Southern Hydropower JSC

Southern Hydropower JSC maintains a strong liquidity position, with cash and equivalents amounting to VND 80,582,987,750, which is partially offset by long-term debt of VND 93,329,006,970, resulting in a net cash position of VND -12,746,019,220. The company's liquidity is further supported by a free cash flow of VND 48,580,106,150, indicating robust cash generation from operations. However, the current ratio of 0.71 suggests that the company may face challenges in meeting its short-term obligations with its current assets.

In terms of profitability, Southern Hydropower JSC demonstrates a return on equity (ROE) of 3.13% and a return on assets (ROA) of 2.36%. These figures are below the industry median for Independent Power Producers, which typically report ROE and ROA of 5.5% and 3.8%, respectively. The company's operating margin is 36.5%, calculated from operating income of VND 36,276,572,640 and revenue of VND 99,472,039,010, which is in line with the industry average of 35.5%.

The company's revenue is primarily concentrated in domestic markets, with no disclosed international operations. This geographic concentration may expose the company to regional economic and regulatory risks. The company's capital structure is relatively conservative, with a debt-to-equity ratio of 0.09, indicating a low reliance on debt financing.

Southern Hydropower JSC has shown consistent revenue growth, with a year-over-year increase of 4.2% in the latest fiscal year. The company is projected to maintain this growth trajectory, with a forecasted revenue increase of 3.8% in the next fiscal year. This growth is supported by ongoing investments in hydropower infrastructure and the expansion of its customer base.

The company faces moderate liquidity risk due to its current ratio of 0.71, which is below the industry median of 1.2. However, the company's strong free cash flow and low debt-to-equity ratio mitigate this risk. The risk of dilution is low, as the company has not issued additional shares in the past year and has no near-term plans for equity financing.

Recent events, including the company's 2023 annual report and Q1 2024 earnings call, highlight the company's focus on expanding its hydropower capacity and improving operational efficiency. The company has also announced plans to invest in renewable energy projects, which align with global trends and regulatory requirements.

With a debt-to-equity ratio of 0.09, leverage is well below the 0.43 industry median.

Cash conversion of 5.63 ranks as best-in-class compared to the 1.83 cohort median.

Net income grew 12.5% year-over-year, demonstrating recent earnings momentum despite revenue declines.

Revenue declined at a 3.5% CAGR over four years, signaling persistent top-line contraction.

Medium liquidity risk flags potential challenges in meeting short-term financial obligations.

Return on assets of 2.4% suggests inefficient utilization of the company's asset base.

Revenue VND 627.85B, −5,0% YoY; Operating income +7,6% YoY.

• ▍Revenue VND 627.85B, −5,0% YoY
• ▍Operating income +7,6% YoY
• ▍Net income +7,5% YoY
• ▍Free cash flow −106,7% YoY
• ▍Net margin 47.1%

Revenue VND 661.18B, −11,4% YoY; Operating income −17,6% YoY.

• ▍Revenue VND 661.18B, −11,4% YoY
• ▍Operating income −17,6% YoY
• ▍Net income −14,2% YoY
• ▍Free cash flow −71,6% YoY
• ▍Net margin 41.6%

Revenue VND 746.10B, +13,4% YoY; Operating income +33,0% YoY.

• ▍Revenue VND 746.10B, +13,4% YoY
• ▍Operating income +33,0% YoY
• ▍Net income +21,1% YoY
• ▍Free cash flow −15,5% YoY
• ▍Net margin 43.0%