Quang Viet Enterprise Co., Ltd. (4438) AI Stock Analysis

Quang Viet Enterprise Co., Ltd.

(TWSE:4438)

Select Model

Rating:50Neutral

Price Target:TWD 56.00▲(3.13% Upside)

Action:initiatedcoverage

Date:11/09/26

Quang Viet scores in the lower-middle range. The decisive factor is financial quality: despite a healthy revenue rebound and better operating profit, net margins have compressed to 1.6%, return on equity has fallen to 3.8%, and the company has posted two consecutive years of negative operating and free cash flow funded partly by rising debt. Technicals compound the caution, with the price below all key moving averages and a negative MACD signalling continued downward momentum. Offsetting these risks, the shares look inexpensive at a 7.8x P/E with a 4.1% dividend yield, and the balance sheet still carries a reasonable equity cushion. A sustained recovery in operating cash flow would be the key catalyst for a higher score.

Positive Factors

Manageable LeverageModerate leverage and a growing equity base support financial stability and provide some capacity to absorb operating volatility. This balance-sheet profile can preserve funding flexibility over the next several quarters, even as profitability and cash conversion remain under pressure.

Negative Factors

Negative Cash FlowTwo consecutive years of negative operating and free cash flow reduce financial flexibility and may increase reliance on funding for operations or capital needs. This weak cash conversion is a durable concern because reported profitability is not currently translating into internally generated liquidity.

Quang Viet Enterprise Co., Ltd. (4438) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.11B
Dividend Yield: 4.24%
Average Volume (3M): 79.24K
Price to Earnings (P/E): 9.0
Beta (1Y): 0.45
Revenue Growth: 9.45%
EPS Growth: 132.67%
Country: TW
Employees: 15,180
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Quang Viet Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Founded in 1995 and based in Taipei, Taiwan, Quang Viet Enterprise Co., Ltd. is a Taiwanese producer and supplier of clothing. The company specializes in manufacturing various types of outerwear, including jackets with synthetic insulation, high-loft...

Quang Viet Enterprise Co., Ltd. Financial Statement Overview

Summary

Quang Viet's financials are mixed-to-weak. Revenue rebounded strongly to about NT$19.4 billion from NT$16.5 billion and operating profit improved to roughly NT$790 million, but net income fell again to about NT$320 million, leaving a thin 1.6% net margin versus 5.9% in 2022. The dominant concern is cash generation: operating cash flow was negative for a second straight year (about -NT$427 million) and free cash flow deteriorated to roughly -NT$1.07 billion, driven by working capital absorption and capacity spending. The balance sheet is the relative bright spot, with equity funding roughly 47% of assets and debt-to-equity at a manageable 0.52, though borrowings are rising and return on equity has slipped to just 3.8% from 14.8% in 2022. Until operating cash flow turns positive, earnings quality remains the central risk.

Income Statement

44Neutral

Balance Sheet

58Neutral

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.80B	19.42B	16.47B	16.55B	20.07B	13.02B
Gross Profit	2.51B	2.57B	2.10B	2.49B	3.27B	1.87B
EBITDA	1.44B	1.21B	1.28B	1.63B	2.30B	1.22B
Net Income	767.75M	320.22M	401.99M	734.19M	1.18B	630.50M
Balance Sheet
Total Assets	21.50B	17.90B	17.20B	15.69B	16.48B	14.84B
Cash, Cash Equivalents and Short-Term Investments	4.04B	4.41B	5.12B	5.28B	4.96B	3.59B
Total Debt	7.20B	4.42B	4.12B	3.08B	3.47B	3.70B
Total Liabilities	10.76B	7.40B	7.04B	5.75B	6.71B	6.45B
Stockholders Equity	8.66B	8.50B	8.02B	7.88B	7.94B	6.89B
Cash Flow
Free Cash Flow	-1.12B	-1.07B	-807.85M	1.29B	1.80B	-1.46B
Operating Cash Flow	-810.12M	-427.31M	-430.00M	1.98B	2.19B	-1.28B
Investing Cash Flow	3.73M	-54.94M	-981.61M	-1.38B	362.19M	-10.11M
Financing Cash Flow	497.54M	449.35M	374.83M	-1.05B	-737.74M	813.15M

Quang Viet Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4438 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6585	63Neutral	TWD 6.76B	10.51	―	4.81%	9.62%	46.90%
TW:1437	61Neutral	TWD 5.94B	6.98	―	1.60%	>-0.01%	75.39%
TW:1315	56Neutral	TWD 6.76B	28.61	―	6.45%	-8.65%	262.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8916	55Neutral	TWD 5.91B	18.35	―	7.68%	4.11%	-25.92%
TW:4438	50Neutral	TWD 6.34B	8.95	―	4.24%	9.45%	132.67%
TW:1444	42Neutral	TWD 5.96B	-20.94	―	―	1.94%	28.28%

* General Sector Average

Performance Comparison

TW:4438 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4438	Quang Viet Enterprise Co., Ltd.	54.30	-24.89	-31.43%
TW:1315	Tah Hsin Industrial Corp.	69.80	9.63	16.00%
TW:1437	GTM Holdings Corporation	30.00	-0.94	-3.04%
TW:1444	LeaLea Enterprise Co., Ltd.	6.16	-0.17	-2.69%
TW:6585	DingZing Advanced Materials, Inc.	93.50	-1.30	-1.37%
TW:8916	Kwong Lung Enterprise Co., Ltd.	39.50	-5.23	-11.68%

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

Quang Viet Enterprise Co., Ltd. AI Stock Analysis