Sheh Kai Precision Co., Ltd. (2063) AI Stock Analysis

Sheh Kai Precision Co., Ltd.

(TPEx:2063)

Select Model

Rating:53Neutral

Price Target:TWD 22.00▲(0.00% Upside)

Action:initiatedcoverage

Date:11/09/26

Sheh Kai Precision scores in the lower-middle range, held back primarily by deteriorating fundamentals: three consecutive years of revenue decline, a steep margin collapse to a 3.7% operating margin, and bottom-line profit increasingly dependent on non-operating income. Rising leverage to roughly 1x debt-to-equity alongside a falling equity base and ROE halving to 9.0% adds further caution. Partially offsetting this, the company remains profitable and strongly cash-generative, with free cash flow rebounding to NT$143m at healthy conversion, giving flexibility to service debt. Technicals are neutral — price sits just above its short-term averages but below the 200-day line, with balanced momentum readings — while an inexpensive 11.9x P/E and 2.3% dividend yield offer modest valuation support. A stabilization in revenue and recovery in core operating margins are the key catalysts needed for a higher score.

Positive Factors

Precision Manufacturing PositionThe company’s focus on precision metal forming and machining places it within established industrial supply chains serving OEMs and downstream manufacturers. This specialized production role can support recurring demand for engineered components and provides a durable operating identity beyond short-term financial fluctuations.

Negative Factors

Revenue ContractionTwo consecutive years of weak revenue performance indicate softer demand across the company’s industrial customer base rather than a single isolated quarterly setback. Continued contraction could reduce operating leverage, limit reinvestment capacity, and make recovery in profitability more difficult over the next several quarters.

Sheh Kai Precision Co., Ltd. (2063) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.17B
Dividend Yield: 2.27%
Average Volume (3M): 52.64K
Price to Earnings (P/E): 12.1
Beta (1Y): 0.16
Revenue Growth: -11.29%
EPS Growth: -12.54%
Country: TW
Employees: 288
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

Sheh Kai Precision Co., Ltd. Business Overview & Revenue Model

Company Description

Sheh Kai Precision Co., Ltd., headquartered in Kaohsiung, Taiwan, is an international manufacturer and supplier specializing in a broad spectrum of fastening products. The company's extensive product portfolio includes a variety of screws, such as bi...

Sheh Kai Precision Co., Ltd. Financial Statement Overview

Summary

A weak income statement (score 38) dominates the picture: revenue has declined for three straight years to NT$975m, about 33% below the 2022 peak, while gross margin fell from 31.8% to 17.0% and operating margin collapsed to just 3.7%. Net profit of NT$82.6m now exceeds operating profit of NT$36.4m, meaning earnings lean on non-operating items — a quality-of-earnings concern. The balance sheet (score 53) is adequately capitalized with equity near half of assets, but leverage has risen to roughly 1x debt-to-equity as debt climbed to NT$917m and equity shrank, while ROE more than halved to 9.0%. Cash flow (score 62) is the standout, with operating cash flow up to NT$161.5m and free cash flow rebounding about 135% to NT$142.8m at an 88% conversion of net income, though it still covers only about 21% of total debt. Overall: profitable and cash-generative, but cyclically pressured.

Income Statement

38Negative

Balance Sheet

53Neutral

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	950.40M	975.50M	1.12B	1.43B	1.45B	1.44B
Gross Profit	173.19M	165.80M	246.56M	453.70M	398.83M	332.82M
EBITDA	101.30M	81.81M	191.47M	376.63M	357.36M	254.56M
Net Income	88.22M	82.60M	95.95M	245.49M	233.35M	149.16M
Balance Sheet
Total Assets	2.05B	1.97B	2.12B	2.00B	1.87B	1.97B
Cash, Cash Equivalents and Short-Term Investments	446.19M	439.86M	631.62M	599.39M	313.07M	385.86M
Total Debt	931.79M	916.60M	841.28M	571.97M	604.22M	957.90M
Total Liabilities	1.09B	1.05B	1.01B	920.13M	899.56M	1.20B
Stockholders Equity	961.69M	919.54M	1.11B	1.08B	971.27M	769.77M
Cash Flow
Free Cash Flow	79.60M	142.83M	105.59M	486.80M	293.10M	-72.41M
Operating Cash Flow	94.79M	161.50M	134.16M	517.20M	313.82M	-45.97M
Investing Cash Flow	-87.35M	-276.78M	-149.10M	-83.76M	-20.64M	-38.87M
Financing Cash Flow	34.23M	-140.83M	20.83M	-102.81M	-370.18M	84.42M

Sheh Kai Precision Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2063 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2235	64Neutral	TWD 1.02B	21.04	―	5.28%	-7.77%	4.84%
TW:4584	61Neutral	TWD 1.07B	20.93	―	5.59%	-16.79%	-50.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2063	53Neutral	TWD 1.16B	12.13	―	2.27%	-11.29%	-12.54%
TW:8928	46Neutral	TWD 1.04B	8.19	―	3.91%	-12.55%	122.09%
TW:4528	45Neutral	TWD 1.18B	-20.70	―	1.42%	-3.33%	-515.57%
TW:1591	40Underperform	TWD 1.22B	-25.50	―	―	107.83%	-35.87%

* General Sector Average

Performance Comparison

TW:2063 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2063	Sheh Kai Precision Co., Ltd.	22.00	-0.75	-3.30%
TW:1591	Inmax Holding Co., Ltd.	32.50	-19.60	-37.62%
TW:2235	I Yuan Precision Industrial Co. Ltd.	28.40	-3.81	-11.83%
TW:4528	Chian Hsing Forging Industrial Co., Ltd.	14.05	-2.90	-17.11%
TW:4584	Jufan Industrial Co., Ltd.	35.80	-12.35	-25.64%
TW:8928	Dynamic Precision Industry Corp.	20.45	-6.08	-22.91%

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

Sheh Kai Precision Co., Ltd. AI Stock Analysis