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Formosan Union Chemical Corp. (1709) AI Stock Analysis

TW:1709

Formosan Union Chemical Corp.

(TWSE:1709)

Select Model
Rating:51Neutral
Price Target:TWD 42.00â–¼(-19.39% Downside)
Action:initiatedcoverage
Date:11/10/26

The overall score is constrained by a significant deterioration in operational performance, with declining revenue and a severe drop in cash flow generation being the primary risks. The company's strong, low-leverage balance sheet provides a crucial buffer, but bearish technical momentum and a moderate valuation are not enough to offset the fundamental earnings pressure.

Positive Factors
Low LeverageThe steady reduction in debt relative to equity gives Formosan Union Chemical greater resilience through chemical-industry cycles. Conservative leverage preserves borrowing capacity, reduces financial strain, and supports continued investment or shareholder returns without relying heavily on additional debt.
Negative Factors
Choppy Revenue TrendThe uneven revenue path indicates that demand and pricing conditions have not developed consistently. Repeated declines after a temporary rebound make forward growth less dependable and can limit operating leverage, investment capacity, and confidence in sustained expansion over coming quarters.

Formosan Union Chemical Corp. (1709) vs. SPDR S&P 500 ETF (SPY)

-50%0%50%100%150%200%250%300%TW:1709+220.44%SPY+13.89%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 25.28B
Dividend Yield
1.92%
Average Volume (3M)
23.24M
Price to Earnings (P/E)
26.1
Beta (1Y)
0.61
Revenue Growth
13.74%
EPS Growth
193.25%
Country
TW
Employees
427
Sector
General
Sector Strength
55
Industry
Chemicals - Specialty

Formosan Union Chemical Corp. Business Overview & Revenue Model

Company Description

Formosan Union Chemical Corp. (FUCC), established in 1973 and headquartered in Taipei, Taiwan, operates as a key producer and supplier of chemical products throughout the region. The company's core chemical offerings include: Alkyl benzene, which ser...

Formosan Union Chemical Corp. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is strong with low debt (D/E 0.18) and improving health, but this is offset by declining revenue (-1.7%), compressed margins (6.5%), and a severe drop in operating cash flow (-47%). The overall financial statement highlights a synchronized operational downturn.

Income Statement

45Neutral

Balance Sheet

75Positive

Cash Flow

40Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.31B9.01B10.30B9.43B10.57B9.20B
Gross Profit2.00B1.34B1.47B1.16B1.95B2.14B
EBITDA1.62B888.70M1.20B799.60M1.63B1.25B
Net Income958.07M586.14M733.58M418.19M1.08B947.59M
Balance Sheet
Total Assets12.34B12.12B12.78B12.09B13.27B11.59B
Cash, Cash Equivalents and Short-Term Investments1.18B1.11B601.16M724.37M1.57B898.36M
Total Debt1.01B1.65B1.91B2.33B2.67B2.16B
Total Liabilities3.09B2.91B3.44B3.84B4.72B3.69B
Stockholders Equity9.00B8.95B9.07B7.99B8.27B7.62B
Cash Flow
Free Cash Flow583.76M496.68M686.22M737.06M1.04B495.64M
Operating Cash Flow664.85M563.30M1.07B796.34M1.13B609.79M
Investing Cash Flow232.55M248.53M-245.30M15.31M-23.28M-39.14M
Financing Cash Flow-1.10B-759.89M-862.96M-1.53B-550.93M-885.14M

Formosan Union Chemical Corp. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:1709 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:1723TW:172363NeutralTWD 16.39B19.69―2.68%7.82%10.83%
TW:1714TW:171460NeutralTWD 15.85B12.84―1.19%48.25%238.60%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:1709TW:170951NeutralTWD 23.90B26.05―1.92%13.74%193.25%
TW:2103TW:210350NeutralTWD 19.69B8.15―1.17%9.79%2185.39%
TW:1711TW:171144NeutralTWD 21.98B260.32―0.79%7.06%―
TW:1312TW:131230UnderperformTWD 18.89B-2.94――40.97%-18.15%

* General Sector Average

Performance Comparison

0%100%200%TW:1709TW:1312TW:1711TW:1714TW:1723TW:2103Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:1709 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:1709Formosan Union Chemical Corp.52.1035.74218.54%
TW:1312Grand Pacific Petrochemical Corp.12.101.2011.01%
TW:1711Everlight Chemical Industrial Corporation35.9517.0690.33%
TW:1714Ho Tung Chemical Corp.15.156.8782.97%
TW:1723China Steel Chemical Corporation69.10-9.21-11.76%
TW:2103TSRC Corporation23.158.4957.91%
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