Oriental Union Chemical Corp. (1710) AI Stock Analysis

Oriental Union Chemical Corp.

(TWSE:1710)

Select Model

Rating:39Underperform

Price Target:TWD 14.50▼(-14.45% Downside)

Action:initiatedcoverage

Date:11/09/26

Oriental Union Chemical scores near the low end of the range, driven primarily by a fragile financial position: near-zero gross margin, a NT$887 million net loss, essentially no operating cash flow, a fifth negative free-cash-flow year in six, and leverage climbing to 1.74x equity as borrowings fund the shortfall. Valuation offers no cushion, with a negative P/E and no dividend. Technically, the stock has rolled over below its 20-, 50- and 100-day averages with negative MACD, though it remains above the 200-day average and momentum readings are approaching oversold territory. A recovery in petrochemical spreads — as demonstrated in 2021 — is the key swing factor, but until margins improve the risk profile remains elevated.

Positive Factors

Broad Industrial Customer BaseSupplying both basic and specialty chemical materials across downstream industries gives the company exposure to multiple industrial applications rather than a single end market. This breadth can support recurring demand and provide a foundation for recovery when manufacturing activity and chemical pricing improve.

Negative Factors

Sharp Profitability DeteriorationThe sharp margin compression and return to losses weaken the company’s earnings base and reduce its ability to fund operations internally. Because the latest results reverse the modest profitability of 2023–2024, sustained recovery will depend on improving operating conditions and restoring margins.

Oriental Union Chemical Corp. (1710) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 14.65B
Dividend Yield: ―
Average Volume (3M): 5.76M
Price to Earnings (P/E): -20.3
Beta (1Y): 0.60
Revenue Growth: -13.29%
EPS Growth: -157.29%
Country: TW
Employees: 629
Sector: General
Sector Strength: 55
Industry: Chemicals

Oriental Union Chemical Corp. Business Overview & Revenue Model

Company Description

Oriental Union Chemical Corporation, founded in 1975 and based in Taipei, Taiwan, operates as a significant manufacturer and supplier of chemical products, primarily focusing its distribution across Asia. The company's principal offerings include eth...

Oriental Union Chemical Corp. Financial Statement Overview

Summary

All three statements are weak. Revenue slipped ~3% to NT$22.25 billion and remains well below the 2021 peak, while gross margin collapsed to roughly 0.9% from 4.6%, producing an operating loss of about NT$902 million and a net loss near NT$887 million (-4.0% net margin). The balance sheet is deteriorating: debt has risen to about 1.74x equity from 1.06x in 2021, equity has shrunk nearly 30%, and ROE is -9.6%. Cash generation is the weakest link, with operating cash flow of only ~NT$6.5 million and free cash flow of about -NT$921 million, the fifth negative year in six, forcing reliance on borrowings. Scale (NT$32 billion asset base) and 2021's strong results show recovery potential if petrochemical spreads normalize, but the current profile is fragile.

Income Statement

20Very Negative

Balance Sheet

33Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.88B	22.25B	23.78B	20.82B	22.08B	27.48B
Gross Profit	269.25M	191.82M	1.09B	336.93M	-55.02M	2.55B
EBITDA	303.20M	135.28M	1.18B	1.26B	-61.63M	2.73B
Net Income	-729.05M	-887.28M	19.99M	265.72M	-790.02M	899.76M
Balance Sheet
Total Assets	35.44B	32.35B	31.44B	33.01B	34.91B	33.78B
Cash, Cash Equivalents and Short-Term Investments	1.51B	2.24B	1.74B	1.98B	2.55B	2.55B
Total Debt	17.89B	16.04B	14.83B	15.36B	17.49B	13.61B
Total Liabilities	22.20B	20.89B	18.08B	18.62B	20.61B	17.86B
Stockholders Equity	11.09B	9.21B	10.80B	11.78B	11.99B	12.84B
Cash Flow
Free Cash Flow	-2.99B	-921.39M	-609.23M	-896.07M	-2.18B	2.63B
Operating Cash Flow	-1.95B	6.46M	1.04B	35.00M	-1.05B	3.69B
Investing Cash Flow	-1.15B	-1.47B	-203.04M	997.79M	-1.98B	-1.93B
Financing Cash Flow	3.34B	1.34B	-1.09B	-1.26B	3.05B	-2.39B

Oriental Union Chemical Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1710 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1708	65Neutral	TWD 11.22B	11.02	―	3.52%	3.55%	34.35%
TW:1714	60Neutral	TWD 15.46B	13.73	―	1.11%	48.25%	238.60%
TW:4755	58Neutral	TWD 12.34B	27.45	―	3.05%	-11.09%	37.46%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1718	42Neutral	TWD 12.37B	16.17	―	―	-11.78%	―
TW:1313	40Underperform	TWD 15.17B	78.33	―	0.85%	-0.93%	―
TW:1710	39Underperform	TWD 13.95B	-20.30	―	―	-13.29%	-157.29%

* General Sector Average

Performance Comparison

TW:1710 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1710	Oriental Union Chemical Corp.	16.95	4.20	32.94%
TW:1313	UPC Technology Corporation	11.75	1.34	12.88%
TW:1708	Sesoda Corporation	45.40	14.45	46.66%
TW:1714	Ho Tung Chemical Corp.	16.20	7.85	94.04%
TW:1718	China Man-Made Fiber Corporation	9.54	2.58	37.07%
TW:4755	San Fu Chemical Co., Ltd.	121.50	17.34	16.65%

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

Oriental Union Chemical Corp. AI Stock Analysis