Chang Type Industrial Co., Ltd. (1541) AI Stock Analysis

Chang Type Industrial Co., Ltd.

(TWSE:1541)

Select Model

Rating:64Neutral

Price Target:TWD 19.50▲(1.04% Upside)

Action:initiatedcoverage

Date:11/09/26

Chang Type scores moderately well. The main support comes from a conservatively financed balance sheet, a returning growth and margin cycle, and strong cash conversion, backed by an inexpensive 7x earnings multiple and a 2.8% dividend yield. The principal drag is technical: the stock sits below all major moving averages with negative MACD momentum, and while oversold readings hint at a possible bounce, the trend remains downward. Structurally thin margins, revenue well below prior peaks, and a modest 8.6% return on equity keep the overall score from rising further.

Positive Factors

Stronger Balance SheetThe substantial reduction in leverage gives Chang Type a more resilient capital structure and greater financial flexibility than it had earlier in the cycle. Lower debt reliance can reduce balance-sheet pressure, support continued operations during weaker demand, and preserve capacity for future investment.

Negative Factors

Cyclical Revenue ProfileThe sharp multi-year contraction followed by a rebound demonstrates meaningful cyclicality and an uneven demand profile. Such volatility makes forward revenue and capacity planning less predictable, while weaker periods can pressure utilization, profitability, and the consistency of shareholder returns.

Chang Type Industrial Co., Ltd. (1541) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.55B
Dividend Yield: 2.59%
Average Volume (3M): 20.23K
Price to Earnings (P/E): 7.2
Beta (1Y): 0.41
Revenue Growth: -30.14%
EPS Growth: 21.52%
Country: TW
Employees: 503
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

Chang Type Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1989 and based in Taichung, Taiwan, CHANG TYPE Industrial Co., Ltd. focuses on the research, development, production, and distribution of electric power tools. Their comprehensive product line includes various cutting instruments like...

Chang Type Industrial Co., Ltd. Financial Statement Overview

Summary

Chang Type is emerging from a multi-year downturn: revenue rebounded about 25% to NT$3.63 billion, gross margin widened to 18.4%, and net income more than doubled to NT$183 million. The balance sheet is the standout strength, with debt-to-equity cut from 1.36 to 0.25 and equity funding roughly two-thirds of assets, providing real downside protection. Cash flow remains positive with near-full conversion of profit into free cash flow (NT$253 million), though it stepped down sharply from the prior year as working capital absorbed cash. Offsetting these positives are thin, cyclical margins, revenue still roughly 40% below the 2021 peak, and a modest 8.6% return on equity, leaving the recovery unproven.

Income Statement

61Positive

Balance Sheet

75Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.89B	3.63B	2.99B	3.38B	4.06B	6.20B
Gross Profit	489.56M	667.29M	492.06M	662.83M	594.47M	781.13M
EBITDA	359.85M	353.90M	239.70M	282.56M	495.77M	459.01M
Net Income	212.63M	182.70M	83.70M	115.19M	272.06M	299.26M
Balance Sheet
Total Assets	3.13B	3.18B	3.16B	3.98B	3.61B	5.20B
Cash, Cash Equivalents and Short-Term Investments	585.89M	148.09M	49.13M	82.56M	172.83M	103.83M
Total Debt	460.93M	528.26M	477.14M	1.07B	1.05B	2.40B
Total Liabilities	968.51M	1.07B	1.16B	2.07B	1.74B	3.43B
Stockholders Equity	2.17B	2.11B	1.99B	1.91B	1.88B	1.77B
Cash Flow
Free Cash Flow	792.32M	252.72M	660.00M	26.08M	1.10B	-718.42M
Operating Cash Flow	760.09M	256.71M	672.71M	179.45M	1.14B	-635.60M
Investing Cash Flow	-44.81M	-3.87M	-11.55M	-165.75M	-46.35M	-97.03M
Financing Cash Flow	-294.25M	-133.54M	-724.81M	-103.94M	-1.04B	628.86M

Chang Type Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1541 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4503	71Outperform	TWD 1.41B	4.85	―	―	-12.40%	1140.01%
TW:1541	64Neutral	TWD 1.52B	7.17	―	2.59%	-30.14%	21.52%
TW:4552	62Neutral	TWD 1.50B	11.36	―	4.63%	-5.79%	-17.94%
TW:1540	59Neutral	TWD 1.50B	14.34	―	5.71%	-11.52%	60.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1570	49Neutral	TWD 1.57B	56.68	―	3.28%	-19.79%	-53.42%
TW:1599	39Underperform	TWD 1.55B	-146.67	―	2.27%	-18.88%	-116.38%

* General Sector Average

Performance Comparison

TW:1541 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1541	Chang Type Industrial Co., Ltd.	19.30	-5.25	-21.38%
TW:1540	Roundtop Machinery Industries Co., Ltd	17.50	-4.06	-18.82%
TW:1570	De Poan Pneumatic Corp.	30.50	1.15	3.91%
TW:1599	Aeontek Co Ltd	22.00	-4.33	-16.43%
TW:4503	Gold Rain Enterprises Corp.	18.05	-31.45	-63.54%
TW:4552	Lida Holdings Ltd.	12.95	-9.33	-41.88%

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

Chang Type Industrial Co., Ltd. AI Stock Analysis