China Steel Structure Co., Ltd. (2013) AI Stock Analysis

China Steel Structure Co., Ltd.

(TWSE:2013)

Select Model

Rating:63Neutral

Price Target:TWD 43.00▲(5.78% Upside)

Action:initiatedcoverage

Date:11/09/26

China Steel Structure scores in the middle of the range. The strongest supports are its cheap valuation (12.5x earnings) and a high 5.94% dividend yield, backed by materially improved finances: debt halved since 2020, debt-to-equity at 0.42x, ROE of 11.2%, and NT$2.9 billion of free cash flow. Tempering this are structurally thin and narrowing margins (gross 4.7%, operating 2.8%), a profit boost driven partly by non-operating items, and inconsistent operating cash flow that makes the current cash windfall hard to repeat. Technicals are the main near-term drag, with the share price below all key moving averages and a negative MACD, though oversold RSI and Stochastic readings plus very low beta suggest limited further downside pressure.

Positive Factors

Improving Balance SheetThe substantial reduction in debt-to-equity indicates improved balance-sheet resilience and lower financial leverage. A stronger equity position gives China Steel Structure more capacity to withstand cyclical construction demand, preserve funding flexibility, and manage obligations through weaker operating periods.

Negative Factors

Severe Revenue ContractionThe 2025 revenue collapse represents a major deterioration in business activity and reduces confidence in the durability of the company’s earnings base. Unless revenue recovers, lower operating scale could limit fixed-cost absorption, weaken bargaining power, and constrain future cash generation.

China Steel Structure Co., Ltd. (2013) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.18B
Dividend Yield: 5.90%
Average Volume (3M): 58.74K
Price to Earnings (P/E): 12.6
Beta (1Y): 0.22
Revenue Growth: -5.75%
EPS Growth: 8.87%
Country: TW
Employees: 720
Sector: General
Sector Strength: 55
Industry: Steel

China Steel Structure Co., Ltd. Business Overview & Revenue Model

Company Description

China Steel Structure Co., Ltd., established in 1978 and headquartered in Kaohsiung, Taiwan, specializes in the design, fabrication, and distribution of steel structures across the island nation. The company's comprehensive services encompass the eng...

China Steel Structure Co., Ltd. Financial Statement Overview

Summary

A financially improving but structurally low-margin business. Revenue has grown steadily to NT$20.9 billion (+6% year-over-year, +58% over five years) and net income rose about 18% to NT$638 million, a five-year high. The balance sheet is the standout: total debt was cut to NT$2.4 billion from NT$4.9 billion in 2020, debt-to-equity improved to a comfortable 0.42x, and ROE rose to 11.2%. Cash generation was exceptional, with operating cash flow of NT$3.1 billion and free cash flow of NT$2.9 billion covering 94% of net income. Offsetting these strengths are razor-thin margins that narrowed again (gross 4.7%, operating 2.8%), a bottom line that relied on non-operating items, a history of negative operating cash flow in 2020 and 2023, and equity funding only ~38% of assets, implying sizeable non-debt liabilities tied to long-cycle contracts.

Income Statement

57Neutral

Balance Sheet

70Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.67B	20.95B	19.70B	18.84B	19.36B	15.97B
Gross Profit	957.40M	984.94M	1.06B	978.84M	962.00M	929.95M
EBITDA	782.74M	778.60M	908.89M	880.95M	847.62M	916.67M
Net Income	653.28M	638.40M	539.48M	535.55M	478.93M	494.04M
Balance Sheet
Total Assets	15.86B	14.96B	14.79B	14.42B	13.36B	13.91B
Cash, Cash Equivalents and Short-Term Investments	987.88M	1.47B	687.48M	441.85M	1.41B	936.18M
Total Debt	3.50B	2.41B	4.13B	4.42B	4.38B	4.25B
Total Liabilities	10.35B	9.28B	9.36B	9.03B	8.11B	8.72B
Stockholders Equity	5.52B	5.68B	5.43B	5.40B	5.25B	5.18B
Cash Flow
Free Cash Flow	860.85M	2.93B	958.09M	-256.05M	810.08M	906.27M
Operating Cash Flow	1.21B	3.11B	1.10B	-146.00M	1.08B	1.04B
Investing Cash Flow	-296.90M	-242.64M	-7.22M	-353.15M	-161.76M	-35.89M
Financing Cash Flow	-852.95M	-2.08B	-764.45M	-447.98M	-269.76M	-1.01B

China Steel Structure Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2013 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5511	75Outperform	TWD 9.30B	5.37	―	5.22%	15.89%	75.28%
TW:2033	66Neutral	TWD 8.94B	261.02	―	0.27%	-1.16%	-4.45%
TW:2013	63Neutral	TWD 8.13B	12.62	―	5.90%	-5.75%	8.87%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6727	55Neutral	TWD 9.58B	36.00	―	1.19%	50.99%	177.59%
TW:2534	51Neutral	TWD 7.05B	156.32	―	10.27%	-78.07%	-96.57%
TW:1532	48Neutral	TWD 9.11B	22.83	―	3.73%	0.87%	215.40%

* General Sector Average

Performance Comparison

TW:2013 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2013	China Steel Structure Co., Ltd.	40.65	1.79	4.61%
TW:1532	China Metal Products Co., Ltd.	21.45	-4.06	-15.92%
TW:2033	Chia Ta World Co., Ltd.	74.60	59.10	381.29%
TW:2534	Hung Sheng Construction Co., Ltd.	14.60	-4.45	-23.36%
TW:5511	Te Chang Construction Co., Ltd.	69.00	17.31	33.49%
TW:6727	Asia Metal Industries, Inc.	377.00	228.62	154.07%

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

China Steel Structure Co., Ltd. AI Stock Analysis