China General Plastics Corporation (1305) AI Stock Analysis

China General Plastics Corporation

(TWSE:1305)

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Rating:27Underperform

Price Target:TWD 9.50▼(-16.67% Downside)

Action:initiatedcoverage

Date:11/09/26

China General Plastics scores poorly, driven primarily by a severe deterioration in financial performance: four consecutive years of falling revenue, negative gross and operating margins, a widening net loss, and negative free cash flow for a fifth straight year that has forced debt up sharply while equity erodes. Technicals reinforce the caution, with the stock trading well below all major moving averages and negative MACD, though deeply oversold RSI and Stochastic readings hint at scope for a short-term bounce. Valuation provides little cushion given negative earnings and a small dividend whose sustainability is uncertain. The main offset is a still-reasonable capital structure (44% equity-funded assets, 0.88x debt-to-equity) and prior evidence of strong earnings power in up-cycles, meaning a recovery in petrochemical/plastics pricing could improve the picture — but until operating cash flow and margins turn positive, the risk profile remains high.

Positive Factors

Diversified Polymer ApplicationsServing multiple downstream markets gives the company a broad customer and end-use base rather than dependence on one application. This diversification can support demand resilience and preserve avenues for growth when conditions vary across packaging, consumer, industrial, and construction markets.

Negative Factors

Persistent Revenue DeclineMulti-year revenue contraction indicates that the company is losing scale or facing prolonged demand and pricing pressure across its markets. Continued top-line deterioration can reduce operating leverage, weaken bargaining power, and make a durable return to profitability more difficult.

China General Plastics Corporation (1305) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.62B
Dividend Yield: 0.88%
Average Volume (3M): 1.77M
Price to Earnings (P/E): -15.8
Beta (1Y): 0.39
Revenue Growth: -7.05%
EPS Growth: 63.06%
Country: TW
Employees: 912
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

China General Plastics Corporation Business Overview & Revenue Model

Company Description

China General Plastics Corporation (CGPC) is a global manufacturer, distributor, and service provider specializing in a diverse array of vinyl products. Its operational reach extends across numerous continents, including Asia, North America (United S...

China General Plastics Corporation Financial Statement Overview

Summary

Financials are deeply distressed. Revenue has more than halved since 2021 (to roughly NT$9.2 billion, -7.1% in the latest year), gross margin has flipped from 24.9% to -3.8%, and the company posted a widening net loss of about NT$919 million. Cash flow is the weakest link: operating cash flow turned negative (-NT$258 million) while heavy capex drove free cash flow to -NT$2.27 billion, a fifth straight negative year. The balance sheet is the relative bright spot, with equity still funding about 44% of assets and debt-to-equity at 0.88x, but equity has eroded from NT$11.2 billion to NT$7.7 billion while debt ballooned from NT$1.2 billion to NT$6.8 billion, and ROE is -11.9%.

Income Statement

12Very Negative

Balance Sheet

33Negative

Cash Flow

13Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.50B	9.22B	11.09B	13.71B	17.64B	20.22B
Gross Profit	411.25M	-349.92M	210.58M	1.68B	678.16M	5.04B
EBITDA	438.55M	-458.99M	47.93M	1.32B	225.08M	4.00B
Net Income	-232.38M	-918.98M	-709.97M	341.92M	-370.25M	2.47B
Balance Sheet
Total Assets	18.75B	17.43B	18.08B	17.75B	16.68B	16.98B
Cash, Cash Equivalents and Short-Term Investments	1.55B	1.41B	3.08B	3.11B	2.50B	2.35B
Total Debt	8.11B	6.79B	6.03B	4.79B	3.55B	1.24B
Total Liabilities	10.55B	9.19B	8.76B	7.52B	6.64B	5.14B
Stockholders Equity	7.70B	7.73B	8.74B	9.58B	9.45B	11.16B
Cash Flow
Free Cash Flow	-2.33B	-2.27B	-736.52M	-410.12M	-640.72M	524.75M
Operating Cash Flow	100.65M	-257.59M	776.27M	1.02B	816.38M	2.21B
Investing Cash Flow	-2.39B	-1.61B	-1.46B	-2.07B	-1.53B	-1.70B
Financing Cash Flow	1.62B	664.19M	1.00B	976.68M	766.42M	-64.63M

China General Plastics Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1305 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2114	78Outperform	TWD 6.93B	13.34	―	5.56%	8.60%	23.20%
TW:6585	63Neutral	TWD 6.76B	10.51	―	4.81%	9.62%	46.90%
TW:1713	57Neutral	TWD 6.13B	8.58	―	7.61%	2.77%	-51.96%
TW:1315	56Neutral	TWD 6.76B	28.61	―	6.45%	-8.65%	262.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1305	27Underperform	TWD 6.51B	-15.83	―	0.88%	-7.05%	63.06%

* General Sector Average

Performance Comparison

TW:1305 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1305	China General Plastics Corporation	11.40	-0.26	-2.20%
TW:1315	Tah Hsin Industrial Corp.	69.80	9.63	16.00%
TW:1713	Cathay Chemical Works Inc.	40.75	-1.47	-3.47%
TW:2114	Hsin Yung Chien Co., Ltd.	89.90	4.06	4.72%
TW:6585	DingZing Advanced Materials, Inc.	93.50	-1.30	-1.37%
TW:8058	Nytex Composites Co. Ltd.	83.90	23.53	38.97%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

China General Plastics Corporation AI Stock Analysis