China Electric MFG Corp. (1611) AI Stock Analysis

China Electric MFG Corp.

(TWSE:1611)

Select Model

Rating:54Neutral

Price Target:TWD 11.50▼(-0.86% Downside)

Action:initiatedcoverage

Date:11/09/26

China Electric MFG scores modestly, held back primarily by deteriorating operating performance: revenue has halved since 2020 and net income has fallen to roughly NT$9 million, leaving returns on equity near zero. This is partly offset by an exceptionally conservative balance sheet (debt-to-equity of 0.15, equity funding over 80% of assets) and reliable free cash flow of around NT$230 million on minimal capex, which comfortably underpins the roughly 7.1% dividend yield — the stock's main attraction. Technicals reinforce caution, with the price below all key moving averages and a negative MACD, while the P/E near 25 offers little valuation cushion given depressed earnings. Suited to income-focused investors comfortable with low growth; the key catalyst would be management stabilising demand or redeploying its large, underutilised equity base.

Positive Factors

Conservative Balance SheetConservative leverage and substantial equity relative to assets provide financial flexibility in a cyclical operating environment. This reduces balance-sheet stress, supports continued operations through weaker demand, and preserves capacity for investment or shareholder returns.

Negative Factors

Multi-Year Revenue DeclinePersistent revenue contraction indicates sustained pressure on demand, market reach, or customer activity rather than a temporary fluctuation. Continued top-line erosion can reduce operating leverage, limit reinvestment capacity, and make recovery in earnings more difficult.

China Electric MFG Corp. (1611) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.68B
Dividend Yield: 6.90%
Average Volume (3M): 786.14K
Price to Earnings (P/E): 41.9
Beta (1Y): 0.38
Revenue Growth: -9.42%
EPS Growth: 64.46%
Country: TW
Employees: 2
Sector: General
Sector Strength: 55
Industry: Furnishings, Fixtures & Appliances

China Electric MFG Corp. Business Overview & Revenue Model

Company Description

China Electric Mfg. Corporation (CEMC), founded in 1955 and based in Taipei, Taiwan, operates a diverse business. The company specializes in the creation and sale of electrical goods, a broad array of lighting solutions, and associated components thr...

China Electric MFG Corp. Financial Statement Overview

Summary

A tale of two halves. The balance sheet (76) is fortress-like: equity funds about 81% of the NT$5.16 billion asset base, debt-to-equity sits at just 0.15, and borrowings have been trimmed each year. Cash flow (71) is also solid, with operating cash flow rising to roughly NT$252 million and minimal capex of about NT$22 million producing roughly NT$230 million of free cash flow. However, the income statement (34) is the clear weak link: revenue has fallen every year since 2020, halving to about NT$1.07 billion, and net income has collapsed to roughly NT$9 million for a sub-1% net margin, dragging ROE to about 0.2%. Improving gross margin (around 31.9%) shows pricing discipline, but the wide gap between free cash flow and reported profit points to heavy non-cash charges and raises asset-quality questions. Low financial risk, but very low growth and returns.

Income Statement

34Negative

Balance Sheet

76Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01B	1.07B	1.16B	1.36B	1.57B	1.78B
Gross Profit	329.59M	340.50M	354.30M	372.80M	437.43M	500.11M
EBITDA	179.63M	59.55M	234.52M	221.33M	206.07M	353.71M
Net Income	146.59M	9.21M	160.57M	149.56M	77.31M	279.08M
Balance Sheet
Total Assets	5.07B	5.16B	5.54B	5.47B	5.38B	5.69B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.38B	1.48B	1.57B	1.60B	1.51B
Total Debt	676.98M	614.67M	641.60M	645.42M	645.39M	666.64M
Total Liabilities	1.03B	955.62M	1.01B	1.14B	1.17B	1.29B
Stockholders Equity	4.04B	4.20B	4.52B	4.33B	4.21B	4.40B
Cash Flow
Free Cash Flow	125.41M	229.66M	207.17M	244.19M	194.08M	191.85M
Operating Cash Flow	149.12M	251.65M	207.93M	245.71M	195.63M	194.25M
Investing Cash Flow	195.20M	147.37M	-230.29M	-312.33M	185.47M	149.77M
Financing Cash Flow	-297.18M	-294.04M	-194.68M	-106.73M	-298.23M	-130.97M

China Electric MFG Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1611 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1611	54Neutral	TWD 3.79B	41.91	―	6.90%	-9.42%	64.46%
TW:4935	52Neutral	TWD 3.94B	28.23	―	3.33%	-24.80%	-49.71%
TW:5381	49Neutral	TWD 3.86B	25.43	―	―	-7.01%	-32.51%
TW:6220	44Neutral	TWD 3.54B	19.14	―	2.91%	14.67%	64.02%
TW:6226	39Underperform	TWD 3.70B	-1138.33	―	―	0.08%	86.72%

* General Sector Average

Performance Comparison

TW:1611 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1611	China Electric MFG Corp.	11.60	-0.10	-0.86%
TW:4590	Fukuta Electric & Machinery Co. Ltd.	72.40	-8.51	-10.52%
TW:4935	Global Lighting Technologies Inc.	30.00	-11.60	-27.88%
TW:5381	Spectrum Electrics Corporation	19.30	-9.23	-32.35%
TW:6220	YFC-BonEagle Electric Co., Ltd.	24.05	1.03	4.45%
TW:6226	Para Light Electronics Co., Ltd.	33.55	27.12	421.77%

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 Electric MFG Corp. AI Stock Analysis