Cheng Loong Corp. AI Stock Analysis
Cheng Loong Corp. (1904) AI Stock Analysis
Cheng Loong Corp.
(TWSE:1904)
The score is held back primarily by weak financial performance: severe multi-year margin compression, a return on equity under 3%, rising leverage at roughly 1.05x equity, and free cash flow that has been negative in five of the past six years as capital spending outpaced internal cash generation. Supporting the score are early recovery signals — improving gross margin, higher operating profit and net income, and a strong 65% rebound in operating cash flow to NT$5.11 billion — alongside an inexpensive 10.9x P/E and a 1.9% dividend yield. Technically, the stock retains a positive longer-term trend above its 200-day average but has lost short-term momentum, with price below the 20- and 50-day averages and a negative MACD. Overall, this is a stable but low-return business whose rerating depends on sustained pricing improvement and moderating capital expenditure.
Cheng Loong Corp. (1904) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 26.32B
- Dividend Yield
- 1.91%
- Average Volume (3M)
- 1.84M
- Price to Earnings (P/E)
- 10.9
- Beta (1Y)
- 0.34
- Revenue Growth
- -3.09%
- EPS Growth
- 1111.63%
- Country
- TW
- Employees
- 9,680
- Sector
- General
- Sector Strength
- 55
- Industry
- Paper, Lumber & Forest Products
Cheng Loong Corp. Business Overview & Revenue Model
Company Description
Cheng Loong Corporation, founded in 1959 and headquartered in New Taipei City, Taiwan, operates as a diversified enterprise with a significant presence in paper product manufacturing and sales across Taiwan, Mainland China, and Southeast Asia. Its ex...
Cheng Loong Corp. Financial Statement Overview
Summary
Cheng Loong shows the profile of a capital-intensive cyclical paper producer in a margin trough. Revenue has stagnated near NT$43 billion (down 4.9% year over year) while net margin has compressed to 1.9% from 9.3% in 2020, pulling net income down to NT$823 million and return on equity to roughly 2.8%. Leverage has risen to about 1.05x equity after years of heavy capacity spending, and free cash flow has been negative in five of the past six years, including a NT$1.04 billion shortfall this year. Offsetting this, the latest year shows genuine signs of bottoming: gross margin improved to 18.0%, operating profit rose about 21%, net income rose about 36%, and operating cash flow rebounded 65% to NT$5.11 billion — well above reported earnings and evidence of high-quality, depreciation-backed cash generation. Equity still funds about 41% of assets, keeping the balance sheet intact.
Income Statement
41NeutralBalance Sheet
47NeutralCash Flow
45Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.04B | 42.98B | 45.18B | 42.17B | 43.92B | 44.99B |
| Gross Profit | 8.61B | 7.73B | 7.37B | 7.66B | 7.33B | 10.20B |
| EBITDA | 6.73B | 5.76B | 5.87B | 5.68B | 6.62B | 8.06B |
| Net Income | 2.40B | 823.02M | 605.11M | 922.12M | 2.52B | 3.96B |
Balance Sheet | ||||||
| Total Assets | 76.59B | 71.98B | 72.51B | 70.63B | 70.01B | 66.44B |
| Cash, Cash Equivalents and Short-Term Investments | 8.65B | 5.96B | 7.36B | 6.05B | 7.36B | 7.08B |
| Total Debt | 32.33B | 30.81B | 31.02B | 28.91B | 27.97B | 24.59B |
| Total Liabilities | 45.13B | 41.95B | 42.04B | 40.93B | 40.71B | 38.04B |
| Stockholders Equity | 30.61B | 29.30B | 29.53B | 28.85B | 28.34B | 27.25B |
Cash Flow | ||||||
| Free Cash Flow | 202.40M | -1.04B | -258.95M | -313.46M | -2.19B | -3.19B |
| Operating Cash Flow | 5.59B | 5.11B | 3.09B | 4.13B | 4.90B | 3.69B |
| Investing Cash Flow | -4.86B | -6.26B | -2.77B | -4.57B | -5.84B | -6.24B |
| Financing Cash Flow | 3.25B | -787.78M | 1.37B | -394.73M | 742.28M | 1.64B |
Cheng Loong Corp. Peers Comparison
Overall Rating
TW:990769Neutral- TW:190450Neutral
Financial Indicators
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:1904 | Cheng Loong Corp. | 23.60 | 5.71 | 31.89% | |
| TW:9907 | Ton Yi Industrial Corp. | 13.95 | -3.20 | -18.64% |
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