Hwa Fong Rubber Ind. Co., Ltd. (2109) AI Stock Analysis

Hwa Fong Rubber Ind. Co., Ltd.

(TWSE:2109)

Select Model

Rating:54.5Neutral

Price Target:TWD 14.50▲(3.57% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by weak technical momentum and declining financial performance. The primary headwinds are the bearish technical trend and contracting revenue and margins. These are partially offset by a strong, low-leverage balance sheet and a very attractive valuation with a high dividend yield, which provide a margin of safety for long-term investors.

Positive Factors

Improving Cash GenerationImproving operating cash flow and a 13.7% increase in free cash flow indicate stronger cash conversion and spending discipline. Free cash flow equal to 73% of net income supports earnings quality and provides internally generated funds for operations, investment, and shareholder returns.

Negative Factors

Revenue ContractionThe recent revenue decline and uneven prior growth point to persistent demand, pricing, or end-market volatility rather than a consistently expanding top line. Continued contraction would limit operating leverage, constrain reinvestment capacity, and make sustained earnings growth more difficult.

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

Hwa Fong Rubber's financials are mixed. The balance sheet is a key strength with low leverage (D/E 0.65), but the income statement shows declining revenue (-4% YoY) and compressing margins. Cash flow is improving with 13.7% FCF growth, though operating cash flow quality is weak. Overall, financial stability is offset by operational headwinds.

Income Statement

42Neutral

Balance Sheet

68Positive

Cash Flow

55Neutral

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2109 against its peers
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%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2109	55Neutral	TWD 3.91B	10.22	―	7.14%	-0.86%	6.79%
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

TW:2109 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2109	Hwa Fong Rubber Ind. Co., Ltd.	14.00	-0.63	-4.30%
TW:1524	Gordon Auto Body Parts Co., Ltd.	24.50	-4.56	-15.68%
TW:1528	Anderson Industrial Corp.	28.20	12.10	75.16%
TW:2012	Chun Yu Works & Co., Ltd.	13.95	-1.14	-7.55%
TW:2243	Horng Shiue Holding Co., Ltd.	48.10	37.00	333.33%
TW:7955	Car Quality Automotive Co., Ltd.	169.50	-30.50	-15.25%

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

Hwa Fong Rubber Ind. Co., Ltd. AI Stock Analysis