Honmyue Enterprise Co Ltd
Honmyue Enterprise Co Ltd has a liquidity position that is characterized by a current ratio of 2.28, indicating a moderate ability to meet short-term obligations, but with only TWD 24.64 million in cash and equivalents, which is significantly lower than its long-term debt of TWD 973.83 million. The company's price-to-book ratio of 0.6 suggests that the market values the company at a discount to its book value, and the price-to-tangible-book ratio is similarly low at 0.6. The company's profitability is modest, with a return on equity of 2.04% and a return on assets of 1.19%, both of which are below the industry norms for the Textiles & Leather Goods sector. Despite a gross profit of TWD 330.34 million, the company reported an operating loss of TWD 2.73 million, indicating that operational inefficiencies or cost overruns are impacting its bottom line. Honmyue Enterprise Co Ltd's revenue is primarily derived from the domestic and international markets, with no specific segment breakdown provided. The company's exposure to geographic markets is not detailed in the available data, but its operations are based in Taiwan, and it distributes products both domestically and overseas. The company's growth trajectory is uncertain, as it reported a revenue of TWD 2.92 billion in the latest period, which is lower than the analyst estimate of TWD 3.36 billion. The operating cash flow of TWD 192.67 million is positive, but the free cash flow is negative at TWD -53.05 million, indicating that capital expenditures are outpacing cash generation. The risk assessment for Honmyue Enterprise Co Ltd indicates a medium liquidity risk and a low dilution risk. However, the company has a key flag of negative net cash after subtracting total debt, which could pose a challenge in maintaining financial flexibility. Recent events and filings do not provide specific details on new developments for Honmyue Enterprise Co Ltd. The company's latest financial results show a net income of TWD 43.79 million, but the operating loss suggests that the company is struggling to maintain profitability in the current economic environment.
Business. Honmyue Enterprise Co Ltd is a Taiwan-based company engaged in the manufacture, sales, printing, dyeing, and processing of various kinds of fiber fabrics, including short fiber fabrics, long fiber fabrics, and grey yarns, which are used in industrial cloth, slopwork cloth, and home decoration cloth for applications such as leather suitcases, shoes, and sportswear.
Classification. Honmyue Enterprise Co Ltd is classified under the Textiles & Leather Goods industry within the Cyclical Consumer Products business sector of the Consumer Cyclicals economic sector, with a classification confidence of 0.92.
- Honmyue Enterprise Co Ltd has a current ratio of 2.28, indicating a moderate ability to meet short-term obligations, but with a low cash reserve relative to its long-term debt.
- The company's return on equity and return on assets are below industry norms, suggesting that it is not generating strong returns for shareholders or asset utilization.
- The company's operating loss of TWD 2.73 million indicates operational inefficiencies or cost overruns that are impacting profitability.
- The company's revenue is below analyst estimates, and its free cash flow is negative, indicating that capital expenditures are outpacing cash generation.
- The company has a medium liquidity risk and a low dilution risk, but a key flag of negative net cash after subtracting total debt could pose a challenge in maintaining financial flexibility.
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- Net cash is negative after subtracting total debt.