First Steamship Co., Ltd. (2601) AI Stock Analysis

First Steamship Co., Ltd.

(TWSE:2601)

Select Model

Rating:44Neutral

Price Target:TWD 5.00▼(-1.38% Downside)

Action:initiatedcoverage

Date:11/09/26

First Steamship scores low primarily because of sharply deteriorating earnings power: revenue fell roughly two-thirds in the latest year, gross margins collapsed to the mid-teens, and the company remains loss-making with negative ROE. Technicals reinforce the caution, with the price trading below all major moving averages and a negative MACD confirming a sustained downtrend. Valuation provides no cushion given the negative P/E and absence of a dividend. The key positives are a substantially de-risked balance sheet — debt cut by roughly 80% and debt-to-equity down to 0.53x — and consistently positive cash generation, with about NT$826 million of free cash flow showing much of the reported loss is non-cash. Until the slimmed-down business demonstrates a return to sustainable profitability, the risk profile remains elevated.

Positive Factors

Major DeleveragingThe sharp reduction in debt relative to equity improves financial flexibility and reduces balance-sheet pressure in a cyclical shipping industry. Lower leverage can support liquidity, reduce financing risk, and give management more capacity to withstand weak freight conditions or fund operations.

Negative Factors

Sharp Revenue ContractionA revenue decline of this magnitude signals a substantial contraction in business activity and weakens the scale supporting the company’s shipping operations. Lower revenue can reduce operating leverage, limit reinvestment capacity, and make it harder to absorb fixed vessel and corporate costs.

First Steamship Co., Ltd. (2601) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.49B
Dividend Yield: ―
Average Volume (3M): 3.27M
Price to Earnings (P/E): -3.1
Beta (1Y): 0.22
Revenue Growth: ―
EPS Growth: ―
Country: TW
Employees: 3,435
Sector: General
Sector Strength: 55
Industry: Marine Shipping

First Steamship Co., Ltd. Business Overview & Revenue Model

Company Description

First Steamship Co., Ltd., founded in 1963 and headquartered in Taipei, Taiwan, is a diversified company with a global presence. Its core business involves operating as a shipping company, primarily focusing on dry bulk cargo transportation. The comp...

First Steamship Co., Ltd. Financial Statement Overview

Summary

A weak income statement (score 22) dominates: revenue fell roughly two-thirds in the latest year to about NT$1.49 billion, gross margin collapsed from above 60% to roughly 14.5%, and the company posted a net loss of about NT$1.34 billion with ROE near -18% — its fifth loss in six years. Offsetting this, the balance sheet (60) was dramatically de-risked, with debt cut from about NT$18.7 billion to NT$3.9 billion and debt-to-equity falling from roughly 2.1x to 0.53x, while equity funds about 62% of assets. Cash flow (63) remains the bright spot, with roughly NT$903 million of operating cash flow and NT$826 million of free cash flow confirming that much of the loss is non-cash, though free cash flow has declined for two straight years and equity is being eroded by accumulated losses.

Income Statement

22Negative

Balance Sheet

60Neutral

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	298.19M	1.49B	4.85B	5.50B	6.33B	6.93B
Gross Profit	-892.36M	216.31M	3.09B	3.61B	4.32B	4.44B
EBITDA	1.50B	2.00B	2.43B	674.81M	2.90B	2.98B
Net Income	-1.30B	-1.34B	-288.77M	-1.67B	-355.43M	53.09M
Balance Sheet
Total Assets	11.40B	11.78B	34.89B	35.37B	35.77B	38.99B
Cash, Cash Equivalents and Short-Term Investments	396.43M	494.52M	1.90B	2.46B	3.34B	4.49B
Total Debt	3.57B	3.92B	18.66B	18.97B	19.34B	21.66B
Total Liabilities	3.96B	4.33B	23.79B	24.42B	22.12B	25.73B
Stockholders Equity	7.35B	7.36B	9.02B	8.73B	10.52B	9.82B
Cash Flow
Free Cash Flow	1.13B	825.65M	1.00B	1.52B	307.93M	1.61B
Operating Cash Flow	1.18B	902.70M	1.10B	1.79B	528.43M	2.55B
Investing Cash Flow	-611.66M	-500.14M	34.14M	-1.42B	218.04M	-513.57M
Financing Cash Flow	-936.51M	-1.24B	-1.96B	-1.52B	-2.17B	-1.70B

First Steamship Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2601 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4417	73Outperform	TWD 4.02B	9.34	―	7.21%	4.16%	-8.19%
TW:5706	66Neutral	TWD 3.33B	10.84	―	11.40%	-4.62%	11.52%
TW:5604	62Neutral	TWD 3.36B	25.12	―	6.48%	3.05%	48.38%
TW:2748	59Neutral	TWD 3.86B	14.41	―	4.78%	1.40%	14.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8367	52Neutral	TWD 3.82B	12.17	―	7.01%	6.77%	-1.08%
TW:2601	44Neutral	TWD 3.47B	-3.11	―	―	―	―

* General Sector Average

Performance Comparison

TW:2601 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2601	First Steamship Co., Ltd.	5.07	-1.69	-25.01%
TW:2748	FDC International Hotels Corp.	36.60	-5.61	-13.29%
TW:4417	King Chou Marine Technology Co., Ltd	48.55	-4.11	-7.81%
TW:5604	Chung Lien Co., Ltd	30.85	-5.21	-14.44%
TW:5706	Phoenix Tours International, Inc.	39.80	-8.16	-17.02%
TW:8367	Chien Shing Harbour Service Co. Ltd.	40.65	-0.58	-1.40%

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

First Steamship Co., Ltd. AI Stock Analysis