Lee Chi Enterprises Co., Ltd. (1517) AI Stock Analysis

Lee Chi Enterprises Co., Ltd.

(TWSE:1517)

Select Model

Rating:41Neutral

Price Target:TWD 9.50▼(-4.81% Downside)

Action:initiatedcoverage

Date:11/09/26

Lee Chi Enterprises scores low primarily because of sustained operating weakness: three straight years of operating and net losses, a roughly 60% revenue decline from the 2022 peak, gross margin down to low single digits, and cash flow now negative on both an operating and free cash flow basis. The offsetting strength is a conservative, effectively debt-free balance sheet with about 81% equity funding, which reduces the risk of financial distress and buys time for a cyclical recovery. Technicals reinforce the caution, with the price trading below all major moving averages and negative MACD momentum. Valuation offers little support given negative earnings, and while the ~2.0% dividend yield adds some income, its durability is uncertain amid ongoing cash burn. The investment case depends entirely on a rebound in volumes and margins that is not yet visible in the data.

Positive Factors

Very Low LeverageA near-zero debt burden gives Lee Chi meaningful financial flexibility while reducing refinancing and solvency risk. This conservative capital structure can help the company withstand weak operating conditions and preserve capacity to fund operations or pursue recovery without heavy interest obligations.

Negative Factors

Severe Profitability DeteriorationCurrent profitability is materially impaired, with both operating and net losses showing that revenue is not covering the company’s cost base. Sustained negative margins would weaken retained capital, limit reinvestment, and make recovery dependent on a meaningful improvement in operating efficiency.

Lee Chi Enterprises Co., Ltd. (1517) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.21B
Dividend Yield: 2.00%
Average Volume (3M): 280.82K
Price to Earnings (P/E): -17.0
Beta (1Y): 0.31
Revenue Growth: -4.28%
EPS Growth: 19.85%
Country: TW
Employees: 2,496
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Lee Chi Enterprises Co., Ltd. Business Overview & Revenue Model

Company Description

Lee Chi Enterprises Company Ltd. manufactures and sells bicycle components and general machinery in Taiwan, Asia, the Americas, and internationally. It sells its products under the PROMAX brand name. The company was incorporated in 1973 and is based...

Lee Chi Enterprises Co., Ltd. Financial Statement Overview

Summary

A debt-free, equity-funded balance sheet (roughly 81% equity-to-assets, zero total debt) is the only real strength and provides staying power through the downturn. Everything else is weak: revenue has fallen about 60% from the 2022 peak to roughly NT$2.0 billion and is no longer growing, gross margin has compressed to about 3.2%, and the company has posted operating and net losses for three consecutive years (2025 net loss near NT$154 million, operating margin around -16%). Cash flow has now turned negative as well, with operating cash flow of -NT$88 million and free cash flow of -NT$154 million in 2025, steadily eroding the equity base. Strong financial foundation, but no visible path to breakeven in the reported numbers.

Income Statement

14Very Negative

Balance Sheet

72Positive

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.96B	2.02B	2.03B	1.89B	5.08B	4.88B
Gross Profit	3.59M	64.14M	79.34M	50.79M	1.00B	914.23M
EBITDA	-192.68M	-179.22M	24.80M	-7.18M	933.65M	542.64M
Net Income	-129.46M	-153.99M	-92.80M	-166.73M	568.71M	447.36M
Balance Sheet
Total Assets	4.36B	4.22B	4.56B	4.51B	5.43B	5.68B
Cash, Cash Equivalents and Short-Term Investments	1.70B	1.48B	1.51B	1.65B	1.48B	1.02B
Total Debt	137.00M	0	13.28M	14.87M	10.67M	13.46M
Total Liabilities	923.89M	601.02M	831.48M	696.39M	1.26B	1.88B
Stockholders Equity	3.35B	3.41B	3.61B	3.69B	4.06B	3.66B
Cash Flow
Free Cash Flow	-102.74M	-154.49M	-36.69M	362.28M	686.80M	-187.45M
Operating Cash Flow	-57.87M	-88.07M	52.12M	435.31M	839.38M	-33.66M
Investing Cash Flow	-42.79M	8.13M	-508.67M	-115.27M	-70.12M	160.71M
Financing Cash Flow	33.09M	-97.61M	-53.98M	-203.82M	-199.43M	-94.50M

Lee Chi Enterprises Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1517 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4535	58Neutral	TWD 1.96B	22.41	―	3.09%	-11.46%	-28.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2066	49Neutral	TWD 2.08B	13.04	―	4.51%	-2.41%	82.10%
TW:1586	45Neutral	TWD 2.19B	45.26	―	1.63%	4.79%	―
TW:1517	41Neutral	TWD 2.15B	-16.95	―	2.00%	-4.28%	19.85%
TW:2239	40Underperform	TWD 2.09B	-1.93	―	―	-10.18%	-223.51%
TW:4534	35Underperform	TWD 2.15B	53.16	―	―	15.46%	―

* General Sector Average

Performance Comparison

TW:1517 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1517	Lee Chi Enterprises Co., Ltd.	9.98	-1.64	-14.14%
TW:1586	China Fineblanking Technology Co., Ltd.	17.80	-9.44	-34.65%
TW:2066	Sumeeko Industries Co., Ltd.	47.65	-2.23	-4.47%
TW:2239	Cayman Engley Industrial Co., Ltd.	17.75	-11.60	-39.52%
TW:4534	Trinity Precision Technology Co., Ltd.	32.11	13.18	69.66%
TW:4535	Fine Blanking & Tool Co., Ltd.	25.85	-1.52	-5.56%

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

Lee Chi Enterprises Co., Ltd. AI Stock Analysis