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Shihlin Electric & Engineering Corp. (1503) AI Stock Analysis

TW:1503

Shihlin Electric & Engineering Corp.

(TWSE:1503)

Select Model
Rating:69Neutral
Price Target:TWD 174.00â–²(0.29% Upside)
Action:initiatedcoverage
Date:11/10/26

The overall score of 69 reflects a strong conflict between excellent financial fundamentals and extremely weak market momentum. The company's fortress-like balance sheet, expanding margins, and surging free cash flow are significant strengths. However, the stock is under severe technical pressure, trading in deeply oversold territory below all key moving averages. The moderate valuation, with a reasonable dividend yield, provides some cushion but does not fully offset the bearish technical signals. The financial health is the primary positive driver, while the technical weakness is the main detractor.

Positive Factors
Improving profitability and marginsThe combination of sustained revenue expansion and wider gross, operating, and net margins indicates stronger earnings power across the business. Improved profitability can support reinvestment, resilience against cost pressure, and continued value creation over the next several quarters.
Negative Factors
Recent revenue growth slowdownThe recent deceleration in revenue growth suggests that expansion is losing momentum even as margins remain healthy. A slower top-line trajectory could limit operating leverage, constrain future profit growth, and make continued earnings improvement more dependent on efficiency gains.

Shihlin Electric & Engineering Corp. (1503) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%50%60%TW:1503+6.09%SPY+14.30%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 89.35B
Dividend Yield
2.88%
Average Volume (3M)
1.31M
Price to Earnings (P/E)
23.9
Beta (1Y)
1.27
Revenue Growth
8.33%
EPS Growth
16.27%
Country
TW
Employees
4,772
Sector
General
Sector Strength
55
Industry
Electrical Equipment & Parts

Shihlin Electric & Engineering Corp. Business Overview & Revenue Model

Company Description

Shihlin Electric & Engineering Corp. manufactures and sells heavy electrical equipment and machinery and automotive electrical equipment, devices, and related parts in Taiwan, Mainland China, Vietnam, and internationally. The company offers automobil...

Shihlin Electric & Engineering Corp. Financial Statement Overview

Summary

The company demonstrates high-quality financial health. Revenue growth is consistent, profitability is expanding with gross margins reaching 20.9% and net margins at 8.8% in TTM 2025. The balance sheet is a fortress with minimal debt (D/E 4.3%) and improving ROE (9.0%). Cash flow generation is robust, with free cash flow surging over 112% and excellent earnings quality. The only minor concern is a recent deceleration in top-line growth.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

85Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue39.14B37.18B35.07B31.81B30.76B27.69B
Gross Profit8.18B7.77B6.81B5.67B5.24B4.99B
EBITDA5.57B5.10B4.82B3.92B3.26B3.24B
Net Income3.78B3.27B3.03B2.35B2.01B1.80B
Balance Sheet
Total Assets63.99B60.54B58.39B53.74B49.38B45.20B
Cash, Cash Equivalents and Short-Term Investments4.23B5.12B3.37B3.37B3.22B3.53B
Total Debt930.10M1.55B1.20B1.67B3.49B2.93B
Total Liabilities24.39B23.42B20.02B20.59B20.69B18.16B
Stockholders Equity38.70B36.29B37.54B32.43B28.04B26.45B
Cash Flow
Free Cash Flow2.04B3.99B1.48B3.55B357.36M1.58B
Operating Cash Flow3.48B4.94B2.29B4.45B1.02B2.30B
Investing Cash Flow-1.46B-1.00B-286.01M-1.54B-1.04B-486.90M
Financing Cash Flow-2.08B-2.12B-2.14B-2.90B-367.50M-1.33B

Shihlin Electric & Engineering Corp. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:1503 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:2421TW:242175OutperformTWD 39.45B13.48―3.81%22.04%41.51%
TW:6781TW:678171OutperformTWD 66.71B18.80―2.40%38.27%23.92%
TW:1513TW:151369NeutralTWD 72.38B17.04―3.96%3.84%22.26%
TW:1503TW:150369NeutralTWD 88.83B23.93―2.88%8.33%16.27%
TW:6409TW:640967NeutralTWD 69.16B31.83―4.44%-12.61%-50.11%
TW:8926TW:892664NeutralTWD 44.25B12.33―4.03%324.33%63.71%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%TW:1503TW:1513TW:2421TW:6409TW:6781TW:8926Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:1503 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:1503Shihlin Electric & Engineering Corp.173.507.524.53%
TW:1513Chung-Hsin Electric & Machinery Manufacturing Corp.151.5010.617.53%
TW:2421Sunonwealth Electric Machine Industry Co., Ltd.137.50-31.82-18.79%
TW:6409Voltronic Power Technology Corp.828.00-274.81-24.92%
TW:6781Advanced Energy Solution Holding Co., Ltd.795.00-508.28-39.00%
TW:8926Taiwan Cogeneration Corporation52.6012.1530.03%
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