Chia Chang Co., Ltd (4942) AI Stock Analysis

Chia Chang Co., Ltd

(TWSE:4942)

Select Model

Rating:59Neutral

Price Target:TWD 30.00▲(1.01% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by weak cash generation, declining profitability, and bearish technical trends. A very strong balance sheet and attractive valuation provide meaningful support, resulting in a below-average overall score of 59.

Positive Factors

Low leverageVery low leverage and substantial equity capitalization provide financial resilience over the next several quarters. Limited debt exposure reduces financing pressure, preserves borrowing capacity, and gives the company greater flexibility to fund operations or respond to weaker demand.

Negative Factors

Weak cash generationThe sharp decline in operating cash flow and negative free cash flow are material threats to earnings quality and financial flexibility. Continued weak conversion could constrain internally funded investment, reduce resilience, and make future capital allocation more difficult.

Chia Chang Co., Ltd (4942) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.04B
Dividend Yield: 6.73%
Average Volume (3M): 114.45K
Price to Earnings (P/E): 10.1
Beta (1Y): 0.30
Revenue Growth: 2.44%
EPS Growth: 13.09%
Country: TW
Employees: 27,270
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Chia Chang Co., Ltd Business Overview & Revenue Model

Company Description

Chia Chang Co., Ltd engages in manufacturing, processing, and sale of optoelectronic and information electronic components, molds, and precision instruments in Taiwan, Japan, and South Korea. The company offers 1U server, semiconductor equipment comp...

Chia Chang Co., Ltd Financial Statement Overview

Summary

The strong balance sheet score of 88 and low debt provide support, but the income statement score of 65 and cash flow score of 30 reflect weaker profitability, declining returns, sharply lower operating cash flow, and negative free cash flow.

Income Statement

65Positive

Balance Sheet

88Very Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.89B	6.09B	5.67B	6.07B	7.84B	8.72B
Gross Profit	1.28B	1.43B	1.32B	1.48B	1.67B	2.00B
EBITDA	992.71M	1.01B	1.17B	1.36B	1.30B	1.56B
Net Income	413.17M	435.67M	593.93M	615.03M	644.91M	908.80M
Balance Sheet
Total Assets	11.33B	11.82B	11.83B	10.59B	10.77B	11.31B
Cash, Cash Equivalents and Short-Term Investments	3.29B	3.09B	3.70B	3.72B	4.16B	4.13B
Total Debt	197.85M	290.77M	154.90M	137.89M	424.53M	684.91M
Total Liabilities	2.09B	2.72B	2.70B	2.06B	2.41B	3.34B
Stockholders Equity	9.23B	9.09B	9.13B	8.53B	8.35B	7.97B
Cash Flow
Free Cash Flow	-101.26M	-422.76M	-22.34M	160.19M	569.75M	364.08M
Operating Cash Flow	285.59M	184.07M	601.94M	923.08M	1.45B	945.93M
Investing Cash Flow	415.50M	-492.77M	-1.88B	252.35M	-759.18M	-359.80M
Financing Cash Flow	-815.45M	-149.47M	121.50M	-563.79M	-737.09M	-376.93M

Chia Chang Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4942 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4572	63Neutral	TWD 4.64B	20.38	―	4.24%	3.72%	57.19%
TW:6859	61Neutral	TWD 4.28B	52.29	―	1.89%	-30.46%	-30.77%
TW:4949	59Neutral	TWD 4.88B	17.80	―	2.10%	45.18%	122.01%
TW:4942	59Neutral	TWD 4.27B	10.09	―	6.73%	2.44%	13.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4935	52Neutral	TWD 3.94B	28.23	―	3.33%	-24.80%	-49.71%
TW:6124	42Neutral	TWD 4.52B	174.84	―	―	-10.02%	―

* General Sector Average

Performance Comparison

TW:4942 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4942	Chia Chang Co., Ltd	29.70	-8.50	-22.24%
TW:4572	Drewloong Precision, Inc.	118.00	-22.75	-16.16%
TW:4935	Global Lighting Technologies Inc.	30.00	-11.60	-27.88%
TW:4949	Win Win Precision Technology Co., Ltd	66.60	28.40	74.34%
TW:6124	Yeh-Chiang Technology Corp.	24.60	0.00	0.00%
TW:6859	Best Precision Industrial Co.,Ltd.	106.00	8.09	8.26%

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 10, 2026

Chia Chang Co., Ltd AI Stock Analysis