Wei Chih Steel Industrial Co., Ltd. (2028) AI Stock Analysis

Wei Chih Steel Industrial Co., Ltd.

(TWSE:2028)

Select Model

Rating:47Neutral

Price Target:TWD 14.50▼(-2.68% Downside)

Action:initiatedcoverage

Date:11/09/26

Wei Chih Steel scores in the lower-middle range, weighed down primarily by severely eroded profitability — four straight years of falling revenue, net margin of just 1.1%, and ROE under 2% leave almost no earnings buffer if steel pricing weakens further. Technicals compound the caution: the stock trades below all major moving averages with negative MACD and deeply depressed momentum readings, indicating a persistent downtrend. Valuation offers little relief, with a 34.9x P/E against trough earnings, only partly offset by a 2.73% dividend yield. The principal support is balance-sheet durability: equity funds over half of assets, debt was cut by roughly a third in 2025, and free cash flow of NT$1.37 billion funded that deleveraging — though this cash largely reflects a one-off working capital release. The company appears well positioned to survive the cycle, but there is no evidence yet of an earnings or price inflection.

Positive Factors

Improved LeverageDebt-to-equity fell from about 0.84 in 2024 to 0.54 in 2025, indicating improved leverage and a more resilient capital structure. For a cyclical steel producer, this provides greater capacity to withstand weaker conditions and preserve funding flexibility over the next several quarters.

Negative Factors

Revenue ContractionRevenue declined through 2022–2025, including another roughly 2% drop in 2025. Persistent contraction signals weaker demand or pricing conditions for the company’s steel products and reduces the scale available to absorb fixed costs, making a durable recovery in earnings more difficult.

Wei Chih Steel Industrial Co., Ltd. (2028) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.80B
Dividend Yield: 2.68%
Average Volume (3M): 107.01K
Price to Earnings (P/E): 24.3
Beta (1Y): 0.48
Revenue Growth: 2.64%
EPS Growth: 164.85%
Country: TW
Employees: 391
Sector: General
Sector Strength: 55
Industry: Steel

Wei Chih Steel Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Wei Chih Steel Industrial Co., Ltd. operates as a manufacturer and global supplier of diverse steel products, serving both the domestic Taiwanese market and international customers. Its extensive product range features steel billets, plates, various...

Wei Chih Steel Industrial Co., Ltd. Financial Statement Overview

Summary

A tale of two halves. The income statement is the clear weakness (score 31): four consecutive years of revenue decline to NT$8.5 billion, with gross margin collapsing from 16.7% to 3.8% and net margin to just 1.1%, leaving net income down ~72% year-over-year and ROE below 2%. Offsetting this, the balance sheet (64) is conservative and improving — equity funds ~57% of assets, total debt fell from NT$3.9 billion to NT$2.6 billion, and debt-to-equity dropped to 0.54. Cash flow (69) was the standout, with operating cash flow of NT$1.70 billion and free cash flow of NT$1.37 billion used to deleverage, though much of this came from a non-recurring working capital release rather than improved earnings power. Net result: durable financial footing but very thin earnings cushion in a deep steel down-cycle.

Income Statement

31Negative

Balance Sheet

64Positive

Cash Flow

69Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.68B	8.51B	10.20B	10.48B	13.12B	13.57B
Gross Profit	371.51M	325.28M	556.83M	685.18M	1.12B	2.27B
EBITDA	547.90M	520.43M	778.46M	806.92M	1.22B	2.27B
Net Income	139.06M	89.45M	316.20M	415.22M	750.40M	1.66B
Balance Sheet
Total Assets	8.58B	8.33B	9.91B	8.65B	8.32B	8.59B
Cash, Cash Equivalents and Short-Term Investments	243.99M	95.57M	179.97M	93.35M	357.73M	221.99M
Total Debt	2.32B	2.56B	3.92B	2.94B	2.36B	2.41B
Total Liabilities	3.79B	3.59B	5.25B	4.19B	3.97B	3.91B
Stockholders Equity	4.79B	4.73B	4.67B	4.46B	4.35B	4.68B
Cash Flow
Free Cash Flow	753.13M	1.37B	-803.89M	-380.68M	949.16M	-101.67M
Operating Cash Flow	1.19B	1.70B	173.74M	322.86M	1.21B	191.78M
Investing Cash Flow	-482.64M	-334.21M	-983.61M	-696.53M	-259.38M	-287.64M
Financing Cash Flow	-586.89M	-1.45B	891.04M	110.75M	-834.05M	150.58M

Wei Chih Steel Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2028 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%
TW:2228	62Neutral	TWD 5.39B	17.44	―	6.67%	-2.44%	-43.17%
TW:1603	58Neutral	TWD 4.65B	10.50	―	6.83%	5.03%	-20.15%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2028	47Neutral	TWD 4.85B	24.35	―	2.68%	2.64%	164.85%
TW:4533	44Neutral	TWD 5.25B	50.08	―	0.60%	-0.25%	42.76%
TW:6124	42Neutral	TWD 4.52B	47.60	―	―	-10.02%	―

* General Sector Average

Performance Comparison

TW:2028 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2028	Wei Chih Steel Industrial Co., Ltd.	14.90	-0.47	-3.03%
TW:1603	China Wire & Cable Co., Ltd.	29.30	-5.98	-16.96%
TW:2228	Iron Force Industrial Co., Ltd.	67.50	-18.42	-21.44%
TW:4533	Shieh Yih Machinery Industry Co., Ltd.	29.40	8.95	43.74%
TW:4572	Drewloong Precision, Inc.	116.00	-25.71	-18.14%
TW:6124	Yeh-Chiang Technology Corp.	24.75	-0.05	-0.20%

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

Wei Chih Steel Industrial Co., Ltd. AI Stock Analysis