Cheng Loong Corp. (1904) AI Stock Analysis

Cheng Loong Corp.

(TWSE:1904)

Select Model

Rating:53Neutral

Price Target:TWD 24.00▲(1.91% Upside)

Action:initiatedcoverage

Date:11/10/26

Moderate financial performance due to leverage and profitability pressures weighs most on the score, while attractive valuation and oversold technical signals offer support.

Positive Factors

Integrated packaging businessExposure to both paper production and downstream converting gives the company an integrated role in packaging supply chains. Serving logistics and retail distribution creates a durable end-market base and allows offerings to cover both material and finished packaging needs.

Negative Factors

Weak revenue and profitability trendThe sharp 2025 revenue decline and substantial margin compression indicate weakened demand, pricing, or operating leverage within the reported business. Persistently lower profitability reduces the earnings cushion available to absorb cost pressure and makes a durable recovery more dependent on renewed growth.

Cheng Loong Corp. (1904) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 23.61B
Dividend Yield: 1.91%
Average Volume (3M): 1.77M
Price to Earnings (P/E): 10.9
Beta (1Y): 0.34
Revenue Growth: 6.37%
EPS Growth: 781.06%
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

Mixed results with improving operating cash flow and gross margins but offset by declining revenues, low net margins, rising debt-to-equity to 1.05, and negative free cash flow.

Income Statement

46Neutral

Balance Sheet

37Negative

Cash Flow

61Positive

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1904 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:9907	69Neutral	TWD 22.03B	21.09	―	8.46%	-11.46%	-52.40%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1904	53Neutral	TWD 26.16B	10.90	―	1.91%	6.37%	781.06%

* General Sector Average

Performance Comparison

TW:1904 and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	TW:1904	Cheng Loong Corp.	23.55	5.17	28.10%
	TW:9907	Ton Yi Industrial Corp.	13.95	-3.38	-19.51%

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

Cheng Loong Corp. AI Stock Analysis