Hsin-Li Chemical Industrial Corp. (4303) AI Stock Analysis

Hsin-Li Chemical Industrial Corp.

(TPEx:4303)

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Rating:50Neutral

Price Target:TWD 26.00▼(-3.70% Downside)

Action:initiatedcoverage

Date:11/09/26

Hsin-Li Chemical Industrial scores below average, primarily because its reported profitability is not backed by operations or cash: despite revenue growth of about 150% and better gross margins, the core business lost NT$101 million at the operating line and generated only NT$66 million of operating cash against a NT$1.06 billion reported profit. The near debt-free balance sheet (debt-to-equity of 0.07, equity of NT$3.49 billion) is a genuine strength that limits financial risk. Technicals add further pressure, with the price below all major moving averages and negative MACD signalling a persistent downtrend. The headline P/E of 2.9 and 3.8% dividend yield appear cheap, but must be heavily discounted for non-recurring earnings. A sustained improvement would require the revenue momentum to convert into real operating profit and cash flow.

Positive Factors

Revenue GrowthSharp revenue growth across the two most recent years indicates improved top-line momentum and stronger demand or commercial execution than earlier periods. If sustained, this expansion can broaden the company’s operating base, support fixed-cost absorption, and provide a foundation for improving profitability.

Negative Factors

Weak Core ProfitabilityRepeated operating losses indicate that reported earnings are not consistently being produced by the company’s core activities. This weakens confidence in earnings durability, limits the value of recent revenue growth, and suggests that sustainable improvement requires better operating economics rather than reliance on non-operating items.

Hsin-Li Chemical Industrial Corp. (4303) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.57B
Dividend Yield: 3.70%
Average Volume (3M): 1.13M
Price to Earnings (P/E): 2.9
Beta (1Y): 0.69
Revenue Growth: 30.28%
EPS Growth: -32.60%
Country: TW
Employees: 52
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Hsin-Li Chemical Industrial Corp. Business Overview & Revenue Model

Company Description

HsinLi Chemical Industrial Corp. specializes in the global production and distribution of advanced synthetic and plastic leather materials. The company's comprehensive product lineup features thermoplastic polyurethane (TPU) items, breathable polyure...

Hsin-Li Chemical Industrial Corp. Financial Statement Overview

Summary

A mixed picture dominated by weak earnings quality. Revenue surged roughly 150% in 2025 to NT$988 million with gross margin improving to 17.8%, yet the core business still posted an operating loss of NT$101 million (-10% margin). The headline NT$1.06 billion net profit stems almost entirely from non-recurring, largely non-cash items, evidenced by operating cash flow of only NT$66 million. The balance sheet is the standout strength: equity nearly doubled to NT$3.49 billion, debt fell to NT$245 million, and debt-to-equity dropped to 0.07, leaving minimal financial risk. Cash flow remains thin and historically erratic, keeping the overall financial score subdued.

Income Statement

46Neutral

Balance Sheet

76Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.00B	988.13M	373.93M	161.72M	325.36M	365.00M
Gross Profit	195.19M	176.08M	43.76M	9.12M	61.71M	61.74M
EBITDA	1.05B	-48.84M	861.64M	159.91M	-11.11M	165.06M
Net Income	876.52M	1.06B	817.16M	123.46M	-41.20M	136.76M
Balance Sheet
Total Assets	4.89B	4.81B	3.31B	1.55B	1.44B	1.26B
Cash, Cash Equivalents and Short-Term Investments	230.86M	1.26B	1.04B	344.03M	250.61M	163.82M
Total Debt	540.30M	245.19M	876.74M	525.18M	511.00M	224.54M
Total Liabilities	1.03B	835.07M	1.14B	595.97M	612.69M	312.11M
Stockholders Equity	3.38B	3.49B	1.97B	953.34M	829.25M	947.35M
Cash Flow
Free Cash Flow	-337.56M	38.23M	32.06M	7.89M	-37.65M	58.28M
Operating Cash Flow	-162.10M	66.00M	37.37M	34.59M	61.95M	63.13M
Investing Cash Flow	614.63M	954.92M	-130.32M	-101.08M	-205.80M	7.09M
Financing Cash Flow	-471.95M	-711.71M	204.68M	8.52M	209.79M	-58.91M

Hsin-Li Chemical Industrial Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4303 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:4706	54Neutral	TWD 3.32B	37.66	―	0.71%	7.93%	656.08%
TW:8463	53Neutral	TWD 3.19B	10.76	―	3.76%	-3.02%	-15.76%
TW:4720	51Neutral	TWD 3.12B	50.03	―	1.47%	2.43%	-43.09%
TW:4303	50Neutral	TWD 3.58B	2.93	―	3.70%	30.28%	-32.60%
TW:6582	44Neutral	TWD 3.38B	45.43	―	―	-55.46%	―
TW:1721	40Underperform	TWD 3.58B	-12.56	―	―	-16.64%	-29.46%

* General Sector Average

Performance Comparison

TW:4303 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4303	Hsin-Li Chemical Industrial Corp.	27.00	-22.85	-45.84%
TW:1721	Sunko Ink Co., Ltd.	19.85	8.40	73.36%
TW:4706	Tah Kong Chemical Industrial Corp.	42.00	12.23	41.07%
TW:4720	Tex Year Industries, Inc.	27.25	13.24	94.49%
TW:6582	Shin Foong Specialty & Applied Materials Co., Ltd.	31.80	-1.80	-5.36%
TW:8463	Ruentex Materials Co Ltd	21.30	-4.05	-15.97%

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

Hsin-Li Chemical Industrial Corp. AI Stock Analysis