Yuen Chang Stainless Steel Co., Ltd. (2069) AI Stock Analysis

Yuen Chang Stainless Steel Co., Ltd.

(TWSE:2069)

Select Model

Rating:60Neutral

Price Target:TWD 26.00▲(2.36% Upside)

Action:initiatedcoverage

Date:11/09/26

Yuen Chang earns a moderate score. Financial performance is the dominant driver and remains only adequate: shrinking revenue, thin margins and leverage above one times equity (roughly seven times EBITDA) offset a return to profitability and a strong rebound in operating and free cash flow that looks partly cyclical. Valuation is supportive, with a modest 10x P/E and a 4.1% dividend yield offering downside cushion. Technically, the shares hold a healthy position above their 100- and 200-day averages but have drifted below the 20-day line with soft short-term momentum. Overall, an improving but still cyclical and leveraged profile at an inexpensive price.

Positive Factors

Earnings RecoveryThe return to positive net income demonstrates meaningful recovery from the prior loss period and provides a stronger base for operations and capital allocation. If profitability remains positive, the company can rebuild financial resilience and support its competitive position over the coming quarters.

Negative Factors

Revenue DeclinePersistent revenue contraction indicates that the earnings recovery is not yet supported by broad top-line expansion. Continued weakness in sales can limit operating leverage, reduce the company’s ability to spread fixed costs, and make future profit improvement more dependent on cyclical conditions.

Yuen Chang Stainless Steel Co., Ltd. (2069) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.14B
Dividend Yield: 3.94%
Average Volume (3M): 1.49M
Price to Earnings (P/E): 9.9
Beta (1Y): 0.33
Revenue Growth: -4.11%
EPS Growth: 86.64%
Country: TW
Employees: 530
Sector: General
Sector Strength: 55
Industry: Steel

Yuen Chang Stainless Steel Co., Ltd. Business Overview & Revenue Model

Company Description

Yuen Chang Stainless Steel Co., Ltd. is a Taiwan-based enterprise specializing in the production and processing of stainless steel materials, serving both domestic and international markets. Its comprehensive product portfolio encompasses stainless s...

Yuen Chang Stainless Steel Co., Ltd. Financial Statement Overview

Summary

Mixed but improving. Revenue keeps contracting (NT$10.09bn vs NT$10.71bn, down ~29% from the 2021 peak) and margins are thin (9.4% gross, 3.6% operating), though net income rose ~20% to NT$269.8m and the company is clearly past the 2023 loss (Income Statement 48). The balance sheet is stable yet leveraged — debt-to-equity improved to 1.05 and ROE to 6.5%, but debt still exceeds equity and sits near seven times EBITDA (Balance Sheet 50). The bright spot is cash generation: operating cash flow swung to a positive NT$1.32bn and free cash flow to NT$791.6m, comfortably covering capex, albeit boosted by cyclical working capital release (Cash Flow 66).

Income Statement

48Neutral

Balance Sheet

50Neutral

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.77B	10.09B	10.71B	11.84B	14.04B	14.26B
Gross Profit	1.17B	944.60M	1.04B	412.01M	1.17B	1.93B
EBITDA	836.38M	601.74M	667.85M	222.00M	626.15M	1.28B
Net Income	426.76M	269.77M	225.40M	-149.15M	191.61M	740.74M
Balance Sheet
Total Assets	10.48B	9.02B	9.17B	8.68B	8.96B	11.15B
Cash, Cash Equivalents and Short-Term Investments	566.90M	361.02M	268.13M	336.71M	300.54M	574.64M
Total Debt	5.02B	4.37B	4.66B	4.44B	4.06B	5.88B
Total Liabilities	6.09B	4.86B	5.17B	4.90B	4.83B	6.89B
Stockholders Equity	4.40B	4.16B	4.00B	3.78B	4.13B	4.26B
Cash Flow
Free Cash Flow	-493.23M	791.56M	-201.01M	-225.99M	1.90B	-1.39B
Operating Cash Flow	227.14M	1.32B	-63.38M	-87.16M	2.14B	-1.14B
Investing Cash Flow	-1.04B	-871.94M	-141.44M	-140.37M	-3.62M	-272.67M
Financing Cash Flow	276.07M	-451.00M	46.10M	292.19M	-2.25B	1.42B

Yuen Chang Stainless Steel Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2069 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:4580	63Neutral	TWD 3.77B	13.24	―	4.97%	-2.83%	2.78%
TW:2069	60Neutral	TWD 4.19B	9.92	―	3.94%	-4.11%	86.64%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1584	45Neutral	TWD 3.75B	26.37	―	1.60%	-9.63%	439.46%
TW:2012	42Neutral	TWD 3.90B	-116.93	―	2.15%	-14.50%	-160.42%
TW:3631	42Neutral	TWD 3.24B	-59.58	―	―	-46.72%	16.78%

* General Sector Average

Performance Comparison

TW:2069 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2069	Yuen Chang Stainless Steel Co., Ltd.	25.40	10.81	74.12%
TW:1584	S-Tech Corp	16.15	-6.05	-27.27%
TW:2012	Chun Yu Works & Co., Ltd.	13.95	-1.14	-7.55%
TW:3631	Chernan Metal Industrial Corp.	39.60	16.00	67.80%
TW:4572	Drewloong Precision, Inc.	116.00	-25.71	-18.14%
TW:4580	Value Valves Co., Ltd.	80.50	1.63	2.06%

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

Yuen Chang Stainless Steel Co., Ltd. AI Stock Analysis