Weak Cash ConversionNegative free cash flow and poor cash conversion reduce financial flexibility despite solid accounting profits. Over several quarters this can constrain capex funding, raise working-capital sensitivity, and increase reliance on external financing or equity to sustain growth plans.
Margin NormalizationA pronounced decline from prior peak margins suggests structural pressure from pricing, mix shifts, or higher input costs. If sustained, lower margins will reduce cash generation and limit the company's ability to fund expansion or absorb cyclical downturns without cutting investment or returns.
Exposure To Overseas Affiliate And Input RisksReliance on equity-method affiliates and sensitivity to raw-material costs create external profit volatility. Underperforming overseas affiliates or prolonged commodity inflation could depress consolidated ordinary profit and disrupt the planned three-year growth trajectory.