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Hanon Systems (Photo = Hanon Systems) |
[Alpha Biz= Paul Lee] Hanon Systems is pushing ahead with financial restructuring backed by Hankook Tire & Technology, but weak cash generation and governance issues are limiting progress.
The company is preparing a KRW 150 billion bond issuance, though profitability pressures remain significant. Last year, its financial costs exceeded operating profit, highlighting its heavy interest burden, while net losses continued for a second consecutive year.
Cash flow has also deteriorated sharply. Operating cash flow fell by more than 80% year-on-year, while capital expenditures remained high, resulting in a substantial negative free cash flow and limited debt repayment capacity.
In addition, delayed disclosure of embezzlement and breach-of-trust incidents has raised concerns over internal controls and external credibility.
Despite these challenges, some analysts expect gradual improvement driven by restructuring efforts, including cost reductions and operational efficiency gains under its largest shareholder.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
