China Ecotek Corp. (1535) AI Stock Analysis

China Ecotek Corp.

(TWSE:1535)

Select Model

Rating:63Neutral

Price Target:TWD 48.00▲(6.19% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 63 reflects a company with a very strong financial foundation and attractive valuation, offset by significant operational and technical headwinds. The primary strength is the rock-solid balance sheet and high dividend yield, which provide a margin of safety. The main risks are the declining revenue and negative price momentum, which suggest the market is pricing in further earnings deterioration. The company is financially stable but lacks a near-term catalyst for growth.

Positive Factors

Very low leverageVery low leverage and steadily growing equity indicate that the company has built its business without relying heavily on borrowing. This reduces financial risk, limits interest burden, and preserves flexibility to fund operations or respond to weaker construction demand over the next several quarters.

Negative Factors

Recent revenue contractionThe 2025 revenue decline interrupts the company’s prior expansion trend and indicates that near-term business activity has softened. If this persists, lower project volume could limit operating leverage, reduce opportunities for earnings growth, and make sustained profit improvement more difficult.

China Ecotek Corp. (1535) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.59B
Dividend Yield: 6.64%
Average Volume (3M): 39.95K
Price to Earnings (P/E): 12.4
Beta (1Y): 0.20
Revenue Growth: -23.64%
EPS Growth: -8.34%
Country: TW
Employees: 12,854
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

China Ecotek Corp. Business Overview & Revenue Model

Company Description

China Ecotek Corporation provides planning, design, installation, maintenance, and environmental impact assessment services for environmental protection engineering, cogeneration engineering, and steel industry in Taiwan. It is involved in design and...

China Ecotek Corp. Financial Statement Overview

Summary

Financial performance is a tale of two stories. The balance sheet is exceptional with minimal debt (1.3% debt-to-equity), providing a fortress-like foundation. Cash flow is robust, with free cash flow growing 12.5% and strong earnings conversion. However, the income statement is a concern, showing declining revenue (-3.1%) and compressed net profit margins (4.4%). The overall financial health is solid, but operational momentum is weakening.

Income Statement

45Neutral

Balance Sheet

85Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.95B	11.37B	10.86B	9.76B	8.84B	8.48B
Gross Profit	1.04B	1.07B	1.01B	972.75M	812.86M	720.49M
EBITDA	451.29M	562.68M	647.56M	529.91M	672.53M	531.13M
Net Income	452.19M	495.28M	501.89M	556.89M	520.52M	403.88M
Balance Sheet
Total Assets	7.04B	7.26B	7.16B	6.84B	6.97B	6.86B
Cash, Cash Equivalents and Short-Term Investments	1.97B	2.49B	1.57B	1.19B	2.16B	2.30B
Total Debt	37.34M	50.66M	127.64M	184.98M	95.57M	103.46M
Total Liabilities	3.19B	3.44B	3.41B	3.18B	3.46B	3.63B
Stockholders Equity	3.86B	3.82B	3.74B	3.66B	3.51B	3.23B
Cash Flow
Free Cash Flow	726.61M	670.86M	974.66M	-624.16M	-146.54M	-275.43M
Operating Cash Flow	787.00M	729.82M	1.14B	-422.32M	-17.39M	236.81M
Investing Cash Flow	-73.11M	-208.38M	-24.97M	163.90M	701.76M	-924.90M
Financing Cash Flow	-401.60M	-472.80M	-484.81M	-319.77M	-353.70M	-197.19M

China Ecotek Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1535 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5209	76Outperform	TWD 6.37B	12.06	―	5.57%	4.58%	32.53%
TW:1535	63Neutral	TWD 5.56B	12.38	―	6.64%	-23.64%	-8.34%
TW:6725	60Neutral	TWD 6.52B	13.47	―	3.99%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8931	50Neutral	TWD 5.09B	31.21	―	3.88%	0.74%	-57.93%
TW:6208	47Neutral	TWD 6.46B	16.68	―	2.82%	1.09%	40.91%

* General Sector Average

Performance Comparison

TW:1535 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1535	China Ecotek Corp.	45.20	-5.86	-11.48%
TW:5209	CTCI Advanced Systems Inc.	232.50	79.00	51.46%
TW:6208	Highlight Tech Corp.	70.90	29.90	72.91%
TW:6725	Cica-Huntek Chemical Technology Taiwan Co	175.50	-65.23	-27.10%
TW:6923	Chung Tai Resource Technology Corp.	67.10	-28.91	-30.11%
TW:8931	Ta-Yuan Cogeneration Co. Ltd.	41.25	-2.48	-5.66%

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 Ecotek Corp. AI Stock Analysis