Evermore Chemical Industry Co., Ltd. (1735) AI Stock Analysis

Evermore Chemical Industry Co., Ltd.

(TWSE:1735)

Select Model

Rating:53Neutral

Price Target:TWD 19.00▼(-1.55% Downside)

Action:initiatedcoverage

Date:11/09/26

Evermore Chemical scores in the below-average range. The dominant drag is deteriorating earnings power — declining revenue, an operating margin squeezed to 2.3%, EBITDA down sharply and ROE of just 5.0% — which leaves little cushion in a soft chemicals cycle. Offsetting this are genuine balance sheet progress (debt down more than 40% since 2021, leverage at 0.64x equity) and solid cash conversion, with free cash flow of NT$173 million exceeding reported profit. Technicals add further caution, with the share price below all major moving averages and negative MACD momentum. Valuation is the most supportive element: a 3.43% dividend yield and a fair 17x P/E, though the multiple is not compelling given shrinking profits. Key things to watch are revenue stabilization, EBITDA recovery and continued debt reduction.

Positive Factors

Cash GenerationPositive operating cash flow since 2022 and 2025 free cash flow growth indicate the business is converting operations into internally generated funding. This supports debt service, reinvestment and resilience over the next several quarters, even though historical cash flow has been volatile.

Negative Factors

Revenue DeclineRevenue declined 4.3% in 2025, while the reported revenue-growth measure is also negative. Sustained top-line weakness would constrain scale benefits and make it harder to absorb fixed costs or fund growth, leaving near-term earnings recovery dependent on demand improvement.

Evermore Chemical Industry Co., Ltd. (1735) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.93B
Dividend Yield: 3.37%
Average Volume (3M): 194.73K
Price to Earnings (P/E): 16.5
Beta (1Y): 0.72
Revenue Growth: 1.82%
EPS Growth: 132.90%
Country: TW
Employees: 408
Sector: General
Sector Strength: 55
Industry: Chemicals

Evermore Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Evermore Chemical Industry Co., Ltd. is a global manufacturer and supplier specializing in polyurethane (PU) resins, particularly for synthetic leather applications, serving markets in China, Taiwan, and internationally. Its extensive product catalog...

Evermore Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Mixed profile. The income statement is the weak link (score 42): revenue slipped to NT$2.30 billion from NT$2.65 billion, operating margin compressed to 2.3% from 5.7%, EBITDA nearly halved to NT$164 million and net income fell about 19% to NT$78 million, leaving a thin 3.4% net margin despite a modest gross margin improvement to 18.1%. The balance sheet is healthier (score 60): debt has been cut four years running to NT$1.00 billion and debt-to-equity is down to 0.64, though borrowings still equal roughly six times EBITDA and ROE is only 5.0%. Cash flow is the strongest area (score 65): operating cash flow of NT$213 million comfortably exceeded net income and free cash flow improved to NT$173 million, supporting ongoing deleveraging — though cash generation has trended down from NT$457 million in 2023.

Income Statement

42Neutral

Balance Sheet

60Neutral

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.38B	2.30B	2.65B	2.37B	2.96B	3.20B
Gross Profit	454.72M	417.65M	469.33M	439.85M	386.01M	433.19M
EBITDA	201.50M	164.46M	264.01M	227.38M	175.82M	125.48M
Net Income	116.21M	77.62M	96.41M	75.22M	35.21M	10.06M
Balance Sheet
Total Assets	3.10B	2.96B	3.28B	3.30B	3.39B	3.72B
Cash, Cash Equivalents and Short-Term Investments	455.44M	410.90M	359.57M	389.64M	232.00M	298.81M
Total Debt	1.00B	996.21M	1.22B	1.34B	1.51B	1.78B
Total Liabilities	1.56B	1.40B	1.71B	1.80B	1.89B	2.28B
Stockholders Equity	1.54B	1.55B	1.57B	1.50B	1.50B	1.43B
Cash Flow
Free Cash Flow	173.61M	172.63M	142.37M	371.40M	244.63M	-730.15M
Operating Cash Flow	204.38M	212.71M	238.54M	456.88M	340.90M	-243.57M
Investing Cash Flow	155.57M	142.31M	-96.10M	-86.24M	-77.74M	-488.53M
Financing Cash Flow	-342.67M	-304.63M	-175.49M	-160.29M	-315.33M	661.01M

Evermore Chemical Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1735 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6967	63Neutral	TWD 1.93B	12.15	―	5.44%	22.39%	53.47%
TW:1742	56Neutral	TWD 1.99B	-40.88	―	―	-39.62%	56.82%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1735	53Neutral	TWD 1.90B	16.50	―	3.37%	1.82%	132.90%
TW:1323	51Neutral	TWD 1.99B	17.09	―	4.15%	-3.86%	-37.34%
TW:8935	39Underperform	TWD 1.96B	-28.69	―	―	-13.84%	12.29%

* General Sector Average

Performance Comparison

TW:1735 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1735	Evermore Chemical Industry Co., Ltd.	19.30	4.87	33.72%
TW:1323	Yonyu Plastics Co., Ltd	21.70	2.99	15.98%
TW:1742	Taiwan Wax Co., Ltd.	21.20	7.50	54.74%
TW:6967	Trans-Sun Materials Technology Co., Ltd.	65.40	9.77	17.55%
TW:7879	Advanced Material Systems Corp	54.30	-94.62	-63.54%
TW:8935	Pontex Polyblend Co. Ltd.	17.40	-1.25	-6.70%

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

Evermore Chemical Industry Co., Ltd. AI Stock Analysis