Honmyue Enterprise Co Ltd

Honmyue Enterprise Co Ltd has a debt-to-equity ratio of 0.47, indicating a relatively conservative capital structure, and a current ratio of 2.1, suggesting adequate short-term liquidity to cover its obligations. However, the company's operating cash flow is negative at -32,009,000 TWD, which may signal potential liquidity challenges in the near term.

The company's profitability is mixed, with a return on equity of 3.84% and a return on assets of 2.18%. These figures are below the industry median for return on equity and return on assets, indicating that Honmyue is underperforming its peers in terms of capital efficiency and asset utilization.

Honmyue's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the company's exposure to regional economic fluctuations and market-specific risks.

Looking ahead, the company's revenue is expected to grow, with the most recent actual revenue reported at 3,361,577,000 TWD. However, the operating income remains negative at -15,750,000 TWD, which may hinder the company's ability to sustain growth without external financing.

The company faces moderate liquidity risk due to its negative net cash position after subtracting total debt. While the dilution risk is currently low, the company's reliance on operating cash flow and the potential need for additional financing could increase dilution risk in the future.

Recent financial filings indicate that Honmyue has not issued new shares in the past year, and there are no immediate plans for additional equity offerings. The company's recent financial performance and capital structure suggest a stable but cautious approach to capital management.

Net margin of 11.0% ranks in the top quartile among 350 textile peers, indicating superior profitability relative to the cohort.

Gross profit increased to TWD 330.3 million in 2018, up from TWD 289.0 million in 2017, showing improving top-line margins.

Debt-to-equity ratio of 0.47 is below the cohort median of 0.43, suggesting a relatively conservative leverage position within the industry.

Operating income narrowed significantly to a TWD 2.7 million loss in 2018, a substantial improvement from the TWD 69.1 million loss in 2017.

The company faces high credit risk and medium liquidity risk, posing significant financial stability concerns for investors and creditors.

Revenue TWD 747.6M, −14,4% YoY; Operating income −710,4% YoY.

• ▍Revenue TWD 747.6M, −14,4% YoY
• ▍Operating income −710,4% YoY
• ▍Net income +9,6% YoY
• ▍Free cash flow −2 024,4% YoY
• ▍Net margin 0.9%

Revenue TWD 728.0M, −4,2% YoY; Operating income +126,1% YoY.

• ▍Revenue TWD 728.0M, −4,2% YoY
• ▍Operating income +126,1% YoY
• ▍Net income +947,7% YoY
• ▍Free cash flow +188,0% YoY
• ▍Net margin 2.6%

Revenue TWD 697.6M, −12,7% YoY; Operating income +118,5% YoY.

• ▍Revenue TWD 697.6M, −12,7% YoY
• ▍Operating income +118,5% YoY
• ▍Net income −123,8% YoY
• ▍Free cash flow −102,0% YoY
• ▍Net margin -0.8%

Revenue TWD 873.7M; Operating income -TWD 2.8M.

• ▍Revenue TWD 873.7M
• ▍Operating income -TWD 2.8M
• ▍Net margin 0.7%

Revenue TWD 798.6M; Operating income -TWD 24.1M.

• ▍Revenue TWD 798.6M
• ▍Operating income -TWD 24.1M
• ▍Net margin 2.8%

Revenue TWD 2.92B, −7,9% YoY; Operating income +96,0% YoY.

• ▍Revenue TWD 2.92B, −7,9% YoY
• ▍Operating income +96,0% YoY
• ▍Net income −59,0% YoY
• ▍Free cash flow −150,3% YoY
• ▍Net margin 1.5%

Revenue TWD 3.17B, +18,0% YoY; Operating income +24,7% YoY.

• ▍Revenue TWD 3.17B, +18,0% YoY
• ▍Operating income +24,7% YoY
• ▍Net income +340,6% YoY
• ▍Free cash flow +200,1% YoY
• ▍Net margin 3.4%