Taiwan Chelic Corp. Ltd. (4555) AI Stock Analysis

Taiwan Chelic Corp. Ltd.

(TWSE:4555)

Select Model

Rating:47Neutral

Price Target:TWD 36.00▼(-5.76% Downside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Chelic scores below average overall. The dominant factor is weak earnings power: although the company returned to profit with improving gross margins, a 0.8% net margin, 0.5% return on equity and sharply declining free cash flow leave the business under-earning on a large, under-utilized asset base. The conservative, equity-funded balance sheet is the main offset and gives the company resilience through the cycle. Technicals are negative, with the price below all major moving averages and a bearish MACD, though oversold RSI and Stochastic readings suggest scope for a short-term bounce. Valuation adds little support, as a 37.4x P/E on depressed earnings and a modest 1.38% dividend yield leave limited margin of safety. The investment case rests on whether the margin recovery continues and converts into meaningfully higher returns.

Positive Factors

Revenue RecoveryThe 2025 revenue rebound indicates that demand for the company’s pneumatic and motion-control products has recovered after the prior downturn. Sustained top-line improvement can support better operating leverage, reinforce customer relationships, and provide a foundation for rebuilding consistent earnings over the next several quarters.

Negative Factors

Profitability VolatilityRecent losses followed by only modest profitability demonstrate that earnings recovery remains fragile rather than firmly established. A very low net margin leaves limited protection against weaker demand or cost pressure, making future results more sensitive to normal industrial-cycle fluctuations.

Taiwan Chelic Corp. Ltd. (4555) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.67B
Dividend Yield: 1.31%
Average Volume (3M): 159.15K
Price to Earnings (P/E): 38.0
Beta (1Y): 1.05
Revenue Growth: 8.06%
EPS Growth: ―
Country: TW
Employees: 400
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Taiwan Chelic Corp. Ltd. Business Overview & Revenue Model

Company Description

TAIWAN CHELIC Co., Ltd. operates as an international producer and supplier of components for pneumatic and electric actuator automation. The company's extensive product line features air preparation units, various control valves, and a comprehensive...

Taiwan Chelic Corp. Ltd. Financial Statement Overview

Summary

A solid balance sheet (score 65) is the key strength: equity funds about 63% of the NT$4.51bn asset base and debt-to-equity of 0.44 provides staying power through the cycle. However, earnings power is weak (income statement score 40): despite two years of revenue growth to NT$1.60bn and a 480bp gross margin improvement to 30.9%, net profit of just NT$13.6m equates to a 0.8% net margin and a 0.5% return on equity, far below the 2021 peak. Cash flow (score 50) is positive and exceeds reported earnings, but operating cash flow has fallen two years running to NT$147m and free cash flow collapsed to NT$27m against NT$1.24bn of debt, leaving a thin buffer for dividends or expansion.

Income Statement

40Negative

Balance Sheet

65Positive

Cash Flow

50Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.70B	1.60B	1.49B	1.38B	1.80B	2.03B
Gross Profit	510.72M	495.36M	388.69M	372.88M	619.60M	725.19M
EBITDA	246.10M	218.52M	163.75M	176.75M	400.82M	474.74M
Net Income	70.50M	13.56M	-59.91M	-34.95M	171.64M	234.10M
Balance Sheet
Total Assets	4.60B	4.51B	4.40B	4.41B	4.62B	4.56B
Cash, Cash Equivalents and Short-Term Investments	846.45M	843.96M	827.22M	740.49M	598.72M	434.04M
Total Debt	1.20B	1.24B	1.22B	1.30B	1.33B	1.32B
Total Liabilities	1.56B	1.56B	1.48B	1.53B	1.62B	1.74B
Stockholders Equity	2.92B	2.84B	2.82B	2.79B	2.91B	2.73B
Cash Flow
Free Cash Flow	75.99M	26.85M	136.60M	273.29M	175.18M	-76.58M
Operating Cash Flow	136.59M	147.07M	214.18M	375.16M	290.02M	162.82M
Investing Cash Flow	-206.02M	-258.84M	-42.88M	-47.15M	-136.11M	166.90M
Financing Cash Flow	-165.62M	-12.91M	-101.72M	-120.41M	-23.08M	-465.60M

Taiwan Chelic Corp. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4555 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6855	68Neutral	TWD 2.56B	11.10	―	5.00%	-11.74%	55.55%
TW:5490	64Neutral	TWD 2.68B	13.21	―	5.31%	17.05%	97.00%
TW:7709	60Neutral	TWD 2.86B	19.57	―	2.05%	-20.49%	10.41%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4555	47Neutral	TWD 2.67B	37.95	―	1.31%	8.06%	―
TW:1530	43Neutral	TWD 2.68B	13.93	―	0.39%	1.34%	75.78%
TW:4562	32Underperform	TWD 2.63B	-44.00	―	―	-19.93%	13.97%

* General Sector Average

Performance Comparison

TW:4555 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4555	Taiwan Chelic Corp. Ltd.	38.20	-7.89	-17.12%
TW:1530	Awea Mechantronic Co. Ltd.	25.95	1.72	7.09%
TW:4562	Ying Han Technology Co., Ltd.	30.05	-9.90	-24.78%
TW:5490	XAC Automation Corporation	28.25	1.33	4.93%
TW:6855	Eclatorq Technology Co., Ltd.	110.00	1.72	1.59%
TW:7709	Honor Seiki Co. Ltd.	73.20	35.98	96.67%

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

Taiwan Chelic Corp. Ltd. AI Stock Analysis