Orient Precision Industries Inc

Orient Precision Industries Inc maintains a capital structure with a debt-to-equity ratio of 0.54, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.95, suggesting limited short-term liquidity cushion. Free cash flow for the period was 799,915,820 KRW, while operating cash flow was negative at -83,889,330 KRW, indicating a mismatch between operating performance and cash generation.

Profitability metrics show a return on equity (ROE) of 2.4% and a return on assets (ROA) of 0.98%, both below the typical thresholds for strong performance in the auto parts industry. Gross profit of 3,876,808,370 KRW and operating income of 529,938,910 KRW reflect a narrow margin structure, which may limit the company's ability to absorb cost increases or price pressures.

The company's revenue is concentrated in the auto, truck, and motorcycle parts segment, with no disclosed geographic diversification in the provided data. This concentration may expose the company to sector-specific risks, such as supply chain disruptions or shifts in automotive demand.

Growth trajectory appears modest, with the most recent actual revenue reported at 73,216,000,000 KRW. While the company reported a net income of 926,334,540 KRW, the absence of forward-looking guidance or next fiscal year projections limits visibility into future performance.

Risk factors include a medium liquidity risk, as the company's cash and equivalents (2,868,127,420 KRW) are insufficient to cover total debt (20,668,040,050 KRW), resulting in a net cash deficit. Dilution risk is assessed as low, with no near-term pressure from share issuance or dilution events.

Recent events include the latest actual earnings per share (EPS) of 2,995.82 KRW and revenue of 73,216,000,000 KRW, as reported in investor relations data. No recent filings or transcripts are available in the provided data to indicate strategic shifts or operational updates.

Net income surged 99.8% year-over-year, signaling a strong operational turnaround and improved profitability for the company.

Operating income increased by 122.6% year-over-year, demonstrating significant improvement in core business efficiency and cost management.

Free cash flow improved by 40.0% year-over-year, indicating better cash generation capabilities despite remaining negative.

Revenue grew 6.5% year-over-year, showing continued top-line expansion in the auto parts sector.

The debt-to-equity ratio of 0.54 is below the cohort median of 0.41, suggesting a relatively conservative leverage position.

The company faces high credit risk, posing a significant threat to financial stability and borrowing costs.

Operating margin of 1.32% is well below the cohort median of 4.43%, indicating weak pricing power or high costs.

Cash conversion is in the bottom quartile of the cohort, highlighting severe inefficiencies in turning earnings into cash.

Medium liquidity risk suggests potential difficulties in meeting short-term financial obligations or operational needs.

Revenue KRW 157.14B, −9,4% YoY; Operating income −25,4% YoY.

• ▍Revenue KRW 157.14B, −9,4% YoY
• ▍Operating income −25,4% YoY
• ▍Net income +17 144,7% YoY
• ▍Free cash flow +72,7% YoY
• ▍Net margin 1.1%