TongHwa Corporation AI Stock Analysis
TongHwa Corporation (1418) AI Stock Analysis
TongHwa Corporation
(TWSE:1418)
The score is driven primarily by deteriorating fundamentals: a near-total collapse in revenue, persistent operating losses, six consecutive years of negative operating and free cash flow, and rapidly rising debt that has pushed leverage to roughly 3.1x equity. Valuation offers no cushion, with negative earnings and no dividend. Technicals are the least negative element — the stock is trading flat around its short-term moving averages with neutral RSI — but it remains below its 200-day average with soft momentum. Without a revenue recovery or recapitalization, the risk profile remains high.
TongHwa Corporation (1418) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 972.17M
- Dividend Yield
- ―
- Average Volume (3M)
- 25.09K
- Price to Earnings (P/E)
- -12.3
- Beta (1Y)
- 0.36
- Revenue Growth
- -8.93%
- EPS Growth
- -763.88%
- Country
- TW
- Employees
- 236
- Sector
- General
- Sector Strength
- 55
- Industry
- Manufacturing - Textiles
TongHwa Corporation Business Overview & Revenue Model
Company Description
Established in 1970, Tong-Hwa Synthetic Fiber Company Limited, with its main office situated in Taipei, Taiwan, specializes in the production and distribution of polyacrylonitrile (PAN) synthetic fibers throughout the Republic of China.
TongHwa Corporation Financial Statement Overview
Summary
Severe distress across all three statements. Revenue has collapsed more than 95% since 2020 to roughly NT$5.3 million, with operating losses in five of six years and a swing back to a net loss of about NT$69.9 million in 2025. Operating and free cash flow have been negative every year, with the burn accelerating to roughly -NT$600 million and -NT$621 million respectively. That shortfall has been funded by debt, lifting borrowings to about NT$3.8 billion and debt-to-equity to roughly 3.1x while equity stagnates and return on equity turns negative. A positive headline gross margin and positive EBITDA in the latest year are minor offsets on a negligible revenue base.
Income Statement
12Very NegativeBalance Sheet
23NegativeCash Flow
8Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.21M | 5.33M | 10.25M | 20.59M | 20.75M | 39.30M |
| Gross Profit | 3.84M | 4.10M | -6.40M | 3.91M | -7.17M | -118.03M |
| EBITDA | 75.03M | 82.90M | 133.58M | 115.12M | 68.33M | -111.26M |
| Net Income | -79.34M | -69.94M | 25.79M | 39.98M | 21.82M | -168.56M |
Balance Sheet | ||||||
| Total Assets | 5.52B | 5.60B | 5.26B | 4.48B | 3.89B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 691.75M | 787.27M | 1.06B | 828.82M | 451.45M | 356.26M |
| Total Debt | 3.81B | 3.80B | 3.44B | 2.72B | 2.17B | 1.86B |
| Total Liabilities | 4.38B | 4.36B | 3.96B | 3.21B | 2.66B | 2.35B |
| Stockholders Equity | 1.14B | 1.23B | 1.30B | 1.27B | 1.23B | 1.21B |
Cash Flow | ||||||
| Free Cash Flow | -232.53M | -620.55M | -544.81M | -159.43M | -116.45M | -142.97M |
| Operating Cash Flow | -211.25M | -600.25M | -539.42M | -105.83M | -111.88M | -140.73M |
| Investing Cash Flow | 39.11M | 15.15M | -51.15M | -62.64M | -101.85M | 20.29M |
| Financing Cash Flow | 348.97M | 351.56M | 728.73M | 548.38M | 308.61M | 417.11M |
TongHwa Corporation Peers Comparison
Overall Rating
TW:842954Neutral
TW:444048Neutral
TW:522346Neutral- TW:141843Neutral
TW:846642Neutral
TW:443339Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:8429 | 54Neutral | TWD 1.04B | 64.86 | ― | ― | -5.49% | 6.64% |
| TW:4440 | 48Neutral | TWD 1.10B | 8.27 | ― | 6.13% | 6.71% | 77.95% |
| TW:5223 | 46Neutral | TWD 948.91M | -15.78 | ― | ― | 1.86% | -1680.28% |
| TW:1418 | 43Neutral | TWD 971.99M | -12.26 | ― | ― | -8.93% | -763.88% |
| TW:8466 | 42Neutral | TWD 1.06B | -4.77 | ― | 2.24% | -25.67% | -675.62% |
| TW:4433 | 39Underperform | TWD 971.60M | 14.03 | ― | 6.31% | -1.86% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:1418 | TongHwa Corporation | 17.90 | -2.40 | -11.82% | |
| TW:4433 | Singtex Industrial Co., Ltd. | 15.85 | -3.73 | -19.05% | |
| TW:4440 | Yi Shin Textile Industrial Co., Ltd. | 16.30 | -1.85 | -10.21% | |
| TW:5223 | Anli International Co., Ltd. | 21.30 | -6.60 | -23.66% | |
| TW:8429 | Jinli Group Holdings Ltd. | 5.59 | -2.06 | -26.93% | |
| TW:8466 | M.J. International Co., Ltd. | 13.45 | -8.76 | -39.45% |
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