Hong Tai Electric Industrial Co., Ltd. (1612) AI Stock Analysis

Hong Tai Electric Industrial Co., Ltd.

(TWSE:1612)

Select Model

Rating:74Outperform

Price Target:TWD 34.00▲(10.93% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is supported primarily by a very strong balance sheet, improved cash generation, solid profitability, and attractive valuation. These strengths are partly offset by weak technical momentum, negative revenue growth, declining margins, and historical financial volatility.

Positive Factors

Very low leverageThe exceptionally low-debt balance sheet reduces financial risk and preserves flexibility for investment, dividends, or resilience during weaker demand. A growing equity base further strengthens the company’s capacity to support operations and pursue opportunities without relying heavily on borrowing.

Negative Factors

Uneven revenue trajectoryThe return to revenue contraction after a growth year signals an inconsistent top-line trajectory. Uneven demand limits operating leverage and makes it harder to sustain earnings expansion, particularly if the company cannot convert its infrastructure and industrial exposure into steadier sales growth.

Hong Tai Electric Industrial Co., Ltd. (1612) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 9.72B
Dividend Yield: 8.16%
Average Volume (3M): 597.16K
Price to Earnings (P/E): 8.2
Beta (1Y): 0.55
Revenue Growth: -0.25%
EPS Growth: 40.84%
Country: TW
Employees: 570
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Hong Tai Electric Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Hong Tai Electric Industrial Co., Ltd. manufactures, processes, and sells wires and cables, and communication products and accessories. It offers bare soft/hard copper stranded wire, lead-free PVC wires and cables, medium and low voltage cross-linked...

Hong Tai Electric Industrial Co., Ltd. Financial Statement Overview

Summary

Very strong balance-sheet quality and materially improved cash generation support solid profitability. Risks include negative revenue growth, declining margins, historical earnings volatility, and inconsistent cash flow.

Income Statement

72Positive

Balance Sheet

94Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.50B	7.55B	6.58B	6.20B	6.39B	6.31B
Gross Profit	1.17B	1.11B	1.04B	871.65M	767.46M	749.27M
EBITDA	1.10B	967.72M	1.01B	801.80M	645.65M	2.88B
Net Income	1.23B	875.15M	753.12M	628.47M	353.76M	2.70B
Balance Sheet
Total Assets	11.39B	9.68B	8.66B	8.50B	8.21B	8.74B
Cash, Cash Equivalents and Short-Term Investments	2.02B	1.84B	1.12B	2.25B	2.69B	3.28B
Total Debt	11.11M	75.28M	37.80M	14.44M	77.52M	7.54M
Total Liabilities	2.03B	1.20B	1.06B	943.21M	1.10B	923.42M
Stockholders Equity	9.36B	8.48B	7.60B	7.55B	7.10B	7.82B
Cash Flow
Free Cash Flow	825.67M	1.35B	-138.55M	256.49M	448.67M	-60.96M
Operating Cash Flow	907.75M	1.44B	-46.10M	366.08M	491.17M	5.77M
Investing Cash Flow	262.37M	-128.33M	-456.18M	-380.11M	-84.22M	2.46B
Financing Cash Flow	-683.06M	-626.98M	-644.21M	-476.79M	-888.51M	-388.25M

Hong Tai Electric Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1612 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1612	74Outperform	TWD 9.69B	8.17	―	8.16%	-0.25%	40.84%
TW:1615	71Outperform	TWD 8.37B	8.06	―	5.93%	10.56%	23.77%
TW:5013	62Neutral	TWD 8.83B	30.92	―	1.02%	0.25%	51.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1604	48Neutral	TWD 8.28B	14.30	―	6.64%	-1.80%	-3.71%
TW:2231	34Underperform	TWD 10.66B	-88.27	―	0.63%	-20.55%	-146.86%

* General Sector Average

Performance Comparison

TW:1612 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1612	Hong Tai Electric Industrial Co., Ltd.	30.65	-3.20	-9.46%
TW:1604	Sampo Corporation	22.60	-0.64	-2.75%
TW:1615	Dah San Electric Wire & Cable Corp	42.15	-3.52	-7.72%
TW:1623	Ta Tun Electric Wire & Cable Co Ltd	159.50	-59.86	-27.29%
TW:2231	CUB Elecparts, Inc.	79.00	-22.00	-21.78%
TW:5013	New Best Wire Industrial Co., Ltd.	68.60	40.67	145.63%

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 10, 2026

Hong Tai Electric Industrial Co., Ltd. AI Stock Analysis