reflected in the financial data, include a stable share count with no dilution observed in the latest reporting period. The company's financial statements do not indicate any recent significant events such as major acquisitions, divestitures, or regulatory changes that could impact its operations.

Analysts project 24.4% upside to a consensus target price of 14,800 VND, signaling strong institutional confidence in future performance.

Net income grew 19.4% year-over-year to 42.6 billion VND, demonstrating improved profitability despite a decline in overall revenue.

Operating income increased 13.8% year-over-year to 71.4 billion VND, indicating successful cost management and operational efficiency improvements.

The company maintains a low dilution risk profile, protecting existing shareholders from potential equity value erosion through new issuances.

Long-term debt decreased to 1.85 trillion VND, suggesting a deliberate strategy to reduce leverage and strengthen the balance sheet.

Revenue declined 10.0% year-over-year to 4.14 trillion VND, reflecting significant weakness in top-line growth and market demand.

The company carries a high credit risk flag, indicating potential difficulties in meeting debt obligations or securing favorable financing terms.

Operating margin of 1.27% ranks in the bottom quartile of the Tires & Rubber cohort, highlighting severe competitive disadvantage.

Debt-to-equity ratio of 1.43 is in the bottom quartile of peers, signaling excessive leverage compared to industry standards.

Revenue VND 4.14T, −12,1% YoY; Operating income +0,5% YoY.

• ▍Revenue VND 4.14T, −12,1% YoY
• ▍Operating income +0,5% YoY
• ▍Net income −41,0% YoY
• ▍Free cash flow −73,0% YoY
• ▍Net margin 1.0%