Taiwan Taffeta Fabric Co., Ltd (1454) AI Stock Analysis

Taiwan Taffeta Fabric Co., Ltd

(TWSE:1454)

Select Model

Rating:36Underperform

Price Target:TWD 11.00▼(-9.09% Downside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Taffeta Fabric scores poorly, driven primarily by a sharp deterioration in financial performance: gross margin collapsed to under 2%, producing both operating and net losses, while free cash flow turned negative. A conservatively financed balance sheet — equity funding roughly 70% of assets with low leverage — is the main mitigating factor and buys time for a recovery. Technicals reinforce the caution, with the price below all key moving averages and negative MACD momentum. Valuation adds no offset, as the negative P/E reflects losses and the sub-1% dividend yield offers minimal income. A durable rebound in gross margin and a return to positive operating cash flow would be the key signals for improvement.

Positive Factors

Moderate LeverageDebt-to-equity of about 0.33 remains moderate despite rising from 0.12, while sizable equity relative to assets provides a financial base. This can preserve flexibility to manage volatility and fund operations, although weak returns remain a constraint.

Negative Factors

Severe Margin CompressionThe sharp fall in gross margin leaves little room to absorb operating costs or pricing pressure and drove a swing into meaningful losses. Unless margins recover, the company’s earning power and ability to self-fund operations remain structurally weakened over the coming quarters.

Taiwan Taffeta Fabric Co., Ltd (1454) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.45B
Dividend Yield: 0.83%
Average Volume (3M): 47.25K
Price to Earnings (P/E): -12.9
Beta (1Y): 0.17
Revenue Growth: -16.18%
EPS Growth: -29.64%
Country: TW
Employees: 405
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Taiwan Taffeta Fabric Co., Ltd Business Overview & Revenue Model

Company Description

Established in 1973 and headquartered in Taipei, Taiwan, Taiwan Taffeta Fabric Co., Ltd. (TTFC) is a prominent Taiwanese manufacturer and distributor specializing in textile products. The company primarily focuses on the creation and sale of polyeste...

Taiwan Taffeta Fabric Co., Ltd Financial Statement Overview

Summary

Fundamentals are weak. Revenue slipped about 2% to NT$1.54 billion, but the bigger issue is profitability: gross margin collapsed to 1.7% from 7.2%, driving an operating loss of NT$128 million (-8.3% margin) and a net loss of NT$137 million (-8.9% margin) versus a small profit a year earlier. Cash generation deteriorated in parallel, with operating cash flow near zero and free cash flow of negative NT$72 million. The one clear strength is the balance sheet: equity funds roughly 70% of assets and debt-to-equity remains modest at 0.33, giving the company room to absorb the downturn — though equity has shrunk for a second straight year, debt has nearly tripled relative to equity, and ROE has turned negative at about -10%.

Income Statement

21Negative

Balance Sheet

54Neutral

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.36B	1.54B	1.62B	1.51B	1.80B	1.57B
Gross Profit	6.27M	26.64M	116.61M	139.15M	189.11M	128.29M
EBITDA	-45.76M	-55.06M	88.50M	98.24M	120.97M	66.66M
Net Income	-115.25M	-136.99M	12.21M	19.54M	32.19M	5.13M
Balance Sheet
Total Assets	1.94B	1.98B	1.93B	2.04B	2.04B	2.05B
Cash, Cash Equivalents and Short-Term Investments	438.51M	423.94M	451.86M	542.40M	446.02M	510.74M
Total Debt	485.38M	458.17M	192.25M	265.27M	220.89M	243.93M
Total Liabilities	639.85M	607.14M	355.16M	442.45M	443.78M	438.71M
Stockholders Equity	1.30B	1.38B	1.57B	1.60B	1.60B	1.62B
Cash Flow
Free Cash Flow	-9.42M	-72.35M	15.91M	98.74M	-25.20M	-47.99M
Operating Cash Flow	21.46M	-906.00K	47.52M	130.29M	125.31M	-33.48M
Investing Cash Flow	27.75M	-290.54M	-87.95M	-48.03M	-276.52M	283.45M
Financing Cash Flow	26.26M	235.38M	-102.47M	-31.71M	-36.94M	-70.41M

Taiwan Taffeta Fabric Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1454 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1410	58Neutral	TWD 1.57B	36.28	―	0.76%	4.98%	-32.39%
TW:1456	58Neutral	TWD 1.45B	5.12	―	―	255.45%	488.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1452	48Neutral	TWD 1.38B	108.38	―	1.93%	-15.11%	―
TW:1474	48Neutral	TWD 1.28B	74.19	―	6.59%	-6.48%	-60.87%
TW:1466	46Neutral	TWD 1.61B	-57.80	―	1.38%	-16.29%	28.23%
TW:1454	36Underperform	TWD 1.47B	-12.87	―	0.83%	-16.18%	-29.64%

* General Sector Average

Performance Comparison

TW:1454 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1454	Taiwan Taffeta Fabric Co., Ltd	12.10	-0.99	-7.58%
TW:1410	Nan Yang Dyeing & Finishing Co. Ltd.	26.45	-7.93	-23.06%
TW:1452	Hong Yi Fiber Industry Co., Ltd.	10.35	-1.28	-11.02%
TW:1456	I-HWA Industrial Co., Ltd.	14.85	2.65	21.72%
TW:1466	Acelon Chemicals & Fiber Corporation.	14.45	-0.41	-2.77%
TW:1474	Honmyue Enterprise Co., Ltd.	9.86	-1.55	-13.61%

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

Taiwan Taffeta Fabric Co., Ltd AI Stock Analysis