TongHwa Corporation (1418) AI Stock Analysis

TongHwa Corporation

(TWSE:1418)

Select Model

Rating:41Neutral

Price Target:TWD 17.00▼(-2.30% Downside)

Action:initiatedcoverage

Date:11/09/26

Weak financial performance from persistent revenue declines, cash burn, and high leverage dominates the score. Neutral technical indicators provide minimal support while negative P/E further pressures valuation.

Positive Factors

Business Model BreadthThe combination of textile manufacturing, trading, and service activity gives TongHwa exposure to both apparel and industrial customers. This broader operating scope preserves multiple avenues for revenue generation and may provide some resilience when conditions weaken in one downstream segment.

Negative Factors

Shrinking Revenue and VolatilityThe continued top-line contraction points to weakening demand, pricing pressure, or both, reducing the scale available to absorb fixed operating costs. A multi-year decline also makes recovery less certain and can weaken customer and market position over the next several quarters.

TongHwa Corporation (1418) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 961.30M
Dividend Yield: ―
Average Volume (3M): 25.03K
Price to Earnings (P/E): -11.9
Beta (1Y): 0.37
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

Sharp multi-year revenue decline, volatile negative margins, recent large net loss, rising debt-to-equity at 3.08, and deeply negative operating and free cash flows signal severe financial distress.

Income Statement

22Negative

Balance Sheet

28Negative

Cash Flow

18Very Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1418 against its peers
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	64.52	―	―	-5.49%	6.64%
TW:4440	48Neutral	TWD 1.10B	8.50	―	5.97%	6.71%	77.95%
TW:5223	46Neutral	TWD 948.91M	-16.22	―	―	1.86%	-1680.28%
TW:8466	42Neutral	TWD 1.06B	-3.55	―	2.26%	-25.67%	-675.62%
TW:1418	41Neutral	TWD 971.99M	-11.92	―	―	-8.93%	-763.88%
TW:4433	39Underperform	TWD 971.60M	14.03	―	6.31%	-1.86%	―

* General Sector Average

Performance Comparison

TW:1418 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1418	TongHwa Corporation	17.40	-3.10	-15.12%
TW:4433	Singtex Industrial Co., Ltd.	15.85	-3.49	-18.05%
TW:4440	Yi Shin Textile Industrial Co., Ltd.	16.75	-0.50	-2.93%
TW:5223	Anli International Co., Ltd.	21.90	-6.10	-21.79%
TW:8429	Jinli Group Holdings Ltd.	5.57	-2.25	-28.77%
TW:8466	M.J. International Co., Ltd.	13.35	-9.16	-40.69%

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

TongHwa Corporation AI Stock Analysis