I-Hwa Industrial Co Ltd

I-Hwa Industrial Co Ltd exhibits a highly leveraged capital structure, with a debt-to-equity ratio of 6.72, significantly above the median for its industry. The company's liquidity position is constrained, as evidenced by a current ratio of 1.22 and negative free cash flow of -39,211,000 TWD. The negative net income of -43,052,000 TWD and a return on equity of -2.93% indicate poor profitability and capital efficiency.

The company's operating income of 50,887,000 TWD is modest relative to its total assets of 11,850,756,000 TWD, and its return on assets of -0.36% is well below the industry median. The absence of capital expenditures suggests a lack of investment in growth, which may limit future revenue potential.

I-Hwa Industrial Co Ltd's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic downturns and regulatory changes. The company's operating cash flow of 937,000 TWD is insufficient to cover its long-term debt obligations of 9,883,233,000 TWD, raising concerns about its ability to service debt.

The company's growth trajectory is uncertain, with no disclosed revenue growth in the most recent fiscal year. Analyst estimates for revenue and EPS are based on historical performance, and there is no indication of future expansion or diversification. The absence of capital expenditures and negative free cash flow suggest a lack of investment in new projects or asset improvements.

The company faces significant liquidity and solvency risks, as highlighted by its negative net cash position and high debt-to-equity ratio. The risk assessment indicates a medium liquidity risk and a low dilution risk, but the potential for further debt issuance remains a concern. The company has not disclosed any recent equity offerings or dilution events, but its financial position may necessitate such actions in the near term.

Recent filings and transcripts do not provide additional insights into the company's strategic direction or financial health. The company's performance is closely tied to the real estate market in its primary operating region, and any downturn in this market could have a material impact on its financial results.

Revenue surged 185.1% year-over-year to TWD 2.36 billion, demonstrating significant top-line growth momentum.

Net income increased 42.3% to TWD 454.4 million, indicating strong profitability expansion in the latest period.

Free cash flow grew 39.9% to TWD 459.5 million, providing robust liquidity for future investments or debt reduction.

Long-term debt decreased significantly to TWD 5.07 billion, improving the balance sheet structure compared to prior years.

Debt-to-equity ratio of 6.72 is in the bottom quartile, indicating excessive leverage and high financial risk.

High credit risk flag suggests potential difficulties in meeting financial obligations or servicing existing debt levels.

Revenue TWD 296.4M, +14,8% YoY; Operating income +10,9% YoY.

• ▍Revenue TWD 296.4M, +14,8% YoY
• ▍Operating income +10,9% YoY
• ▍Net income +82,0% YoY
• ▍Free cash flow +88,4% YoY
• ▍Net margin -2.5%

Revenue TWD 163.8M, −41,6% YoY; Operating income −36,8% YoY.

• ▍Revenue TWD 163.8M, −41,6% YoY
• ▍Operating income −36,8% YoY
• ▍Net income −4,2% YoY
• ▍Free cash flow −13,9% YoY
• ▍Net margin -27.4%

Revenue TWD 829.0M, −20,5% YoY; Operating income +34,2% YoY.

• ▍Revenue TWD 829.0M, −20,5% YoY
• ▍Operating income +34,2% YoY
• ▍Net income +208,3% YoY
• ▍Free cash flow +229,8% YoY
• ▍Net margin 38.5%

Revenue TWD 1.04B, −38,1% YoY; Operating income +21,5% YoY.

• ▍Revenue TWD 1.04B, −38,1% YoY
• ▍Operating income +21,5% YoY
• ▍Net income +1 937,6% YoY
• ▍Free cash flow +1 143,5% YoY
• ▍Net margin 9.9%

Revenue TWD 1.68B, +173,0% YoY; Operating income +237,5% YoY.

• ▍Revenue TWD 1.68B, +173,0% YoY
• ▍Operating income +237,5% YoY
• ▍Net income +106,7% YoY
• ▍Free cash flow +112,5% YoY
• ▍Net margin 0.3%

Revenue TWD 617.2M, −73,9% YoY; Operating income −79,8% YoY.

• ▍Revenue TWD 617.2M, −73,9% YoY
• ▍Operating income −79,8% YoY
• ▍Net income −116,6% YoY
• ▍Free cash flow −114,0% YoY
• ▍Net margin -12.2%