Hankuk Carbon Co Ltd

Hankuk Carbon maintains a relatively strong liquidity position, with a current ratio of 1.27, indicating the company can cover its short-term liabilities with its short-term assets. However, the company's free cash flow is negative at -558.07 million KRW, suggesting that capital expenditures are outpacing operating cash flow. The company's cash and equivalents of 80,531.52 million KRW are partially offset by long-term debt of 118,050.49 million KRW, resulting in a net cash position that is negative after subtracting total debt.

Profitability metrics show a return on equity (ROE) of 1.89% and a return on assets (ROA) of 1.06%, both of which are below the typical thresholds for high-performing chemical companies. The operating margin, calculated as operating income of 17,728.31 million KRW on revenue of 194,212.27 million KRW, is 9.13%, which is in line with the industry median for commodity chemicals.

Geographically, the company's revenue is concentrated in South Korea, with no disclosed international segments. The lack of geographic diversification may expose the company to regional economic and regulatory risks, particularly in the chemical manufacturing sector.

Looking ahead, the company's revenue is projected to grow, supported by increasing demand for specialty chemicals in the electronics and energy sectors. The current fiscal year is expected to see a modest increase in revenue, with the next fiscal year showing a more pronounced growth trajectory. However, the company's capital expenditure of -32,040.36 million KRW indicates ongoing investment in production capacity, which may impact short-term profitability.

The company's risk profile is characterized by medium liquidity risk and low dilution risk. The debt-to-equity ratio of 0.26 suggests a conservative capital structure, with total liabilities of 361,740.73 million KRW compared to total equity of 459,231.48 million KRW. The risk assessment highlights the need for continued monitoring of liquidity, particularly as the company invests in new projects.

Recent events, including analyst estimates and price targets, indicate a generally positive outlook. The mean price target of 52,333.33 KRW and the median price target of 54,000.00 KRW suggest that analysts expect the stock to appreciate. The mean recommendation of 1.43, with four strong-buy ratings and three buy ratings, further supports this positive sentiment.

Analysts project 119.4% upside to a mean price target of 52,333 KRW, reflecting strong buy consensus.

The company faces medium liquidity and credit risks, which could constrain financial flexibility during market downturns.

Capital expenditure intensity is in the bottom quartile of the cohort, suggesting heavy investment requirements relative to revenue.

Return on assets of 1.06% remains low, indicating limited efficiency in generating profits from total asset base.

Revenue KRW 211.82B, −5,7% YoY; Operating income +34,0% YoY.

• ▍Revenue KRW 211.82B, −5,7% YoY
• ▍Operating income +34,0% YoY
• ▍Net income −29,0% YoY
• ▍Free cash flow −46,8% YoY
• ▍Net margin 7.3%

Revenue KRW 231.84B, +19,4% YoY; Operating income +150,5% YoY.

• ▍Revenue KRW 231.84B, +19,4% YoY
• ▍Operating income +150,5% YoY
• ▍Net income +5 599,7% YoY
• ▍Free cash flow +446,4% YoY
• ▍Net margin 15.0%

Revenue KRW 221.13B, +29,6% YoY; Operating income +344,7% YoY.

• ▍Revenue KRW 221.13B, +29,6% YoY
• ▍Operating income +344,7% YoY
• ▍Net income +27,7% YoY
• ▍Free cash flow +1 450,4% YoY
• ▍Net margin 7.1%

Revenue KRW 231.27B, +19,1% YoY; Operating income +78,3% YoY.

• ▍Revenue KRW 231.27B, +19,1% YoY
• ▍Operating income +78,3% YoY
• ▍Net income +238,8% YoY
• ▍Free cash flow +3 473,3% YoY
• ▍Net margin 12.7%

Revenue KRW 224.56B; Operating income KRW 30.45B.

• ▍Revenue KRW 224.56B
• ▍Operating income KRW 30.45B
• ▍Net margin 9.7%

Revenue KRW 908.81B, +22,5% YoY; Operating income +207,7% YoY.

• ▍Revenue KRW 908.81B, +22,5% YoY
• ▍Operating income +207,7% YoY
• ▍Net income +400,7% YoY
• ▍Free cash flow +410,6% YoY
• ▍Net margin 11.2%

Revenue KRW 741.74B, +24,8% YoY; Operating income +264,9% YoY.

• ▍Revenue KRW 741.74B, +24,8% YoY
• ▍Operating income +264,9% YoY
• ▍Net income +251,1% YoY
• ▍Free cash flow +53,1% YoY
• ▍Net margin 2.7%

Revenue KRW 594.42B, +61,0% YoY; Operating income −218,0% YoY.

• ▍Revenue KRW 594.42B, +61,0% YoY
• ▍Operating income −218,0% YoY
• ▍Net income −166,4% YoY
• ▍Free cash flow −970,9% YoY
• ▍Net margin -2.3%

Revenue KRW 369.27B, +0,4% YoY; Operating income +41,1% YoY.

• ▍Revenue KRW 369.27B, +0,4% YoY
• ▍Operating income +41,1% YoY
• ▍Net income +41,2% YoY
• ▍Free cash flow +75,8% YoY
• ▍Net margin 5.5%

Revenue KRW 367.83B; Operating income KRW 15.39B.

• ▍Revenue KRW 367.83B
• ▍Operating income KRW 15.39B
• ▍Net margin 3.9%