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[Alpha Biz=(Chicago) Reporter Kim Jisun] Humax's credit rating has been downgraded. This is because it will be difficult to recover business performance and improve its financial structure in a short period of time.
On the 15th, the Korea Enterprise Evaluation lowered Humax's credit rating from 'BBB- (negative)' to 'BB + (stable)'.
Humax is a total mobility solution company, focusing on set-top boxes and vehicle antennas. Sales have rapidly shrunk since 2018 due to a prolonged contraction in demand for set-top boxes. In 2021, consolidated sales plunged 26.4% year-on-year and posted an operating loss of 50.3 billion won due to weak demand in the U.S. market and increased cost burden stemming from rising DRAM prices.
Financial stability has also been reduced due to a series of equity investments and continued investment losses by related companies. Humax entered the mobility business by acquiring Hi-Parking through Humax Mobility, a joint venture in 2019, and acquiring Hi-Green Parking through Hi-Parking in 2021. However, most investment companies except Hi-Parking have recorded poor performance, leading to massive losses in their investment assets.
The Korea Enterprise Evaluation suggested 'Improvement of financial stability through recovery of operating performance' and 'Sequential Deposit/Depreciation Operating Profit (EBITDA) less than seven times' as factors to review Humax's rating upgrade.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
