Ha Bac Nitrogenous Fertilizer & Chemicals JSC

Ha Bac Nitrogenous Fertilizer & Chemicals JSC operates with a highly leveraged capital structure, as evidenced by a debt-to-equity ratio of 5.7, significantly above the industry median. The company's liquidity position is weak, with a current ratio of 0.93, indicating that it does not have sufficient current assets to cover its current liabilities. Free cash flow is negative at -1.89 billion VND, and operating cash flow is also negative at -67.2 billion VND, signaling ongoing cash flow challenges.

Profitability metrics are deeply negative, with a return on equity of -26.83% and a return on assets of -2.21%. These figures are far below the industry median for Agricultural Chemicals, which typically shows positive returns in normal operating conditions. The company is currently reporting a net loss of 137.45 billion VND, with operating income also in the red at -188.43 billion VND. Gross profit is negative at -58.98 billion VND, indicating that the company is struggling to cover its cost of goods sold.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material diversification across product lines or geographic regions. This lack of diversification increases exposure to sector-specific risks, such as commodity price volatility and regulatory changes in the agricultural chemical industry.

Looking ahead, the company is expected to face continued financial pressure. Revenue is projected to decline in the current fiscal year, with no clear signs of improvement in the next fiscal year. The negative operating cash flow and high debt load suggest that the company may need to seek additional financing or restructuring to remain solvent.

Risk factors include liquidity constraints, with the company's net cash position negative after subtracting total debt. The dilution risk is currently low, as there is no indication of new share issuance or convertible debt conversion. However, the company's financial distress could lead to future dilution if it requires additional capital to fund operations or service debt.

Recent filings and transcripts indicate that the company is under pressure from creditors and is exploring cost-cutting measures to improve its financial position. Management has acknowledged the need for operational restructuring to address the ongoing losses and cash flow issues.

Free cash flow grew 7.4% year-over-year to 542.8 billion VND, demonstrating improved cash generation capabilities.

Operating income surged 100.7% year-over-year, indicating a significant turnaround in core operational profitability metrics.

Net income increased 58.6% year-over-year, reflecting a recovery in bottom-line earnings despite revenue stagnation.

The debt-to-equity ratio stands at 5.7, significantly exceeding the agricultural chemicals cohort median of 0.34.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or securing financing.

Revenue declined 0.7% annually over four years, showing a lack of top-line growth momentum.