Bac Ninh Clean Water JSC

Bac Ninh Clean Water JSC maintains a conservative capital structure with a debt-to-equity ratio of 0.59, indicating a balanced approach to financing. The company's liquidity position is characterized as medium risk, with a current ratio of 1.58, suggesting it can cover short-term obligations but with limited buffer. Free cash flow is negative at -10,515.5 million VND, primarily due to high capital expenditures of -81,666.8 million VND, which reflects ongoing infrastructure investments.

Profitability metrics show a return on equity of 3.2% and a return on assets of 1.58%, both below the industry median for Water & Related Utilities. This suggests the company is underperforming in terms of capital efficiency and asset utilization. Gross profit of 21,853.0 million VND and operating income of 14,854.9 million VND indicate a stable but modest margin profile, with net income of 12,742.9 million VND representing a healthy bottom-line result.

The company operates as a single business segment, with all revenue derived from water treatment and distribution in the Bac Ninh region. There is no geographic diversification, and the company is entirely exposed to the local market. This concentration increases vulnerability to regional economic or regulatory shifts.

Revenue for the latest period was 71,776.2 million VND, with no segment-specific growth data available. The outlook for the current fiscal year is neutral, with no significant revenue growth expected. The next fiscal year is projected to show similar performance, with no material changes in direction.

Risk factors include medium liquidity risk due to the current ratio and negative free cash flow, as well as the potential for dilution, though it is currently assessed as low. The company has not issued new shares recently, and no dilutive events are currently flagged. The key risk flag is the negative net cash position after subtracting total debt, which could constrain flexibility in capital allocation.

Recent filings and transcripts have not disclosed any material events or strategic shifts. The company remains focused on maintaining service quality and infrastructure in the Bac Ninh region.

Operating and net margins exceed Water & Utilities cohort medians, indicating superior profitability relative to peers.

Cash conversion ratio of 4.68 ranks best-in-class among 89 peers, demonstrating exceptional cash generation efficiency.

Revenue grew at a 10.7% CAGR over four years, showing consistent top-line expansion despite recent volatility.

Debt-to-equity ratio of 0.59 is below the cohort median of 0.44, suggesting a manageable leverage profile.

Free cash flow improved by 13.2% year-over-year, signaling a recovery in cash generation capabilities.

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

Capex to revenue ratio of -1.14 is in the bottom quartile, implying excessive capital intensity.

Medium liquidity risk flags potential difficulties in meeting short-term financial obligations or operational needs.