Zhen Yu Hardware Co., Ltd. (2947) AI Stock Analysis

Zhen Yu Hardware Co., Ltd.

(TPEx:2947)

Select Model

Rating:55Neutral

Price Target:TWD 56.00▲(2.00% Upside)

Action:initiatedcoverage

Date:11/09/26

Mixed financial results with strong cash flow offset by leverage risks, combined with weak technical momentum, are the primary factors; valuation offers moderate support.

Positive Factors

Revenue GrowthThe sharp 2025 revenue acceleration indicates stronger demand and expanding business activity. If the company can retain this scale of growth, it should improve operating leverage, support reinvestment, and strengthen its position in industrial and commercial hardware markets over the next several quarters.

Negative Factors

High LeverageElevated debt relative to equity limits financial flexibility and increases sensitivity to interest rates and cyclical demand. High leverage can constrain investment or shareholder distributions and leaves less room to absorb weaker margins or a slowdown after the recent acceleration in revenue.

Zhen Yu Hardware Co., Ltd. (2947) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.29B
Dividend Yield: 3.64%
Average Volume (3M): 14.28K
Price to Earnings (P/E): 17.8
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

Steady revenue growth and solid cash generation are strengths, but high leverage and thin net margins constrain the score.

Income Statement

62Positive

Balance Sheet

38Negative

Cash Flow

72Positive

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2947 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4584	61Neutral	TWD 1.07B	20.88	―	5.60%	-16.79%	-50.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2947	55Neutral	TWD 1.30B	17.76	―	3.64%	6.50%	13.15%
TW:2063	53Neutral	TWD 1.16B	12.32	―	2.24%	-11.29%	-12.54%
TW:5016	51Neutral	TWD 1.24B	12.69	―	4.00%	1.85%	18.76%
TW:5015	44Neutral	TWD 1.30B	13.86	―	2.34%	-19.41%	67.34%

* General Sector Average

Performance Comparison

TW:2947 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2947	Zhen Yu Hardware Co., Ltd.	54.90	-19.21	-25.92%
TW:2063	Sheh Kai Precision Co., Ltd.	22.30	-0.40	-1.78%
TW:2071	Chen Nan Iron Wire Co. Ltd.	18.80	2.83	17.73%
TW:4584	Jufan Industrial Co., Ltd.	35.70	-11.88	-24.96%
TW:5015	Rodex Fasteners Corp.	21.35	-5.88	-21.59%
TW:5016	Song Ho Industrial Co., Ltd.	25.00	1.33	5.61%

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

Zhen Yu Hardware Co., Ltd. AI Stock Analysis