JDV Control Valves Co., Ltd. (6843) AI Stock Analysis

JDV Control Valves Co., Ltd.

(TPEx:6843)

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Rating:54Neutral

Price Target:TWD 39.00▲(1.30% Upside)

Action:initiatedcoverage

Date:11/09/26

JDV Control Valves scores in the below-average-to-moderate range. The dominant drag is financial performance: despite a revenue recovery and stable gross margins, operating and net margins have declined for three consecutive years, ROE has halved since 2022, leverage has risen sharply, and the company swung to negative operating and free cash flow, meaning earnings were not converted into cash. Technicals reinforce caution, with the shares trading below their 50-, 100- and 200-day averages and MACD negative, though price action has flattened out recently near the 20-day average. The main offset is valuation support from a roughly 5.3% dividend yield at a moderate 20x earnings, although sustaining that payout depends on a return to positive cash generation. Investors should watch working capital normalization and cash flow recovery as the key signals for improvement.

Positive Factors

Solid Industrial ProfitabilitySustained mid-30% gross margins and double-digit operating profitability indicate that JDV retains meaningful value in its engineered valve products. This provides a durable earnings base and suggests the company can continue funding operations and investment despite softer recent growth.

Negative Factors

Negative Operating Cash FlowThe shift to negative operating and free cash flow materially weakens earnings quality and internal funding capacity. If this persists, JDV may need to rely more heavily on external financing, while reduced cash generation could constrain investment and increase execution pressure.

JDV Control Valves Co., Ltd. (6843) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.29B
Dividend Yield: 5.19%
Average Volume (3M): 12.91K
Price to Earnings (P/E): 20.7
Beta (1Y): 0.09
Revenue Growth: 11.54%
EPS Growth: -21.16%
Country: TW
Employees: 171
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

JDV Control Valves Co., Ltd. Business Overview & Revenue Model

Company Description

JDV Control Valves Co., Ltd. specializes in the research, development, engineering, and manufacturing of various types of valves. These crucial components are utilized across a wide array of sectors, including semiconductors, petrochemicals, pharmace...

JDV Control Valves Co., Ltd. Financial Statement Overview

Summary

A mixed-to-soft picture. Revenue rebounded to roughly NT$825 million from NT$743 million and gross margins have held steady in the 35-37% range, showing pricing discipline. However, profitability is deteriorating: operating margin has fallen three straight years from 17.3% to 12.0%, net margin dropped from 14.2% to 8.9%, and net income slipped to about NT$73 million. The balance sheet is still reasonably solid with equity funding roughly 58% of assets, but debt has jumped to about NT$407 million from NT$96 million in 2022, lifting debt-to-equity to 0.47, while ROE halved to about 8.5%. The weakest link is cash flow, which swung to an operating outflow of roughly NT$45 million and negative free cash flow of about NT$65 million, meaning reported profits were not cash-backed and borrowings had to rise.

Income Statement

57Neutral

Balance Sheet

62Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	828.23M	825.38M	743.29M	951.85M	922.64M	782.63M
Gross Profit	316.71M	302.34M	276.19M	348.01M	324.17M	246.19M
EBITDA	103.15M	135.90M	142.12M	196.99M	186.78M	114.30M
Net Income	61.94M	73.28M	79.33M	135.19M	133.21M	71.54M
Balance Sheet
Total Assets	1.50B	1.48B	1.27B	1.31B	1.14B	977.05M
Cash, Cash Equivalents and Short-Term Investments	392.71M	303.87M	288.71M	195.95M	172.39M	156.25M
Total Debt	403.11M	407.40M	243.69M	250.07M	95.70M	170.92M
Total Liabilities	668.09M	620.51M	436.51M	482.52M	367.36M	418.04M
Stockholders Equity	831.02M	860.77M	832.96M	828.15M	776.88M	559.01M
Cash Flow
Free Cash Flow	8.97M	-65.14M	187.95M	84.95M	31.50M	-1.87M
Operating Cash Flow	29.00M	-44.90M	195.67M	101.57M	42.09M	33.45M
Investing Cash Flow	-1.65M	-44.15M	-21.43M	-17.16M	-3.60M	76.80M
Financing Cash Flow	29.94M	99.58M	-93.02M	-51.78M	-22.68M	-12.98M

JDV Control Valves Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6843 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1541	64Neutral	TWD 1.52B	11.19	―	2.59%	-30.14%	21.52%
TW:2235	64Neutral	TWD 1.02B	21.44	―	5.18%	-7.77%	4.84%
TW:4584	61Neutral	TWD 1.07B	20.88	―	5.60%	-16.79%	-50.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6843	54Neutral	TWD 1.28B	20.74	―	5.19%	11.54%	-21.16%
TW:1336	46Neutral	TWD 1.18B	16.29	―	1.76%	8.95%	-21.28%
TW:4528	45Neutral	TWD 1.18B	-20.48	―	1.46%	-3.33%	-515.57%

* General Sector Average

Performance Comparison

TW:6843 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6843	JDV Control Valves Co., Ltd.	38.50	-16.33	-29.78%
TW:1336	Taihan Precision Technology Co., Ltd.	14.80	-1.43	-8.82%
TW:1541	Chang Type Industrial Co., Ltd.	19.70	-4.85	-19.76%
TW:2235	I Yuan Precision Industrial Co. Ltd.	28.95	-3.31	-10.25%
TW:4528	Chian Hsing Forging Industrial Co., Ltd.	13.70	-3.40	-19.87%
TW:4584	Jufan Industrial Co., Ltd.	35.70	-12.73	-26.29%

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

JDV Control Valves Co., Ltd. AI Stock Analysis