New Best Wire Industrial Co., Ltd. (5013) AI Stock Analysis

New Best Wire Industrial Co., Ltd.

(TPEx:5013)

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Rating:62Neutral

Price Target:TWD 66.00▼(-3.79% Downside)

Action:initiatedcoverage

Date:11/09/26

New Best Wire scores in the moderate range. The most significant drag is weak fundamental earnings power: revenue remains below its 2022 peak, gross margin has fallen to 12.5%, net income is down roughly two-thirds since 2021 and ROE sits at just 5.1%. Offsetting this, management has materially de-risked the balance sheet (debt-to-equity down to 0.65) and 2025 produced NT$627 million of free cash flow, well above reported profit. The strongest positive is technical momentum — the stock trades firmly above all key moving averages with a strongly positive MACD and non-extreme RSI. However, valuation tempers the outlook: a 31.3x P/E and a modest 1.13% yield leave little margin for error if the cyclical recovery in volumes and pricing fails to materialize, particularly given how far the share price has extended above its longer-term trend.

Positive Factors

Improved Balance-Sheet LeverageLower leverage indicates meaningful balance-sheet de-risking and gives the company greater financial flexibility. A more controlled debt burden can support investment and resilience through weaker industrial conditions, while reducing the strain that higher leverage would place on future capital allocation.

Negative Factors

Compressed Profit MarginsThe sustained decline in gross, operating, and net profitability reduces earnings resilience and leaves less room to absorb adverse pricing or cost conditions. With net margin near 2.5%, modest operational setbacks could have a disproportionate effect on profits and shareholder returns.

New Best Wire Industrial Co., Ltd. (5013) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.51B
Dividend Yield: 1.02%
Average Volume (3M): 1.72M
Price to Earnings (P/E): 30.9
Beta (1Y): 0.02
Revenue Growth: 0.25%
EPS Growth: 51.97%
Country: TW
Employees: 473
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

New Best Wire Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1993, New Best Wire Industrial Co.,Ltd operates from its headquarters in Tainan City, Taiwan, offering both wire products and electro-polishing services throughout the country. The company's diverse product portfolio encompasses a vari...

New Best Wire Industrial Co., Ltd. Financial Statement Overview

Summary

A mixed picture dominated by weak earnings power. Revenue has slipped to NT$7.73 billion (down ~14% from the 2022 peak) and net margin has compressed from 6.8% to 2.5%, leaving net income at NT$193 million versus NT$588 million in 2021 (Income Statement score 44). The balance sheet is the stabilizing factor: debt cut from NT$3.59 billion to NT$2.44 billion and debt-to-equity down from 1.10 to 0.65, though ROE has fallen to just 5.1% (Balance Sheet score 60). Cash flow is the strongest pillar, with operating cash flow up ~57% to NT$995 million and free cash flow tripling to NT$627 million, well above reported profit — but history shows negative FCF years and copper-driven working-capital volatility (Cash Flow score 71). Early signs of margin stabilization and 12% EBIT growth in 2025 are encouraging, yet overall profitability remains thin and cyclical.

Income Statement

44Neutral

Balance Sheet

60Neutral

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.03B	7.73B	7.94B	7.58B	9.03B	8.64B
Gross Profit	1.07B	968.61M	912.14M	1.03B	1.44B	1.51B
EBITDA	857.57M	830.53M	861.86M	898.30M	1.27B	1.31B
Net Income	338.61M	193.42M	222.03M	257.12M	541.37M	588.03M
Balance Sheet
Total Assets	9.03B	8.44B	8.53B	8.54B	8.36B	8.65B
Cash, Cash Equivalents and Short-Term Investments	1.06B	888.92M	809.75M	1.07B	1.17B	717.13M
Total Debt	2.55B	2.44B	2.75B	3.13B	2.93B	3.59B
Total Liabilities	3.69B	3.20B	3.40B	3.76B	3.67B	4.37B
Stockholders Equity	3.94B	3.78B	3.75B	3.59B	3.57B	3.26B
Cash Flow
Free Cash Flow	-10.78M	626.61M	170.61M	-22.90M	1.40B	-223.03M
Operating Cash Flow	366.74M	995.24M	635.22M	291.18M	1.55B	174.98M
Investing Cash Flow	-477.88M	-218.63M	-721.63M	-314.88M	-146.50M	-377.78M
Financing Cash Flow	-321.32M	-477.97M	-564.42M	-16.62M	-998.09M	392.23M

New Best Wire Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5013 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1615	71Outperform	TWD 8.37B	8.06	―	5.93%	10.56%	23.77%
TW:5013	62Neutral	TWD 8.83B	30.92	―	1.02%	0.25%	51.97%
TW:6115	61Neutral	TWD 8.05B	13.90	―	6.51%	8.96%	2.49%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3003	54Neutral	TWD 7.46B	19.54	―	2.06%	11.87%	44.15%

* General Sector Average

Performance Comparison

TW:5013 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5013	New Best Wire Industrial Co., Ltd.	68.60	40.67	145.63%
TW:1615	Dah San Electric Wire & Cable Corp	42.15	-3.52	-7.72%
TW:3003	K.S. Terminals Inc.	48.50	0.27	0.57%
TW:4565	Hong Wei Electrical Industry Co., Ltd.	120.00	13.38	12.55%
TW:6115	I-Sheng Electric Wire & Cable Co., Ltd.	43.00	-0.52	-1.19%
TW:7869	Horng Yu Electric Co. Ltd.	280.00	-95.81	-25.49%

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 09, 2026

New Best Wire Industrial Co., Ltd. AI Stock Analysis