China Wire & Cable Co., Ltd. (1603) AI Stock Analysis

China Wire & Cable Co., Ltd.

(TWSE:1603)

Select Model

Rating:58Neutral

Price Target:TWD 29.00▼(-1.02% Downside)

Action:initiatedcoverage

Date:11/09/26

China Wire & Cable scores in the middle of the range. The dominant concern is cash generation: despite record revenue and profits, the company burned cash at both the operating and free cash flow level in the latest year, driving a sharp increase in debt, while gross and operating margins have steadily compressed — signs that growth is commodity-driven rather than margin-accretive. A solid, equity-funded balance sheet (61% equity-to-assets, 0.37 debt-to-equity) provides a cushion, but returns on that equity are only ~7%. Technicals are the weakest element, with the share price below all major moving averages, negative MACD and deeply depressed RSI/Stochastic readings. Offsetting these risks is an attractive valuation — a 9.9x P/E and a 7.3% dividend yield alongside low volatility — which provides meaningful downside support and lifts the overall score. Consistent positive cash flow and margin stabilization would be the key catalysts for an upgrade.

Positive Factors

Revenue GrowthRevenue has more than doubled across the period, demonstrating sustained expansion in the company’s addressable power, construction, infrastructure, and industrial markets. Continued top-line scale can support broader customer reach, operating leverage, and stronger competitive relevance over coming quarters.

Negative Factors

Weak Cash GenerationRepeated negative or volatile operating cash flow weakens the quality of reported earnings and can constrain liquidity. Negative free cash flow in 2025 may reduce flexibility for investment, dividends, or debt management if working-capital demands or spending needs remain elevated.

China Wire & Cable Co., Ltd. (1603) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.66B
Dividend Yield: 6.83%
Average Volume (3M): 167.62K
Price to Earnings (P/E): 10.5
Beta (1Y): 0.59
Revenue Growth: 5.03%
EPS Growth: -20.15%
Country: TW
Employees: 361
Sector: General
Sector Strength: 55
Industry: Construction Materials

China Wire & Cable Co., Ltd. Business Overview & Revenue Model

Company Description

China Wire & Cable Co., Ltd. engages in the manufacture, design, installation and sale of aluminum structure and profiles. Its products include wires, cables, aluminum doors, aluminum windows, curtain walls and electrical & metal products. The compan...

China Wire & Cable Co., Ltd. Financial Statement Overview

Summary

A mixed picture. Revenue has more than doubled over five years to ~NT$5.52 billion (+22% in the latest year) and net income hit a record ~NT$519 million, while the balance sheet is conservatively funded with equity covering ~61% of assets and debt-to-equity of 0.37. However, earnings quality is weak: gross margin compressed from 16.3% to 12.6% and operating margin from 13.3% to 9.9%, indicating growth driven by copper pass-through rather than pricing power. The decisive drag is cash flow — operating cash flow was negative (~-NT$238 million) and free cash flow ~-NT$428 million despite record profits, the third negative year in six, forcing a 32% jump in borrowings. ROE is also modest at ~7%.

Income Statement

63Positive

Balance Sheet

70Positive

Cash Flow

29Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.48B	5.52B	4.54B	4.01B	3.47B	2.56B
Gross Profit	622.23M	693.10M	619.21M	596.07M	448.09M	419.19M
EBITDA	479.24M	597.58M	639.76M	660.27M	447.90M	401.83M
Net Income	442.95M	519.50M	451.93M	474.17M	328.25M	282.05M
Balance Sheet
Total Assets	12.57B	12.17B	10.84B	10.26B	9.23B	8.74B
Cash, Cash Equivalents and Short-Term Investments	3.82B	3.10B	2.79B	2.18B	1.86B	1.95B
Total Debt	2.35B	2.74B	2.07B	2.20B	1.52B	1.36B
Total Liabilities	4.39B	4.59B	3.71B	3.76B	3.32B	2.91B
Stockholders Equity	8.04B	7.48B	7.04B	6.45B	5.89B	5.81B
Cash Flow
Free Cash Flow	573.75M	-427.81M	344.76M	-484.09M	85.89M	260.77M
Operating Cash Flow	840.56M	-237.61M	385.64M	-450.21M	105.97M	311.06M
Investing Cash Flow	-38.09M	-177.78M	-36.46M	-118.60M	-151.61M	-48.60M
Financing Cash Flow	-691.61M	346.80M	-317.48M	599.36M	-21.71M	-175.14M

China Wire & Cable Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1603 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8147	61Neutral	TWD 4.41B	41.70	―	2.73%	18.29%	-5.05%
TW:3501	59Neutral	TWD 4.09B	20.14	―	5.74%	-5.37%	-59.67%
TW:4903	59Neutral	TWD 5.35B	88.77	―	0.59%	25.68%	-3.54%
TW:1603	58Neutral	TWD 4.65B	10.50	―	6.83%	5.03%	-20.15%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3338	49Neutral	TWD 4.66B	38.48	―	2.44%	7.22%	-41.87%
TW:2460	39Underperform	TWD 4.59B	-17.19	―	―	29.04%	22.27%

* General Sector Average

Performance Comparison

TW:1603 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1603	China Wire & Cable Co., Ltd.	29.30	-7.44	-20.25%
TW:2460	Gem Terminal Industries Co., Ltd.	27.85	12.25	78.53%
TW:3338	TaiSol Electronics Co., Ltd.	53.20	3.68	7.42%
TW:3501	Well Shin Technology Co., Ltd.	34.85	-11.55	-24.90%
TW:4903	United Fiber Optic Communication Inc.	50.80	19.63	63.00%
TW:8147	Nextronics Engineering Corp.	110.00	11.46	11.63%

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 Wire & Cable Co., Ltd. AI Stock Analysis