Chung Hwa Pulp Corp. (1905) AI Stock Analysis

Chung Hwa Pulp Corp.

(TWSE:1905)

Select Model

Rating:37Underperform

Price Target:TWD 10.50▼(-7.49% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is at the minimum of 37, reflecting severe distress across all evaluated components. The most significant factor is the company's fundamental financial deterioration, marked by persistent losses and unsustainable cash burn that is eroding its balance sheet. This is compounded by a deeply bearish technical trend, with the stock trading below all key moving averages and showing extremely weak momentum. The negative P/E ratio and absence of a dividend further confirm the lack of any valuation support. The company is in a precarious financial position with no apparent catalysts for a turnaround.

Positive Factors

Established Industrial BusinessThe company operates an established industrial business serving downstream packaging and paper applications. This product-market position provides a durable operating base and exposure to recurring material demand, although current financial results show that the model is under pressure.

Negative Factors

Shrinking Revenue and LossesMulti-year revenue contraction combined with losses through 2025 signals weakening demand or pricing and reduced operating leverage. Persistent top-line pressure makes fixed costs harder to absorb, limits reinvestment capacity, and threatens the durability of earnings until growth and margins recover.

Chung Hwa Pulp Corp. (1905) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 12.52B
Dividend Yield: ―
Average Volume (3M): 1.71M
Price to Earnings (P/E): -22.3
Beta (1Y): 0.59
Revenue Growth: -4.38%
EPS Growth: 26.67%
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

Financial performance is critically weak. The income statement shows declining revenue and deep net losses with a gross margin of only 2.5%. The cash flow statement is alarming, with negative operating and free cash flow indicating unsustainable cash burn. The balance sheet shows rising leverage, with debt-to-equity nearing 1.0, and negative returns on equity. The overall trend is a vicious cycle of losses, cash drain, and increasing debt.

Income Statement

18Very Negative

Balance Sheet

42Neutral

Cash Flow

10Very Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1905 against its peers
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 11.68B	33.01	―	―	-1.22%	112.13%
TW:1905	37Underperform	TWD 12.34B	-22.25	―	―	-4.38%	26.67%
TW:1909	33Underperform	TWD 11.92B	39.20	―	―	3.63%	―

* General Sector Average

Performance Comparison

TW:1905 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1905	Chung Hwa Pulp Corp.	11.35	-1.25	-9.92%
TW:1903	Shihlin Paper Corporation	44.90	-10.20	-18.51%
TW:1909	Longchen Paper & Packaging Co. Ltd.	8.98	-1.67	-15.68%

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

Chung Hwa Pulp Corp. AI Stock Analysis