Yem Chio Distribution Co., Ltd. (3171) AI Stock Analysis

Yem Chio Distribution Co., Ltd.

(TPEx:3171)

Select Model

Rating:69Neutral

Price Target:TWD 59.00▲(5.36% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is anchored by solid financial performance: record revenue and profit, roughly 19.6% return on equity, consistent free cash flow and leverage that remains below historical peaks. Supporting this is an attractive valuation — a single-digit P/E of 8.7 alongside an 8.6% dividend yield and low beta. The main drag is technical weakness, with the price below all major moving averages and a negative MACD signalling an established downtrend, even as deeply oversold RSI and Stochastic readings hint at stretched selling. Secondary risks include a narrowing gross margin, a sharp increase in borrowings and operating cash flow falling despite higher profits, suggesting growth is consuming working capital. No earnings call or corporate event data was available, so these factors were excluded and their weight redistributed.

Positive Factors

Strong profitability and returnsHealthy gross and operating margins, combined with a high return on equity, indicate that the company is converting its distribution activity into attractive shareholder returns. If maintained, this profitability provides resources for reinvestment and supports durable earnings power over the next several quarters.

Negative Factors

Absolute debt increasedAlthough leverage remains reasonable, the sharp increase in absolute debt reduces balance-sheet flexibility compared with the prior year. Higher obligations can limit management’s room to fund expansion, absorb weaker trading conditions, or return capital while maintaining financial resilience.

Yem Chio Distribution Co., Ltd. (3171) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.69B
Dividend Yield: 8.29%
Average Volume (3M): 16.95K
Price to Earnings (P/E): 9.0
Beta (1Y): 0.32
Revenue Growth: 77.41%
EPS Growth: 84.45%
Country: TW
Employees: 130
Sector: General
Sector Strength: 55
Industry: Packaging & Containers

Yem Chio Distribution Co., Ltd. Business Overview & Revenue Model

Company Description

Yem Chio Distribution Co., Ltd., along with its affiliated entities, specializes in the global trade of various packaging materials. The company's operations encompass the distribution, procurement, and export of these essential supplies across Taiwa...

Yem Chio Distribution Co., Ltd. Financial Statement Overview

Summary

Yem Chio posted its strongest year in six, with record revenue of roughly NT$1.91bn, net income up about 36% to NT$151.4m, and operating margin expanding to 10.0%. Return on equity improved to a near-20% level and free cash flow remained reliably positive at NT$135.3m on minimal capital spending. Offsetting this, gross margin narrowed to 26.4% from 28.0%, total debt nearly doubled to NT$292.9m (debt-to-equity 0.38), and operating cash flow declined year over year despite higher profits, indicating growth is absorbing working capital. The equity base is also smaller than two years ago, which flatters returns and thins the downside cushion.

Income Statement

74Positive

Balance Sheet

72Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.59B	1.91B	1.44B	1.41B	1.67B	1.84B
Gross Profit	637.15M	505.34M	404.62M	397.35M	397.41M	407.49M
EBITDA	291.87M	208.22M	152.60M	180.63M	156.20M	117.38M
Net Income	203.79M	151.40M	111.04M	131.02M	113.05M	100.92M
Balance Sheet
Total Assets	1.84B	1.54B	1.17B	1.50B	1.75B	1.87B
Cash, Cash Equivalents and Short-Term Investments	321.20M	322.32M	288.60M	266.75M	149.18M	128.98M
Total Debt	354.09M	292.86M	149.52M	134.67M	547.99M	634.35M
Total Liabilities	1.14B	668.54M	447.39M	434.64M	831.62M	970.33M
Stockholders Equity	563.21M	770.68M	720.30M	1.07B	920.21M	899.78M
Cash Flow
Free Cash Flow	109.13M	135.27M	152.53M	114.55M	137.57M	125.74M
Operating Cash Flow	117.08M	137.57M	155.09M	124.27M	139.23M	129.65M
Investing Cash Flow	-45.51M	25.83M	442.28M	259.73M	-53.93M	-76.39M
Financing Cash Flow	-120.12M	-109.39M	-469.37M	-364.83M	-119.20M	-57.20M

Yem Chio Distribution Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3171 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6697	78Outperform	TWD 1.70B	19.87	―	4.17%	8.27%	-1.22%
TW:3171	69Neutral	TWD 1.57B	8.97	―	8.29%	77.41%	84.45%
TW:6997	64Neutral	TWD 1.52B	28.82	―	6.71%	27.74%	-42.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8089	54Neutral	TWD 1.98B	-11.79	―	3.30%	-67.55%	-168.26%
TW:2444	43Neutral	TWD 1.46B	-6.51	―	―	-28.59%	-77.80%

* General Sector Average

Performance Comparison

TW:3171 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3171	Yem Chio Distribution Co., Ltd.	56.00	10.81	23.93%
TW:2444	AboCom Systems, Inc.	14.20	3.00	26.79%
TW:6697	Information Technology Total Services Co., Ltd.	62.30	11.89	23.58%
TW:6997	Nextlink Technology Co Ltd	68.60	-25.11	-26.80%
TW:7801	Asustor, Inc.	79.50	-23.57	-22.87%
TW:8089	Comtrend Corp	29.95	-1.10	-3.54%

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

Yem Chio Distribution Co., Ltd. AI Stock Analysis