HUNG CHOU FIBER IND. CO., LTD. (1413) AI Stock Analysis

HUNG CHOU FIBER IND. CO., LTD.

(TWSE:1413)

Select Model

Rating:47Neutral

Price Target:TWD 9.00▼(-1.64% Downside)

Action:initiatedcoverage

Date:11/10/26

Weak cash generation is the largest concern, despite a return to profitability and a reasonably stable balance sheet. Technical conditions are mildly weak, while the P/E ratio provides limited valuation support, resulting in a below-average overall score.

Positive Factors

Return to ProfitabilityThe return to positive net income and improved gross margin show meaningful recovery from the 2023–2024 loss-making period. If maintained, this provides a stronger base for reinvestment and balance-sheet support, although the improvement still needs to prove durable through the textile cycle.

Negative Factors

Weak Cash GenerationPersistent negative operating and free cash flow means the 2025 accounting profit has not yet translated into internally generated funds. This can reduce financial flexibility, increase reliance on financing or asset management, and make it harder to sustain investment if weak cash conversion continues.

HUNG CHOU FIBER IND. CO., LTD. (1413) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.20B
Dividend Yield: ―
Average Volume (3M): 17.53K
Price to Earnings (P/E): -110.4
Beta (1Y): 0.14
Revenue Growth: -20.27%
EPS Growth: -15.87%
Country: TW
Employees: 185
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

HUNG CHOU FIBER IND. CO., LTD. Business Overview & Revenue Model

Company Description

Hung Chou Fiber Ind. Co., Ltd, a Taiwan-based enterprise, specializes in the production and distribution of a diverse range of polyester filament products. Their extensive catalog includes polyester textured yarn, frequently used for items like bath...

HUNG CHOU FIBER IND. CO., LTD. Financial Statement Overview

Summary

Profitability recovered, but revenue declined and margins remained thin. Positive equity and moderate leverage provide stability, while sharply negative operating and free cash flow materially weaken financial quality.

Income Statement

57Neutral

Balance Sheet

62Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.92B	2.12B	2.31B	2.00B	3.15B	2.97B
Gross Profit	70.50M	111.94M	23.26M	-78.83M	208.15M	193.55M
EBITDA	94.37M	139.03M	61.65M	-40.23M	184.36M	193.80M
Net Income	40.41M	59.92M	-22.79M	-132.79M	99.04M	106.31M
Balance Sheet
Total Assets	2.58B	2.73B	2.57B	2.34B	2.67B	2.83B
Cash, Cash Equivalents and Short-Term Investments	75.88M	246.07M	107.23M	63.92M	71.70M	158.56M
Total Debt	949.06M	1.07B	998.47M	871.52M	912.51M	1.05B
Total Liabilities	1.42B	1.59B	1.50B	1.25B	1.44B	1.69B
Stockholders Equity	1.16B	1.13B	1.07B	1.10B	1.23B	1.15B
Cash Flow
Free Cash Flow	-325.63M	-68.20M	-145.55M	36.90M	62.28M	288.07M
Operating Cash Flow	-276.67M	-21.90M	-117.22M	42.39M	95.30M	330.18M
Investing Cash Flow	-45.09M	-46.53M	-28.25M	-13.40M	-58.53M	-40.57M
Financing Cash Flow	140.71M	72.21M	132.39M	-37.78M	-123.63M	-200.91M

HUNG CHOU FIBER IND. CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1413 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4430	56Neutral	TWD 1.20B	44.88	―	2.17%	6.71%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1474	48Neutral	TWD 1.28B	74.19	―	6.59%	-6.48%	-60.87%
TW:4440	48Neutral	TWD 1.10B	8.50	―	5.97%	6.71%	77.95%
TW:1413	47Neutral	TWD 1.20B	-110.37	―	―	-20.27%	-15.87%
TW:1465	41Neutral	TWD 1.17B	19.31	―	2.68%	-19.21%	―
TW:1445	40Underperform	TWD 1.25B	-14.15	―	5.12%	-23.72%	64.74%

* General Sector Average

Performance Comparison

TW:1413 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1413	HUNG CHOU FIBER IND. CO., LTD.	9.15	-0.90	-8.96%
TW:1445	Universal Textile Co., Ltd.	9.76	-4.01	-29.10%
TW:1465	Wisher Industrial Co., Ltd.	11.20	-1.25	-10.03%
TW:1474	Honmyue Enterprise Co., Ltd.	9.86	-1.55	-13.61%
TW:4430	Yao I Fabric Co., Ltd.	23.00	5.13	28.73%
TW:4440	Yi Shin Textile Industrial Co., Ltd.	16.75	-0.98	-5.52%

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

HUNG CHOU FIBER IND. CO., LTD. AI Stock Analysis