China Metal Products Co., Ltd. (1532) AI Stock Analysis

China Metal Products Co., Ltd.

(TWSE:1532)

Select Model

Rating:48Neutral

Price Target:TWD 21.00▼(-2.55% Downside)

Action:initiatedcoverage

Date:11/09/26

China Metal Products scores below average, driven primarily by a cyclical earnings downturn: revenue fell about 14%, net profit dropped roughly two-thirds, and margins compressed at every level, leaving return on equity at just 2.7% against a leveraged balance sheet (1.56x debt-to-equity, equity only ~28% of assets). Resilient cash flow — NT$2.08 billion operating and NT$1.56 billion free cash flow, both well above reported earnings — is the main stabilizer and underpins the 3.77% dividend yield. Technicals add to the caution, with the price below all key moving averages and negative MACD momentum, while the 17.7x P/E offers limited cushion given trough-level profits. A recovery in revenue and operating margins would be the key catalyst for a higher score.

Positive Factors

Positive Free Cash FlowThe company continued to generate meaningful positive operating and free cash flow despite weaker earnings. This provides internal funding for operations and investment, while cash-backed profitability is more durable than accounting income alone and can support resilience over the next several quarters.

Negative Factors

Revenue ContractionThe substantial year-over-year revenue decline signals weaker business activity and reduces the scale available to absorb fixed costs. Unless sales recover, lower volume can constrain operating leverage, limit reinvestment capacity, and make sustained earnings improvement more difficult over the coming quarters.

China Metal Products Co., Ltd. (1532) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.95B
Dividend Yield: 3.71%
Average Volume (3M): 355.62K
Price to Earnings (P/E): 17.8
Beta (1Y): 0.41
Revenue Growth: 0.87%
EPS Growth: 215.40%
Country: TW
Employees: 2,283
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

China Metal Products Co., Ltd. Business Overview & Revenue Model

Company Description

China Metal Products Co., Ltd., established in 1972 and headquartered in Taipei City, Taiwan, is a diversified conglomerate with operations spanning multiple industries. The company's core business involves the design, production, and global distribu...

China Metal Products Co., Ltd. Financial Statement Overview

Summary

Blending the Income Statement (41), Balance Sheet (45) and Cash Flow (57) scores gives a below-average result. Revenue fell about 14% to NT$15.4 billion and net income dropped roughly 66% to NT$411 million, with operating margin nearly halving to 7.3% and net margin down to 2.7%. The balance sheet is capital-intensive and leveraged at about 1.56x debt-to-equity (improving from 2.0x in 2022), with equity only ~28% of assets and return on equity down to 2.7%. The clear offset is cash generation: operating cash flow of NT$2.08 billion and free cash flow of NT$1.56 billion remain solidly positive and well above reported earnings, supporting debt service and capex through the downcycle, though both are trending lower.

Income Statement

41Neutral

Balance Sheet

45Neutral

Cash Flow

57Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.17B	15.41B	18.02B	17.62B	14.63B	18.94B
Gross Profit	3.69B	3.70B	4.58B	4.12B	3.29B	4.37B
EBITDA	2.65B	2.43B	3.31B	2.78B	2.33B	3.04B
Net Income	510.01M	411.12M	1.20B	965.23M	805.13M	1.68B
Balance Sheet
Total Assets	55.04B	53.44B	52.85B	54.15B	53.03B	49.97B
Cash, Cash Equivalents and Short-Term Investments	6.83B	7.45B	9.13B	6.56B	7.97B	7.23B
Total Debt	23.45B	23.44B	23.44B	24.82B	25.74B	23.05B
Total Liabilities	35.69B	34.15B	33.43B	36.96B	36.34B	33.22B
Stockholders Equity	15.15B	15.07B	15.34B	13.28B	12.86B	12.77B
Cash Flow
Free Cash Flow	1.69B	1.56B	1.75B	2.11B	553.11M	848.61M
Operating Cash Flow	2.13B	2.08B	3.03B	2.90B	1.22B	2.08B
Investing Cash Flow	-1.13B	-1.32B	-2.58B	-854.37M	-1.61B	-2.44B
Financing Cash Flow	-1.42B	-845.89M	-1.10B	-1.48B	1.40B	1.24B

China Metal Products Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1532 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:9942	73Outperform	TWD 9.15B	12.06	―	6.36%	8.92%	11.49%
TW:4571	71Outperform	TWD 7.65B	16.28	―	3.60%	-0.89%	-0.66%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6727	55Neutral	TWD 9.58B	34.55	―	1.26%	50.99%	177.59%
TW:1532	48Neutral	TWD 9.11B	17.82	―	3.71%	0.87%	215.40%
TW:8937	39Underperform	TWD 10.58B	184.23	―	0.10%	333.14%	―
TW:1536	33Underperform	TWD 10.59B	-19.77	―	―	-4.17%	-15.31%

* General Sector Average

Performance Comparison

TW:1532 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1532	China Metal Products Co., Ltd.	21.55	-3.96	-15.53%
TW:1536	Hota Industrial Manufacturing Co., Ltd.	37.95	-21.45	-36.11%
TW:4571	Khgears International Ltd.	146.50	-12.67	-7.96%
TW:6727	Asia Metal Industries, Inc.	356.50	208.12	140.26%
TW:8937	Her Chee Industrial Co., Ltd.	23.95	-15.55	-39.37%
TW:9942	Nak Sealing Technologies Corporation	110.00	9.71	9.69%

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

China Metal Products Co., Ltd. AI Stock Analysis