Tainan Enterprises Co., Ltd. (1473) AI Stock Analysis

Tainan Enterprises Co., Ltd.

(TWSE:1473)

Select Model

Rating:50Neutral

Price Target:TWD 17.50▲(4.17% Upside)

Action:initiatedcoverage

Date:11/09/26

Tainan Enterprises scores below average, weighed down primarily by a sharp deterioration in profitability: margins compressed at every level in 2025, net income fell more than 80%, and return on equity dropped to about 2.2%. These earnings pressures also inflate the P/E to nearly 50x, making the valuation look expensive despite a reasonable 2.8% dividend yield. Technicals add further caution, with the share price below all major moving averages and a negative MACD, though a deeply oversold RSI suggests selling pressure may be nearing exhaustion. The key offsets are a very conservative balance sheet with minimal leverage and strong cash conversion, with free cash flow comfortably exceeding reported profit — giving the company the financial staying power to ride out a weak patch while it works to restore sales and margins.

Positive Factors

Low LeverageConsistently low leverage and substantial equity relative to assets provide financial resilience through operating cycles. This supports flexibility to sustain operations, absorb weaker periods, and allocate capital without the added pressure of elevated debt obligations.

Negative Factors

Revenue ContractionThe 2025 revenue decline signals weaker demand or reduced business activity, limiting operating leverage and the company’s ability to spread fixed costs across sales. Continued top-line weakness would make a durable earnings recovery more difficult over coming quarters.

Tainan Enterprises Co., Ltd. (1473) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.46B
Dividend Yield: 2.98%
Average Volume (3M): 80.05K
Price to Earnings (P/E): 717.9
Beta (1Y): 0.47
Revenue Growth: -12.48%
EPS Growth: -98.35%
Country: TW
Employees: 10,631
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Tainan Enterprises Co., Ltd. Business Overview & Revenue Model

Company Description

Tainan Enterprises Co., Ltd., in conjunction with its various subsidiaries, specializes in the manufacturing, retail, and global distribution of textile products, particularly woven and knitted apparel. The company's diverse product portfolio encompa...

Tainan Enterprises Co., Ltd. Financial Statement Overview

Summary

A mixed picture of balance sheet strength offset by weak earnings. The balance sheet (76) is conservatively funded, with debt-to-equity of just 0.16 and equity financing roughly 71% of assets, though both assets and equity contracted over the year. Cash flow (66) remains a strength: operating cash flow of NT$427 million was over five times net income and free cash flow of NT$332 million signals high earnings quality, but cash generation has now declined for three consecutive years. The income statement (40) is the clear weak link — revenue fell about 6% to NT$6.68 billion, operating margin collapsed to 1.4% from 7.2%, net income dropped roughly 81% to NT$83 million, and return on equity fell to just 2.2%.

Income Statement

40Negative

Balance Sheet

76Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.07B	6.68B	7.45B	6.51B	7.53B	5.76B
Gross Profit	952.79M	1.05B	1.37B	1.16B	1.22B	776.21M
EBITDA	122.64M	220.12M	668.13M	502.81M	500.64M	23.43M
Net Income	51.59M	83.43M	441.32M	311.47M	301.03M	-135.10M
Balance Sheet
Total Assets	5.91B	5.32B	5.88B	5.43B	5.18B	5.21B
Cash, Cash Equivalents and Short-Term Investments	743.08M	666.07M	961.17M	821.94M	864.73M	720.83M
Total Debt	966.84M	596.17M	574.08M	663.31M	781.97M	1.22B
Total Liabilities	2.05B	1.52B	1.74B	1.74B	1.64B	2.16B
Stockholders Equity	3.86B	3.80B	4.14B	3.70B	3.54B	3.05B
Cash Flow
Free Cash Flow	-228.66M	331.66M	444.70M	395.55M	515.48M	-573.57M
Operating Cash Flow	-65.48M	426.86M	508.40M	524.71M	587.51M	-512.67M
Investing Cash Flow	-302.36M	-197.18M	-243.97M	-314.52M	-52.03M	40.87M
Financing Cash Flow	111.69M	-358.05M	-268.86M	-269.84M	-483.66M	303.10M

Tainan Enterprises Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1473 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8481	74Outperform	TWD 2.66B	11.75	―	6.82%	1.04%	4.64%
TW:2916	73Outperform	TWD 2.57B	9.90	―	9.14%	0.95%	-8.03%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1473	50Neutral	TWD 2.45B	717.95	―	2.98%	-12.48%	-98.35%
TW:6504	41Neutral	TWD 2.58B	-547.06	―	2.69%	-1.43%	92.88%
TW:8411	39Underperform	TWD 2.34B	41.47	―	0.94%	16.10%	―
TW:9919	39Underperform	TWD 2.50B	-4.00	―	1.56%	-7.03%	-104.89%

* General Sector Average

Performance Comparison

TW:1473 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1473	Tainan Enterprises Co., Ltd.	16.80	-8.24	-32.90%
TW:2916	Munsin Garment Corporation	39.40	-6.62	-14.39%
TW:6504	Nan Liu Enterprise Co., Ltd	37.20	-4.91	-11.66%
TW:8411	Kingcan Holdings Ltd	10.65	-1.85	-14.80%
TW:8481	Transart Graphics Co., Ltd. (Taiwan)	40.30	1.54	3.98%
TW:9919	KNH Enterprise Co., Ltd.	12.70	-4.15	-24.63%

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

Tainan Enterprises Co., Ltd. AI Stock Analysis