China Steel Chemical Corporation (1723) AI Stock Analysis

China Steel Chemical Corporation

(TWSE:1723)

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Rating:63Neutral

Price Target:TWD 75.00▲(7.30% Upside)

Action:initiatedcoverage

Date:11/09/26

China Steel Chemical scores moderately well, anchored by a strong financial profile: low leverage, a growing equity base and reliable cash generation that stayed positive throughout the downcycle provide meaningful downside protection, while revenue, margins and profits have begun recovering from the cyclical trough. Offsetting this is weak technical positioning — the stock trades below all major moving averages with negative MACD momentum, albeit at deeply oversold readings that could support a near-term bounce. Valuation is a secondary drag, with a P/E of 20.2 looking full for a cyclical whose earnings remain well below 2022–2023 peaks and are partly supported by non-operating income, though a 2.6% dividend yield adds some income appeal. Earnings call and corporate event data were unavailable and excluded, with their weight redistributed across the remaining components.

Positive Factors

Revenue RecoveryThe 12% TTM revenue rebound indicates that demand and sales activity have recovered from weaker recent annual periods. If sustained, renewed top-line growth can support operating scale, strengthen customer traction, and provide a foundation for earnings improvement over the next several quarters.

Negative Factors

Profitability Below PeakProfitability has not returned to the elevated levels achieved in 2022–2024, showing that current earnings power is less intense than during the prior peak cycle. This normalization can limit operating leverage and makes sustained profit expansion more dependent on a durable improvement in industry conditions.

China Steel Chemical Corporation (1723) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 16.25B
Dividend Yield: 2.65%
Average Volume (3M): 607.05K
Price to Earnings (P/E): 19.9
Beta (1Y): 0.21
Revenue Growth: 7.82%
EPS Growth: 10.83%
Country: TW
Employees: 1,489
Sector: General
Sector Strength: 55
Industry: Chemicals

China Steel Chemical Corporation Business Overview & Revenue Model

Company Description

China Steel Chemical Corporation, together with its subsidiaries, engages in the production, processing, and sale of coal tar distillation, light oil, coke, and refined carbon material products in Taiwan, China, Australia, and internationally. The co...

China Steel Chemical Corporation Financial Statement Overview

Summary

A conservatively financed chemicals producer emerging from a cyclical trough. The balance sheet is the standout (score 80): equity of NT$8.27 billion funds roughly two-thirds of assets, debt-to-equity is a low 0.34, and book value has grown steadily even through the downturn — though ROE of 10.1% is still well below the 21% peak. The income statement (score 63) is improving, with TTM revenue up about 12% to NT$6.74 billion, gross margin up to 19.2% and net income up to NT$815 million, but profits remain far below 2022–2023 levels and are partly supported by non-operating income (net income exceeds EBIT). Cash flow (score 70) is dependable, with operating cash flow of NT$1.33 billion comfortably exceeding net income and free cash flow of NT$603 million up about 28%, though heavy capital spending limits free cash flow conversion to roughly 45% of profit.

Income Statement

63Positive

Balance Sheet

80Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.74B	5.82B	7.65B	8.32B	10.46B	7.98B
Gross Profit	1.29B	982.82M	1.82B	2.10B	2.37B	1.61B
EBITDA	1.13B	925.57M	1.91B	2.22B	2.25B	1.67B
Net Income	814.91M	615.82M	1.21B	1.44B	1.70B	1.10B
Balance Sheet
Total Assets	12.07B	11.44B	11.47B	11.38B	11.21B	11.73B
Cash, Cash Equivalents and Short-Term Investments	1.57B	1.82B	1.78B	1.83B	2.08B	1.67B
Total Debt	2.78B	2.86B	2.31B	2.02B	1.85B	2.64B
Total Liabilities	3.80B	3.62B	3.25B	3.17B	3.13B	4.11B
Stockholders Equity	8.27B	7.82B	8.22B	8.21B	7.99B	7.35B
Cash Flow
Free Cash Flow	602.95M	497.24M	603.95M	558.81M	2.38B	1.17B
Operating Cash Flow	1.33B	1.03B	1.46B	1.11B	2.63B	1.38B
Investing Cash Flow	-735.92M	-482.65M	-801.16M	-358.65M	18.05M	-127.41M
Financing Cash Flow	-505.61M	-513.42M	-686.54M	-1.14B	-1.76B	-1.61B

China Steel Chemical Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1723 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1723	63Neutral	TWD 16.23B	19.91	―	2.65%	7.82%	10.83%
TW:1714	60Neutral	TWD 15.46B	13.39	―	1.14%	36.28%	243.10%
TW:1709	57Neutral	TWD 21.75B	22.80	―	2.19%	-3.01%	82.22%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1711	44Neutral	TWD 21.66B	266.83	―	0.80%	-2.22%	33.13%
TW:1313	40Underperform	TWD 15.17B	78.33	―	0.85%	-0.93%	―
TW:1710	39Underperform	TWD 13.95B	-19.17	―	―	-13.29%	-157.29%

* General Sector Average

Performance Comparison

TW:1723 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1723	China Steel Chemical Corporation	69.90	-8.21	-10.51%
TW:1313	UPC Technology Corporation	11.75	1.34	12.88%
TW:1709	Formosan Union Chemical Corp.	45.60	29.24	178.80%
TW:1710	Oriental Union Chemical Corp.	16.00	3.25	25.49%
TW:1711	Everlight Chemical Industrial Corporation	36.85	17.91	94.59%
TW:1714	Ho Tung Chemical Corp.	15.80	7.45	89.24%

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

China Steel Chemical Corporation AI Stock Analysis