Hyosung Chemical Corp

Hyosung Chemical Corp exhibits a highly leveraged capital structure, with a debt-to-equity ratio of 28.67, indicating significant reliance on debt financing. The company's liquidity position is constrained, as evidenced by a current ratio of 0.33, suggesting limited short-term liquidity to cover immediate obligations. Despite a market price of 38,900 KRW and a market cap of 146.57 billion KRW, the company's price-to-book ratio of 1.59 and negative net income of 73.9 billion KRW highlight valuation and earnings challenges.

Profitability metrics are severely underperforming relative to industry norms. The company reported a net loss of 73.9 billion KRW, with a return on equity of -0.7997 and a return on assets of -0.0223, both of which are negative and far below the typical performance of firms in the Commodity Chemicals industry. Gross profit and operating income were also negative, at -14.87 billion KRW and -41.3 billion KRW, respectively, indicating operational inefficiencies and cost overruns.

Geographically and segment-wise, the company's revenue is concentrated in a single business segment, as disclosed in its financials, with no material diversification across regions or product lines. This lack of diversification increases exposure to regional economic shifts and sector-specific volatility.

The company's growth trajectory is currently negative, with a free cash flow of -93.92 billion KRW and capital expenditures of -70.69 billion KRW, indicating a cash outflow from operations and investment activities. The outlook for the current fiscal year is not explicitly provided, but the negative operating cash flow of 5.92 billion KRW and the absence of positive revenue growth signals suggest a challenging near-term environment.

Risk factors include a high debt load and negative net cash position, which could limit the company's ability to respond to market pressures or fund operations without external financing. The risk assessment indicates a medium liquidity risk and a low dilution risk, though the company's negative net income and high leverage could necessitate future capital raising, potentially leading to equity dilution.

Recent events, including the latest financial filing, reveal a deteriorating financial position with a net loss and negative operating income. No recent transcripts or filings beyond the financial snapshot are available to provide additional context on management's strategy or operational changes.

Net income surged 220.7% year-over-year to 393 billion KRW, marking a significant turnaround from prior losses.

Free cash flow improved by 64.6% year-over-year, reducing the cash burn rate to 90.3 billion KRW.

Long-term debt decreased significantly to 1.6 trillion KRW, down from 2.7 trillion KRW in the prior fiscal year.

Gross profit narrowed its deficit to 70.5 billion KRW, indicating improving cost management relative to revenue.

The company achieved a positive net income CAGR of 61.1% over the last four years.

The debt-to-equity ratio stands at 28.67, placing it in the bottom quartile compared to 612 peers.

The company faces high credit risk and medium liquidity risk according to internal risk flag assessments.

Revenue declined 4.5% year-over-year to 2.34 trillion KRW, continuing a negative four-year CAGR trend.

Revenue KRW 647.58B; Operating income -KRW 44.39B.

• ▍Revenue KRW 647.58B
• ▍Operating income -KRW 44.39B
• ▍Net margin -15.5%

Revenue KRW 628.86B; Operating income -KRW 30.40B.

• ▍Revenue KRW 628.86B
• ▍Operating income -KRW 30.40B
• ▍Net margin -9.7%

Revenue KRW 597.54B; Operating income -KRW 60.67B.

• ▍Revenue KRW 597.54B
• ▍Operating income -KRW 60.67B
• ▍Net margin -15.1%

Revenue KRW 663.88B; Operating income -KRW 41.30B.

• ▍Revenue KRW 663.88B
• ▍Operating income -KRW 41.30B
• ▍Net margin -11.1%

Revenue KRW 2.45T, −6,5% YoY; Operating income +18,2% YoY.

• ▍Revenue KRW 2.45T, −6,5% YoY
• ▍Operating income +18,2% YoY
• ▍Net income +6,1% YoY
• ▍Free cash flow +3,2% YoY
• ▍Net margin -13.3%

Revenue KRW 2.62T, −8,9% YoY; Operating income +36,5% YoY.

• ▍Revenue KRW 2.62T, −8,9% YoY
• ▍Operating income +36,5% YoY
• ▍Net income +15,2% YoY
• ▍Free cash flow +27,1% YoY
• ▍Net margin -13.2%

Revenue KRW 2.88T, +14,2% YoY; Operating income −346,6% YoY.

• ▍Revenue KRW 2.88T, +14,2% YoY
• ▍Operating income −346,6% YoY
• ▍Net income −799,9% YoY
• ▍Free cash flow −315,4% YoY
• ▍Net margin -14.2%

Revenue KRW 2.52T; Operating income KRW 136.57B.

• ▍Revenue KRW 2.52T
• ▍Operating income KRW 136.57B
• ▍Net margin 2.3%