Cica-Huntek Chemical Technology Taiwan Co (6725) AI Stock Analysis

Cica-Huntek Chemical Technology Taiwan Co

(TPEx:6725)

Select Model

Rating:60Neutral

Price Target:TWD 149.00▼(-13.12% Downside)

Action:initiatedcoverage

Date:11/09/26

The score reflects a financially sound company caught in a severe technical downtrend. Fundamentals are mixed-to-positive: rapid revenue growth, a low-leverage balance sheet (0.21 debt-to-equity) and 17.6% ROE are offset by sharp margin compression that cut profit roughly 30% and by inconsistent cash conversion, with operating cash flow covering only about half of reported earnings. Technicals are the key drag — the price sits far below all major moving averages with deeply negative MACD and oversold momentum readings, signalling continued selling pressure. Valuation provides the main offset, with an 11.3 P/E and a near-5% dividend yield offering support, though those metrics rest on declining earnings. Investors should look for stabilisation in margins and cash flow, plus evidence of a technical base, before the stock warrants a higher rating.

Positive Factors

Sustained Revenue GrowthStrong multi-year revenue expansion indicates a business operating in a clear growth phase rather than relying only on isolated quarterly gains. Continued top-line progress can support scale benefits, investment in operations, and a stronger competitive position over the next several quarters.

Negative Factors

Weak Earnings-to-Cash ConversionLow operating cash flow relative to reported earnings raises a durable quality-of-earnings concern, because accounting profit is not consistently translating into cash available for reinvestment, debt reduction, or shareholder returns. This can constrain financial flexibility if growth requires sustained funding.

Cica-Huntek Chemical Technology Taiwan Co (6725) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.59B
Dividend Yield: 4.08%
Average Volume (3M): 88.94K
Price to Earnings (P/E): 13.5
Beta (1Y): 1.14
Revenue Growth: ―
EPS Growth: ―
Country: TW
Employees: 362
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Cica-Huntek Chemical Technology Taiwan Co Business Overview & Revenue Model

Company Description

Cica-Huntek Chemical Technology Taiwan Co., Ltd. specializes in providing chemical management solutions across Asia. The company's operations span the design, development, manufacturing, and sale of essential chemical supply systems. Their product ra...

Cica-Huntek Chemical Technology Taiwan Co Financial Statement Overview

Summary

Cica-Huntek blends strong growth with a conservative balance sheet, but earnings quality is slipping. Revenue has more than tripled since 2022 (NT$1.19bn to NT$3.82bn), and the balance sheet scores well (76) on equity nearly doubling to NT$2.44bn and debt-to-equity falling to just 0.21. However, the income statement (63) shows sharp margin compression — gross margin down to 23.0% from 30.8% and net margin to 11.2% from 19.5% — driving net income about 30% lower to NT$429m despite higher sales. Cash flow is the weakest link (50), with operating cash flow swinging from NT$573m to negative NT$56m and back to NT$213m, covering only about half of reported net income. ROE of 17.6% remains respectable but fell steeply from 43.6%.

Income Statement

63Positive

Balance Sheet

76Positive

Cash Flow

50Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.80B	3.82B	3.15B	2.81B	1.19B	943.51M
Gross Profit	699.87M	877.30M	972.76M	802.13M	230.46M	180.90M
EBITDA	594.10M	636.84M	823.31M	676.23M	154.92M	127.34M
Net Income	439.94M	429.16M	616.28M	516.17M	110.98M	90.37M
Balance Sheet
Total Assets	4.61B	4.32B	3.03B	3.11B	1.36B	1.05B
Cash, Cash Equivalents and Short-Term Investments	847.03M	1.63B	947.73M	1.38B	351.15M	271.81M
Total Debt	434.67M	505.27M	543.10M	689.34M	19.73M	107.57M
Total Liabilities	2.24B	1.88B	1.61B	2.08B	792.35M	563.85M
Stockholders Equity	2.37B	2.44B	1.41B	1.02B	566.02M	487.15M
Cash Flow
Free Cash Flow	-517.41M	168.21M	-60.39M	417.59M	226.17M	74.82M
Operating Cash Flow	-228.08M	213.13M	-55.54M	572.58M	228.99M	76.03M
Investing Cash Flow	-331.96M	313.77M	337.27M	-806.27M	-170.75M	-36.77M
Financing Cash Flow	869.80M	547.21M	-401.02M	596.91M	-142.40M	13.34M

Cica-Huntek Chemical Technology Taiwan Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6725 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5209	76Outperform	TWD 5.67B	11.38	―	5.94%	4.58%	32.53%
TW:1535	69Neutral	TWD 5.55B	12.21	―	6.73%	-23.64%	-8.34%
TW:6953	64Neutral	TWD 6.27B	19.42	―	2.87%	23.38%	39.41%
TW:4721	63Neutral	TWD 5.16B	13.59	―	3.34%	13.33%	84.75%
TW:3388	60Neutral	TWD 5.74B	12.71	―	4.66%	6.26%	37.04%
TW:6725	60Neutral	TWD 6.37B	13.51	―	4.08%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:6725 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6725	Cica-Huntek Chemical Technology Taiwan Co	171.50	-73.61	-30.03%
TW:1535	China Ecotek Corp.	44.55	-7.17	-13.86%
TW:3388	Topco Technologies Corp.	71.60	11.84	19.82%
TW:4721	Mechema Chemicals International Corp.	68.80	1.43	2.12%
TW:5209	CTCI Advanced Systems Inc.	218.00	59.87	37.86%
TW:6953	Gudeng Equipment Co., Ltd.	209.00	27.42	15.10%

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

Cica-Huntek Chemical Technology Taiwan Co AI Stock Analysis