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

Wei Chih Steel Industrial Co., Ltd.

(TWSE:2028)

Select Model

Rating:48Neutral

Price Target:TWD 14.50▼(-2.03% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by very weak technical momentum and an expensive valuation relative to depressed earnings. The stock is in a clear downtrend with deeply oversold readings, and the high P/E ratio offers no margin of safety. A stable balance sheet and strong recent cash flow generation provide some fundamental support, but they are overshadowed by the severe and sustained decline in profitability and the negative market sentiment.

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: 2.70%
Average Volume (3M): 106.94K
Price to Earnings (P/E): 24.2
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

Financial performance is mixed. The income statement is weak, with declining revenue and severely compressed margins. The balance sheet is stable with low leverage, but return on equity is poor. Cash flow is a bright spot, showing a strong recovery and high conversion. Overall, strong cash generation partially offsets severe operational weakness.

Income Statement

35Negative

Balance Sheet

62Positive

Cash Flow

78Positive

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	20.38	―	4.24%	3.72%	57.19%
TW:2228	62Neutral	TWD 5.39B	17.08	―	6.81%	-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	48Neutral	TWD 4.85B	24.18	―	2.70%	2.64%	164.85%
TW:4533	44Neutral	TWD 5.25B	51.00	―	0.58%	-0.25%	42.76%
TW:6124	42Neutral	TWD 4.52B	174.84	―	―	-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.	14.80	-0.71	-4.59%
TW:1603	China Wire & Cable Co., Ltd.	29.30	-6.59	-18.37%
TW:2228	Iron Force Industrial Co., Ltd.	66.10	-19.34	-22.64%
TW:4533	Shieh Yih Machinery Industry Co., Ltd.	30.80	10.40	50.96%
TW:4572	Drewloong Precision, Inc.	118.00	-22.26	-15.87%
TW:6124	Yeh-Chiang Technology Corp.	24.60	0.00	0.00%

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