Chang Hwa Commercial Bank, Ltd. (2801) AI Stock Analysis

Chang Hwa Commercial Bank, Ltd.

(TWSE:2801)

Select Model

Rating:64Neutral

Price Target:TWD 30.00▲(8.50% Upside)

Action:initiatedcoverage

Date:11/09/26

Chang Hwa Bank scores moderately above average, driven primarily by improving fundamentals: five consecutive years of earnings growth, 19% revenue expansion, widening margins, a steadily rising ROE, and sharply reduced borrowings. The principal fundamental risks are persistent negative operating and free cash flow, a thin equity cushion relative to its NT$3.4 trillion asset base, and ongoing spread compression that leaves profits exposed to a rate or credit downturn. Technically, the stock remains in a solid longer-term uptrend above its 100- and 200-day averages, though momentum has softened in the short term. Valuation is fair but not cheap at roughly 17x earnings, with a 2.87% dividend yield and low beta adding stability for income-oriented investors.

Positive Factors

Broad Banking FranchiseThe bank serves multiple customer segments with a diversified set of essential financial services, including deposits, lending, payments and wealth management. Its combination of branch coverage and digital channels supports recurring customer relationships and reduces reliance on any single product line.

Negative Factors

Persistent Negative Cash FlowSustained negative operating and free cash flow weakens confidence that reported earnings are translating consistently into cash resources. Although bank cash flows can fluctuate with balance-sheet movements, the multi-year pattern may constrain internally funded investment and reduce flexibility during stress.

Chang Hwa Commercial Bank, Ltd. (2801) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 335.27B
Dividend Yield: 2.89%
Average Volume (3M): 23.64M
Price to Earnings (P/E): 16.6
Beta (1Y): 0.20
Revenue Growth: 3.20%
EPS Growth: 20.85%
Country: TW
Employees: 6,693
Sector: General
Sector Strength: 55
Industry: Banks - Regional

Chang Hwa Commercial Bank, Ltd. Business Overview & Revenue Model

Company Description

Chang Hwa Commercial Bank, Ltd., and its subsidiaries, deliver a broad spectrum of commercial banking solutions both within Taiwan and across international markets. The bank offers a comprehensive range of deposit accounts, including checking, demand...

Chang Hwa Commercial Bank, Ltd. Financial Statement Overview

Summary

Chang Hwa Bank is in a clear earnings upcycle: 2025 revenue of ~NT$98.5bn rose ~19%, net income climbed to NT$17.8bn from NT$14.9bn, and both net (18.1%) and operating (21.4%) margins widened, marking a fifth straight year of profit growth. The balance sheet is dependable, with equity building to NT$220.3bn, borrowings cut to just 0.20x equity, and ROE improving to 8.1% from 4.3% in 2020. Offsetting these strengths, gross-level spreads have compressed sharply from ~80% in 2021 to 45% in 2025, equity is a thin ~6.5% of a NT$3.4 trillion asset base, and cash flow is the clear weak spot with a fourth consecutive year of negative operating (-NT$32.9bn) and free cash flow (-NT$34.7bn), though the outflow narrowed and largely reflects loan book expansion.

Income Statement

74Positive

Balance Sheet

70Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	101.03B	98.47B	95.45B	81.37B	51.23B	35.72B
Gross Profit	47.70B	44.60B	41.95B	38.76B	34.26B	28.70B
EBITDA	24.58B	22.86B	19.97B	17.89B	14.62B	11.54B
Net Income	19.96B	17.77B	14.95B	12.98B	10.97B	8.80B
Balance Sheet
Total Assets	3.54T	3.38T	3.17T	2.90T	2.68T	2.55T
Cash, Cash Equivalents and Short-Term Investments	151.28B	177.82B	192.13B	167.92B	148.91B	137.92B
Total Debt	457.88B	44.93B	43.87B	175.30B	53.61B	53.63B
Total Liabilities	3.31T	3.16T	2.97T	2.71T	2.52T	2.38T
Stockholders Equity	229.70B	220.33B	201.40B	188.00B	169.03B	171.45B
Cash Flow
Free Cash Flow	-25.27B	-34.66B	-44.81B	-31.58B	-39.00B	51.83B
Operating Cash Flow	-23.88B	-32.95B	-43.50B	-30.55B	-37.50B	52.56B
Investing Cash Flow	-133.79B	-1.46B	-1.31B	-1.03B	-1.51B	-728.12M
Financing Cash Flow	144.96B	68.56B	-13.60B	62.09B	-53.25B	-32.26B

Chang Hwa Commercial Bank, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2801 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5880	66Neutral	TWD 445.22B	18.69	―	2.89%	-2.59%	24.94%
TW:5876	65Neutral	TWD 249.84B	14.39	―	3.53%	-9.72%	14.68%
TW:2812	64Neutral	TWD 109.87B	11.48	―	2.28%	-15.61%	5.16%
TW:2801	64Neutral	TWD 333.46B	16.56	―	2.89%	3.20%	20.85%
TW:2838	59Neutral	TWD 88.70B	13.10	―	2.39%	-6.39%	27.60%
TW:2845	58Neutral	TWD 61.30B	12.21	―	4.13%	-13.12%	18.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:2801 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2801	Chang Hwa Commercial Bank, Ltd.	27.65	8.38	43.49%
TW:2812	Taichung Commercial Bank Co., Ltd.	17.10	-2.67	-13.50%
TW:2838	Union Bank of Taiwan	19.25	1.59	9.02%
TW:2845	Far Eastern International Bank	12.45	0.37	3.09%
TW:5876	Shanghai Commercial & Savings Bank, Ltd.	51.00	13.63	36.46%
TW:5880	Taiwan Cooperative Financial Holding Co., Ltd.	27.70	5.00	22.05%

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

Chang Hwa Commercial Bank, Ltd. AI Stock Analysis