Chun Yu Works & Co., Ltd. (2012) AI Stock Analysis

Chun Yu Works & Co., Ltd.

(TWSE:2012)

Select Model

Rating:42Neutral

Price Target:TWD 13.50▼(-3.23% Downside)

Action:initiatedcoverage

Date:11/09/26

Chun Yu Works scores poorly overall, driven primarily by deteriorating financial performance: a multi-year revenue decline, severe margin compression that has reduced net margin to under 1%, and leverage climbing to 1.31x equity on a shrinking capital base. The partial offset is a strong rebound in cash flow, with free cash flow returning to a positive NT$460 million and EBITDA remaining solid relative to reported earnings, suggesting the operating base is still cash-generative. Technicals reinforce caution, with the stock trading below all major moving averages in a steady downtrend and no momentum signal of a reversal. Valuation adds little comfort given negative earnings make the P/E meaningless, though the 2.1% dividend yield and low beta temper downside volatility. A sustained recovery in volumes, gross margin, and debt reduction would be needed to improve the outlook.

Positive Factors

Diversified Industrial ApplicationsServing multiple industrial end markets gives Chun Yu Works a broader customer base than reliance on one application would provide. This diversification can support demand resilience across the cycle and creates opportunities for both standard and customized fastener products.

Negative Factors

Revenue and Margin ContractionThe combination of lower revenue and sharply reduced margins indicates weakening earnings power rather than merely slower growth. If this pattern persists, it can constrain reinvestment, reduce resilience against industrial-cycle pressure, and make future profits more sensitive to small changes in demand or costs.

Chun Yu Works & Co., Ltd. (2012) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.89B
Dividend Yield: 2.15%
Average Volume (3M): 63.85K
Price to Earnings (P/E): -116.9
Beta (1Y): 0.30
Revenue Growth: -14.50%
EPS Growth: -160.42%
Country: TW
Employees: 2,146
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Chun Yu Works & Co., Ltd. Business Overview & Revenue Model

Company Description

Founded in 1949 and headquartered in Kaohsiung, Taiwan, Chun Yu Works & Co., Ltd. operates as a global producer and seller of a broad spectrum of fastening products. Their comprehensive range of fasteners serves various industries, including automoti...

Chun Yu Works & Co., Ltd. Financial Statement Overview

Summary

Financials are weak and structurally pressured. Revenue has fallen roughly 30% from its 2021 peak to NT$8.31 billion, with margins compressing across the board — operating margin halved to 3.6% and net margin collapsed to 0.67%, leaving just NT$55 million of net income and a 1.4% return on equity. Leverage is elevated at 1.31x debt-to-equity and rising as the equity base erodes. The clear bright spot is cash generation: operating cash flow swung back to NT$859 million and free cash flow to a positive NT$460 million in 2025, supported by healthy EBITDA of NT$613 million, though this covers only about 9% of the NT$5.09 billion debt load annually.

Income Statement

33Negative

Balance Sheet

45Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.74B	8.31B	9.17B	8.46B	11.05B	11.81B
Gross Profit	1.06B	1.14B	1.32B	1.32B	1.80B	2.07B
EBITDA	554.07M	612.64M	896.88M	936.40M	1.29B	1.50B
Net Income	-34.04M	55.30M	287.15M	253.63M	537.50M	744.73M
Balance Sheet
Total Assets	11.48B	11.55B	12.12B	12.17B	12.60B	12.69B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.34B	1.96B	2.86B	2.50B	1.08B
Total Debt	4.86B	5.09B	4.99B	5.13B	5.44B	5.31B
Total Liabilities	7.05B	6.96B	6.99B	7.09B	7.53B	8.02B
Stockholders Equity	3.75B	3.87B	4.27B	4.28B	4.29B	3.94B
Cash Flow
Free Cash Flow	-140.81M	459.69M	-596.25M	1.33B	1.40B	22.01M
Operating Cash Flow	276.45M	858.50M	-489.28M	1.40B	1.61B	213.71M
Investing Cash Flow	-348.39M	-842.22M	-225.80M	-548.69M	-68.56M	-265.88M
Financing Cash Flow	-211.28M	-519.70M	-577.75M	-699.87M	-180.69M	472.21M

Chun Yu Works & Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2012 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4572	63Neutral	TWD 4.64B	20.03	―	4.31%	3.72%	57.19%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4569	54Neutral	TWD 4.24B	15.79	―	2.30%	12.32%	150.98%
TW:1584	45Neutral	TWD 3.75B	26.37	―	1.60%	-9.63%	439.46%
TW:3631	42Neutral	TWD 3.24B	-59.58	―	―	-46.72%	16.78%
TW:2012	42Neutral	TWD 3.90B	-116.93	―	2.15%	-14.50%	-160.42%
TW:6226	39Underperform	TWD 3.70B	-1131.67	―	―	0.08%	86.72%

* General Sector Average

Performance Comparison

TW:2012 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2012	Chun Yu Works & Co., Ltd.	13.95	-1.14	-7.55%
TW:1584	S-Tech Corp	16.15	-6.05	-27.27%
TW:3631	Chernan Metal Industrial Corp.	39.60	16.00	67.80%
TW:4569	Sixxon Tech Co Ltd	141.50	-21.27	-13.07%
TW:4572	Drewloong Precision, Inc.	116.00	-25.71	-18.14%
TW:6226	Para Light Electronics Co., Ltd.	33.10	26.62	410.80%

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

Chun Yu Works & Co., Ltd. AI Stock Analysis