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Cathay Consolidated Inc. (1342) AI Stock Analysis

TW:1342

Cathay Consolidated Inc.

(TWSE:1342)

Select Model
Rating:74Outperform
Price Target:TWD 103.00â–²(9.34% Upside)
Action:initiatedcoverage
Date:11/10/26

The score is primarily supported by strong financial fundamentals and attractive valuation, especially the low leverage, solid profitability, and high dividend yield. These strengths are offset by weakening cash conversion and clearly bearish technical trends, despite oversold momentum indicators.

Positive Factors
Conservative Balance SheetDeclining leverage and stable equity and assets provide financial flexibility for a cyclical manufacturing business. A conservative balance sheet can help Cathay Consolidated absorb demand swings, sustain operations, and fund investment without excessive reliance on additional borrowing.
Negative Factors
Margin CompressionThe substantial reduction in gross margin and lower net margin show that profitability has weakened despite the return to revenue growth. If this normalization persists, it could constrain earnings expansion, reduce reinvestment capacity, and make results more sensitive to costs or product mix.

Cathay Consolidated Inc. (1342) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%50%TW:1342+17.67%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 7.42B
Dividend Yield
6.37%
Average Volume (3M)
149.52K
Price to Earnings (P/E)
13.4
Beta (1Y)
0.48
Revenue Growth
18.93%
EPS Growth
26.43%
Country
TW
Employees
477
Sector
General
Sector Strength
55
Industry
Manufacturing - Textiles

Cathay Consolidated Inc. Business Overview & Revenue Model

Company Description

Cathay Consolidated, Inc., based in Yilan, Taiwan, functions as a contract producer of specialized technical fabrics and complete finished products. The company's operations are structured into two distinct segments: the Fabrics Division and the Fini...

Cathay Consolidated Inc. Financial Statement Overview

Summary

Strong balance sheet, durable profitability, and positive free cash flow support the score. Recent margin compression, lower return on equity, and weaker cash conversion limit the rating.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.29B2.86B2.51B2.56B2.59B2.07B
Gross Profit830.75M755.46M757.69M833.49M750.87M485.81M
EBITDA779.24M670.37M696.75M749.74M708.16M409.32M
Net Income551.31M442.79M489.58M529.79M499.51M266.22M
Balance Sheet
Total Assets3.82B3.58B3.59B3.25B2.99B2.40B
Cash, Cash Equivalents and Short-Term Investments178.50M357.75M641.08M599.96M700.68M252.25M
Total Debt986.88M684.47M802.50M612.55M638.23M460.98M
Total Liabilities1.57B1.18B1.20B1.01B979.76M846.85M
Stockholders Equity2.25B2.40B2.40B2.24B2.01B1.56B
Cash Flow
Free Cash Flow131.37M331.65M256.99M284.31M347.23M-109.35M
Operating Cash Flow286.73M427.11M392.57M529.90M607.14M30.63M
Investing Cash Flow-153.07M-96.80M-135.15M-246.26M-260.23M-140.62M
Financing Cash Flow-366.63M-613.64M-216.31M-345.36M101.52M-85.35M

Cathay Consolidated Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:1342 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:2114TW:211478OutperformTWD 6.93B13.34―5.56%8.60%23.20%
TW:1342TW:134274OutperformTWD 7.37B13.38―6.37%18.93%26.43%
TW:2107TW:210768NeutralTWD 8.01B14.47―5.15%13.47%37.71%
TW:6585TW:658563NeutralTWD 6.76B10.51―4.81%9.62%46.90%
TW:9927TW:992763NeutralTWD 6.96B11.27―8.80%17.87%-9.81%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:8942TW:894252NeutralTWD 7.77B7.30―2.56%-40.13%47.76%

* General Sector Average

Performance Comparison

0%20%40%TW:1342TW:2107TW:2114TW:6585TW:8942TW:9927Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:1342 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:1342Cathay Consolidated Inc.94.2014.0517.53%
TW:2107Formosan Rubber Group Inc.27.204.5720.17%
TW:2114Hsin Yung Chien Co., Ltd.89.904.064.72%
TW:6585DingZing Advanced Materials, Inc.93.50-1.30-1.37%
TW:8942Xxentria Technology Materials Co.,Ltd39.003.008.34%
TW:9927Thye Ming Industrial Co.,Ltd56.80-7.39-11.51%
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 10, 2026