Chung Hwa Pulp Corp. AI Stock Analysis
Chung Hwa Pulp Corp. (1905) AI Stock Analysis
Chung Hwa Pulp Corp.
(TWSE:1905)
Chung Hwa Pulp scores poorly, driven mainly by deteriorating fundamentals: shrinking revenue, near-zero gross margins, sizeable operating and net losses, and negative operating and free cash flow that is being funded by rising debt, with leverage now roughly equal to equity. Technicals reinforce the caution, as the stock trades below all key moving averages with negative MACD, though extremely oversold RSI and Stochastic readings hint at scope for a short-term bounce. Valuation adds little comfort given negative earnings and no dividend. The partial offsets are a still-substantial asset base with equity covering about 40% of assets and the cyclical nature of the pulp and paper industry, where a pricing recovery or returns from current capacity investment could improve results.
Chung Hwa Pulp Corp. (1905) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 12.79B
- Dividend Yield
- ―
- Average Volume (3M)
- 1.72M
- Price to Earnings (P/E)
- -22.7
- Beta (1Y)
- 0.63
- Revenue Growth
- -6.94%
- EPS Growth
- 23.37%
- Country
- TW
- Employees
- 2,856
- Sector
- General
- Sector Strength
- 55
- Industry
- Paper, Lumber & Forest Products
Chung Hwa Pulp Corp. Business Overview & Revenue Model
Company Description
Chung Hwa Pulp Corporation, a subsidiary of YFY Inc., primarily operates across two core segments: Pulp and Fine Paper, and Forestry. The company is deeply involved in the manufacturing, sale, and distribution of an extensive range of products, inclu...
Chung Hwa Pulp Corp. Financial Statement Overview
Summary
Financials are weak across the board. Revenue has fallen for three straight years to NT$18.8 billion, gross margin has collapsed from about 10.9% to 2.5%, and the company posted an operating loss of NT$1.69 billion and a net loss of NT$613 million. Operating cash flow is negative for a second year (-NT$571 million) and free cash flow deteriorated to -NT$2.35 billion on roughly NT$1.8 billion of capital spending, forcing continued borrowing. The balance sheet is the relative bright spot, with equity funding about 40% of assets, but debt has risen every year to NT$16.0 billion, lifting debt-to-equity to 0.99 and pushing ROE to -3.8%. Until margins and cash generation recover, the financial profile remains fragile.
Income Statement
18Very NegativeBalance Sheet
40NegativeCash Flow
13Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.28B | 18.77B | 20.77B | 20.96B | 23.65B | 22.03B |
| Gross Profit | 372.52M | 475.47M | 1.54B | 1.09B | 2.55B | 2.40B |
| EBITDA | -150.70M | -423.69M | 1.22B | 614.55M | 1.91B | 1.70B |
| Net Income | -568.96M | -612.56M | -252.12M | -573.39M | 445.93M | 488.23M |
Balance Sheet | ||||||
| Total Assets | 42.12B | 40.44B | 38.62B | 35.43B | 35.44B | 33.97B |
| Cash, Cash Equivalents and Short-Term Investments | 6.57B | 5.31B | 4.24B | 3.46B | 3.03B | 2.41B |
| Total Debt | 16.64B | 16.03B | 14.43B | 12.42B | 11.64B | 10.49B |
| Total Liabilities | 22.48B | 21.85B | 20.43B | 17.95B | 17.34B | 16.33B |
| Stockholders Equity | 17.10B | 16.13B | 15.70B | 15.17B | 15.78B | 15.47B |
Cash Flow | ||||||
| Free Cash Flow | -1.76B | -2.35B | -1.83B | -564.18M | -494.69M | -1.16B |
| Operating Cash Flow | -203.14M | -570.59M | -385.37M | 112.83M | 482.05M | 498.27M |
| Investing Cash Flow | 594.89M | -276.49M | -1.15B | -614.45M | -873.34M | -1.45B |
| Financing Cash Flow | 801.16M | 1.66B | 1.98B | 449.04M | 646.20M | 1.10B |
Chung Hwa Pulp Corp. Peers Comparison
Overall Rating
TW:190342Neutral- TW:190540Underperform
TW:190933Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:1903 | 42Neutral | TWD 11.73B | 32.79 | ― | ― | -1.63% | ― |
| TW:1905 | 40Underperform | TWD 12.55B | -22.75 | ― | ― | -6.94% | 23.37% |
| TW:1909 | 33Underperform | TWD 11.92B | 39.46 | ― | ― | 3.63% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:1905 | Chung Hwa Pulp Corp. | 11.60 | -0.80 | -6.45% | |
| TW:1903 | Shihlin Paper Corporation | 44.60 | -11.20 | -20.07% | |
| TW:1909 | Longchen Paper & Packaging Co. Ltd. | 9.04 | -0.79 | -8.04% |
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