Advanced Echem Materials Company Limited (4749) AI Stock Analysis

Advanced Echem Materials Company Limited

(TPEx:4749)

Select Model

Rating:62Neutral

Price Target:TWD 635.00▼(-4.22% Downside)

Action:initiatedcoverage

Date:11/09/26

Advanced Echem earns a moderate score. Its financial profile is the standout: rapid revenue growth, dramatic margin expansion, and an essentially debt-free balance sheet with equity funding ~90% of assets. Offsetting this is a sixth consecutive year of negative free cash flow from aggressive capacity investment and a drop in return on equity to 11.3% following dilution. The bigger near-term drag is price action — the stock sits well below all key moving averages with negative MACD, signaling a persistent downtrend, though oversold RSI and Stochastic readings suggest selling may be stretched. A near-50x P/E and a modest 1.34% dividend yield leave valuation support thin, capping the overall score despite the strong underlying business.

Positive Factors

Strong Revenue GrowthThe substantial multi-year revenue increase indicates expanding commercial scale and stronger demand for the company’s specialty chemical materials. Acceleration in the latest two years supports continued operating leverage, broader customer penetration, and a larger platform for sustaining growth over the next several quarters.

Negative Factors

Recurring Negative Free Cash FlowPersistent negative free cash flow indicates that accounting profitability has not consistently converted into discretionary cash generation. This can limit the company’s ability to fund expansion, dividends, or debt reduction internally and makes long-term financial quality more dependent on improving reinvestment and working-capital outcomes.

Advanced Echem Materials Company Limited (4749) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 65.93B
Dividend Yield: 1.21%
Average Volume (3M): 666.93K
Price to Earnings (P/E): 52.4
Beta (1Y): 1.24
Revenue Growth: 19.16%
EPS Growth: 38.15%
Country: TW
Employees: 456
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Advanced Echem Materials Company Limited Business Overview & Revenue Model

Company Description

Advanced Echem Materials Company Limited, based in Taoyuan, Taiwan, specializes in the development and production of advanced chemical materials for the semiconductor and display industries. Its comprehensive product portfolio caters to both sectors....

Advanced Echem Materials Company Limited Financial Statement Overview

Summary

Fundamentals are the clear strength. The income statement (88) shows outstanding execution: revenue grew roughly four-fold over five years to NT$4.26bn (+28% YoY), while gross margin widened from 26% to 43%, operating margin to nearly 30%, and net income jumped ~50% to over NT$1.04bn. The balance sheet (87) is near debt-free after total debt fell to NT$264m against NT$9.24bn of equity (D/E ~0.03), with equity funding ~90% of assets. Cash flow (58) is the weak link: operating cash flow of NT$1.12bn exceeds net income (1.16x, good earnings quality), but heavy capacity capex left free cash flow negative for a sixth straight year (-NT$31m), though the gap has narrowed sharply toward breakeven. Dilution from the capital raise also cut return on equity from 23.8% to 11.3%.

Income Statement

88Very Positive

Balance Sheet

87Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.63B	4.26B	3.32B	2.36B	2.27B	1.61B
Gross Profit	2.02B	1.84B	1.20B	694.25M	723.05M	422.17M
EBITDA	1.58B	1.53B	1.01B	570.38M	533.44M	164.32M
Net Income	1.20B	1.04B	697.54M	318.37M	403.50M	122.35M
Balance Sheet
Total Assets	14.57B	10.47B	5.33B	4.43B	4.07B	3.62B
Cash, Cash Equivalents and Short-Term Investments	5.96B	3.85B	489.16M	422.64M	702.02M	834.44M
Total Debt	2.43B	263.92M	1.69B	1.54B	918.22M	1.01B
Total Liabilities	4.21B	1.22B	2.40B	1.99B	1.68B	1.62B
Stockholders Equity	10.35B	9.24B	2.93B	2.44B	2.39B	1.99B
Cash Flow
Free Cash Flow	-851.88M	-31.16M	-182.31M	-641.10M	-13.45M	-614.53M
Operating Cash Flow	912.36M	1.12B	944.19M	-59.65M	410.48M	-12.80M
Investing Cash Flow	-4.10B	-4.18B	-808.19M	-536.08M	-318.63M	-716.75M
Financing Cash Flow	2.49B	3.63B	-129.23M	362.85M	-162.98M	742.05M

Advanced Echem Materials Company Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4749 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4766	72Outperform	TWD 41.72B	14.76	―	5.20%	2.93%	9.20%
TW:6781	71Outperform	TWD 66.71B	18.56	―	2.45%	38.27%	23.92%
TW:1773	70Outperform	TWD 44.70B	17.29	―	2.68%	19.58%	31.55%
TW:4772	68Neutral	TWD 32.12B	36.31	―	1.38%	163.69%	66.91%
TW:4749	62Neutral	TWD 62.81B	52.41	―	1.21%	19.16%	38.15%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1717	48Neutral	TWD 74.84B	33.26	―	1.58%	-1.57%	36.18%

* General Sector Average

Performance Comparison

TW:4749 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4749	Advanced Echem Materials Company Limited	663.00	-145.25	-17.97%
TW:1717	Eternal Materials Co., Ltd.	63.20	23.94	60.98%
TW:1773	Shiny Chemical Industrial Co., Ltd.	149.00	10.69	7.73%
TW:4766	Nan Pao Resins Chemical Co. Ltd.	346.00	20.55	6.31%
TW:4772	Taiwan Speciality Chemicals Corporation	217.50	-87.24	-28.63%
TW:6781	Advanced Energy Solution Holding Co., Ltd.	781.00	-546.87	-41.18%

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

Advanced Echem Materials Company Limited AI Stock Analysis