Taiwan Wax Co., Ltd. (1742) AI Stock Analysis

Taiwan Wax Co., Ltd.

(TPEx:1742)

Select Model

Rating:56Neutral

Price Target:TWD 22.00▲(0.69% Upside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Wax scores in the mid range, held back primarily by a deteriorating core business: revenue has fallen four years running to NT$112 million and the company posted a NT$100 million net loss with deeply negative operating margins. That weakness is partly offset by a fortress balance sheet — debt slashed to NT$96 million, debt-to-equity of just 0.07x, and equity funding about 90% of assets — plus strong positive free cash flow, though that cash appears to stem from asset sales and working capital release rather than sustainable trading. Technicals are the brightest element, with the stock trading above all key moving averages in a well-defined uptrend supported by positive MACD. Valuation provides no cushion: earnings are negative, so the P/E is not meaningful, and there is no dividend. The balance sheet buys time and limits downside, but a stabilization in revenue and a return to operating profitability are needed before the investment case can be viewed more favorably.

Positive Factors

Lower LeverageMaterial deleveraging improves financial flexibility and reduces refinancing risk, giving the company greater capacity to manage volatility or fund operations. Lower leverage also reduces the burden of debt service, providing a stronger balance-sheet foundation over the next several quarters.

Negative Factors

Revenue ContractionMulti-year revenue contraction signals weakening demand, reduced scale, or loss of commercial momentum across the business. Continued top-line pressure can limit operating leverage, reduce the resources available for investment, and make a durable earnings recovery more difficult.

Taiwan Wax Co., Ltd. (1742) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.01B
Dividend Yield: ―
Average Volume (3M): 182.65K
Price to Earnings (P/E): -39.4
Beta (1Y): 0.02
Revenue Growth: -39.62%
EPS Growth: 56.82%
Country: TW
Employees: 80
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Taiwan Wax Co., Ltd. Business Overview & Revenue Model

Company Description

Taiwan Wax Company, Ltd. engages in the global and domestic manufacturing and sale of various refined waxes and their derivative products. The company's offerings include refined paraffin wax, microcrystalline wax, and both light and heavy foots oil...

Taiwan Wax Co., Ltd. Financial Statement Overview

Summary

A sharply split picture. The income statement is the main weakness (score 23): revenue has contracted for four straight years to NT$112 million — down roughly 78% from the 2021 peak — and the company swung to a NT$100 million net loss with an operating margin near -78%, as a shrinking sales base can no longer cover fixed costs. Earnings have been highly erratic, suggesting dependence on non-recurring items. Offsetting this, the balance sheet is a genuine strength (score 75): debt has been cut from NT$2.42 billion to just NT$96 million, debt-to-equity sits at an exceptionally conservative 0.07x, and equity funds about 90% of assets. Cash flow is also solid (score 66) with NT$463 million operating and NT$407 million free cash flow, though this appears driven by asset monetization and working capital release rather than recurring trading profits. Net effect: strong downside protection, but no credible evidence yet of operating recovery.

Income Statement

23Negative

Balance Sheet

75Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	83.12M	111.70M	231.19M	392.00M	482.01M	500.46M
Gross Profit	12.71M	26.90M	57.23M	118.05M	100.72M	95.67M
EBITDA	-43.64M	-65.57M	134.35M	92.89M	-86.40M	413.22M
Net Income	-51.91M	-100.50M	82.72M	38.30M	-123.64M	372.96M
Balance Sheet
Total Assets	1.45B	1.43B	1.85B	3.77B	2.62B	2.41B
Cash, Cash Equivalents and Short-Term Investments	308.26M	307.59M	196.06M	166.64M	180.73M	137.71M
Total Debt	127.57M	96.03M	404.18M	2.42B	1.30B	890.00M
Total Liabilities	174.60M	143.45M	458.58M	2.47B	1.36B	1.02B
Stockholders Equity	1.27B	1.29B	1.39B	1.30B	1.26B	1.39B
Cash Flow
Free Cash Flow	-65.90M	406.88M	266.52M	105.11M	-192.13M	-748.48M
Operating Cash Flow	-37.58M	463.39M	369.01M	355.54M	-139.04M	-522.63M
Investing Cash Flow	12.27M	-4.31M	1.63B	-1.49B	-223.03M	-108.60M
Financing Cash Flow	20.07M	-308.05M	-2.02B	1.11B	396.75M	390.61M

Taiwan Wax Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1742 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6899	70Outperform	TWD 2.05B	12.78	―	5.80%	1.56%	9.82%
TW:1742	56Neutral	TWD 1.99B	-39.37	―	―	-39.62%	56.82%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1735	53Neutral	TWD 1.90B	16.32	―	3.40%	-5.97%	162.82%
TW:1323	51Neutral	TWD 1.99B	17.24	―	4.11%	-3.86%	-37.34%
TW:1325	41Neutral	TWD 2.16B	-62.78	―	1.19%	-21.19%	47.07%
TW:8935	39Underperform	TWD 1.96B	-30.27	―	―	-13.84%	12.29%

* General Sector Average

Performance Comparison

TW:1742 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1742	Taiwan Wax Co., Ltd.	21.85	7.85	56.07%
TW:1323	Yonyu Plastics Co., Ltd	21.90	3.19	17.05%
TW:1325	Universal Incorporation	25.30	-5.35	-17.46%
TW:1735	Evermore Chemical Industry Co., Ltd.	19.10	4.81	33.69%
TW:6899	Apex Material Technology Corp.	48.30	-2.63	-5.16%
TW:8935	Pontex Polyblend Co. Ltd.	17.30	-1.65	-8.71%

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

Taiwan Wax Co., Ltd. AI Stock Analysis