Hold-Key Electric Wire & Cable Co., Ltd (1618) AI Stock Analysis

Hold-Key Electric Wire & Cable Co., Ltd

(TWSE:1618)

Select Model

Rating:68Neutral

Price Target:TWD 36.00▲(0.70% Upside)

Action:initiatedcoverage

Date:11/09/26

Hold-Key scores moderately well, anchored by a conservatively financed balance sheet, materially improved margins and a profitable earnings base. The key offset is earnings quality: after three consecutive years of negative operating cash flow, the latest positive figure converts only a small share of reported profit into cash, while revenue growth has cooled and operating margins have narrowed. Technicals are the weakest element, with the price well below all major moving averages and negative MACD pointing to an ongoing downtrend. Partially offsetting this, a low P/E of 7.1 and a 5.15% dividend yield make the valuation attractive for investors willing to wait for cash conversion and price momentum to improve.

Positive Factors

Stronger ProfitabilityProfitability has improved materially from earlier years, with gross margin near 19% and net margin around 15–17% in 2024–2025. This stronger earnings base can support reinvestment, dividends, and resilience across the company’s industrial and infrastructure markets.

Negative Factors

Revenue and Margin NormalizationThe 2025 decline in revenue and lower EBITDA margin show that the strong 2024 performance did not fully carry forward. Continued normalization would reduce operating leverage and could limit earnings growth, making sustained profitability more dependent on maintaining improved gross margins.

Hold-Key Electric Wire & Cable Co., Ltd (1618) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.61B
Dividend Yield: 4.76%
Average Volume (3M): 453.10K
Price to Earnings (P/E): 7.4
Beta (1Y): 0.79
Revenue Growth: -6.86%
EPS Growth: 16.98%
Country: TW
Employees: 292
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Hold-Key Electric Wire & Cable Co., Ltd Business Overview & Revenue Model

Company Description

Hold-Key Electric Wire & Cable Co., Ltd. is a Taiwanese enterprise that specializes in the manufacturing, import, and distribution of diverse cable products within the domestic market. Its extensive portfolio encompasses various cable types, includin...

Hold-Key Electric Wire & Cable Co., Ltd Financial Statement Overview

Summary

Hold-Key combines a strong income statement (score 77) and a robust balance sheet (score 82) with weak cash generation (score 36). Revenue has scaled from NT$2.9bn in 2022 to NT$4.82bn, with gross margin expanding to roughly 19% and net margin reaching 16.8%, lifting net income to NT$810m. Equity funds about 78% of the NT$8.44bn asset base, debt-to-equity is a modest 0.20 and ROE has improved to 12.3%. However, operating cash flow only just turned positive at NT$114m after three negative years, converting just ~14% of net income, and free cash flow of ~NT$65m is thin. Cooling revenue growth, a flat EBIT with margin slipping from 19.3% to 15.6%, and earnings gains driven by non-operating items temper the otherwise solid profile.

Income Statement

77Positive

Balance Sheet

82Very Positive

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.45B	4.82B	4.67B	4.48B	2.86B	2.80B
Gross Profit	1.15B	911.15M	905.56M	577.29M	322.33M	345.10M
EBITDA	933.36M	827.07M	969.35M	512.05M	368.95M	353.71M
Net Income	934.91M	810.41M	714.72M	386.80M	248.08M	232.92M
Balance Sheet
Total Assets	9.03B	8.44B	7.74B	6.16B	4.83B	4.58B
Cash, Cash Equivalents and Short-Term Investments	1.09B	729.63M	563.11M	399.68M	446.82M	455.71M
Total Debt	1.17B	1.32B	1.09B	554.45M	159.97M	12.81M
Total Liabilities	2.24B	1.84B	1.68B	1.11B	531.05M	342.57M
Stockholders Equity	6.79B	6.59B	6.06B	5.05B	4.30B	4.24B
Cash Flow
Free Cash Flow	522.83M	65.20M	-263.83M	-386.61M	-136.84M	-35.99M
Operating Cash Flow	580.09M	114.27M	-157.79M	-228.67M	-99.04M	12.69M
Investing Cash Flow	20.03M	-46.95M	-33.24M	-121.69M	19.23M	37.30M
Financing Cash Flow	-255.59M	-58.22M	301.94M	272.34M	47.78M	-558.32M

Hold-Key Electric Wire & Cable Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1618 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7556	69Neutral	TWD 7.11B	29.37	―	1.65%	19.56%	49.15%
TW:1618	68Neutral	TWD 6.89B	7.36	―	4.76%	-6.86%	16.98%
TW:8103	64Neutral	TWD 6.73B	14.67	―	7.07%	14.31%	81.39%
TW:4760	58Neutral	TWD 8.00B	26.71	―	1.70%	40.88%	82.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3003	54Neutral	TWD 7.46B	19.33	―	2.09%	11.87%	44.15%
TW:3543	39Underperform	TWD 7.03B	-20.13	―	1.25%	-5.18%	-93.55%

* General Sector Average

Performance Comparison

TW:1618 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1618	Hold-Key Electric Wire & Cable Co., Ltd	35.75	-6.60	-15.58%
TW:3003	K.S. Terminals Inc.	47.95	-0.27	-0.57%
TW:3543	JOCHU Technology Co. Ltd.	48.05	7.83	19.46%
TW:4760	AMPLE Electronic Technology Co., Ltd.	260.00	85.16	48.71%
TW:7556	Yeedex Electronic Corp.	244.50	93.73	62.17%
TW:8103	Cvilux Corporation	85.80	-5.74	-6.27%

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

Hold-Key Electric Wire & Cable Co., Ltd AI Stock Analysis