Hanshin Machinery Co Ltd

Hanshin Machinery's capital structure shows a debt-to-equity ratio of 0.25, indicating a relatively conservative leverage position compared to the industrial machinery sector median of 0.35. The company holds 17.14 billion KRW in cash and equivalents, but with 21.63 billion KRW in long-term debt, net cash is negative by 4.49 billion KRW. The current ratio of 2.28 suggests strong short-term liquidity, but the negative operating cash flow of 1.49 billion KRW and free cash flow of 1.55 billion KRW highlight operational cash generation challenges. Profitability metrics are underperforming relative to industry benchmarks. The company reported a return on equity of -0.51% and a return on assets of -0.37%, both significantly below the sector medians of 6.2% and 4.8%, respectively. Gross profit of 10.34 billion KRW on 52.72 billion KRW in revenue yields a 19.6% margin, which is in line with the sector median of 20.1%. However, the operating loss of 1.53 billion KRW and net loss of 449 million KRW indicate deteriorating profitability. The company's revenue is distributed across three segments: manufacturing, wholesale, and real estate rental. The manufacturing segment is the primary revenue driver, though the input data does not specify exact revenue contributions by segment. The company operates in both domestic and international markets, but the data does not provide geographic revenue breakdowns. Growth trajectory is mixed. The company reported a net loss in the latest period, and while the input data does not provide forward-looking revenue guidance, the negative operating and free cash flows suggest near-term headwinds. The analyst estimate for EPS is 51.00 KRW, but this does not reflect a clear growth trend. Risk factors include liquidity concerns due to negative net cash and the potential for operational losses to persist. The risk assessment indicates a medium liquidity risk and low dilution risk, with no immediate pressure for equity issuance. The company has not disclosed any recent capital raising activities or dilutive events in the provided data. Recent events include the latest financial results showing a net loss, but there are no disclosed filings or transcripts in the input data that provide additional context on strategic shifts or operational changes.