Yem Chio Co., Ltd. (4306) AI Stock Analysis

Yem Chio Co., Ltd.

(TWSE:4306)

Select Model

Rating:41Neutral

Price Target:TWD 13.50▼(-4.26% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 41 reflects a high-risk investment profile. The most significant factor is the company's extremely weak financial performance, characterized by severe cash burn and collapsing profitability, which poses a direct threat to its financial stability. This is compounded by a bearish technical trend showing persistent downward price momentum. While the high dividend yield offers some appeal, it is likely unsustainable given the negative free cash flow, making it a value trap rather than a genuine opportunity.

Positive Factors

Revenue GrowthPositive revenue growth indicates the company continues to expand its top line, supporting ongoing customer demand and business activity. If maintained, this growth can help offset cost pressures, preserve operating scale, and provide a foundation for rebuilding profitability over the next several quarters.

Negative Factors

Margin CompressionSharp declines in net and operating margins show that recent revenue growth is translating into substantially less profit. Persistently weaker operating leverage would reduce earnings resilience, limit reinvestment capacity, and make future results more sensitive to costs, pricing, and product mix.

Yem Chio Co., Ltd. (4306) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 9.31B
Dividend Yield: 4.96%
Average Volume (3M): 992.47K
Price to Earnings (P/E): 15.4
Beta (1Y): 0.25
Revenue Growth: 4.17%
EPS Growth: 151.80%
Country: TW
Employees: 3,150
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

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

Company Description

Operating globally, Yem Chio Co., Ltd. engages in a diverse range of business activities, including the production of BOPP films, manufacturing of adhesive tapes, supply of packaging materials, construction, and hospitality services. The company's BO...

Yem Chio Co., Ltd. Financial Statement Overview

Summary

Financial health is severely strained. The income statement shows collapsing net income (-80% YoY) and margin compression. The balance sheet is highly leveraged (D/E 1.59x) with a paltry ROE of 1.3%. Most critically, the cash flow statement reveals negative operating and free cash flow, indicating a fundamental cash burn problem that threatens liquidity.

Income Statement

28Negative

Balance Sheet

35Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.39B	13.28B	15.89B	13.22B	14.67B	17.18B
Gross Profit	2.34B	2.03B	2.63B	2.18B	2.59B	2.91B
EBITDA	1.13B	1.05B	1.99B	1.68B	2.13B	3.07B
Net Income	601.89M	172.06M	816.89M	801.21M	1.04B	2.03B
Balance Sheet
Total Assets	39.75B	36.86B	35.19B	31.14B	29.52B	30.29B
Cash, Cash Equivalents and Short-Term Investments	6.74B	5.15B	5.72B	4.41B	4.24B	3.74B
Total Debt	21.37B	20.40B	18.68B	15.52B	14.54B	10.58B
Total Liabilities	25.05B	23.30B	21.40B	18.43B	17.70B	19.28B
Stockholders Equity	14.05B	12.82B	13.22B	12.00B	11.14B	10.35B
Cash Flow
Free Cash Flow	-469.64M	-888.63M	-1.63B	-1.19B	1.29B	-436.39M
Operating Cash Flow	309.79M	-205.62M	-1.18B	-891.06M	1.75B	-94.39M
Investing Cash Flow	-685.07M	-171.23M	-245.56M	1.07M	108.52M	1.42B
Financing Cash Flow	300.24M	843.90M	2.27B	387.78M	-1.58B	-1.16B

Yem Chio Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4306 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6509	69Neutral	TWD 9.02B	12.96	―	3.23%	2.00%	57.23%
TW:2107	68Neutral	TWD 8.01B	14.47	―	5.15%	13.47%	37.71%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4707	45Neutral	TWD 11.15B	21.39	―	0.92%	-9.16%	67.21%
TW:4306	41Neutral	TWD 9.28B	15.44	―	4.96%	4.17%	151.80%

* General Sector Average

Performance Comparison

TW:4306 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4306	Yem Chio Co., Ltd.	14.10	1.50	11.88%
TW:2107	Formosan Rubber Group Inc.	27.20	4.61	20.42%
TW:4707	Pan Asia Chemical Corp.	27.30	17.83	188.22%
TW:6509	Taiwan Hopax Chemicals Manufacturing Co. Ltd.	43.20	11.04	34.33%
TW:7763	Johnson Fine Chemical Co Ltd	141.50	66.76	89.32%
TW:7915	U-LEAM, Inc.	200.00	-430.00	-68.25%

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 10, 2026

Yem Chio Co., Ltd. AI Stock Analysis