Fu Chun Shin Machinery Manufacture Co., Ltd. (6603) AI Stock Analysis

Fu Chun Shin Machinery Manufacture Co., Ltd.

(TPEx:6603)

Select Model

Rating:42Neutral

Price Target:TWD 22.00▼(-4.35% Downside)

Action:initiatedcoverage

Date:11/09/26

Fu Chun Shin scores in the lower band primarily because profits are not converting into cash: despite record revenue of about NT$5.08 billion and 28% net income growth, operating cash flow turned negative and free cash flow was -NT$116 million while debt climbed to 1.23x equity. Thin margins (~2% net) and modest ROE (~3.9%) leave limited cushion for a cyclical business. Technicals reinforce caution, with the price below all key moving averages and a negative MACD, though oversold RSI and Stochastic readings hint at potential short-term stabilisation. Valuation adds further pressure, as a P/E above 30 appears expensive for current earnings quality, with only a modest 1.76% dividend yield as compensation. A sustained return to positive operating cash flow and debt reduction would be the key catalysts for an improved score.

Positive Factors

Revenue RecoveryThe return to revenue growth after the 2023 decline indicates recovering demand for the company’s machinery and automation offerings. Continued top-line improvement would support better operating leverage, strengthen utilization of its industrial platform, and provide a foundation for earnings recovery over the next several quarters.

Negative Factors

Weak Cash ConversionNegative operating and free cash flow despite improved reported earnings indicates that profits are not consistently converting into cash. Persistent volatility can restrict self-funded investment, increase reliance on external financing, and leave the company less able to absorb weaker demand or working-capital pressure.

Fu Chun Shin Machinery Manufacture Co., Ltd. (6603) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.74B
Dividend Yield: 1.75%
Average Volume (3M): 2.15M
Price to Earnings (P/E): 29.2
Beta (1Y): 0.89
Revenue Growth: 0.48%
EPS Growth: 72.87%
Country: TW
Employees: 961
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Fu Chun Shin Machinery Manufacture Co., Ltd. Business Overview & Revenue Model

Company Description

Fu Chun Shin Machinery Manufacture Co., Ltd. (FCS), established in 1974 and based in Tainan, Taiwan, operates globally, focusing on the production, processing, trade, and repair of plastic injection machinery, molds, electric wires, cables, and vario...

Fu Chun Shin Machinery Manufacture Co., Ltd. Financial Statement Overview

Summary

Mixed quality recovery. Revenue reached a multi-year high of about NT$5.08 billion (+12%) and net income rose roughly 28% to NT$100 million, but profitability remains thin at around 25% gross and only ~2% net margin, with ROE of about 3.9% (Income Statement 51). The balance sheet is becoming more leveraged, with total debt rising to NT$3.15 billion against NT$2.57 billion of equity (debt/equity ~1.23) and equity funding only about 30% of assets (Balance Sheet 45). The biggest weakness is cash conversion: operating cash flow turned negative at about NT$7 million and free cash flow was negative NT$116 million, with free cash flow negative in four of the last six years (Cash Flow 26). Rising borrowings alongside weak cash generation offset the cyclical sales rebound.

Income Statement

51Neutral

Balance Sheet

45Neutral

Cash Flow

26Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.07B	5.08B	4.53B	3.86B	4.61B	4.33B
Gross Profit	1.29B	1.29B	1.16B	1.01B	1.23B	1.05B
EBITDA	346.38M	330.90M	374.73M	251.38M	404.26M	341.90M
Net Income	131.99M	100.47M	78.77M	20.60M	159.46M	117.64M
Balance Sheet
Total Assets	8.51B	8.51B	7.71B	7.28B	7.00B	6.63B
Cash, Cash Equivalents and Short-Term Investments	855.92M	960.10M	775.71M	759.20M	925.10M	939.03M
Total Debt	2.74B	3.15B	2.84B	2.73B	2.72B	2.01B
Total Liabilities	5.67B	5.75B	5.09B	4.90B	4.55B	4.35B
Stockholders Equity	2.65B	2.57B	2.44B	2.22B	2.28B	2.12B
Cash Flow
Free Cash Flow	250.64M	-115.76M	19.76M	-230.89M	-452.09M	-141.08M
Operating Cash Flow	340.00M	-7.36M	195.24M	263.00M	-50.99M	138.48M
Investing Cash Flow	-178.28M	-32.82M	17.58M	-527.41M	-222.78M	-201.55M
Financing Cash Flow	-42.56M	255.16M	-13.51M	61.58M	440.07M	195.10M

Fu Chun Shin Machinery Manufacture Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6603 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4541	61Neutral	TWD 3.68B	13.19	―	2.72%	29.25%	149.18%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4569	54Neutral	TWD 4.24B	16.13	―	2.27%	12.32%	150.98%
TW:4556	52Neutral	TWD 4.19B	98.60	―	0.58%	5.07%	92.06%
TW:1584	45Neutral	TWD 3.75B	26.53	―	1.61%	-9.63%	439.46%
TW:6603	42Neutral	TWD 3.79B	29.17	―	1.75%	0.48%	72.87%
TW:4510	40Neutral	TWD 4.12B	40.58	―	2.10%	17.94%	―

* General Sector Average

Performance Comparison

TW:6603 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6603	Fu Chun Shin Machinery Manufacture Co., Ltd.	23.00	3.77	19.57%
TW:1584	S-Tech Corp	16.00	-5.96	-27.13%
TW:4510	Kao Fong Machinery Co., Ltd.	37.85	-1.10	-2.82%
TW:4541	Magnate Technology Co., Ltd.	50.50	9.22	22.34%
TW:4556	Bright Sheland International Co Ltd	104.00	78.12	301.84%
TW:4569	Sixxon Tech Co Ltd	143.00	-3.59	-2.45%

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

Fu Chun Shin Machinery Manufacture Co., Ltd. AI Stock Analysis