Hua Eng Wire & Cable Co., Ltd. (1608) AI Stock Analysis

Hua Eng Wire & Cable Co., Ltd.

(TWSE:1608)

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Rating:60Neutral

Price Target:TWD 31.00▼(-1.90% Downside)

Action:initiatedcoverage

Date:11/09/26

Hua Eng Wire & Cable earns a middling score. The dominant factor is financial performance: a conservatively financed balance sheet and three consecutive years of gross margin improvement are offset by poor cash conversion, with negative operating and free cash flow in 2025 and in three of the past five years, plus reported profits that rest largely on non-operating gains rather than the roughly 8% core operating margin. Valuation is the main positive, with a 2.6x P/E and a 6.8% dividend yield, though the multiple is flattered by those one-off gains. Technicals are the key near-term risk — the stock sits below all major moving averages with negative MACD and deeply depressed RSI and Stochastic readings, signalling persistent selling pressure. Earnings call and corporate event data were unavailable and excluded, with their weight redistributed across the remaining components.

Positive Factors

Revenue and Profitability GrowthRecent revenue growth and the 2025 profitability rebound indicate improving demand and execution across the company’s wire and cable operations. If maintained, stronger margins can support reinvestment and resilience, although the multi-year record still requires continued execution.

Negative Factors

Weak Cash ConversionNegative operating and free cash flow in 2025, following positive results in 2023–2024, shows that reported earnings are not currently converting reliably into cash. Persistent volatility can increase funding needs, constrain reinvestment, and weaken the company’s ability to absorb setbacks.

Hua Eng Wire & Cable Co., Ltd. (1608) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 13.09B
Dividend Yield: 6.33%
Average Volume (3M): 3.01M
Price to Earnings (P/E): 4.5
Beta (1Y): 0.85
Revenue Growth: 14.90%
EPS Growth: 43.19%
Country: TW
Employees: 748
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Hua Eng Wire & Cable Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Taiwan, Hua Eng Wire & Cable Co., Ltd. specializes in the production, fabrication, installation, and distribution of a diverse range of wires, cables, and copper-based goods. Its offerings include various copper products such as oxygen-free...

Hua Eng Wire & Cable Co., Ltd. Financial Statement Overview

Summary

A mixed profile. The balance sheet is the standout strength (score 73): equity funds roughly 58% of assets, debt-to-equity has improved to 0.38x, and shareholders' equity has grown steadily since 2020. The income statement (66) shows solid revenue recovery to about NT$11.3bn and three straight years of gross margin expansion to 10.3%, but reported 2025 net income of NT$2.33bn far exceeds operating profit of NT$924m, meaning headline earnings are driven largely by non-operating items rather than the core business. Cash flow is the clear weak link (27), with negative operating cash flow of -NT$183m and free cash flow of -NT$473m in 2025, and cash burn in three of the last five years due to a working-capital-heavy, copper-intensive model.

Income Statement

66Positive

Balance Sheet

73Positive

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.25B	11.33B	11.33B	9.75B	10.75B	10.48B
Gross Profit	1.36B	1.17B	952.35M	696.26M	529.12M	990.82M
EBITDA	2.89B	1.15B	1.23B	1.29B	548.49M	976.73M
Net Income	4.89B	2.33B	656.05M	947.85M	89.75M	1.39B
Balance Sheet
Total Assets	20.01B	16.53B	13.86B	13.31B	13.52B	13.67B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.21B	1.32B	1.07B	922.06M	1.31B
Total Debt	4.22B	3.66B	2.97B	3.13B	3.79B	2.84B
Total Liabilities	7.48B	5.81B	4.87B	4.62B	5.44B	4.66B
Stockholders Equity	11.30B	9.58B	7.81B	7.68B	6.96B	7.80B
Cash Flow
Free Cash Flow	-593.50M	-472.47M	1.01B	793.20M	-388.37M	-336.04M
Operating Cash Flow	-275.61M	-182.87M	1.17B	996.55M	-161.45M	-155.60M
Investing Cash Flow	190.16M	162.69M	-186.27M	4.29M	53.89M	886.26M
Financing Cash Flow	194.43M	-19.33M	-718.64M	-1.01B	-66.66M	-771.48M

Hua Eng Wire & Cable Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1608 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6279	64Neutral	TWD 11.90B	8.56	―	5.50%	12.67%	15.02%
TW:1608	60Neutral	TWD 13.41B	4.50	―	6.33%	14.90%	43.19%
TW:2402	57Neutral	TWD 14.76B	29.70	―	4.03%	12.55%	-38.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3305	51Neutral	TWD 14.83B	18.77	―	2.17%	51.55%	128.01%
TW:2009	44Neutral	TWD 12.10B	32.90	―	1.19%	6.85%	168.90%
TW:2231	34Underperform	TWD 10.66B	-87.60	―	0.64%	-20.55%	-146.86%

* General Sector Average

Performance Comparison

TW:1608 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1608	Hua Eng Wire & Cable Co., Ltd.	31.60	-3.40	-9.71%
TW:2009	First Copper Technology Co., Ltd.	33.65	-8.68	-20.51%
TW:2231	CUB Elecparts, Inc.	78.40	-22.60	-22.38%
TW:2402	ICHIA Technologies, Inc.	49.60	1.76	3.67%
TW:3305	Shen Mao Technology Inc.	105.00	0.05	0.04%
TW:6279	Hu Lane Associate, Inc.	100.00	-24.37	-19.59%

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

Hua Eng Wire & Cable Co., Ltd. AI Stock Analysis