TA Chen Stainless Pipe Co., Ltd. (2027) AI Stock Analysis

TA Chen Stainless Pipe Co., Ltd.

(TWSE:2027)

Select Model

Rating:61Neutral

Price Target:TWD 48.00▼(-4.19% Downside)

Action:initiatedcoverage

Date:11/09/26

TA Chen scores moderately. The dominant driver is financial performance: a strong 2025 profit rebound with expanding margins and a steadily strengthening equity base, undermined by poor cash conversion — operating cash flow of just NT$1.75bn against NT$6.68bn of net income and negative free cash flow that required additional debt. Valuation is the most supportive factor, with a single-digit P/E of 9.3x, a 3.3% dividend yield and low beta offering cushion. Technicals are the weakest element near term: the stock has fallen below its 20- and 50-day averages with a negative MACD, though oversold RSI and stochastic readings and a price still above the 200-day average suggest the longer-term trend has not broken. Investors should weigh the attractive valuation against cyclical earnings risk and the need for cash flow to catch up with reported profits.

Positive Factors

Profitability RecoveryThe 2025 rebound shows that TA Chen can restore earnings when operating conditions improve. Higher gross, operating, and net margins provide a stronger base for reinvestment and shareholder returns, although the durability of the recovery remains linked to the industrial cycle.

Negative Factors

Negative Free Cash FlowThe sharp shift to negative free cash flow is a material weakness because reported earnings are not converting into cash at a comparable rate. Persistent weak conversion could constrain internally funded investment, increase reliance on financing, and reduce resilience during weaker trading conditions.

TA Chen Stainless Pipe Co., Ltd. (2027) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 117.55B
Dividend Yield: 2.99%
Average Volume (3M): 13.27M
Price to Earnings (P/E): 10.2
Beta (1Y): 0.25
Revenue Growth: 24.28%
EPS Growth: 173.07%
Country: TW
Employees: 1,044
Sector: General
Sector Strength: 55
Industry: Steel

TA Chen Stainless Pipe Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1986 and headquartered in Tainan City, Taiwan, Ta Chen Stainless Pipe Co., Ltd. is a manufacturer and vendor of stainless steel and aluminum items. The company operates primarily through two segments: Stainless Steel and Aluminum, and...

TA Chen Stainless Pipe Co., Ltd. Financial Statement Overview

Summary

TA Chen is riding a cyclical upswing: fiscal 2025 revenue grew ~13% to NT$101.8bn, gross margin widened from 18.9% to 24.7%, and net income nearly doubled to NT$6.68bn (Income Statement 72). The balance sheet is solid but leveraged — equity rose to NT$75.0bn (49% of assets) with debt-to-equity of 0.73 and ROE recovering to 8.9%, though total debt climbed to NT$54.7bn (Balance Sheet 64). The clear weakness is cash conversion: operating cash flow collapsed to NT$1.75bn from NT$15.2bn, and free cash flow swung to -NT$5.73bn as working capital and capex consumed profits, forcing additional borrowing (Cash Flow 36). Net result: strong reported earnings quality offset by weak cash backing and high exposure to steel price cycles.

Income Statement

72Positive

Balance Sheet

64Positive

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	117.49B	101.81B	90.40B	101.26B	114.15B	96.89B
Gross Profit	32.56B	25.18B	17.09B	19.46B	31.04B	29.07B
EBITDA	25.85B	17.45B	10.93B	13.83B	22.86B	18.92B
Net Income	11.87B	6.68B	3.54B	5.33B	12.03B	9.67B
Balance Sheet
Total Assets	165.52B	153.52B	137.75B	135.12B	146.45B	109.07B
Cash, Cash Equivalents and Short-Term Investments	15.92B	12.51B	10.07B	14.10B	14.03B	16.09B
Total Debt	53.35B	54.72B	47.86B	51.64B	60.79B	46.50B
Total Liabilities	72.29B	65.00B	57.98B	60.64B	72.55B	54.65B
Stockholders Equity	79.57B	75.04B	67.55B	63.06B	63.26B	49.03B
Cash Flow
Free Cash Flow	6.40B	-5.73B	6.72B	17.88B	-4.51B	10.76B
Operating Cash Flow	12.89B	1.75B	15.25B	25.26B	4.09B	12.71B
Investing Cash Flow	-8.37B	-10.07B	-6.48B	-9.53B	-6.09B	-7.14B
Financing Cash Flow	-6.62B	11.24B	-11.21B	-17.60B	3.49B	-3.43B

TA Chen Stainless Pipe Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2027 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8415	71Outperform	TWD 38.32B	9.81	―	3.90%	10.70%	70.00%
TW:2015	69Neutral	TWD 36.12B	14.74	―	5.31%	-11.85%	4.31%
TW:2027	61Neutral	TWD 121.82B	10.24	―	2.99%	24.28%	173.07%
TW:8358	56Neutral	TWD 89.37B	58.18	―	0.51%	43.76%	132.78%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:7610	54Neutral	TWD 77.55B	41.02	―	0.03%	―	―
TW:1605	47Neutral	TWD 149.34B	7.01	―	1.47%	-0.13%	1219.70%

* General Sector Average

Performance Comparison

TW:2027 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2027	TA Chen Stainless Pipe Co., Ltd.	50.10	13.83	38.14%
TW:1605	Walsin Lihwa Corporation	34.05	0.09	0.28%
TW:2015	Feng Hsin Steel Co. Ltd.	62.20	1.40	2.30%
TW:7610	LIANYOU METALS CO.,LTD.	1330.00	1243.77	1442.40%
TW:8358	CO-TECH DEVELOPMENT CORP.	388.50	156.56	67.50%
TW:8415	Brighton-Best International (Taiwan), Inc.	38.50	6.19	19.14%

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

TA Chen Stainless Pipe Co., Ltd. AI Stock Analysis