Yuan Jen Enterprises Co., Ltd. (1725) AI Stock Analysis

Yuan Jen Enterprises Co., Ltd.

(TWSE:1725)

Select Model

Rating:59Neutral

Price Target:TWD 33.00▲(6.97% Upside)

Action:initiatedcoverage

Date:11/09/26

Yuan Jen Enterprises scores in the middle of the range. Financial strength is mixed: a very strong, low-leverage balance sheet (debt-to-equity of 0.24) and high-quality cash generation are offset by a deteriorating income statement, where revenue fell about 6%, operating margin compressed to 1.8%, and profits were flattered by non-operating gains alongside a modest 4.2% return on equity. Valuation partly compensates, with an undemanding 10.7x P/E and a 3.42% dividend yield backed by free cash flow. Technicals are the near-term drag, with the price below its 20-, 50- and 100-day moving averages and a negative MACD, although it still holds above the 200-day average. Overall, the company looks financially safe and cheap, but investors need evidence of margin recovery and better deployment of its growing equity base before the stock warrants a higher rating.

Positive Factors

Conservative LeverageImproving leverage and a larger equity base strengthen financial resilience and preserve flexibility for investment or downturns. Lower reliance on debt can also reduce financing pressure, giving the company more capacity to manage the cyclical demands of its chemicals business over the coming quarters.

Negative Factors

Revenue VolatilityA renewed revenue decline following several uneven years indicates inconsistent demand or sales execution and makes future earnings harder to plan. Persistent top-line volatility can limit operating leverage, reduce investment confidence, and weaken the durability of cash generation through the cycle.

Yuan Jen Enterprises Co., Ltd. (1725) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.65B
Dividend Yield: 3.47%
Average Volume (3M): 88.58K
Price to Earnings (P/E): 10.5
Beta (1Y): 0.73
Revenue Growth: 5.49%
EPS Growth: 83.25%
Country: TW
Employees: 102
Sector: General
Sector Strength: 55
Industry: Chemicals

Yuan Jen Enterprises Co., Ltd. Business Overview & Revenue Model

Company Description

Yuan Jen Enterprises Co.,Ltd. operates as a petrochemical trading company. It engages in the manufacture, processing, wholesale, and trade of chemicals, gasoline, and diesel. The company is also involved in building leasing business; trading, import,...

Yuan Jen Enterprises Co., Ltd. Financial Statement Overview

Summary

A conservatively financed but low-margin, cyclical business. The balance sheet is the standout (score 73): equity has nearly doubled since 2020 to NT$6.64 billion, total debt fell to NT$1.60 billion and debt-to-equity improved to a conservative 0.24, with equity funding roughly three-quarters of assets. Cash flow is also solid (score 66): operating cash flow nearly doubled to NT$361 million, free cash flow more than doubled to NT$345 million on minimal capex, and free cash flow covered about 96% of net income, confirming good earnings quality — though cash generation is lumpy and turned negative in the 2021 cycle. The weak link is the income statement (score 44): revenue fell about 6% to NT$8.00 billion, gross margin slipped to 4.6%, operating margin collapsed to 1.8% from 5.1%, and net income of NT$278 million exceeded operating profit, meaning the bottom line leaned on non-operating items. Return on equity of just 4.2% points to capital accumulating faster than it is productively deployed.

Income Statement

44Neutral

Balance Sheet

73Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.33B	8.00B	8.39B	7.50B	9.21B	10.67B
Gross Profit	412.95M	367.38M	410.28M	379.07M	426.83M	474.12M
EBITDA	225.93M	162.41M	444.07M	285.23M	326.51M	402.53M
Net Income	446.06M	278.35M	347.36M	200.47M	253.82M	319.14M
Balance Sheet
Total Assets	11.02B	8.80B	8.23B	7.33B	7.06B	7.03B
Cash, Cash Equivalents and Short-Term Investments	8.80B	6.65B	5.86B	5.09B	4.75B	4.46B
Total Debt	1.58B	1.60B	1.94B	2.00B	2.12B	1.84B
Total Liabilities	2.43B	2.16B	2.67B	2.74B	2.88B	2.70B
Stockholders Equity	8.60B	6.64B	5.56B	4.59B	4.18B	4.33B
Cash Flow
Free Cash Flow	533.88M	345.20M	181.87M	269.79M	444.14M	-436.91M
Operating Cash Flow	558.03M	361.42M	188.89M	274.61M	457.45M	-67.75M
Investing Cash Flow	60.20M	83.76M	-59.61M	-69.22M	-108.19M	-530.55M
Financing Cash Flow	-408.88M	-568.66M	-237.40M	-300.99M	85.85M	589.09M

Yuan Jen Enterprises Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1725 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6585	63Neutral	TWD 6.76B	10.51	―	4.81%	9.62%	46.90%
TW:1725	59Neutral	TWD 5.64B	10.49	―	3.47%	5.49%	83.25%
TW:1713	57Neutral	TWD 6.13B	8.58	―	7.61%	2.77%	-51.96%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1809	47Neutral	TWD 7.27B	226.93	―	0.56%	3.90%	-23.90%
TW:1305	27Underperform	TWD 6.51B	-15.83	―	0.88%	-7.05%	63.06%

* General Sector Average

Performance Comparison

TW:1725 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1725	Yuan Jen Enterprises Co., Ltd.	30.85	4.97	19.22%
TW:1305	China General Plastics Corporation	11.40	-0.26	-2.20%
TW:1713	Cathay Chemical Works Inc.	40.75	-1.47	-3.47%
TW:1809	China Glaze Co., Ltd.	44.50	24.63	123.90%
TW:6585	DingZing Advanced Materials, Inc.	93.50	-1.30	-1.37%
TW:7742	Uranus Chemicals Co. Ltd.	76.70	37.40	95.17%

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

Yuan Jen Enterprises Co., Ltd. AI Stock Analysis