Yi Shin Textile Industrial Co., Ltd. (4440) AI Stock Analysis

Yi Shin Textile Industrial Co., Ltd.

(TWSE:4440)

Select Model

Rating:48Neutral

Price Target:TWD 16.00▼(-4.48% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by weakening fundamentals: negative operating and free cash flow despite positive reported earnings, compressed margins, a roughly 35% drop in net income, and rising debt against a shrinking equity base. Technicals add further pressure, with the stock below all key moving averages and a negative MACD, although extremely low RSI and Stochastic readings point to an oversold condition that could allow a near-term bounce. Partially offsetting these risks are a solid balance sheet with moderate leverage, consistent profitability through the cycle, and an inexpensive 8.35 P/E paired with a 6.1% dividend yield and low beta. Until operating cash flow turns positive and margins stabilize, the risk profile outweighs the valuation appeal.

Positive Factors

Recent Revenue GrowthThe return to modest revenue growth in 2024 and 2025 indicates that the company continues to retain demand across its textile-related activities after earlier declines. Sustained top-line expansion would support capacity utilization, customer relationships, and recovery in operating performance over the next several quarters.

Negative Factors

Margin CompressionThe sustained decline in gross and net margins shows that revenue is converting into substantially less profit than in earlier years. Unless pricing, product mix, or operating efficiency improves, weaker margins can limit reinvestment, reduce earnings durability, and keep returns below historical levels.

Yi Shin Textile Industrial Co., Ltd. (4440) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.14B
Dividend Yield: 5.97%
Average Volume (3M): 46.38K
Price to Earnings (P/E): 8.5
Beta (1Y): 0.36
Revenue Growth: 6.71%
EPS Growth: 77.95%
Country: TW
Employees: 147
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Yi Shin Textile Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Yi Shin Textile Industrial Co., Ltd. manufactures and sells draw textured and functional elastic yarn in Taiwan, Vietnam, Japan, Thailand, Hongkong, and internationally. It offers polyester/nylon spandex covered yarn, color compound spandex covered y...

Yi Shin Textile Industrial Co., Ltd. Financial Statement Overview

Summary

A mixed but deteriorating profile. Revenue of NT$1.07 billion remains roughly 40% below the 2021 peak and slipped about 5% in the latest year, while gross margin has halved to 11.8% and net income fell about 35% to NT$77 million (Income Statement score 42). The balance sheet is the steadiest element, with equity funding about 58% of assets and moderate 0.67 debt-to-equity, though borrowings have more than doubled since 2021 as equity eroded and ROE fell to 5.8% (Balance Sheet score 60). Cash flow is the clear weak spot: operating cash flow swung to a NT$4.8 million outflow from NT$141 million a year earlier and free cash flow turned negative, meaning reported profits are no longer backed by cash (Cash Flow score 28). The company stays consistently profitable with light capital spending, but the trajectory is defensive rather than expansionary.

Income Statement

42Neutral

Balance Sheet

60Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.14B	1.07B	1.12B	994.30M	1.51B	1.82B
Gross Profit	183.65M	126.44M	133.79M	89.08M	319.47M	449.72M
EBITDA	169.36M	124.11M	191.05M	108.37M	293.65M	437.64M
Net Income	132.65M	76.96M	118.79M	45.27M	196.12M	311.37M
Balance Sheet
Total Assets	2.08B	2.30B	2.27B	2.21B	2.26B	2.15B
Cash, Cash Equivalents and Short-Term Investments	179.04M	383.67M	295.56M	187.17M	216.48M	320.84M
Total Debt	623.88M	887.59M	803.39M	831.78M	701.28M	413.97M
Total Liabilities	740.77M	974.71M	913.24M	909.51M	794.85M	620.86M
Stockholders Equity	1.34B	1.32B	1.36B	1.30B	1.46B	1.53B
Cash Flow
Free Cash Flow	120.29M	-5.08M	139.65M	-1.91M	196.56M	278.64M
Operating Cash Flow	125.92M	-4.82M	140.73M	74.84M	201.74M	296.76M
Investing Cash Flow	-5.63M	-550.00K	531.00K	-59.43M	-369.30M	-47.74M
Financing Cash Flow	-264.81M	-28.06M	-90.31M	-51.63M	15.04M	-102.66M

Yi Shin Textile Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4440 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4430	56Neutral	TWD 1.20B	44.88	―	2.17%	6.71%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4440	48Neutral	TWD 1.10B	8.50	―	5.97%	6.71%	77.95%
TW:1413	47Neutral	TWD 1.20B	-110.37	―	―	-20.27%	-15.87%
TW:1465	41Neutral	TWD 1.17B	19.31	―	2.68%	-19.21%	―
TW:1445	40Underperform	TWD 1.25B	-14.15	―	5.12%	-23.72%	64.74%
TW:4433	39Underperform	TWD 971.60M	14.03	―	6.31%	-1.86%	―

* General Sector Average

Performance Comparison

TW:4440 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4440	Yi Shin Textile Industrial Co., Ltd.	16.75	-0.98	-5.52%
TW:1413	HUNG CHOU FIBER IND. CO., LTD.	9.15	-0.90	-8.96%
TW:1445	Universal Textile Co., Ltd.	9.76	-4.01	-29.10%
TW:1465	Wisher Industrial Co., Ltd.	11.20	-1.25	-10.03%
TW:4430	Yao I Fabric Co., Ltd.	23.00	5.13	28.73%
TW:4433	Singtex Industrial Co., Ltd.	15.85	-3.73	-19.05%

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

Yi Shin Textile Industrial Co., Ltd. AI Stock Analysis