Rexon Industrial Corp. Ltd. (1515) AI Stock Analysis

Rexon Industrial Corp. Ltd.

(TWSE:1515)

Select Model

Rating:40Underperform

Price Target:TWD 24.00▼(-11.93% Downside)

Action:initiatedcoverage

Date:11/09/26

Rexon Industrial scores poorly, driven primarily by deteriorating fundamentals: a third consecutive year of revenue decline, margin compression into an operating loss, and two straight years of negative operating cash flow with free cash flow at -NT$733m. A reasonably capitalised balance sheet (equity funding about half of assets, debt-to-equity of 0.41) provides a cushion, but rising borrowings and a 4.4% ROE limit that support. Technicals reinforce the caution, with the price below all key moving averages and a negative MACD, though oversold RSI and Stochastic readings hint at scope for a short-term bounce. A 17.2x P/E offers no valuation cushion against low-quality earnings, with a 2.36% dividend yield and low beta providing only modest offsets. The investment case rests on a volume recovery restoring margins and cash conversion, as seen in 2021 and 2023.

Positive Factors

Revenue ReboundThe 2025 revenue rebound shows that Rexon can recover demand after a weaker period, supporting the durability of its established power-tool business. If sustained across domestic and overseas markets, renewed sales growth can improve operating leverage and restore earnings capacity.

Negative Factors

Weak Cash GenerationPersistent negative operating cash flow means reported earnings are not translating into liquidity, while deeply negative free cash flow increases reliance on balance-sheet flexibility or external funding. This can constrain investment, dividends, and resilience over the next several quarters.

Rexon Industrial Corp. Ltd. (1515) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.00B
Dividend Yield: 2.20%
Average Volume (3M): 1.40M
Price to Earnings (P/E): 17.8
Beta (1Y): 0.53
Revenue Growth: 19.34%
EPS Growth: ―
Country: TW
Employees: 983
Sector: General
Sector Strength: 55
Industry: Leisure

Rexon Industrial Corp. Ltd. Business Overview & Revenue Model

Company Description

Based in Taichung, Taiwan, Rexon Industrial Corp., Ltd. is a global manufacturer and distributor, with operations spanning Taiwan, the United States, Europe, and Asia. Founded in 1972 and known as KuoHsing Machinery Ltd. until its rebranding in 1976,...

Rexon Industrial Corp. Ltd. Financial Statement Overview

Summary

Weak across the board. Revenue has fallen for a third straight year to NT$5.4bn (-11% YoY), gross margin compressed to 11.6% from 15.4%, and the core business swung to an operating loss of ~NT$20m, with the small NT$176m net profit apparently driven by non-operating items. Cash flow is the biggest concern: a second consecutive year of negative operating cash flow (-NT$52m) and free cash flow of -NT$733m on ~NT$680m of capex, meaning investment is being externally funded. The balance sheet is the one offset — equity funds roughly half of the NT$8.27bn asset base and debt-to-equity of 0.41 is manageable — but borrowings jumped over 50% YoY and ROE eroded to 4.4%.

Income Statement

36Negative

Balance Sheet

58Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.43B	5.42B	6.10B	6.71B	4.55B	18.37B
Gross Profit	636.85M	629.82M	939.38M	1.12B	154.86M	2.52B
EBITDA	343.17M	270.51M	761.46M	824.66M	-12.62M	1.60B
Net Income	271.19M	176.31M	318.83M	308.77M	-299.12M	1.05B
Balance Sheet
Total Assets	8.14B	8.27B	7.38B	9.21B	7.75B	12.52B
Cash, Cash Equivalents and Short-Term Investments	1.74B	2.02B	2.37B	3.28B	1.97B	4.57B
Total Debt	1.87B	1.62B	1.03B	1.92B	2.32B	2.95B
Total Liabilities	4.22B	4.28B	3.41B	5.39B	4.24B	8.27B
Stockholders Equity	3.90B	3.96B	3.95B	3.79B	3.48B	4.23B
Cash Flow
Free Cash Flow	-1.05B	-732.74M	-280.09M	1.88B	-2.41B	1.82B
Operating Cash Flow	-108.08M	-52.42M	-212.02M	2.07B	-1.87B	2.84B
Investing Cash Flow	-796.83M	-718.59M	-66.25M	-167.17M	-529.15M	-953.68M
Financing Cash Flow	454.91M	411.74M	-651.51M	-588.93M	-210.24M	82.40M

Rexon Industrial Corp. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1515 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:1580	71Outperform	TWD 4.64B	8.67	―	8.99%	-5.35%	-15.54%
TW:7703	70Outperform	TWD 5.37B	20.81	―	4.53%	26.75%	-19.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1528	44Neutral	TWD 4.70B	-82.94	―	0.39%	2.48%	45.58%
TW:4533	44Neutral	TWD 5.25B	51.00	―	0.58%	-0.25%	42.76%
TW:1515	40Underperform	TWD 4.85B	17.82	―	2.20%	19.34%	―

* General Sector Average

Performance Comparison

TW:1515 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1515	Rexon Industrial Corp. Ltd.	27.25	-0.34	-1.23%
TW:1528	Anderson Industrial Corp.	28.20	13.55	92.49%
TW:1580	Sinmag Equipment Corporation	94.60	-34.37	-26.65%
TW:4533	Shieh Yih Machinery Industry Co., Ltd.	30.80	10.55	52.07%
TW:7703	Rayzher Industrial Co Ltd	154.50	-40.55	-20.79%
TW:8467	Bonny Worldwide Ltd.	87.00	-53.52	-38.09%

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

Rexon Industrial Corp. Ltd. AI Stock Analysis