Lan Fa Textile Co Ltd

Lan Fa Textile Co Ltd maintains a debt-to-equity ratio of 0.68, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized by a current ratio of 1.21, suggesting it has sufficient short-term assets to cover its short-term liabilities, though not with a large buffer. The company's cash and equivalents amount to TWD 407.15 million, but this is offset by long-term debt of TWD 2.04 billion, resulting in a net cash position that is negative after subtracting total debt.

Profitability metrics for Lan Fa Textile Co Ltd show a return on equity (ROE) of 3.81% and a return on assets (ROA) of 2.18%. These figures are below the industry median for ROE and ROA, indicating that the company is underperforming in terms of generating returns relative to its equity and asset base. The company reported a net income of TWD 114.55 million despite a gross loss of TWD 9.53 million and an operating loss of TWD 24.84 million, suggesting that non-operating income or gains significantly contributed to its bottom-line profitability.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of segment or geographic diversification increases the company's exposure to sector-specific and regional economic risks. The absence of detailed segment reporting limits the ability to assess the performance of different product lines or markets.

Lan Fa Textile Co Ltd's growth trajectory is constrained by its current financial performance. The company reported a revenue of TWD 192.76 million in the latest period, but there is no indication of growth in the current or next fiscal year. The company's capital expenditures were TWD 1.00 million, a relatively small amount, suggesting limited investment in future capacity or expansion. The company's free cash flow of TWD 13.08 million indicates some capacity to fund operations or reduce debt, but the magnitude is modest given the company's overall financial position.

The company's risk profile is marked by a medium liquidity risk and a low dilution risk. The risk assessment highlights that the company's net cash is negative after subtracting total debt, which could limit its ability to meet short-term obligations without additional financing. The company has not issued new shares recently, and there is no indication of dilution pressure in the near term. However, the company's reliance on long-term debt and the absence of a strong cash position could expose it to refinancing risks if market conditions deteriorate.

Recent events and filings do not provide specific details on the company's strategic initiatives or operational changes. The company's latest financial results show a net income despite a gross and operating loss, which may indicate one-time gains or non-recurring items. The absence of detailed disclosures on recent events or strategic moves limits the ability to assess the company's forward-looking prospects.

Net income surged 986.3% year-over-year to TWD 255.7 million, demonstrating a dramatic turnaround in profitability.

Free cash flow increased 235.2% to TWD 550.5 million, indicating strong cash generation capabilities in the latest period.

Debt-to-equity ratio of 0.68 is below the 0.43 cohort median, suggesting a relatively conservative leverage position.

The company faces high credit risk, posing significant potential challenges to its financial stability and borrowing costs.

Cash conversion ratio of 0.12 is well below the 0.98 cohort median, indicating inefficient cash flow generation.

Return on invested capital is negative at -0.5%, suggesting the company fails to generate adequate returns on capital.

Revenue TWD 282.6M; Operating income -TWD 11.0M.

• ▍Revenue TWD 282.6M
• ▍Operating income -TWD 11.0M
• ▍Net margin -79.3%

Revenue TWD 269.2M; Operating income -TWD 17.6M.

• ▍Revenue TWD 269.2M
• ▍Operating income -TWD 17.6M
• ▍Net margin 13.9%

Revenue TWD 838.6M, −30,3% YoY; Operating income +65,2% YoY.

• ▍Revenue TWD 838.6M, −30,3% YoY
• ▍Operating income +65,2% YoY
• ▍Net income +812,3% YoY
• ▍Free cash flow −81,7% YoY
• ▍Net margin 25.6%

Revenue TWD 1.96B, −20,7% YoY; Operating income −85,6% YoY.

• ▍Revenue TWD 1.96B, −20,7% YoY
• ▍Operating income −85,6% YoY
• ▍Net income −169,5% YoY
• ▍Free cash flow −132,3% YoY
• ▍Net margin -22.7%

Revenue TWD 2.47B; Operating income -TWD 63.4M.

• ▍Revenue TWD 2.47B
• ▍Operating income -TWD 63.4M
• ▍Net margin 25.8%