Prime Oil Chemical Service Corporation (2904) AI Stock Analysis

Prime Oil Chemical Service Corporation

(TWSE:2904)

Select Model

Rating:60Neutral

Price Target:TWD 13.00▲(3.17% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is anchored by a conservative, cash-generative financial profile: operating cash flow far exceeds net income, debt has been more than halved since 2022, and equity funds roughly 72% of assets, leaving low financial risk. That strength is tempered by stagnant revenue, a five-year slide in gross margin from 47% to 31%, and a near-29% drop in net income that has pushed ROE below 6%. Technicals weigh on the score, with the stock trading below all major moving averages and negative MACD momentum, though RSI near 33 indicates the selling is approaching oversold territory. Valuation is mixed: a 24.3x P/E looks expensive against shrinking earnings, but a well-covered 5.7% dividend yield provides income appeal. The result is a stock suited to income-oriented, risk-averse investors rather than those seeking growth or momentum.

Positive Factors

Sustained ProfitabilityHealthy gross and net margins show the company remains meaningfully profitable despite a softer operating period. This profitability provides internal funding capacity, supports resilience in industrial markets, and gives management a foundation to protect its competitive position over the coming quarters.

Negative Factors

Revenue ContractionDeclining revenue indicates weaker demand or activity across the company’s industrial and petrochemical-related business base. If contraction persists, it can reduce operating leverage, limit growth investment and make it harder for the company to sustain its current earnings scale over the next several quarters.

Prime Oil Chemical Service Corporation (2904) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 972.93M
Dividend Yield: 5.56%
Average Volume (3M): 35.18K
Price to Earnings (P/E): 24.9
Beta (1Y): 0.06
Revenue Growth: -14.80%
EPS Growth: -60.95%
Country: TW
Employees: 12,382
Sector: General
Sector Strength: 55
Industry: Oil & Gas Exploration & Production

Prime Oil Chemical Service Corporation Business Overview & Revenue Model

Company Description

Prime Oil Chemical Service Corporation engages in the petrochemical shore tank storage services in Taiwan. It is also involved in the building and operation of photovoltaic power generation systems with a total installed capacity of 24.31MW. In addit...

Prime Oil Chemical Service Corporation Financial Statement Overview

Summary

A solid balance sheet (score 71) and strong cash generation (score 73) are offset by weak income statement trends (score 58). Operating cash flow of NT$273.5 million is about 3.6x net income and free cash flow of NT$180.7 million supports both dividends and deleveraging, with debt cut to NT$392.6 million from NT$838.5 million in 2022 and debt-to-equity down to a conservative 0.30. However, revenue fell 5.4% to NT$473.8 million with no growth over five years, gross margin compressed from 47.1% to 31.3%, net income dropped about 29% to NT$76.6 million, and return on equity slipped below 6%. The profile is defensively strong but growth-starved.

Income Statement

58Neutral

Balance Sheet

71Positive

Cash Flow

73Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	428.70M	473.76M	492.03M	441.52M	475.51M	466.11M
Gross Profit	109.08M	148.19M	180.12M	126.95M	170.15M	155.13M
EBITDA	206.19M	291.55M	335.05M	287.24M	323.73M	271.31M
Net Income	40.13M	76.59M	107.16M	65.23M	107.04M	71.43M
Balance Sheet
Total Assets	1.73B	1.79B	1.97B	1.93B	2.19B	1.64B
Cash, Cash Equivalents and Short-Term Investments	165.37M	152.09M	209.92M	106.23M	117.13M	161.14M
Total Debt	327.58M	392.64M	566.59M	606.77M	838.53M	482.67M
Total Liabilities	473.18M	503.06M	684.09M	715.70M	1.01B	673.00M
Stockholders Equity	1.25B	1.29B	1.29B	1.21B	1.19B	962.01M
Cash Flow
Free Cash Flow	181.90M	180.67M	236.13M	156.24M	-53.30M	83.40M
Operating Cash Flow	244.55M	273.51M	284.13M	241.37M	265.76M	241.19M
Investing Cash Flow	-31.48M	-58.89M	-79.69M	33.37M	-401.06M	-185.21M
Financing Cash Flow	-251.62M	-251.66M	-101.43M	-288.33M	105.95M	-63.07M

Prime Oil Chemical Service Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2904 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4754	71Outperform	TWD 1.14B	12.11	―	5.93%	0.78%	22.85%
TW:2904	60Neutral	TWD 988.50M	24.87	―	5.56%	-14.80%	-60.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1776	55Neutral	TWD 1.04B	19.29	―	3.42%	-14.61%	133.14%
TW:4711	49Neutral	TWD 973.84M	17.31	―	3.16%	12.14%	365.99%
TW:4304	45Neutral	TWD 1.05B	-45.10	―	―	-1.87%	80.46%
TW:1337	39Underperform	TWD 1.05B	-2.14	―	―	-13.60%	-6.67%

* General Sector Average

Performance Comparison

TW:2904 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2904	Prime Oil Chemical Service Corporation	12.60	-3.48	-21.63%
TW:1337	Asia Plastic Recycling Holding Limited	3.92	-1.19	-23.29%
TW:1776	Headway Advanced Materials Inc.	17.55	2.91	19.88%
TW:4304	Sunvic Technology Co., Ltd.	17.00	-7.30	-30.04%
TW:4711	Yong Shun Chemical Co.,Ltd	15.80	1.18	8.10%
TW:4754	International Carbide Technology Co. Ltd.	38.80	1.42	3.80%

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

Prime Oil Chemical Service Corporation AI Stock Analysis