Chung Lien Co., Ltd (5604) AI Stock Analysis

Chung Lien Co., Ltd

(TPEx:5604)

Select Model

Rating:69Neutral

Price Target:TWD 33.00▲(6.97% Upside)

Action:initiatedcoverage

Date:11/10/26

The company's financial foundation is a major strength, with a pristine balance sheet and exceptional current profitability driving a high financial performance score. However, this is significantly offset by weak technicals, as the stock is in a clear downtrend with oversold momentum indicators. The high dividend yield provides some valuation support, but the overall score reflects a strong company facing considerable market headwinds.

Positive Factors

Very low leverageMinimal debt and a substantial equity cushion reduce financial stress and preserve flexibility through business cycles. This conservative funding structure can support continued operations, withstand weaker periods, and leave more capacity for investment or shareholder returns without heavy refinancing exposure.

Negative Factors

Volatile profitabilityLarge swings in historical profits make the company’s earnings power less predictable and reduce confidence that peak returns can persist. Normalization after unusually strong years may constrain growth expectations and complicate budgeting, capital allocation, and assessment of sustainable profitability.

Chung Lien Co., Ltd (5604) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.37B
Dividend Yield: 6.48%
Average Volume (3M): 16.87K
Price to Earnings (P/E): 25.1
Beta (1Y): 0.07
Revenue Growth: 3.05%
EPS Growth: 48.38%
Country: TW
Employees: 1,704
Sector: General
Sector Strength: 55
Industry: Trucking

Chung Lien Co., Ltd Business Overview & Revenue Model

Company Description

Chung Lien Co., Ltd is active in the property market, managing both real estate rentals and sales. Additionally, the company engages in the retail distribution of computer hardware and software products, and provides associated IT maintenance service...

Chung Lien Co., Ltd Financial Statement Overview

Summary

Exceptional profitability with gross margins above 80% and net margin of 57.9%, combined with a fortress balance sheet featuring near-zero debt. Cash flow is solid and improving, though historical volatility in margins and revenue tempers the outlook. Overall financial health is outstanding.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	162.24M	159.40M	158.82M	160.49M	161.53M	149.78M
Gross Profit	133.51M	130.61M	131.01M	131.19M	131.89M	120.54M
EBITDA	114.84M	122.10M	347.63M	122.97M	127.75M	750.39M
Net Income	113.94M	92.22M	271.97M	89.82M	92.62M	734.07M
Balance Sheet
Total Assets	2.49B	2.64B	2.85B	2.73B	2.86B	3.44B
Cash, Cash Equivalents and Short-Term Investments	85.83M	231.90M	434.74M	287.01M	382.61M	316.76M
Total Debt	11.31M	12.69M	28.03M	17.99M	38.49M	23.12M
Total Liabilities	533.22M	533.10M	584.87M	528.40M	528.65M	531.13M
Stockholders Equity	1.95B	2.10B	2.26B	2.21B	2.33B	2.91B
Cash Flow
Free Cash Flow	97.72M	41.55M	109.94M	123.90M	130.82M	98.02M
Operating Cash Flow	97.71M	41.55M	109.94M	123.98M	130.82M	98.02M
Investing Cash Flow	121.02M	212.65M	112.23M	89.95M	539.13M	769.26M
Financing Cash Flow	-220.07M	-253.08M	-220.72M	-222.08M	-666.13M	-863.50M

Chung Lien Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5604 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2718	71Outperform	TWD 3.14B	3.44	―	15.47%	-74.52%	-75.86%
TW:5604	69Neutral	TWD 3.36B	25.12	―	6.48%	3.05%	48.38%
TW:5902	67Neutral	TWD 3.19B	15.41	―	4.86%	0.07%	3.67%
TW:5706	66Neutral	TWD 3.33B	10.84	―	11.40%	-4.62%	11.52%
TW:2739	59Neutral	TWD 3.02B	8.13	―	7.88%	2.69%	414.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2601	44Neutral	TWD 3.47B	-3.11	―	―	―	―

* General Sector Average

Performance Comparison

TW:5604 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5604	Chung Lien Co., Ltd	30.85	-5.68	-15.56%
TW:2601	First Steamship Co., Ltd.	5.07	-1.68	-24.88%
TW:2718	Allmind Holdings Corporation	36.00	-17.79	-33.07%
TW:2739	My Humble House Hospitality Management Consulting Co Ltd	32.75	-1.49	-4.35%
TW:5706	Phoenix Tours International, Inc.	39.80	-7.43	-15.74%
TW:5902	Tait Marketing & Distribution Co., Ltd.	33.95	-9.02	-20.98%

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

Chung Lien Co., Ltd AI Stock Analysis