Zig Sheng Ind. Co., Ltd (1455) AI Stock Analysis

Zig Sheng Ind. Co., Ltd

(TWSE:1455)

Select Model

Rating:43Neutral

Price Target:TWD 8.50▼(-1.39% Downside)

Action:initiatedcoverage

Date:11/09/26

Zig Sheng scores poorly, driven mainly by deteriorating financial performance: falling revenue, negative gross and operating margins, and a sizeable net loss that is steadily eroding the equity base. A moderately leveraged balance sheet and a strong rebound in free cash flow give the company time to ride out the down-cycle, but that cash strength is partly the result of reduced capital spending rather than a profit recovery. Technicals compound the picture, with the share price below all major moving averages and negative MACD, though oversold RSI and stochastic readings leave room for a short-term bounce. Valuation adds little support, as a P/E near 16.6 is hard to justify alongside losses, with only a modest 1.8% dividend yield and low beta providing partial offsets. A sustained recovery in product spreads and a return to positive gross margins would be the key catalysts for an improved score.

Positive Factors

Moderate leverage and equity bufferModerate leverage and a sizable equity base provide a financial buffer against operating volatility. This balance-sheet position can preserve flexibility for working-capital needs and investment while reducing the strain that heavier debt would place on future cash generation.

Negative Factors

Severe revenue contractionThe sharp annual revenue decline signals substantial pressure on demand, business activity, or customer spending. A smaller revenue base reduces operating leverage and makes fixed costs harder to absorb, creating a durable obstacle to restoring profitability over the next several quarters.

Zig Sheng Ind. Co., Ltd (1455) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.56B
Dividend Yield: 1.86%
Average Volume (3M): 1.55M
Price to Earnings (P/E): 14.6
Beta (1Y): 0.35
Revenue Growth: -22.22%
EPS Growth: ―
Country: TW
Employees: 5,301
Sector: General
Sector Strength: 55
Industry: Chemicals

Zig Sheng Ind. Co., Ltd Business Overview & Revenue Model

Company Description

Zig Sheng Industrial Co., Ltd., together with its subsidiaries, engages in the spinning, weaving, dyeing, finishing, printing, processing, and trading of various filaments, artificial cotton, and nylon fibers in Taiwan, Mainland China, rest of Asia,...

Zig Sheng Ind. Co., Ltd Financial Statement Overview

Summary

Fundamentals are weak overall. The income statement is the clear problem: revenue has fallen to roughly NT$6.2 billion from NT$9.4 billion, gross and operating margins are negative, and the company posted a net loss of about NT$524 million (-8.5% net margin), with losses in five of the last six years. The balance sheet provides the main cushion — equity funds about 63% of assets and debt was cut to roughly NT$2.68 billion (debt-to-equity 0.46) — but equity continues to erode and ROE is around -9%. Cash flow is the relative bright spot, with roughly NT$1.51 billion of operating cash flow and NT$1.14 billion of free cash flow, though this leans heavily on depreciation add-backs, working-capital release and a sharp cut in capex, and the multi-year record is erratic.

Income Statement

19Very Negative

Balance Sheet

54Neutral

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.49B	6.20B	9.43B	7.74B	9.30B	11.22B
Gross Profit	205.64M	-145.39M	140.22M	-149.12M	213.60M	1.22B
EBITDA	315.85M	-102.88M	393.24M	130.65M	159.65M	1.51B
Net Income	282.48M	-524.47M	5.25M	-240.16M	-281.79M	920.08M
Balance Sheet
Total Assets	9.99B	9.19B	11.01B	10.31B	9.18B	10.78B
Cash, Cash Equivalents and Short-Term Investments	1.25B	877.61M	1.10B	866.10M	670.97M	987.55M
Total Debt	2.92B	2.68B	3.65B	2.98B	1.76B	2.05B
Total Liabilities	3.78B	3.39B	4.70B	4.00B	2.59B	3.47B
Stockholders Equity	6.21B	5.80B	6.31B	6.31B	6.59B	7.31B
Cash Flow
Free Cash Flow	469.43M	1.14B	-557.41M	-886.92M	715.57M	-369.91M
Operating Cash Flow	749.60M	1.51B	296.48M	-364.36M	952.39M	69.21M
Investing Cash Flow	-305.30M	-439.70M	-1.04B	-664.92M	-270.25M	-486.12M
Financing Cash Flow	-262.99M	-946.73M	738.09M	1.09B	-668.11M	418.00M

Zig Sheng Ind. Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1455 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8467	78Outperform	TWD 4.53B	12.55	―	5.75%	-13.68%	-46.39%
TW:1472	72Outperform	TWD 4.68B	13.88	―	6.76%	14.00%	6.69%
TW:8482	59Neutral	TWD 4.81B	15.20	―	4.34%	-1.87%	-8.08%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1455	43Neutral	TWD 4.56B	14.61	―	1.86%	-22.22%	―
TW:1447	32Underperform	TWD 4.86B	-16.14	―	―	-5.18%	45.33%

* General Sector Average

Performance Comparison

TW:1455 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1455	Zig Sheng Ind. Co., Ltd	8.62	0.66	8.25%
TW:1447	Li Peng Enterprise Co., Ltd.	5.89	0.45	8.27%
TW:1472	Triocean Industrial Corporation Co., Ltd.	88.70	3.45	4.05%
TW:7798	Fabulous Global Holding Co., Ltd.	14.40	-2.22	-13.35%
TW:8467	Bonny Worldwide Ltd.	87.00	-53.52	-38.09%
TW:8482	Shane Global Holding, Inc.	45.15	-1.06	-2.30%

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

Zig Sheng Ind. Co., Ltd AI Stock Analysis