Double Bond Chemical Ind Co Ltd

Double Bond Chemical Ind Co Ltd maintains a capital structure characterized by significant leverage, with long-term debt of TWD 1.92 billion against total equity of TWD 2.34 billion, resulting in a debt-to-equity ratio of 0.82. The company holds a current ratio of 1.36, indicating adequate short-term liquidity to cover immediate obligations. However, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, highlighting a reliance on debt financing rather than cash reserves. The balance sheet shows total assets of TWD 4.78 billion and total liabilities of TWD 2.44 billion.

Profitability metrics are exceptionally low, with a return on equity of 0.88% and a return on assets of 0.43%. The company generated net income of TWD 104.54 million on revenue of TWD 2.85 billion, yielding a net margin of approximately 3.67%. Operating income stood at TWD 165.40 million, while gross profit was TWD 564.86 million, indicating a gross margin of roughly 19.8%. These returns are significantly below typical industry medians for chemical manufacturers, suggesting weak operational efficiency or a cyclical trough in earnings power.

Revenue concentration and geographic exposure details are not provided in the available data, preventing a specific analysis of segment or regional risk. The company’s activity is broadly classified as unclassified within the chemicals industry, with no disclosed segment breakdown to assess diversification. The absence of segment data limits the ability to evaluate specific product line performance or customer concentration risks.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to determine the direction or velocity of the company’s growth. The current financial snapshot reflects a single normalized period, offering no insight into year-over-year changes or seasonal patterns.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting negative net cash after debt subtraction. The company’s high valuation multiples relative to its low earnings base amplify the risk of multiple compression if earnings do not improve. The debt-to-equity ratio of 0.82 indicates moderate financial leverage, which could constrain flexibility in a rising interest rate environment or during periods of cash flow volatility.

Recent events, filing observations, and news transcripts are not provided in the input data. Consequently, there are no recent disclosed events, management signals, or competitor context to incorporate into the analysis. The assessment relies solely on the static financial and classification data provided.

Net income surged 224.4% year-over-year to TWD 106.9 million, demonstrating strong profitability recovery.

Operating income jumped 229.3% year-over-year, indicating significant improvement in core operational efficiency and margins.

Revenue grew 37.5% year-over-year to TWD 3.06 billion, reflecting robust top-line expansion momentum.

Cash conversion ratio of 7.38 ranks best-in-class, significantly outperforming the cohort median of 1.2.

Long-term debt decreased to TWD 1.88 billion, suggesting a gradual deleveraging trend over the period.

Net margin of 0.72% is in the bottom quartile, significantly below the cohort median of 5.27%.

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

Free cash flow turned negative to TWD -147 million, reversing previous positive cash generation trends.

Revenue TWD 2.81B, −8,4% YoY; Operating income −79,4% YoY.

• ▍Revenue TWD 2.81B, −8,4% YoY
• ▍Operating income −79,4% YoY
• ▍Net income −43,5% YoY
• ▍Free cash flow +61,9% YoY
• ▍Net margin 2.2%