Tsang Yow Industrial Co., Ltd. (1568) AI Stock Analysis

Tsang Yow Industrial Co., Ltd.

(TWSE:1568)

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Rating:63Neutral

Price Target:TWD 27.00▼(-1.64% Downside)

Action:initiatedcoverage

Date:11/09/26

Tsang Yow Industrial scores moderately well, driven primarily by a conservative, near debt-free balance sheet, dramatically improved margins and healthy operating cash flow. These strengths are tempered by a revenue base well below its 2021 peak, volatile earnings, a declining return on equity, and free cash flow compressed by heavy capital spending. The main drag is technical: the stock trades below all key moving averages with negative MACD, leaving it in a clear downtrend despite deeply oversold readings. Valuation provides a partial offset, with a modest 13.8x P/E and an attractive 3.9% dividend yield. Overall, a financially solid small-cap with low solvency risk, but one that needs renewed top-line growth and a trend reversal to re-rate.

Positive Factors

Very Low LeverageThe extremely low debt-to-equity ratio gives Tsang Yow substantial financial flexibility and reduces exposure to interest costs or refinancing pressure. A stable equity base can support continued investment, dividends, and resilience if industrial demand weakens over the next several quarters.

Negative Factors

Uneven Revenue TrendThe sharp 2023 revenue contraction demonstrates that Tsang Yow's sales can be sensitive to changes in industrial demand. Although revenue stabilized in 2024–2025, the absence of a clear sustained growth trajectory may limit operating leverage and make medium-term earnings progression less predictable.

Tsang Yow Industrial Co., Ltd. (1568) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.79B
Dividend Yield: 3.64%
Average Volume (3M): 263.46K
Price to Earnings (P/E): 14.5
Beta (1Y): 1.28
Revenue Growth: 4.95%
EPS Growth: 65.01%
Country: TW
Employees: 586
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Tsang Yow Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Tsang Yow Industrial Co., Ltd. engages in the manufacturing and selling of automatic transmission assembly components. It operates through the following segments: Tsang Yow Industrial Co., Ltd., Wuxi Tsang Yow, and Others. The company was founded by...

Tsang Yow Industrial Co., Ltd. Financial Statement Overview

Summary

A strong, low-risk balance sheet (score 86) anchors the profile: total debt has been cut to just NT$60 million for a debt-to-equity of 0.03, equity funds roughly 80% of assets, and shareholders' equity has grown every year to NT$1.90 billion. Cash flow (67) is decent — operating cash flow rose to NT$292 million, about 2.1x net income — but heavy capital spending left free cash flow at only NT$68 million (23% of net income), limiting near-term flexibility. The income statement (64) is the weakest leg: revenue has fallen from roughly NT$1.83 billion in 2021 to about NT$1.05 billion and is now flat, and net income slipped to NT$140 million from NT$163 million, with operating margin easing to 15.7% from 20.3%. The offset is a major margin transformation (gross margin 32.4% vs. 9.5% in 2020, net margin 13.3%), though ROE has declined to 7.4% on an increasingly equity-heavy base.

Income Statement

64Positive

Balance Sheet

86Very Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.07B	1.05B	1.05B	1.19B	1.79B	1.83B
Gross Profit	359.43M	340.78M	291.86M	401.44M	379.94M	259.18M
EBITDA	297.98M	245.22M	297.23M	364.46M	353.62M	197.77M
Net Income	195.03M	140.40M	163.15M	273.73M	165.39M	29.61M
Balance Sheet
Total Assets	2.58B	2.38B	2.33B	2.62B	2.92B	3.21B
Cash, Cash Equivalents and Short-Term Investments	469.53M	421.44M	470.66M	860.73M	468.80M	564.25M
Total Debt	119.33M	60.42M	127.74M	407.10M	740.41M	1.16B
Total Liabilities	434.49M	353.63M	426.49M	792.87M	1.29B	1.73B
Stockholders Equity	1.90B	1.90B	1.86B	1.83B	1.64B	1.49B
Cash Flow
Free Cash Flow	-1.53M	68.13M	5.01M	277.92M	306.96M	190.37M
Operating Cash Flow	230.54M	292.09M	181.52M	326.94M	372.48M	248.22M
Investing Cash Flow	-64.61M	-137.30M	-219.48M	463.16M	-32.23M	-24.98M
Financing Cash Flow	-72.28M	-191.78M	-358.68M	-453.26M	-449.29M	-34.68M

Tsang Yow Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1568 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2248	66Neutral	TWD 2.76B	10.92	―	5.35%	35.53%	59.41%
TW:1568	63Neutral	TWD 2.69B	14.52	―	3.64%	4.95%	65.01%
TW:2115	59Neutral	TWD 2.40B	12.56	―	6.54%	13.54%	-9.75%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1506	44Neutral	TWD 2.72B	213.43	―	―	6.47%	-2.14%
TW:1533	39Underperform	TWD 2.44B	9.23	―	―	20.93%	285.82%

* General Sector Average

Performance Comparison

TW:1568 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1568	Tsang Yow Industrial Co., Ltd.	27.45	6.22	29.32%
TW:1506	Right Way Industrial Co., Ltd.	9.28	-2.87	-23.62%
TW:1533	Mobiletron Electronics Co., Ltd.	24.75	-8.35	-25.23%
TW:2115	Lu Hai Holding Corp.	22.95	-1.40	-5.76%
TW:2248	Shining Victory Motor Electronic Co., Ltd.	58.00	11.01	23.43%
TW:2252	CUBTEK Inc.	28.80	9.45	48.84%

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

Tsang Yow Industrial Co., Ltd. AI Stock Analysis