CHENG MEI MATERIALS TECHNOLOGY CORPORATION (4960) AI Stock Analysis

CHENG MEI MATERIALS TECHNOLOGY CORPORATION

(TWSE:4960)

Select Model

Rating:43Neutral

Price Target:TWD 26.00▼(-12.01% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is pressured primarily by very weak profitability and cash generation, alongside an unfavorable negative-earnings valuation. Technical indicators provide a partial offset because the price remains above most longer-term moving averages and MACD is positive.

Positive Factors

2025 Revenue ReboundThe sharp 2025 revenue rebound shows that the company can regain substantial top-line scale when operating conditions improve. If this growth can be converted into healthier margins, it could support broader customer penetration and provide a larger base for future earnings recovery.

Negative Factors

Severe Profitability DeteriorationThe shift to negative gross margin, negative EBITDA, and a substantially deeper net loss indicates that recent revenue growth is not translating into economic value. Persistent operating losses weaken earnings visibility and make a durable recovery dependent on meaningful cost or pricing improvement.

CHENG MEI MATERIALS TECHNOLOGY CORPORATION (4960) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 18.13B
Dividend Yield: ―
Average Volume (3M): 12.15M
Price to Earnings (P/E): -20.3
Beta (1Y): 0.71
Revenue Growth: -6.81%
EPS Growth: 31.54%
Country: TW
Employees: 2,058
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

CHENG MEI MATERIALS TECHNOLOGY CORPORATION Business Overview & Revenue Model

Company Description

Cheng Mei Materials Technology Corporation manufactures and sells optoelectronic material and components in Taiwan and Mainland China. It offers optical structure embossing adhesive and transparent adhesive for mini LEDs; optical adhesive and film ap...

CHENG MEI MATERIALS TECHNOLOGY CORPORATION Financial Statement Overview

Summary

Weak overall financial performance. Equal consideration of the income statement, balance sheet, and cash flow scores produces a result below the permitted minimum, reflecting sharply negative profitability, persistent negative cash flow, and a weakening balance sheet.

Income Statement

18Very Negative

Balance Sheet

48Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.28B	8.64B	8.93B	9.24B	9.50B	11.13B
Gross Profit	-263.39M	-388.93M	443.81M	365.01M	777.10M	908.77M
EBITDA	-379.26M	-895.59M	322.85M	-126.53M	969.26M	1.29B
Net Income	-819.66M	-1.46B	-266.91M	-580.96M	462.12M	763.19M
Balance Sheet
Total Assets	12.85B	12.98B	14.42B	14.21B	15.07B	15.74B
Cash, Cash Equivalents and Short-Term Investments	2.78B	3.07B	3.85B	4.21B	5.87B	1.24B
Total Debt	4.25B	4.07B	3.87B	3.32B	2.31B	3.84B
Total Liabilities	5.78B	5.63B	5.51B	5.03B	4.09B	5.27B
Stockholders Equity	7.07B	7.34B	8.91B	9.18B	10.97B	10.47B
Cash Flow
Free Cash Flow	-664.95M	-881.47M	-625.56M	-1.32B	1.44B	-207.56M
Operating Cash Flow	210.21M	-564.10M	-270.56M	-969.34M	2.01B	104.62M
Investing Cash Flow	-1.08B	1.32B	-2.60B	-492.94M	5.02B	-639.71M
Financing Cash Flow	-407.78M	108.37M	508.19M	-181.55M	-1.87B	815.36M

CHENG MEI MATERIALS TECHNOLOGY CORPORATION Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4960 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4977	55Neutral	TWD 17.02B	53.86	―	1.10%	-25.66%	-39.19%
TW:4971	54Neutral	TWD 18.06B	85.39	―	0.22%	31.28%	―
TW:4960	43Neutral	TWD 16.89B	-20.27	―	―	-6.81%	31.54%
TW:3362	40Underperform	TWD 18.28B	-71.46	―	0.80%	-2.57%	-1044.10%
TW:3234	39Underperform	TWD 17.63B	-97.86	―	―	33.49%	56.29%
TW:3149	28Underperform	TWD 17.75B	-29.62	―	―	7.57%	16.45%

* General Sector Average

Performance Comparison

TW:4960 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4960	CHENG MEI MATERIALS TECHNOLOGY CORPORATION	29.55	16.05	118.89%
TW:3149	G-Tech Optoelectronics Corporation	62.00	26.59	75.11%
TW:3234	Truelight Corporation	138.50	101.30	272.26%
TW:3362	Ability Opto-Electronics Technology Co., Ltd.	124.00	24.41	24.50%
TW:4971	IntelliEPI Inc. (Cayman)	389.00	229.34	143.64%
TW:4977	PCL Technologies, Inc.	187.00	87.26	87.49%

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

CHENG MEI MATERIALS TECHNOLOGY CORPORATION AI Stock Analysis