Yung Chi Paint & Varnish Mfg Co., Ltd. (1726) AI Stock Analysis

Yung Chi Paint & Varnish Mfg Co., Ltd.

(TWSE:1726)

Select Model

Rating:73Outperform

Price Target:TWD 84.00▲(10.67% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is supported primarily by strong financial quality and a favorable valuation, especially the very low debt level, solid profitability, strong cash generation, and attractive dividend yield. These strengths are offset by weak near-term technical momentum and volatile historical revenue and cash-flow trends.

Positive Factors

Very low leverageExtremely low leverage gives Yung Chi substantial financial flexibility and minimal refinancing exposure. The company can fund operations, reinvest in its coatings business, and potentially return capital without depending heavily on debt markets or taking on significant interest burden.

Negative Factors

Limited revenue growthA largely stagnant revenue base limits operating leverage and makes sustained earnings expansion harder to achieve. Without stronger demand or market-share gains, stable margins may preserve profitability but are less likely to produce meaningful long-term growth in earnings.

Yung Chi Paint & Varnish Mfg Co., Ltd. (1726) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 12.28B
Dividend Yield: 4.86%
Average Volume (3M): 26.99K
Price to Earnings (P/E): 11.9
Beta (1Y): 0.06
Revenue Growth: 1.61%
EPS Growth: 6.16%
Country: TW
Employees: 1,069
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Yung Chi Paint & Varnish Mfg Co., Ltd. Business Overview & Revenue Model

Company Description

Yung Chi Paint & Varnish Mfg.Co.,Ltd, founded in 1951 and based in Kaohsiung, Taiwan, is a prominent manufacturer and supplier of diverse coatings and paints, primarily serving the Taiwanese market. The company offers a comprehensive range of archite...

Yung Chi Paint & Varnish Mfg Co., Ltd. Financial Statement Overview

Summary

Strong overall financial quality, led by an exceptional balance sheet score of 96, solid profitability score of 78, and strong cash-flow score of 82. Key risks are volatile revenue and historical cash-flow trends, along with moderate return on equity.

Income Statement

78Positive

Balance Sheet

96Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.94B	9.79B	9.53B	9.35B	9.74B	8.87B
Gross Profit	2.66B	2.47B	2.47B	2.34B	2.16B	2.24B
EBITDA	1.47B	1.32B	1.34B	1.26B	1.23B	1.22B
Net Income	1.04B	891.61M	856.05M	831.24M	814.47M	882.17M
Balance Sheet
Total Assets	12.93B	12.11B	11.85B	11.56B	11.42B	11.24B
Cash, Cash Equivalents and Short-Term Investments	3.66B	3.18B	2.59B	2.66B	1.89B	2.11B
Total Debt	50.91M	47.83M	73.26M	94.42M	76.13M	57.72M
Total Liabilities	2.35B	1.68B	1.58B	1.77B	1.84B	2.02B
Stockholders Equity	10.58B	10.43B	10.26B	9.79B	9.57B	9.22B
Cash Flow
Free Cash Flow	897.27M	1.30B	442.17M	1.41B	355.19M	-152.33M
Operating Cash Flow	993.14M	1.45B	593.22M	1.58B	580.64M	645.68M
Investing Cash Flow	355.58M	-80.00M	-838.12M	-519.78M	281.47M	-137.96M
Financing Cash Flow	-580.43M	-608.61M	-580.64M	-670.71M	-690.61M	-568.67M

Yung Chi Paint & Varnish Mfg Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1726 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1726	73Outperform	TWD 12.34B	11.89	―	4.86%	1.61%	6.16%
TW:1307	65Neutral	TWD 11.38B	8.54	―	7.69%	4.29%	-2.73%
TW:2108	64Neutral	TWD 13.32B	14.24	―	3.70%	12.61%	105.71%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4707	45Neutral	TWD 11.15B	21.16	―	0.93%	-9.16%	67.21%
TW:4722	42Neutral	TWD 14.73B	51.26	―	0.83%	5.35%	72.48%
TW:1727	39Underperform	TWD 11.75B	122.11	―	0.17%	4.59%	127.25%

* General Sector Average

Performance Comparison

TW:1726 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1726	Yung Chi Paint & Varnish Mfg Co., Ltd.	75.90	3.88	5.39%
TW:1307	San Fang Chemical Industry Co., Ltd.	28.35	-3.47	-10.89%
TW:1727	Chung Hwa Chemical Industrial Works Ltd.	84.10	47.51	129.83%
TW:2108	NANTEX INDUSTRY CO LTD	26.90	4.47	19.94%
TW:4707	Pan Asia Chemical Corp.	27.30	17.85	188.80%
TW:4722	Qualipoly Chemical Corp.	141.00	-30.34	-17.71%

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

Yung Chi Paint & Varnish Mfg Co., Ltd. AI Stock Analysis