Taiwan Chi Cheng Enterprise Co., Ltd. (3095) AI Stock Analysis

Taiwan Chi Cheng Enterprise Co., Ltd.

(TPEx:3095)

Select Model

Rating:32Underperform

Price Target:TWD 28.00▼(-14.24% Downside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Chi Cheng scores poorly, driven primarily by a fragile financial profile: margin compression, a return to a net loss, and a sharp reversal to negative operating and free cash flow, all layered on top of high leverage (~4.3x debt-to-equity) and a thin equity cushion. Technicals compound the concern, with the share price below all key moving averages and negative MACD momentum. A modest P/E of 12.7 offers limited appeal given unreliable earnings and no dividend. The notable positives — strong revenue growth and a steadily repaired equity base since 2022 — are not yet enough to offset the cash burn and profitability risk. Investors would need to see gross margin stabilization and a return to positive operating cash flow before the outlook improves.

Positive Factors

Revenue GrowthThe sustained improvement in revenue, including a clear step-up since 2023, indicates that the company has retained some ability to expand its top line. Continued growth can provide a foundation for operating leverage and support recovery if profitability stabilizes.

Negative Factors

Very High LeverageVery high leverage leaves the company more exposed to refinancing risk, interest burdens, and earnings volatility than lower-levered peers. It can also restrict investment and capital-allocation flexibility, making recovery more dependent on sustained operating improvement.

Taiwan Chi Cheng Enterprise Co., Ltd. (3095) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 319.50M
Dividend Yield: ―
Average Volume (3M): 12.67K
Price to Earnings (P/E): 13.5
Beta (1Y): 0.59
Revenue Growth: 13.82%
EPS Growth: ―
Country: TW
Employees: 355
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Taiwan Chi Cheng Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Chi Cheng Enterprise Co., Ltd., established in 1973 and headquartered in New Taipei City, Taiwan, is an international specialist in creating and producing precision mechanical components and complete assemblies. The company serves a wide array of sec...

Taiwan Chi Cheng Enterprise Co., Ltd. Financial Statement Overview

Summary

Financials are the dominant weakness. Although revenue has grown from NT$446.8M (2023) to NT$628.9M in the latest year, gross margin compressed from 22.3% to 17.7%, operating margin is razor-thin at ~0.5%, and the company swung back to a NT$20.0M net loss after a small 2024 profit — with losses in four of the last six years. The balance sheet remains highly leveraged at ~4.3x debt-to-equity (NT$661.2M debt vs. NT$155.2M equity), leaving equity funding only ~16% of assets, though this is a marked improvement from 18.3x in 2022. Cash flow is the weakest link: operating cash flow reversed to -NT$46.5M and free cash flow to -NT$72.7M, implying reliance on external financing despite already high debt. ROE is negative at -12.9%.

Income Statement

30Negative

Balance Sheet

26Negative

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	686.91M	628.94M	590.41M	446.80M	430.61M	455.61M
Gross Profit	140.50M	111.55M	122.40M	99.80M	61.39M	64.13M
EBITDA	63.15M	38.47M	61.94M	44.00M	14.56M	16.22M
Net Income	24.27M	-19.96M	8.41M	-11.61M	-32.00M	-30.79M
Balance Sheet
Total Assets	1.04B	964.10M	922.59M	857.90M	873.12M	817.84M
Cash, Cash Equivalents and Short-Term Investments	171.95M	145.50M	116.35M	132.65M	117.97M	51.32M
Total Debt	658.69M	661.23M	657.12M	660.96M	723.29M	596.41M
Total Liabilities	840.30M	808.86M	792.74M	783.73M	833.52M	765.22M
Stockholders Equity	201.19M	155.24M	129.85M	74.17M	39.60M	52.62M
Cash Flow
Free Cash Flow	-51.76M	-72.71M	2.00M	13.77M	-51.35M	17.30M
Operating Cash Flow	-17.96M	-46.50M	22.82M	25.41M	-42.33M	46.29M
Investing Cash Flow	-32.27M	-29.38M	-17.91M	7.64M	-3.65M	-61.85M
Financing Cash Flow	32.45M	54.58M	-34.63M	-13.55M	107.55M	-11.71M

Taiwan Chi Cheng Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3095 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6512	43Neutral	TWD 503.94M	-10.00	―	―	-51.46%	-136.41%
TW:6228	40Underperform	TWD 519.10M	-76.88	―	―	14.18%	73.64%
TW:8101	38Underperform	TWD 491.93M	-3.20	―	―	36.78%	22.59%
TW:3672	35Underperform	TWD 458.89M	-6.42	―	―	-24.99%	15.20%
TW:3095	32Underperform	TWD 479.30M	13.49	―	―	13.82%	―

* General Sector Average

Performance Comparison

TW:3095 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3095	Taiwan Chi Cheng Enterprise Co., Ltd.	32.65	4.85	17.45%
TW:3672	Connection Technology Systems, Inc.	11.50	-1.55	-11.88%
TW:5240	ACTI Corporation	16.40	-7.04	-30.02%
TW:6228	Pacific Image Electronics Co., Ltd.	18.45	-9.05	-32.91%
TW:6512	GoMax Electronics, Inc.	19.90	-1.25	-5.91%
TW:8101	Arima Communications Corp.	9.45	-6.75	-41.67%

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

Taiwan Chi Cheng Enterprise Co., Ltd. AI Stock Analysis