Tachia Yung Ho Machine Industry Co., Ltd. (2221) AI Stock Analysis

Tachia Yung Ho Machine Industry Co., Ltd.

(TPEx:2221)

Select Model

Rating:68.5Neutral

Price Target:TWD 157.00▲(9.41% Upside)

Action:initiatedcoverage

Date:11/09/26

Tachia Yung Ho scores moderately above average. The foundation is low financial risk: minimal leverage (debt-to-equity of 0.25), an equity-funded balance sheet and consistently strong free cash flow that comfortably exceeds reported profit, alongside improving margins that lifted net income despite softer sales. Technically, the stock is in a strong, well-established uptrend well above all major moving averages, currently consolidating with neutral momentum. The score is held back by a stretched valuation — a P/E near 49 with only a 1.05% yield — and by fundamental soft spots including three consecutive years of revenue decline, single-digit ROE and margins still well below the 2022 cycle peak. Investors need the top line to stabilise to justify current pricing.

Positive Factors

Improving ProfitabilityImproved operating and net margins show that the company retained better earnings from its business in 2025 despite a declining sales base. If maintained, stronger profitability can support internal investment, preserve resilience, and improve earnings quality over the next several quarters.

Negative Factors

Multi-Year Revenue DeclineA three-year revenue decline points to persistent weakness in demand or market activity rather than a single-period setback. Without renewed sales growth, the company may have less operating leverage, reduced ability to expand earnings, and a weaker foundation for sustained shareholder returns.

Tachia Yung Ho Machine Industry Co., Ltd. (2221) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.97B
Dividend Yield: 1.05%
Average Volume (3M): 3.92M
Price to Earnings (P/E): 47.5
Beta (1Y): 0.67
Revenue Growth: 0.91%
EPS Growth: 14.98%
Country: TW
Employees: 200
Sector: General
Sector Strength: 55
Industry: Steel

Tachia Yung Ho Machine Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Taichung, Taiwan, Tachia Yung Ho Machine Industry Co., Ltd. specializes in the manufacturing and sale of butt-welding pipe fittings and high-purity components. Their product lineup includes butt-welding pipe fittings such as elbows, tees, re...

Tachia Yung Ho Machine Industry Co., Ltd. Financial Statement Overview

Summary

A financially sound but slow-growing cyclical steel player. The balance sheet (77) and cash flow (79) are the clear strengths: debt fell to NT$270 million, debt-to-equity dropped to a six-year low of 0.25, equity funds about 62% of assets, and free cash flow of NT$189.5 million covers net income roughly 1.9 times, signalling high-quality earnings. The income statement (62) is the weak link — revenue has declined for three straight years to NT$1.36 billion, though margin repair (gross 20.2%, net 7.2%) drove roughly 14% net income growth to NT$97.7 million. Returns remain modest, with ROE of 9.2% far below the 25% cycle peak in 2022, and there is still no visible revenue growth catalyst.

Income Statement

62Positive

Balance Sheet

77Positive

Cash Flow

79Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.49B	1.36B	1.40B	1.48B	1.74B	1.69B
Gross Profit	308.78M	275.84M	259.07M	271.02M	506.58M	433.18M
EBITDA	195.97M	180.97M	168.48M	185.76M	406.82M	294.64M
Net Income	128.72M	97.75M	85.65M	86.59M	268.44M	180.81M
Balance Sheet
Total Assets	1.85B	1.73B	1.63B	1.66B	1.77B	1.76B
Cash, Cash Equivalents and Short-Term Investments	397.46M	448.73M	292.02M	199.31M	279.12M	325.15M
Total Debt	205.57M	270.27M	325.85M	316.22M	316.31M	357.78M
Total Liabilities	671.90M	567.22M	589.86M	612.37M	639.89M	790.25M
Stockholders Equity	1.08B	1.07B	1.03B	986.16M	1.07B	920.52M
Cash Flow
Free Cash Flow	89.95M	189.47M	194.93M	90.43M	130.78M	188.14M
Operating Cash Flow	130.62M	232.88M	215.79M	126.29M	182.71M	213.75M
Investing Cash Flow	-42.04M	39.83M	-19.42M	-39.13M	-50.95M	-28.23M
Financing Cash Flow	-100.92M	-117.26M	-107.24M	-170.35M	-178.01M	-48.20M

Tachia Yung Ho Machine Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2221 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2221	69Neutral	TWD 6.07B	47.52	―	1.05%	0.91%	14.98%
TW:2228	62Neutral	TWD 5.36B	16.65	―	6.70%	-4.65%	-45.71%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6215	51Neutral	TWD 5.85B	23.72	―	1.43%	48.31%	106.93%
TW:2030	49Neutral	TWD 6.72B	12.69	―	2.09%	-4.80%	227.63%
TW:1583	40Underperform	TWD 5.62B	10.69	―	0.21%	3.58%	-65.42%
TW:2236	36Underperform	TWD 5.70B	-12.97	―	0.35%	88.01%	-191.43%

* General Sector Average

Performance Comparison

TW:2221 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2221	Tachia Yung Ho Machine Industry Co., Ltd.	143.50	116.10	423.74%
TW:1583	Goodway Machine Corp.	47.15	7.00	17.43%
TW:2030	Froch Enterprise Co., Ltd.	23.95	10.33	75.79%
TW:2228	Iron Force Industrial Co., Ltd.	67.20	-20.70	-23.55%
TW:2236	Patec Precision Industry Co., Ltd.	89.70	7.38	8.97%
TW:6215	Aurotek Corporation	70.00	-44.89	-39.07%

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

Tachia Yung Ho Machine Industry Co., Ltd. AI Stock Analysis