Hwa Fong Rubber Ind. Co., Ltd. AI Stock Analysis
Hwa Fong Rubber Ind. Co., Ltd. (2109) AI Stock Analysis
Hwa Fong Rubber Ind. Co., Ltd.
(TWSE:2109)
Hwa Fong Rubber earns a moderate score. Financial performance dominates the assessment: cash generation is impressive, with free cash flow well above reported profit, and the balance sheet remains serviceable, but revenue fell about 10%, net income dropped roughly 28%, margins compressed at every level and debt rose, dragging ROE down to 9.3%. Valuation is the main support — a 10.1x P/E and a 7.2% dividend yield, backed by low volatility (beta 0.17), offer income appeal. Offsetting this, technicals are soft, with the price below all key moving averages and a negative MACD. The stock looks reasonably priced for income-oriented investors, but a stabilisation in sales and margins is needed before the outlook improves materially.
Hwa Fong Rubber Ind. Co., Ltd. (2109) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 3.90B
- Dividend Yield
- 7.14%
- Average Volume (3M)
- 129.95K
- Price to Earnings (P/E)
- 10.2
- Beta (1Y)
- 0.18
- Revenue Growth
- -0.86%
- EPS Growth
- 6.79%
- Country
- TW
- Employees
- 10,729
- Sector
- General
- Sector Strength
- 55
- Industry
- Auto - Parts
Hwa Fong Rubber Ind. Co., Ltd. Business Overview & Revenue Model
Company Description
Hwa Fong Rubber Industrial Co., Ltd., together with its subsidiaries, manufacture, process, sells, imports, and exports rubber and plastic products in Taiwan, China, the United States, Thailand, and internationally. The company offers tires and tubes...
Hwa Fong Rubber Ind. Co., Ltd. Financial Statement Overview
Summary
A mixed profile. The income statement is the weak point (score 53): revenue fell about 10% to NT$4.46bn and net income dropped roughly 28% to NT$325m, with operating margin compressing from 15.8% to 10.9%. The balance sheet is adequate (score 60) — equity funds about 41% of assets — but debt rose roughly 31%, lifting debt-to-equity to 0.65 and pushing ROE down to 9.3%. Cash flow is the standout (score 73), with operating cash flow up about 50% to NT$756m and free cash flow of NT$552m, roughly 1.7x net income, signalling high earnings quality and disciplined capex. Overall, strong cash generation and a serviceable capital structure cushion clear revenue and margin erosion.
Income Statement
53NeutralBalance Sheet
60NeutralCash Flow
73Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.38B | 4.46B | 4.94B | 4.67B | 5.41B | 5.54B |
| Gross Profit | 947.37M | 974.85M | 1.16B | 1.03B | 1.08B | 1.25B |
| EBITDA | 618.12M | 657.23M | 948.80M | 1.04B | 884.10M | 1.01B |
| Net Income | 384.15M | 324.88M | 449.98M | 422.34M | 444.35M | 559.10M |
Balance Sheet | ||||||
| Total Assets | 8.75B | 8.55B | 8.27B | 7.94B | 8.07B | 8.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.30B | 3.39B | 2.82B | 2.69B | 1.85B | 1.54B |
| Total Debt | 2.54B | 2.28B | 1.74B | 1.64B | 2.19B | 2.43B |
| Total Liabilities | 3.76B | 3.33B | 3.01B | 2.91B | 3.29B | 3.85B |
| Stockholders Equity | 3.54B | 3.50B | 3.49B | 3.45B | 3.21B | 3.04B |
Cash Flow | ||||||
| Free Cash Flow | -530.71M | 551.97M | 317.54M | 420.13M | 791.47M | 145.61M |
| Operating Cash Flow | 846.95M | 755.52M | 502.25M | 530.88M | 888.27M | 401.09M |
| Investing Cash Flow | -1.73B | -322.21M | -70.03M | 1.11B | 1.84M | -407.57M |
| Financing Cash Flow | 469.21M | 171.16M | -442.03M | -878.06M | -663.21M | 16.04M |
Hwa Fong Rubber Ind. Co., Ltd. Peers Comparison
Overall Rating
TW:152464Neutral- TW:210960Neutral
TW:224347Neutral
TW:152844Neutral
TW:201242Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:1524 | 64Neutral | TWD 4.04B | 11.14 | ― | 5.71% | -11.49% | -13.91% |
| TW:2109 | 60Neutral | TWD 3.91B | 10.22 | ― | 7.14% | -0.86% | 6.79% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:2243 | 47Neutral | TWD 3.80B | 41.11 | ― | ― | 9.09% | 167.63% |
| TW:1528 | 44Neutral | TWD 4.70B | -82.94 | ― | 0.39% | 2.48% | 45.58% |
| TW:2012 | 42Neutral | TWD 3.90B | -65.93 | ― | 2.15% | -14.50% | -160.42% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2109 | Hwa Fong Rubber Ind. Co., Ltd. | 14.00 | -0.54 | -3.68% | |
| TW:1524 | Gordon Auto Body Parts Co., Ltd. | 24.50 | -4.70 | -16.10% | |
| TW:1528 | Anderson Industrial Corp. | 28.20 | 13.55 | 92.49% | |
| TW:2012 | Chun Yu Works & Co., Ltd. | 13.95 | -1.14 | -7.55% | |
| TW:2243 | Horng Shiue Holding Co., Ltd. | 48.10 | 36.85 | 327.56% | |
| TW:7955 | Car Quality Automotive Co., Ltd. | 169.50 | -30.50 | -15.25% |
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