New Palace International Co Ltd

New Palace International Co Ltd has a debt-to-equity ratio of 1.1, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.02, suggesting limited short-term liquidity cushion. Free cash flow of TWD 118,254,000 supports operational flexibility, though capital expenditures of TWD -24,735,000 indicate ongoing investment in infrastructure.

Profitability metrics show a return on equity of 9.93% and a return on assets of 3.65%, both below the industry median for Restaurants & Bars. The operating margin of 22.17% (TWD 139,135,000 / TWD 627,700,000) is in line with the sector average, but net income margin of 12.40% (TWD 77,807,000 / TWD 627,700,000) suggests pressure from interest and tax expenses.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic shifts and regulatory changes.

Outlook for the current fiscal year shows a projected revenue growth of 3.5%, driven by new store openings in urban centers. For the next fiscal year, revenue is expected to grow by 4.2%, assuming stable consumer spending in the hospitality sector. Historical revenue growth has averaged 2.8% annually over the past three years.

Risk factors include a negative net cash position after subtracting total debt, which could constrain operational flexibility. Dilution risk is assessed as low, with no recent share issuance or shelf registration activity reported. The company has not disclosed any material regulatory or geopolitical exposures in its latest filings.

Recent events include the filing of its annual report, which disclosed plans to expand into new urban markets. No material earnings call transcripts or regulatory actions have been reported in the last quarter.

Free cash flow surged 65.7% year-over-year to TWD 201.5 million, indicating strong cash generation capabilities.

Revenue grew at a 24.1% compound annual growth rate over the four-year period ending in FY0.

Debt-to-equity ratio of 1.1 is below the cohort median, indicating higher leverage and elevated credit risk relative to peers.

Cash conversion ratio of 1.18 is below the cohort median of 1.67, suggesting weaker efficiency in converting earnings to cash.

The company faces high credit risk and medium liquidity risk, posing potential challenges for financial stability.