Kyung Nam Pharm Co Ltd

Kyung Nam Pharm Co Ltd has a liquidity position that is marginally stable, with a current ratio of 1.04, indicating that its current assets slightly exceed its current liabilities. However, the company's free cash flow is negative at -88.07 million KRW, and its operating cash flow is also negative at -948.33 million KRW, signaling potential short-term liquidity constraints. The company's cash and equivalents amount to 25,188.97 million KRW, but this is offset by long-term debt of 51,100.05 million KRW, resulting in a net cash position that is negative after subtracting total debt.

Profitability metrics for Kyung Nam Pharm Co Ltd are weak, with a return on equity (ROE) of -1.42% and a return on assets (ROA) of -0.69%. These figures are below the typical thresholds for healthy performance in the pharmaceutical industry, suggesting that the company is not generating sufficient returns to cover its cost of capital. The company's operating income of 174.43 million KRW is significantly lower than its gross profit of 5,005.08 million KRW, indicating high operating expenses or inefficiencies in cost management.

The company's revenue is concentrated in a single geographic market, South Korea, with no disclosed international operations. This lack of geographic diversification increases its exposure to local economic and regulatory risks. Additionally, the company does not report segment-specific revenue, making it difficult to assess the performance of different product lines or therapeutic areas.

Kyung Nam Pharm Co Ltd's growth trajectory is uncertain, with no disclosed revenue growth in the most recent fiscal year. The company's capital expenditures were -513.04 million KRW, suggesting a reduction in investment in new projects or facilities. This could indicate a strategic shift toward cost-cutting or a lack of growth opportunities. The company's net income is negative at -1,100.37 million KRW, which raises concerns about its ability to sustain operations without external financing.

The company's risk profile is moderate, with a medium liquidity risk and a low dilution risk. The negative net cash position and weak profitability increase the company's vulnerability to financial stress. However, the low dilution risk suggests that the company is not currently issuing new shares at a rate that would significantly dilute existing shareholders. The company's debt-to-equity ratio of 0.66 is relatively low, but the negative net income and operating cash flow could pressure this ratio in the future.

Recent events related to Kyung Nam Pharm Co Ltd include no disclosed major regulatory actions or significant business developments in the most recent filings. The company's financial performance has been declining, as evidenced by its negative net income and operating cash flow. There are no recent transcripts or press releases indicating strategic changes or new product launches.

The company generated positive net income of 10.1 billion KRW in FY-1, demonstrating occasional profitability despite recent losses.

Gross profit remained relatively stable at 15.1 billion KRW in FY0, indicating some resilience in core production margins.

Dilution risk is assessed as low, suggesting limited immediate threat to shareholder equity value from share issuance.

The company carries a high credit risk flag, suggesting potential difficulties in meeting debt obligations or securing financing.

Revenue KRW 59.00B, −8,7% YoY; Operating income +15,1% YoY.

• ▍Revenue KRW 59.00B, −8,7% YoY
• ▍Operating income +15,1% YoY
• ▍Net income −129,4% YoY
• ▍Free cash flow −123,5% YoY
• ▍Net margin -13.3%