Zhen Yu Hardware Co., Ltd. AI Stock Analysis
Zhen Yu Hardware Co., Ltd. (2947) AI Stock Analysis
Zhen Yu Hardware Co., Ltd.
(TPEx:2947)
Zhen Yu Hardware scores in the below-average range. The dominant drag is weakening profitability — net margin under 3% and ROE of 8.4% — combined with elevated leverage at roughly 2.2x debt to equity on a capital-intensive asset base. Strong cash conversion is the main offset: operating cash flow far exceeds reported earnings and free cash flow has rebounded to NT$232m, supporting debt service and the 3.67% dividend. Technicals add further pressure, with the price below all major moving averages and negative MACD confirming a persistent downtrend, though oversold readings hint at near-term stabilization potential. At 17.7x earnings the valuation offers little margin of safety; the investment case rests on management converting its expanded asset base into higher operating margins and using free cash flow to cut debt.
Zhen Yu Hardware Co., Ltd. (2947) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 1.30B
- Dividend Yield
- 3.67%
- Average Volume (3M)
- 12.61K
- Price to Earnings (P/E)
- 17.9
- Beta (1Y)
- 0.31
- Revenue Growth
- 6.50%
- EPS Growth
- 13.15%
- Country
- TW
- Employees
- 421
- Sector
- General
- Sector Strength
- 55
- Industry
- Home Improvement
Zhen Yu Hardware Co., Ltd. Business Overview & Revenue Model
Company Description
Zhen Yu Hardware Co., Ltd. engages in the wholesale and retail of hardware in China. The company was founded in 1977 and is based in Taichung, Taiwan.
Zhen Yu Hardware Co., Ltd. Financial Statement Overview
Summary
A mixed picture. Revenue has grown every year since 2020 (NT$1.58bn to NT$2.30bn) with stable 38%–40% gross margins, and cash generation is strong — operating cash flow of NT$278m is over four times net income, with free cash flow rebounding to NT$232m as capex normalized. However, profitability has deteriorated sharply: operating margin fell from 8.8% to 3.9% and net margin from 6.4% to 2.9%, as heavy depreciation and financing costs absorb most of the gross profit. The balance sheet is the key risk, with debt-to-equity near 2.2x and return on equity down to 8.4% from 20% in 2020. Equity is building and leverage has eased slightly from its 2023 peak, but the capital-intensive model leaves limited cushion for a demand downturn.
Income Statement
54NeutralBalance Sheet
42NeutralCash Flow
67Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.38B | 2.30B | 2.17B | 1.97B | 1.84B | 1.73B |
| Gross Profit | 954.34M | 909.05M | 836.13M | 751.94M | 718.80M | 676.49M |
| EBITDA | 286.11M | 325.93M | 329.27M | 275.49M | 273.85M | 294.02M |
| Net Income | 70.63M | 67.17M | 66.69M | 44.75M | 66.92M | 110.46M |
Balance Sheet | ||||||
| Total Assets | 3.10B | 3.01B | 3.03B | 2.99B | 2.66B | 2.39B |
| Cash, Cash Equivalents and Short-Term Investments | 236.39M | 275.82M | 267.05M | 242.44M | 200.58M | 479.73M |
| Total Debt | 1.78B | 1.72B | 1.76B | 1.71B | 1.49B | 1.21B |
| Total Liabilities | 2.28B | 2.21B | 2.27B | 2.26B | 1.94B | 1.64B |
| Stockholders Equity | 817.86M | 795.89M | 767.63M | 735.63M | 719.79M | 749.22M |
Cash Flow | ||||||
| Free Cash Flow | 253.91M | 231.76M | 173.40M | 6.10M | -35.75M | 152.17M |
| Operating Cash Flow | 305.64M | 277.77M | 282.18M | 203.24M | 180.06M | 257.13M |
| Investing Cash Flow | -57.81M | -51.02M | -116.29M | -204.95M | -209.77M | -110.24M |
| Financing Cash Flow | -247.89M | -217.97M | -141.23M | 43.61M | -247.33M | 161.55M |
Zhen Yu Hardware Co., Ltd. Peers Comparison
Overall Rating
TW:458461Neutral
TW:206353Neutral
TW:501651Neutral- TW:294751Neutral
TW:501544Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:4584 | 61Neutral | TWD 1.07B | 20.93 | ― | 5.59% | -16.79% | -50.73% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:2063 | 53Neutral | TWD 1.16B | 12.13 | ― | 2.27% | -11.29% | -12.54% |
| TW:5016 | 51Neutral | TWD 1.24B | 12.69 | ― | 4.00% | 1.85% | 18.76% |
| TW:2947 | 51Neutral | TWD 1.29B | 17.86 | ― | 3.67% | 6.50% | 13.15% |
| TW:5015 | 44Neutral | TWD 1.30B | 13.64 | ― | 2.34% | -19.41% | 67.34% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2947 | Zhen Yu Hardware Co., Ltd. | 54.50 | -19.88 | -26.72% | |
| TW:2063 | Sheh Kai Precision Co., Ltd. | 22.00 | -0.75 | -3.30% | |
| TW:2071 | Chen Nan Iron Wire Co. Ltd. | 18.55 | 2.39 | 14.81% | |
| TW:4584 | Jufan Industrial Co., Ltd. | 35.80 | -12.35 | -25.64% | |
| TW:5015 | Rodex Fasteners Corp. | 21.40 | -5.83 | -21.41% | |
| TW:5016 | Song Ho Industrial Co., Ltd. | 25.00 | 1.18 | 4.97% |
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