Ta Chan Securities Co. Ltd. (6020) AI Stock Analysis

Ta Chan Securities Co. Ltd.

(TPEx:6020)

Select Model

Rating:55Neutral

Price Target:TWD 19.50▲(0.78% Upside)

Action:initiatedcoverage

Date:11/09/26

Ta Chan Securities earns a middling score. Financially, the company is solvent and cash-generative, with high margins, low capital needs and an equity-heavy balance sheet, but three consecutive years of declining revenue and profit, a roughly 2% return on equity, shrinking equity and rising borrowings weigh on earnings quality. Technicals are the weakest element, with the price below all major moving averages and a negative MACD confirming a sustained downtrend, though momentum readings are deeply depressed. A low P/E near 5.3, a 1.42% dividend yield and a defensive beta provide valuation support and limit downside, but the highly cyclical earnings profile keeps the overall assessment close to neutral.

Positive Factors

High ProfitabilityVery high margins in most reported years indicate that the securities business can generate substantial earnings when market conditions support client activity. This profitability provides internal funding capacity and a durable operating base, although results remain sensitive to market cycles.

Negative Factors

Cyclical EarningsThe sharp 2022 loss and major revenue swings show that earnings depend heavily on capital-market conditions and client trading activity. This cyclicality makes profitability less predictable, complicates planning, and can materially reduce earnings during weaker market periods.

Ta Chan Securities Co. Ltd. (6020) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 4.85B
Dividend Yield: 1.41%
Average Volume (3M): 21.32K
Price to Earnings (P/E): 5.4
Beta (1Y): 0.35
Revenue Growth: 2753.43%
EPS Growth: ―
Country: TW
Employees: 69
Sector: General
Sector Strength: 55
Industry: Financial - Capital Markets

Ta Chan Securities Co. Ltd. Business Overview & Revenue Model

Company Description

Established in 1988 and headquartered in Taipei, Taiwan, Tachan Securities Co., Ltd. is a multifaceted financial services provider specializing in securities, investment consulting, and venture capital. The company delivers a broad spectrum of servic...

Ta Chan Securities Co. Ltd. Financial Statement Overview

Summary

Ta Chan Securities is profitable with very high margins (roughly 88% gross, 55% operating, 39% net) and an equity-heavy balance sheet where shareholders' equity funds about 59% of assets. Cash generation rebounded sharply, with operating cash flow near NT$471 million and free cash flow of about NT$465 million against minimal capital spending. However, revenue has declined three straight years (NT$518m to NT$338m to NT$255m) and net income fell about 46% to NT$99 million, return on equity has slipped to roughly 2%, equity has eroded from NT$7.78 billion in 2021, and borrowings rose to NT$2.53 billion (debt-to-equity of about 0.52). The 2022 loss year highlights how cyclical and unpredictable the trading-driven model is, capping the score at a modestly below-average level.

Income Statement

52Neutral

Balance Sheet

58Neutral

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.17B	254.71M	337.78M	517.83M	10.65M	1.15B
Gross Profit	1.18B	223.78M	328.34M	510.68M	4.38M	1.13B
EBITDA	1.03B	150.48M	245.18M	381.44M	-232.30M	976.57M
Net Income	909.38M	98.88M	182.37M	326.02M	-269.75M	857.51M
Balance Sheet
Total Assets	9.27B	8.29B	7.12B	7.71B	1.59B	1.49B
Cash, Cash Equivalents and Short-Term Investments	1.58B	5.40B	4.40B	5.46B	2.22B	2.40B
Total Debt	2.78B	2.53B	1.66B	2.40B	336.51M	373.86M
Total Liabilities	3.78B	3.40B	2.29B	3.10B	2.52B	2.52B
Stockholders Equity	5.50B	4.89B	4.83B	4.61B	6.11B	7.78B
Cash Flow
Free Cash Flow	62.80M	465.20M	16.19M	14.06M	352.12M	1.03B
Operating Cash Flow	68.49M	471.43M	20.02M	19.81M	357.96M	1.05B
Investing Cash Flow	-1.36B	-4.86M	-2.95M	-3.92M	-33.56M	-15.89M
Financing Cash Flow	528.25M	-130.85M	-229.29M	-2.39M	-602.31M	-184.15M

Ta Chan Securities Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6020 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6016	69Neutral	TWD 14.98B	3.30	―	0.79%	326.63%	376.35%
TW:6026	68Neutral	TWD 6.08B	3.94	―	8.80%	104.45%	396.63%
TW:6005	63Neutral	TWD 66.78B	5.70	―	1.45%	80.75%	158.29%
TW:6015	61Neutral	TWD 6.13B	3.62	―	3.56%	89.73%	1994.47%
TW:2855	56Neutral	TWD 80.07B	5.27	―	4.13%	592.27%	347.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6020	55Neutral	TWD 4.92B	5.37	―	1.41%	2753.43%	―

* General Sector Average

Performance Comparison

TW:6020 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6020	Ta Chan Securities Co. Ltd.	19.35	0.77	4.13%
TW:2855	President Securities Corp.	51.10	27.31	114.77%
TW:6005	Capital Securities Corp.	27.60	6.02	27.90%
TW:6015	Horizon Securities Co., Ltd.	15.45	5.13	49.78%
TW:6016	Concord Securities Co., Ltd.	19.55	8.16	71.60%
TW:6026	Grand Fortune Securities Co. Ltd.	15.50	4.22	37.37%

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

Ta Chan Securities Co. Ltd. AI Stock Analysis