Namchow Holdings Co., Ltd. (1702) AI Stock Analysis

Namchow Holdings Co., Ltd.

(TWSE:1702)

Select Model

Rating:43Neutral

Price Target:TWD 30.00▼(-0.83% Downside)

Action:initiatedcoverage

Date:11/09/26

Weak financial performance from shrinking margins and negative cash flows is the dominant factor. Bearish technical signals are tempered by oversold indicators, while high P/E limits valuation support.

Positive Factors

Diversified Food PlatformNamchow serves multiple food-use categories and customer channels, spanning household consumption, commercial manufacturing, domestic demand and exports. This diversified operating base can support resilience by reducing reliance on one product type or end market and provides several avenues for sustained revenue generation.

Negative Factors

Margin CompressionThe sharp decline in gross and net margins indicates that the company is converting substantially less revenue into earnings than in prior years. If profitability remains near these reduced levels, weaker internal funding capacity and lower earnings power could constrain reinvestment, resilience and shareholder returns.

Namchow Holdings Co., Ltd. (1702) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 7.47B
Dividend Yield: 5.29%
Average Volume (3M): 234.27K
Price to Earnings (P/E): 168.1
Beta (1Y): 0.13
Revenue Growth: -0.31%
EPS Growth: -90.22%
Country: TW
Employees: 430
Sector: General
Sector Strength: 55
Industry: Packaged Foods

Namchow Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Namchow Holdings Co., Ltd., together with its subsidiaries, manufactures, processes, and sells edible and non-edible oil, frozen dough, and dish and laundry liquid detergent products in Taiwan, China, and Thailand. The company operates through Edible...

Namchow Holdings Co., Ltd. Financial Statement Overview

Summary

Revenue declined 1.6% recently with gross margins falling to 24.8% and net margins at 1.2%. Free cash flow turned deeply negative at -1.74 billion, signaling severe cash generation issues and earnings pressure.

Income Statement

35Negative

Balance Sheet

50Neutral

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.07B	23.17B	23.74B	22.68B	20.48B	19.86B
Gross Profit	5.48B	5.74B	6.92B	6.51B	5.35B	6.27B
EBITDA	1.63B	1.66B	2.98B	2.95B	2.28B	3.27B
Net Income	164.35M	276.90M	1.01B	1.04B	559.67M	1.07B
Balance Sheet
Total Assets	33.58B	33.44B	32.93B	30.28B	30.46B	29.41B
Cash, Cash Equivalents and Short-Term Investments	6.84B	8.14B	8.66B	9.52B	10.49B	9.73B
Total Debt	12.61B	12.21B	11.70B	12.22B	12.65B	12.09B
Total Liabilities	17.96B	17.91B	18.09B	17.74B	18.08B	17.58B
Stockholders Equity	12.01B	11.99B	11.80B	9.83B	9.47B	9.11B
Cash Flow
Free Cash Flow	-1.65B	-1.74B	122.00M	2.15B	689.53M	569.65M
Operating Cash Flow	469.49M	500.50M	2.06B	3.02B	1.43B	1.20B
Investing Cash Flow	-1.89B	-2.69B	-3.36B	-2.47B	-729.84M	-375.22M
Financing Cash Flow	-1.40B	-646.09M	-538.53M	-1.35B	-159.33M	3.63B

Namchow Holdings Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1702 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1268	76Outperform	TWD 7.11B	12.41	―	4.73%	15.59%	36.03%
TW:1264	70Outperform	TWD 8.93B	11.02	―	6.22%	3.48%	5.90%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1702	43Neutral	TWD 7.65B	168.06	―	5.29%	-0.31%	-90.22%
TW:4419	42Neutral	TWD 7.67B	-30.07	―	―	3.46%	7.51%
TW:2913	41Neutral	TWD 8.02B	-59.20	―	―	-10.64%	1.99%

* General Sector Average

Performance Comparison

TW:1702 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1702	Namchow Holdings Co., Ltd.	30.25	-6.52	-17.73%
TW:1264	Tehmag Foods Corp.	241.00	-32.98	-12.04%
TW:1268	Hi-Lai Foods Co., Ltd.	169.00	18.42	12.24%
TW:2913	Taiwan Tea Corporation	10.10	-3.95	-28.11%
TW:4419	King House Co., Ltd.	45.00	2.95	7.02%
TW:8359	Cashbox Partyworld Co., Ltd.	54.10	-8.94	-14.18%

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

Namchow Holdings Co., Ltd. AI Stock Analysis