Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A (1762) AI Stock Analysis

Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A

(TWSE:1762)

Select Model

Rating:40Underperform

Price Target:TWD 29.00▼(-11.45% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is driven primarily by a serious operating downturn: four consecutive years of revenue decline, negative gross margin, and a NT$244 million net loss indicate the core business is currently unprofitable at the production level. A conservative, low-leverage balance sheet and still-positive operating and free cash flow provide runway to restructure, but equity is gradually eroding. Technicals reinforce caution, with the price below all key moving averages and a negative MACD, though extremely oversold RSI and Stochastic readings suggest scope for a near-term bounce. Valuation offers no support, with a negative P/E and a minimal 0.62% dividend yield. A stabilization in revenue and a return to positive gross margin would be the first signs of improvement.

Positive Factors

Moderate LeverageDebt remains moderate at about 0.26 times equity, limiting refinancing pressure and preserving financial flexibility. This gives the company more capacity to manage the downturn and fund operations than a highly leveraged balance sheet would allow.

Negative Factors

Revenue ContractionRevenue fell about 18% year over year in 2025, indicating weaker demand, pricing, or product mix at the latest reporting point. A sustained top-line contraction would reduce operating leverage, limit reinvestment, and make recovery dependent on restoring sales momentum.

Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A (1762) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.41B
Dividend Yield: 0.62%
Average Volume (3M): 93.00K
Price to Earnings (P/E): -35.2
Beta (1Y): 0.75
Revenue Growth: -20.25%
EPS Growth: 81.66%
Country: TW
Employees: 243
Sector: General
Sector Strength: 55
Industry: Medical - Pharmaceuticals

Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A Business Overview & Revenue Model

Company Description

Based in New Taipei City, Taiwan, Chunghwa Chemical Synthesis & Biotech Co., Ltd., established in 1964 and previously known as China Chemical Synthesis Industry Co., Ltd., specializes in the development, production, and distribution of active pharmac...

Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A Financial Statement Overview

Summary

Fundamentals are weak and deteriorating. Revenue has declined four straight years, falling about 40% in the latest year to NT$805 million, while gross margin collapsed from 45% in 2022 to -1.1%, meaning products are being sold below production cost. The company posted a NT$320 million operating loss and a NT$244 million net loss (-30% net margin), with ROE turning negative at -7.9% (Income Statement score 18). The balance sheet is the main offset: equity funds roughly 72% of assets and debt-to-equity is a conservative 0.26, though equity is eroding as losses accumulate (Balance Sheet score 62). Cash flow is a partial bright spot — operations still generated NT$143 million and free cash flow NT$80 million despite the loss — but free cash flow fell about 73% year over year and has been erratic, including deeply negative figures in 2023 (Cash Flow score 48).

Income Statement

18Very Negative

Balance Sheet

62Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	934.29M	804.88M	1.35B	2.09B	2.12B	1.93B
Gross Profit	167.67M	-8.86M	394.32M	757.31M	961.76M	949.39M
EBITDA	151.05M	-47.60M	277.66M	545.93M	743.72M	651.27M
Net Income	-51.70M	-243.85M	53.03M	264.91M	465.87M	400.78M
Balance Sheet
Total Assets	4.36B	4.32B	4.76B	5.17B	4.56B	4.38B
Cash, Cash Equivalents and Short-Term Investments	329.96M	216.44M	222.28M	269.57M	300.61M	195.25M
Total Debt	755.63M	805.86M	858.17M	1.21B	604.54M	753.55M
Total Liabilities	1.16B	1.23B	1.41B	1.82B	1.37B	1.49B
Stockholders Equity	3.20B	3.09B	3.36B	3.35B	3.19B	2.89B
Cash Flow
Free Cash Flow	248.54M	80.28M	362.96M	-517.83M	357.60M	-186.27M
Operating Cash Flow	290.90M	142.61M	467.65M	-66.27M	733.78M	219.18M
Investing Cash Flow	-60.36M	-61.80M	-100.10M	-461.32M	-376.18M	-802.75M
Financing Cash Flow	-116.12M	-86.03M	-415.72M	496.57M	-253.32M	630.62M

Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1762 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8432	85Outperform	TWD 2.36B	11.30	―	4.22%	20.56%	67.85%
TW:1780	71Outperform	TWD 2.59B	8.03	―	5.27%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8403	49Neutral	TWD 2.55B	12.33	―	3.29%	6.25%	14.37%
TW:4108	47Neutral	TWD 2.06B	-48.44	―	―	1.10%	54.83%
TW:1762	40Underperform	TWD 2.39B	-35.22	―	0.62%	-20.25%	81.66%

* General Sector Average

Performance Comparison

TW:1762 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1762	Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A	32.75	7.80	31.26%
TW:1780	Allied Biotech Corp	23.70	6.00	33.88%
TW:4108	Phytohealth Corporation	10.40	-3.85	-27.02%
TW:7860	Teh Seng Pharmaceutical Mfg Co Ltd	77.80	5.13	7.07%
TW:8403	ShareHope Medicine Co., Ltd.	18.25	-4.96	-21.38%
TW:8432	TSH Biopharm Corp. Ltd.	61.90	9.41	17.94%

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

Chunghwa Chemical Synthesis & Biotech Co., Ltd. Class A AI Stock Analysis