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Nien Hsing Textile Co., Ltd. (1451) AI Stock Analysis

TW:1451

Nien Hsing Textile Co., Ltd.

(TWSE:1451)

Select Model
Rating:53Neutral
Price Target:TWD 16.50â–¼(-3.51% Downside)
Action:initiatedcoverage
Date:11/09/26

Nien Hsing Textile scores below average, weighed down primarily by weak core profitability and poor cash generation: operating margin fell to roughly 1%, free cash flow turned negative, and 2025 profits appear driven by non-operating items rather than manufacturing operations. These risks are partly offset by a fortress balance sheet with virtually no debt, which limits solvency risk in a cyclical, low-margin industry. Technicals are negative, with the shares below all major moving averages and a bearish MACD, though momentum readings are approaching oversold levels. Valuation provides the main offset, with a modest 11.2x P/E and a 6.1% dividend yield, although the yield's durability depends on a recovery in order volumes and sustained operating margin improvement.

Positive Factors
Very Low LeverageThe very low debt burden gives Nien Hsing substantial financial resilience through textile-cycle downturns. Limited leverage reduces refinancing and interest-cost pressure, preserves capacity to fund operations, and provides flexibility to withstand weaker demand without relying heavily on external financing.
Negative Factors
Deteriorating Cash GenerationRecent cash generation is materially weaker than reported earnings, with operating cash flow declining and free cash flow turning negative in 2025. This may constrain internally funded investment and dividends, while indicating that working-capital or capital-spending pressure could persist over coming quarters.

Nien Hsing Textile Co., Ltd. (1451) vs. SPDR S&P 500 ETF (SPY)

-10%-5%0%5%10%15%20%TW:1451+2.67%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 3.38B
Dividend Yield
5.85%
Average Volume (3M)
111.85K
Price to Earnings (P/E)
10.1
Beta (1Y)
0.19
Revenue Growth
8.77%
EPS Growth
-3.63%
Country
TW
Employees
785
Sector
General
Sector Strength
55
Industry
Manufacturing - Textiles

Nien Hsing Textile Co., Ltd. Business Overview & Revenue Model

Company Description

Nien Hsing Textile Co., Ltd. specializes in the global production and distribution of various textile products, including yarn, denim materials, and knitted apparel. Beyond its primary manufacturing operations, the company also engages in general inv...

Nien Hsing Textile Co., Ltd. Financial Statement Overview

Summary

A very strong balance sheet (score 82) is the main support: debt-to-equity near 0.03, equity funding about 85% of assets, and minimal solvency risk. However, earnings quality is weak (income statement score 42) — revenue has fallen from NT$8.70bn in 2022 to about NT$6.26bn in 2025, operating margin collapsed to roughly 1.2%, and reported net income of NT$349mn appears driven by non-operating items rather than core denim operations. Cash flow is the weakest link (score 31), with operating cash flow down to NT$48mn and free cash flow turning negative at about -NT$26mn, implying poor cash conversion of reported profits.

Income Statement

42Neutral

Balance Sheet

82Very Positive

Cash Flow

31Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.34B6.26B6.42B6.36B8.70B8.01B
Gross Profit810.55M674.97M697.22M-11.23M807.05M673.22M
EBITDA153.44M255.66M535.12M-171.64M784.45M550.13M
Net Income299.77M349.07M242.17M-362.91M426.46M242.69M
Balance Sheet
Total Assets8.87B8.69B8.42B8.04B9.17B9.05B
Cash, Cash Equivalents and Short-Term Investments1.29B1.33B2.11B1.60B1.61B1.55B
Total Debt201.27M224.93M234.25M52.04M258.18M374.00M
Total Liabilities1.48B1.33B1.30B1.13B1.56B1.62B
Stockholders Equity7.40B7.37B7.13B6.91B7.60B7.43B
Cash Flow
Free Cash Flow333.01M-25.78M162.41M387.11M76.57M346.56M
Operating Cash Flow367.62M47.88M208.41M579.57M190.93M456.66M
Investing Cash Flow306.07M-570.64M247.40M-277.81M-62.45M151.72M
Financing Cash Flow-166.27M-276.64M59.19M-627.45M-193.10M-172.06M

Nien Hsing Textile Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:1451 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:1423TW:142357NeutralTWD 3.25B30.33―11.36%-2.43%80.38%
TW:1457TW:145756NeutralTWD 3.31B10.37―7.14%-20.14%30.46%
TW:1435TW:143555NeutralTWD 2.74B-25.03――-24.87%-105.68%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:1414TW:141453NeutralTWD 3.36B33.88―7.58%-6.95%298.25%
TW:1443TW:144353NeutralTWD 3.18B11.35――-6.37%172.97%
TW:1451TW:145153NeutralTWD 3.38B10.12―5.85%8.77%-3.63%

* General Sector Average

Performance Comparison

-40%-20%0%20%TW:1451TW:1414TW:1423TW:1435TW:1443TW:1457Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:1451 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:1451Nien Hsing Textile Co., Ltd.17.100.633.84%
TW:1414Tung Ho Textile Co., Ltd.17.30-1.65-8.70%
TW:1423Reward Wool Industry Corporation31.70-4.17-11.63%
TW:1435Chung Fu Tex-International Corp.19.00-6.85-26.50%
TW:1443Lily Textile Co. Ltd.23.15-4.95-17.62%
TW:1457Yi Jinn Industrial Co.,Ltd14.00-1.44-9.33%
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