Nan Liu Enterprise Co., Ltd (6504) AI Stock Analysis

Nan Liu Enterprise Co., Ltd

(TWSE:6504)

Select Model

Rating:41Neutral

Price Target:TWD 35.00▼(-5.91% Downside)

Action:initiatedcoverage

Date:11/09/26

Nan Liu Enterprise scores poorly overall, driven primarily by deteriorating fundamentals: revenue has stalled near NT$6.6 billion, gross margin has fallen to 12% from 29% in 2020, and the company posted a net loss in 2025 while carrying 1.63x debt-to-equity on a shrinking equity base. The key support is cash generation — NT$326 million of free cash flow despite the reported loss — which keeps the business funded and distinguishes it from a distressed situation. Technicals add little help, with the shares below all major moving averages and a negative MACD, although the very low stochastic reading suggests the recent decline is extended. Valuation is unattractive at 23x earnings given the loss-making profile, with a 2.7% dividend yield the main consolation. A re-rating likely requires evidence of gross margin recovery and a return to revenue growth.

Positive Factors

Positive Cash GenerationPositive operating and free cash flow provide internal funding for ongoing operations and investment despite the recent net loss. This gives Nan Liu some resilience over the next several quarters, although the benefit is moderated by recent volatility and weaker cash coverage.

Negative Factors

Revenue VolatilityVolatile and declining revenue makes planning and fixed-cost absorption more difficult for Nan Liu, increasing the risk that modest demand weakness will disproportionately affect earnings. Repeated down years also weaken confidence in sustained top-line expansion over the medium term.

Nan Liu Enterprise Co., Ltd (6504) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.58B
Dividend Yield: 2.69%
Average Volume (3M): 120.84K
Price to Earnings (P/E): -547.1
Beta (1Y): 0.37
Revenue Growth: -1.43%
EPS Growth: 92.88%
Country: TW
Employees: 896
Sector: General
Sector Strength: 55
Industry: Household & Personal Products

Nan Liu Enterprise Co., Ltd Business Overview & Revenue Model

Company Description

Established in 1973 and headquartered in Kaohsiung City, Taiwan, Nan Liu Enterprise Co., Ltd. is a manufacturer and seller of a broad spectrum of household and industrial goods. The company produces air-through and thermal bonded fabrics, which are v...

Nan Liu Enterprise Co., Ltd Financial Statement Overview

Summary

Weakness is concentrated in the income statement (score 28): revenue slipped 2.7% to NT$6.61 billion in 2025, gross margin has collapsed from 29.3% in 2020 to 12.0%, and the company swung to a net loss of NT$79 million from NT$101 million of profit in 2024, leaving only a 2.9% operating margin as a cushion. The balance sheet (score 40) is stable in size but leveraged at 1.63x debt-to-equity with NT$5.63 billion of debt against a shrinking NT$3.44 billion equity base and negative 2.3% return on equity. Cash flow (score 55) is the offsetting strength: operations still generated NT$403 million and free cash flow of NT$326 million, confirming the loss is largely depreciation-driven rather than a cash drain, though both figures continue to trend lower and provide thin coverage of total debt.

Income Statement

28Negative

Balance Sheet

40Negative

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.65B	6.61B	6.72B	6.18B	5.99B	6.78B
Gross Profit	855.03M	795.96M	832.23M	701.26M	627.56M	916.18M
EBITDA	760.56M	727.36M	909.00M	798.80M	785.17M	806.05M
Net Income	113.19M	-79.42M	100.96M	119.87M	57.73M	117.27M
Balance Sheet
Total Assets	9.65B	9.80B	10.25B	10.38B	10.42B	10.55B
Cash, Cash Equivalents and Short-Term Investments	1.66B	2.04B	1.82B	1.75B	1.75B	1.78B
Total Debt	5.36B	5.63B	5.73B	6.04B	6.09B	6.10B
Total Liabilities	6.18B	6.36B	6.61B	6.88B	6.92B	7.06B
Stockholders Equity	3.47B	3.44B	3.64B	3.50B	3.50B	3.49B
Cash Flow
Free Cash Flow	-44.56M	325.54M	475.67M	197.56M	-187.01M	255.92M
Operating Cash Flow	47.43M	402.97M	570.07M	489.29M	396.76M	958.78M
Investing Cash Flow	-255.97M	-264.97M	19.70M	-713.09M	-757.99M	-733.09M
Financing Cash Flow	-272.14M	-155.84M	-449.19M	-100.55M	62.00M	-138.08M

Nan Liu Enterprise Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6504 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2916	73Outperform	TWD 2.57B	9.90	―	9.14%	0.95%	-8.03%
TW:1731	67Neutral	TWD 2.77B	13.77	―	5.87%	7.65%	15.75%
TW:1435	55Neutral	TWD 2.74B	-25.03	―	―	-24.87%	-105.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1463	50Neutral	TWD 2.81B	-21.13	―	0.74%	-81.10%	-120.98%
TW:6504	41Neutral	TWD 2.58B	-547.06	―	2.69%	-1.43%	92.88%
TW:9919	39Underperform	TWD 2.50B	-4.00	―	1.56%	-7.03%	-104.89%

* General Sector Average

Performance Comparison

TW:6504 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6504	Nan Liu Enterprise Co., Ltd	37.20	-4.91	-11.66%
TW:1435	Chung Fu Tex-International Corp.	19.00	-6.85	-26.50%
TW:1463	CS Group Investment Holding Limited	17.10	-1.32	-7.16%
TW:1731	Maywufa Co., Ltd.	20.80	-0.02	-0.08%
TW:2916	Munsin Garment Corporation	39.40	-6.62	-14.39%
TW:9919	KNH Enterprise Co., Ltd.	12.70	-4.15	-24.63%

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

Nan Liu Enterprise Co., Ltd AI Stock Analysis