Feng Ching Metal Corporation (2061) AI Stock Analysis

Feng Ching Metal Corporation

(TPEx:2061)

Select Model

Rating:41Neutral

Price Target:TWD 56.00▼(-5.72% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is weighed down primarily by fragile financials: persistent losses, a razor-thin 5.3% gross margin, negative return on equity, and cash burn that has recurred in five of the last six years, with equity slowly eroding and leverage rising. Valuation compounds the concern, as a P/E near 55 with no dividend leaves little margin of safety for an unprofitable business. The main offset is technical: the shares remain well above their 200-day average after a strong longer-term advance, though near-term momentum has flattened. Improving gross margin and a sharply smaller operating cash outflow versus 2024 are encouraging early signals, but until profitability and cash generation turn positive, the risk profile stays elevated.

Positive Factors

Industrial Materials PositionThe company operates in an established industrial materials supply chain, serving downstream industrial and construction uses rather than relying on a purely speculative product concept. This provides a recognizable operating base and potential access to recurring demand across multiple practical end markets over the medium term.

Negative Factors

Persistent Net LossesFour consecutive years of net losses show that the current business model is not converting activity into sustainable shareholder returns. Persistent losses can reduce equity, constrain reinvestment, and weaken resilience, making future improvement dependent on restoring pricing, cost control, or operating leverage.

Feng Ching Metal Corporation (2061) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.49B
Dividend Yield: ―
Average Volume (3M): 2.15M
Price to Earnings (P/E): 52.9
Beta (1Y): 1.07
Revenue Growth: 3.28%
EPS Growth: ―
Country: TW
Employees: 120
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Feng Ching Metal Corporation Business Overview & Revenue Model

Company Description

Feng Ching Metal Corporation, founded in 1983 and headquartered in Kaohsiung, Taiwan, specializes in the global manufacturing and distribution of copper and enameled copper wires. The company's market reach extends across Taiwan, Mainland China, Viet...

Feng Ching Metal Corporation Financial Statement Overview

Summary

Fundamentals are weak across all three statements. Revenue has rebounded roughly 35% since 2023 to about NT$1.20 billion, but growth flattened to ~1% in the latest year and profitability is absent: gross margin is just 5.3%, EBIT is negative, and the net loss widened to -NT$55.8 million from -NT$14.7 million, a fourth straight loss-making year. Cash generation is the weakest link, with operating cash flow of -NT$45.8 million and free cash flow of -NT$52.8 million, negative in five of the past six years. The balance sheet is the relative bright spot — debt-to-equity of 0.88 is manageable — but leverage has crept up from 0.77 as losses erode equity and ROE sits at -9.1%. Narrowing operating losses and a much smaller cash burn versus 2024 point to early stabilization, but the turnaround remains unproven.

Income Statement

28Negative

Balance Sheet

44Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.28B	1.20B	1.19B	887.42M	927.29M	959.22M
Gross Profit	107.92M	63.87M	49.72M	28.72M	56.13M	95.07M
EBITDA	65.11M	16.18M	31.17M	14.18M	-32.36M	135.03M
Net Income	64.85M	-55.80M	-14.68M	-25.39M	-72.59M	108.84M
Balance Sheet
Total Assets	1.31B	1.18B	1.22B	995.98M	1.16B	1.18B
Cash, Cash Equivalents and Short-Term Investments	224.22M	161.14M	213.66M	216.03M	253.98M	254.23M
Total Debt	593.47M	535.85M	515.25M	487.91M	566.47M	433.71M
Total Liabilities	632.11M	570.42M	548.20M	514.64M	654.90M	586.65M
Stockholders Equity	678.59M	612.25M	668.70M	481.34M	500.43M	588.76M
Cash Flow
Free Cash Flow	-75.63M	-52.82M	-216.07M	55.30M	-128.23M	-119.73M
Operating Cash Flow	-65.54M	-45.81M	-205.66M	78.61M	-76.30M	-72.89M
Investing Cash Flow	-11.33M	22.39M	20.50M	-10.63M	-52.02M	967.00K
Financing Cash Flow	68.03M	16.37M	177.16M	-67.16M	109.08M	-85.25M

Feng Ching Metal Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2061 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2062	52Neutral	TWD 3.41B	36.10	―	5.87%	7.34%	-34.17%
TW:1617	46Neutral	TWD 3.31B	14.38	―	3.07%	11.94%	―
TW:3631	42Neutral	TWD 3.24B	-59.58	―	―	-46.72%	16.78%
TW:2061	41Neutral	TWD 3.41B	52.92	―	―	3.28%	―
TW:2007	40Underperform	TWD 3.37B	-3.06	―	―	-33.21%	-2.07%
TW:2017	27Underperform	TWD 3.44B	-10.26	―	―	-12.62%	-97.66%

* General Sector Average

Performance Comparison

TW:2061 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2061	Feng Ching Metal Corporation	59.40	40.35	211.81%
TW:1617	Jung Shing Wire Co., Ltd.	19.55	5.07	34.98%
TW:2007	Yieh Hsing Enterprise Co., Ltd.	6.36	-0.79	-11.05%
TW:2017	Quintain Steel Co., Ltd	8.00	-0.94	-10.51%
TW:2062	Sunspring Metal Corporation	17.05	-2.59	-13.19%
TW:3631	Chernan Metal Industrial Corp.	39.60	16.00	67.80%

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

Feng Ching Metal Corporation AI Stock Analysis