Victory New Materials Ltd. Co. (1340) AI Stock Analysis

Victory New Materials Ltd. Co.

(TWSE:1340)

Select Model

Rating:39Underperform

Price Target:TWD 4.50▼(-6.83% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is driven primarily by severely weak profitability and cash generation. Technical momentum is also unfavorable, while the negative P/E and unavailable dividend yield provide no valuation support; low leverage and oversold technical readings offer only limited offsets.

Positive Factors

Low financial leverageModest leverage gives Victory New Materials more financial flexibility than a heavily indebted peer during its operating downturn. Lower refinancing exposure can preserve capacity to restructure, fund essential operations, or pursue a recovery without the immediate burden of substantial debt service.

Negative Factors

Severe revenue contractionA revenue collapse of this magnitude indicates severe pressure on demand, commercial execution, or the company’s operating base. Sustained lower sales would reduce scale benefits, weaken fixed-cost absorption, and make a return to profitability materially harder over the next several quarters.

Victory New Materials Ltd. Co. (1340) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 730.97M
Dividend Yield: ―
Average Volume (3M): 119.65K
Price to Earnings (P/E): -2.1
Beta (1Y): 0.22
Revenue Growth: -84.09%
EPS Growth: 50.07%
Country: TW
Employees: 8,506
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Victory New Materials Ltd. Co. Business Overview & Revenue Model

Company Description

Victory New Materials Limited Company manufactures and sells shoe materials in China and internationally. The company offers secondary molding soles, one injection soles, one injection monochrome slippers, injected styrofoam plastic molding soles, on...

Victory New Materials Ltd. Co. Financial Statement Overview

Summary

Financial performance is severely impaired: revenue fell 81.6%, profitability remains deeply negative, and operating and free cash flow were negative. Low leverage and assets exceeding liabilities provide limited balance-sheet support.

Income Statement

5Very Negative

Balance Sheet

66Positive

Cash Flow

14Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.61M	42.39M	376.37M	562.08M	499.23M	650.63M
Gross Profit	-78.46M	-36.48M	-133.68M	-210.32M	-253.05M	-378.87M
EBITDA	-252.36M	-245.21M	-676.84M	-764.21M	-344.83M	-465.39M
Net Income	-382.21M	-398.41M	-808.03M	-861.73M	-429.88M	-512.49M
Balance Sheet
Total Assets	3.09B	2.94B	3.32B	4.10B	4.79B	5.15B
Cash, Cash Equivalents and Short-Term Investments	536.50M	555.80M	684.61M	986.91M	1.83B	2.55B
Total Debt	284.97M	275.68M	210.22M	207.44M	21.75M	2.42M
Total Liabilities	419.54M	333.96M	317.29M	374.26M	140.79M	163.90M
Stockholders Equity	2.67B	2.61B	3.00B	3.72B	4.65B	4.99B
Cash Flow
Free Cash Flow	-259.74M	-193.90M	-314.84M	-937.78M	-769.98M	-748.86M
Operating Cash Flow	-45.01M	-59.80M	-297.11M	-272.62M	-362.58M	-457.81M
Investing Cash Flow	-218.26M	-133.21M	315.95M	-383.68M	-234.47M	-1.15B
Financing Cash Flow	118.47M	65.46M	-2.78M	200.60M	-24.69M	-23.00M

Victory New Materials Ltd. Co. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1340 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8423	62Neutral	TWD 727.91M	16.50	―	3.97%	0.28%	66.15%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1324	43Neutral	TWD 709.90M	-21.55	―	2.12%	-12.03%	25.26%
TW:4558	43Neutral	TWD 847.50M	19.93	―	―	10.33%	―
TW:1340	39Underperform	TWD 730.97M	-2.13	―	―	-84.09%	50.07%
TW:2064	32Underperform	TWD 766.23M	562.50	―	―	8.38%	―

* General Sector Average

Performance Comparison

TW:1340 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1340	Victory New Materials Ltd. Co.	4.83	-2.20	-31.29%
TW:1324	Globe Industries Corp. Ltd.	9.27	-1.48	-13.77%
TW:2064	Camellia Metal Co., Ltd.	11.25	-0.95	-7.79%
TW:4558	Alformer Industrial Co Ltd	17.95	-2.15	-10.70%
TW:7862	AceGreen Eco-Material Technology Co Ltd	16.25	-34.84	-68.20%
TW:8423	Polygreen Resources Co., Ltd.	17.65	0.77	4.56%

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

Victory New Materials Ltd. Co. AI Stock Analysis