Pan Asia Chemical Corp. (4707) AI Stock Analysis

Pan Asia Chemical Corp.

(TPEx:4707)

Select Model

Rating:45Neutral

Price Target:TWD 25.00▼(-8.42% Downside)

Action:initiatedcoverage

Date:11/09/26

Pan Asia Chemical scores below average, driven primarily by a deteriorating core business: shrinking revenue, negative gross margin and three straight years of operating losses, with reported profits sourced almost entirely from non-operating income. Its fortress-like balance sheet — low leverage, falling debt and equity covering over 70% of assets — provides meaningful downside protection and is the main offset. Technicals reinforce caution, with the share price trading well below its short- and medium-term moving averages and a negative MACD, though oversold readings hint at possible near-term stabilisation. Valuation at nearly 21x earnings looks full relative to earnings quality, and the sub-1% dividend yield offers limited compensation. Evidence of margin recovery and a return to operating profitability would be needed to justify a higher score.

Positive Factors

Manageable LeverageManageable and improving leverage gives Pan Asia Chemical greater financial flexibility than a highly indebted balance sheet would provide. This can help the company withstand operating volatility, preserve access to capital, and avoid excessive financing pressure while it works through weaker profitability.

Negative Factors

Operating LossesNegative gross profit and operating losses indicate that the core business is not currently covering its direct and operating cost structure. This is a durable concern because recovery in reported earnings would depend on improving pricing, product mix, or costs rather than relying on non-operating contributions.

Pan Asia Chemical Corp. (4707) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 11.86B
Dividend Yield: 0.92%
Average Volume (3M): 3.17M
Price to Earnings (P/E): 21.4
Beta (1Y): 0.79
Revenue Growth: -9.16%
EPS Growth: 67.21%
Country: TW
Employees: 109
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Pan Asia Chemical Corp. Business Overview & Revenue Model

Company Description

Pan Asia Chemical Co. (PACC), a Taiwanese firm, specializes in the manufacturing, sale, and distribution of diverse chemical compounds within Taiwan and internationally. Its extensive product portfolio features a wide array of surfactants, including...

Pan Asia Chemical Corp. Financial Statement Overview

Summary

A strong balance sheet (score 68) is the main support: debt-to-equity has fallen to 0.36, equity funds roughly 71% of the NT$8.68bn asset base, and total debt continues to decline. However, the core business is deteriorating — revenue has contracted from NT$1.83bn in 2022 to NT$1.34bn in 2025, gross margin has fallen from 14.7% to negative 2.4%, and operating losses have been posted for three consecutive years (income statement score 32). Reported net income of NT$360m comes almost entirely from non-operating sources, a significant earnings-quality concern. Cash flow (score 40) improved in 2025 to NT$86m operating and NT$73m free cash flow, but remains a fraction of the NT$406m generated in 2022, with minimal capital reinvestment.

Income Statement

32Negative

Balance Sheet

68Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.29B	1.34B	1.44B	1.32B	1.83B	1.73B
Gross Profit	20.81M	-32.77M	19.40M	91.63M	268.11M	193.59M
EBITDA	159.44M	-54.60M	38.30M	461.40M	545.34M	438.98M
Net Income	520.75M	360.26M	381.79M	347.28M	402.10M	342.98M
Balance Sheet
Total Assets	10.89B	8.68B	8.69B	8.41B	8.48B	8.79B
Cash, Cash Equivalents and Short-Term Investments	574.25M	571.16M	591.65M	505.14M	564.25M	592.69M
Total Debt	2.22B	2.24B	2.38B	2.06B	2.36B	2.63B
Total Liabilities	2.62B	2.47B	2.66B	2.40B	2.80B	2.96B
Stockholders Equity	8.27B	6.21B	6.03B	6.01B	5.68B	5.83B
Cash Flow
Free Cash Flow	152.02M	73.17M	38.18M	25.90M	398.21M	146.66M
Operating Cash Flow	161.56M	86.36M	40.78M	36.91M	406.18M	158.64M
Investing Cash Flow	124.45M	94.87M	-175.77M	264.07M	-58.78M	-105.92M
Financing Cash Flow	-230.32M	-226.05M	203.97M	-366.34M	-320.91M	-169.06M

Pan Asia Chemical Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4707 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:1708	65Neutral	TWD 11.22B	11.02	―	3.52%	3.55%	34.35%
TW:4755	58Neutral	TWD 12.34B	27.45	―	3.05%	-11.09%	37.46%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1304	46Neutral	TWD 12.12B	-6.20	―	1.32%	-9.36%	30.01%
TW:4707	45Neutral	TWD 11.15B	21.39	―	0.92%	-9.16%	67.21%
TW:1727	39Underperform	TWD 11.75B	121.53	―	0.18%	20.16%	962.24%

* General Sector Average

Performance Comparison

TW:4707 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4707	Pan Asia Chemical Corp.	27.30	17.85	188.80%
TW:1304	USI Corporation	11.40	0.23	2.03%
TW:1708	Sesoda Corporation	45.40	14.45	46.66%
TW:1727	Chung Hwa Chemical Industrial Works Ltd.	84.10	47.51	129.83%
TW:4755	San Fu Chemical Co., Ltd.	121.50	17.34	16.65%
TW:6509	Taiwan Hopax Chemicals Manufacturing Co. Ltd.	43.20	10.94	33.93%

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

Pan Asia Chemical Corp. AI Stock Analysis