Chenming Electronic Technology Corporation (3013) AI Stock Analysis

Chenming Electronic Technology Corporation

(TWSE:3013)

Select Model

Rating:67Neutral

Price Target:TWD 75.00▼(-1.32% Downside)

Action:initiatedcoverage

Date:11/09/26

Chenming Electronic scores moderately well on the strength of a genuine fundamental turnaround: revenue has doubled since 2021, margins and profits have recovered from losses, leverage has been cut to a conservative 0.13x debt-to-equity, and operating cash flow now exceeds net income. Valuation is supportive at a P/E of 13.6, though the dividend yield is negligible. The score is held back by a pronounced technical downtrend — the stock trades far below all major moving averages with a deeply negative MACD — alongside capital-intensive operations that keep free cash flow modest and inconsistent, and exposure to the cyclical computer hardware market. Oversold momentum readings suggest scope for a near-term bounce, but the broader trend remains unfavourable.

Positive Factors

Revenue GrowthRevenue increased from 6.46B in 2023 to 10.55B in 2025, with stronger growth in 2025. This expanding scale provides a larger earnings base from which to fund operations, support reinvestment, and sustain business development over the next several quarters.

Negative Factors

Weak Cash ConversionFree cash flow was positive at 0.24B in 2025 after being negative in 2024, but represented only about 23% of 2025 net income and declined year over year. This gap between profit and cash conversion can limit internally funded growth and reduce earnings quality.

Chenming Electronic Technology Corporation (3013) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 16.36B
Dividend Yield: 0.51%
Average Volume (3M): 1.97M
Price to Earnings (P/E): 13.0
Beta (1Y): 1.47
Revenue Growth: 18.56%
EPS Growth: 52.98%
Country: TW
Employees: 2,112
Sector: General
Sector Strength: 55
Industry: Computer Hardware

Chenming Electronic Technology Corporation Business Overview & Revenue Model

Company Description

Chenming Electronic Tech. Corp. functions as an original equipment and design manufacturer (OEM/ODM), primarily involved in the global fabrication and supply of diverse electronic components. Their key offerings encompass enclosures for computers and...

Chenming Electronic Technology Corporation Financial Statement Overview

Summary

Fundamentals are the clear strength. Revenue doubled from roughly NT$5.28 billion in 2021 to NT$10.55 billion, with gross margin expanding to 18.5%, operating margin to 10.7% and net income reaching NT$827 million versus a loss in 2021 (Income Statement: 81). The balance sheet has been materially de-risked, with debt-to-equity down to 0.13x from 1.21x, equity more than doubled to NT$5.20 billion, and ROE near 16% (Balance Sheet: 83). Cash flow is the weaker link (66): operating cash flow doubled to NT$1.02 billion and exceeded net income, but heavy capital spending left free cash flow at only NT$238 million, with negative free cash flow in three of the past six years. Margins also remain thin in absolute terms for a cyclical hardware manufacturer.

Income Statement

81Very Positive

Balance Sheet

83Very Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.67B	10.55B	9.41B	6.46B	6.52B	5.28B
Gross Profit	2.40B	1.96B	1.47B	763.13M	561.03M	260.31M
EBITDA	1.72B	1.32B	1.12B	717.71M	663.36M	197.89M
Net Income	1.11B	827.01M	730.39M	253.14M	220.22M	-114.77M
Balance Sheet
Total Assets	10.10B	9.63B	8.68B	6.52B	7.10B	7.21B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.15B	1.08B	826.40M	444.57M	223.83M
Total Debt	747.23M	687.46M	714.37M	838.22M	1.38B	2.70B
Total Liabilities	4.38B	4.43B	4.23B	3.26B	4.08B	4.97B
Stockholders Equity	5.72B	5.20B	4.45B	3.26B	3.02B	2.24B
Cash Flow
Free Cash Flow	159.66M	237.85M	-138.41M	972.93M	467.44M	-1.80B
Operating Cash Flow	926.51M	1.02B	497.73M	1.38B	1.17B	56.53M
Investing Cash Flow	-785.05M	-799.62M	-633.93M	-400.81M	-133.84M	-1.85B
Financing Cash Flow	-102.12M	-160.02M	264.51M	-557.93M	-849.66M	1.66B

Chenming Electronic Technology Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3013 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6206	73Outperform	TWD 16.31B	12.64	―	4.82%	11.63%	24.44%
TW:3416	69Neutral	TWD 12.38B	16.15	―	3.16%	31.00%	32.07%
TW:3013	67Neutral	TWD 16.21B	12.99	―	0.51%	18.56%	52.98%
TW:3022	62Neutral	TWD 12.93B	9.75	―	4.78%	26.50%	43.52%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3380	39Underperform	TWD 15.57B	61.75	―	1.74%	10.82%	―

* General Sector Average

Performance Comparison

TW:3013 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3013	Chenming Electronic Technology Corporation	76.00	-47.06	-38.24%
TW:3022	IEI Integration Corporation	73.20	6.51	9.76%
TW:3380	Alpha Networks Inc.	28.75	-1.38	-4.59%
TW:3416	Winmate Inc.	146.50	6.60	4.72%
TW:6206	Flytech Technology Co. Ltd.	114.00	17.61	18.27%
TW:7805	QNAP Systems, Inc.	383.50	-182.87	-32.29%

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

Chenming Electronic Technology Corporation AI Stock Analysis