Chung-Hsin Electric & Machinery Manufacturing Corp. (1513) AI Stock Analysis

Chung-Hsin Electric & Machinery Manufacturing Corp.

(TWSE:1513)

Select Model

Rating:69Neutral

Price Target:TWD 152.00▲(3.75% Upside)

Action:initiatedcoverage

Date:11/09/26

Chung-Hsin Electric & Machinery scores well on fundamentals: consistent revenue growth, expanding margins, a balance sheet that has nearly halved its leverage since 2022, and a standout year of free cash flow generation that supports a 4.3% dividend yield at a modest 16x earnings. The main drag is technical weakness — the stock trades below all key moving averages with a deeply negative MACD, reflecting a sustained downtrend, albeit at oversold levels. Secondary risks include a compressing gross margin and the lumpy, project-driven nature of earnings and cash flow. The combination of solid financial health and an undemanding valuation against clearly negative price momentum produces an above-average but not top-tier score.

Positive Factors

Accelerating Revenue GrowthThe sharp 2025 revenue acceleration signals stronger demand and/or improved execution across the company’s electrical equipment and engineering activities. If sustained, this broader revenue base can support operating scale, strengthen customer reach, and provide a durable platform for earnings growth over coming quarters.

Negative Factors

Volatile Free Cash FlowAlthough 2025 cash generation was strong, the multi-year swings show that cash conversion can be affected by working-capital movements and investment timing. Such variability may complicate planning, reduce consistency of shareholder distributions, and weaken funding flexibility during less favorable project periods.

Chung-Hsin Electric & Machinery Manufacturing Corp. (1513) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 71.89B
Dividend Yield: 4.10%
Average Volume (3M): 2.51M
Price to Earnings (P/E): 16.5
Beta (1Y): 0.84
Revenue Growth: 3.84%
EPS Growth: 22.26%
Country: TW
Employees: 3,301
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Chung-Hsin Electric & Machinery Manufacturing Corp. Business Overview & Revenue Model

Company Description

Chung-Hsin Electric and Machinery Manufacturing Corp., a company established in Taoyuan City, Taiwan, in 1956, operates both domestically and internationally. Its primary business centers on the production and sale of electric motors and generators....

Chung-Hsin Electric & Machinery Manufacturing Corp. Financial Statement Overview

Summary

Strong and improving fundamentals across all three statements. Revenue has grown every year to NT$27.4 billion, net income more than doubled over five years to NT$4.0 billion, and net margin expanded to 14.5% with an 18.1% operating margin (Income Statement: 82). The balance sheet is the healthiest in five years, with debt cut from NT$17.7 billion to NT$10.4 billion, debt-to-equity down to 0.50x and ROE of 19.3% (Balance Sheet: 78). Cash flow was outstanding, with operating cash flow of NT$11.7 billion and free cash flow of NT$11.2 billion, roughly 2.8x net income, funding the deleveraging (Cash Flow: 83). Offsetting these strengths are a gross margin that has slipped from 29.0% to 25.7%, lumpy earnings (2023 net income dipped sharply), and project-driven cash flow volatility that makes the latest free cash flow unlikely to be a sustainable run rate.

Income Statement

82Very Positive

Balance Sheet

78Positive

Cash Flow

83Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.92B	27.45B	25.61B	22.14B	18.55B	18.02B
Gross Profit	7.50B	7.07B	6.72B	6.42B	4.74B	4.30B
EBITDA	8.93B	8.54B	7.83B	5.51B	5.74B	4.62B
Net Income	4.40B	3.99B	3.62B	1.59B	2.43B	1.96B
Balance Sheet
Total Assets	48.47B	47.70B	49.27B	44.17B	41.65B	34.26B
Cash, Cash Equivalents and Short-Term Investments	3.59B	4.38B	3.51B	3.78B	3.18B	2.66B
Total Debt	9.32B	10.39B	15.95B	14.59B	17.74B	15.19B
Total Liabilities	27.29B	26.81B	30.02B	28.22B	28.29B	22.62B
Stockholders Equity	20.82B	20.68B	19.04B	15.75B	13.10B	11.39B
Cash Flow
Free Cash Flow	8.66B	11.22B	3.18B	5.37B	2.63B	-378.08M
Operating Cash Flow	9.29B	11.72B	3.95B	7.21B	5.47B	3.66B
Investing Cash Flow	-1.06B	-1.14B	-432.25M	-3.28B	-3.10B	-4.31B
Financing Cash Flow	-8.49B	-10.00B	-3.05B	-4.46B	-1.97B	1.84B

Chung-Hsin Electric & Machinery Manufacturing Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1513 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6691	71Outperform	TWD 75.85B	18.05	―	3.70%	92.72%	86.13%
TW:5536	69Neutral	TWD 89.71B	16.27	―	2.77%	25.59%	38.05%
TW:1513	69Neutral	TWD 72.38B	16.48	―	4.10%	3.84%	22.26%
TW:1503	65Neutral	TWD 88.83B	23.52	―	2.93%	8.33%	16.27%
TW:8926	64Neutral	TWD 44.25B	12.81	―	3.98%	324.33%	63.71%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2464	44Neutral	TWD 35.47B	47.13	―	0.30%	19.16%	―

* General Sector Average

Performance Comparison

TW:1513 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1513	Chung-Hsin Electric & Machinery Manufacturing Corp.	146.50	8.02	5.79%
TW:1503	Shihlin Electric & Engineering Corp.	170.50	-2.31	-1.34%
TW:2464	Mirle Automation Corp.	156.00	91.76	142.83%
TW:5536	Acter Group Corporation Limited	723.00	93.82	14.91%
TW:6691	YANKEY ENGINEERING Co. LTD.	568.00	187.40	49.24%
TW:8926	Taiwan Cogeneration Corporation	53.30	7.38	16.07%

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

Chung-Hsin Electric & Machinery Manufacturing Corp. AI Stock Analysis