Negative Free Cash Flow From High CapexPersistently negative free cash flow driven by elevated capex can erode liquidity and force external financing or slower shareholder returns. If capital intensity remains high, it weakens the balance between investment and cash generation and raises long-term funding risk.
Net Profit Margin CompressionA declining net margin to 8.3% suggests rising operating expenses or weaker non-operating income, reducing retained earnings from sales. Over time this lowers earnings power and makes results more sensitive to cost inflation or demand shocks despite healthy gross/EBIT margins.
Rising Total Debt LevelAlthough leverage is currently low, the noted increase in total debt signals future interest and refinancing exposure. Combined with negative FCF, continued debt growth could weaken the conservative capital structure and constrain strategic flexibility over the medium term.