Chernan Metal Industrial Corp. (3631) AI Stock Analysis

Chernan Metal Industrial Corp.

(TPEx:3631)

Select Model

Rating:42Neutral

Price Target:TWD 42.00▲(6.33% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is weighed down primarily by deeply impaired fundamentals: revenue has contracted nearly 90% since 2020, losses have been recorded every year, and the latest net loss is close to double annual sales, with debt exceeding 25x revenue. Partially offsetting this, the balance sheet remains reasonably capitalized with equity funding about half of assets and leverage declining for a second year, and cash flow finally turned positive after four years of heavy burn. Technicals are the strongest element, with the stock trading above its 50-, 100- and 200-day moving averages on positive MACD momentum, but valuation provides no support given negative earnings and no dividend. This is best viewed as a high-risk restructuring situation where market momentum is running ahead of any evidence of an operating recovery.

Positive Factors

Gross Margin ImprovementThe recovery in gross margin indicates that the company has improved the economics of its metal products despite weak overall profitability. If maintained, stronger gross margins can provide a more effective base for covering operating costs and rebuilding earnings as revenue stabilizes.

Negative Factors

Persistent LossesPersistent operating and net losses show that the company has not yet converted its manufacturing activities into sustainable profitability. Continued losses can weaken equity, restrict reinvestment, and make the improved gross margin less meaningful unless operating expenses and revenue scale are brought under control.

Chernan Metal Industrial Corp. (3631) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.35B
Dividend Yield: ―
Average Volume (3M): 366.56K
Price to Earnings (P/E): -59.1
Beta (1Y): 0.76
Revenue Growth: -46.72%
EPS Growth: 16.78%
Country: TW
Employees: 6
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Chernan Metal Industrial Corp. Business Overview & Revenue Model

Company Description

Chernan Metal Industrial Corp., previously known as Tunghui Tin Industry, is a manufacturer and global distributor of tin and tin wire products, serving both its domestic market in Taiwan and international clients. Beyond its primary tin-based offeri...

Chernan Metal Industrial Corp. Financial Statement Overview

Summary

Financials are severely impaired. Revenue has collapsed roughly 90% since 2020 to just NT$29.3 million, including a ~59% decline in the latest year, while the operating loss of about NT$102 million and net loss of NT$57.4 million far exceed annual sales. Gross margin improvement to ~28% is a positive on mix/pricing but nowhere near enough to cover a largely fixed cost base. The balance sheet provides the only real cushion: equity of NT$1.20 billion funds roughly half of NT$2.52 billion in assets, and debt has been cut to NT$812 million with debt-to-equity easing to 0.68. Still, debt is more than 25x revenue and equity is steadily eroding from accumulated losses. Cash flow improved materially, turning positive (operating NT$22.4 million, free cash flow NT$10.4 million) after four years of heavy burn, but this appears driven by working capital release and sharply reduced capex rather than genuine profitability.

Income Statement

9Very Negative

Balance Sheet

42Neutral

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	30.08M	29.33M	76.04M	65.36M	123.99M	193.45M
Gross Profit	-1.20M	8.14M	22.55M	3.35M	2.89M	16.59M
EBITDA	-52.48M	-73.52M	1.19M	-23.76M	-12.32M	11.63M
Net Income	-38.75M	-57.43M	-45.87M	-49.28M	-47.52M	-13.31M
Balance Sheet
Total Assets	2.50B	2.52B	2.81B	2.85B	2.86B	2.77B
Cash, Cash Equivalents and Short-Term Investments	504.14M	482.46M	618.49M	714.17M	842.20M	999.97M
Total Debt	809.99M	811.92M	1.02B	1.05B	942.04M	815.95M
Total Liabilities	1.04B	1.04B	1.25B	1.28B	1.21B	1.06B
Stockholders Equity	1.20B	1.20B	1.27B	1.26B	1.34B	1.38B
Cash Flow
Free Cash Flow	-55.49M	10.39M	-101.68M	-157.81M	-252.33M	-366.33M
Operating Cash Flow	-28.47M	22.42M	-70.04M	-74.95M	-17.21M	-73.46M
Investing Cash Flow	-100.53M	102.64M	111.03M	-35.46M	-329.24M	-81.97M
Financing Cash Flow	-24.36M	-211.70M	-29.48M	107.59M	112.91M	253.34M

Chernan Metal Industrial Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3631 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2069	60Neutral	TWD 4.19B	8.51	―	3.98%	-4.11%	86.64%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3290	54Neutral	TWD 4.14B	9.68	―	3.30%	68.19%	116.27%
TW:2062	52Neutral	TWD 3.41B	36.52	―	5.80%	7.34%	-34.07%
TW:2012	42Neutral	TWD 3.90B	-65.93	―	2.15%	-14.50%	-160.42%
TW:3631	42Neutral	TWD 3.24B	-59.05	―	―	-46.72%	16.78%
TW:2061	41Neutral	TWD 3.41B	54.33	―	―	3.28%	―

* General Sector Average

Performance Comparison

TW:3631 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3631	Chernan Metal Industrial Corp.	39.50	16.30	70.26%
TW:2012	Chun Yu Works & Co., Ltd.	13.95	-1.14	-7.55%
TW:2061	Feng Ching Metal Corporation	61.20	42.05	219.58%
TW:2062	Sunspring Metal Corporation	17.25	-2.15	-11.10%
TW:2069	Yuen Chang Stainless Steel Co., Ltd.	25.10	10.32	69.85%
TW:3290	Donpon Precision Inc.	45.45	1.75	4.01%

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

Chernan Metal Industrial Corp. AI Stock Analysis