Skip to main content
TipRanks
Go Ultimate75% OFF

Chin Hsin Environ Engineering Co. Ltd. (6951) AI Stock Analysis

TW:6951

Chin Hsin Environ Engineering Co. Ltd.

(TWSE:6951)

Select Model
Rating:74Outperform
Price Target:TWD 70.00â–²(13.64% Upside)
Action:initiatedcoverage
Date:11/09/26

The score is driven primarily by strong fundamentals: rapid revenue growth, substantial margin expansion, ~22% return on equity and a near debt-free balance sheet (0.08x debt-to-equity). Valuation adds support, with an undemanding P/E near 11 and a ~5% dividend yield. Offsetting these strengths are inconsistent cash generation — free cash flow absorbs only a small share of profits due to heavy expansion capex — and a weak technical picture, with the price below all major moving averages and a negative MACD, though deeply oversold momentum readings suggest selling may be stretched.

Positive Factors
High Profitability and Expanding ScaleThe combination of exceptionally strong 2025 margins and substantial multi-year revenue expansion indicates an economically attractive operating model. If these margins remain durable, the company should retain meaningful earnings capacity to support reinvestment, resilience, and shareholder returns over the coming quarters.
Negative Factors
Volatile Free Cash Flow ConversionProfitability has not consistently translated into free cash flow, creating uncertainty about the cash available for dividends, reinvestment, or balance-sheet strengthening. Volatility in working capital or investment needs could continue to make shareholder returns less predictable even when reported earnings remain strong.

Chin Hsin Environ Engineering Co. Ltd. (6951) vs. SPDR S&P 500 ETF (SPY)

-10%-5%0%5%10%15%20%TW:6951-0.46%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 3.18B
Dividend Yield
5.08%
Average Volume (3M)
26.58K
Price to Earnings (P/E)
11.6
Beta (1Y)
0.17
Revenue Growth
15.67%
EPS Growth
-3.73%
Country
TW
Employees
166
Sector
General
Sector Strength
55
Industry
Waste Management

Chin Hsin Environ Engineering Co. Ltd. Business Overview & Revenue Model

Company Description

Chin Hsin Environ Engineering Co., Ltd. provides general, hazardous industrial, and biomedical waste removal and treatment services in Taiwan. The company offers sludge, organic solvent, and waste chemical removal products for business waste applicat...

Chin Hsin Environ Engineering Co. Ltd. Financial Statement Overview

Summary

Financials are the standout strength. Revenue has quadrupled since 2020 to roughly NT$866 million, with gross margin expanding from 37% to 59% and operating margin reaching 41%, lifting net income to about NT$248 million (Income Statement 89). The balance sheet is exceptionally conservative, with debt-to-equity down to 0.08x, equity funding 71% of assets and return on equity near 22% (Balance Sheet 88). The weaker link is cash flow (66): operating cash flow rebounded strongly to about NT$356 million, but heavy capacity-expansion capex near NT$300 million left free cash flow at only about NT$59 million, following a negative free cash flow year, highlighting volatile working capital and low profit-to-cash conversion.

Income Statement

89Very Positive

Balance Sheet

88Very Positive

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue946.44M865.62M698.73M487.48M447.41M249.93M
Gross Profit565.45M509.93M402.30M256.22M214.88M100.78M
EBITDA463.48M417.11M321.82M178.05M149.72M75.29M
Net Income284.47M247.74M210.74M104.53M86.71M34.65M
Balance Sheet
Total Assets1.71B1.63B1.54B1.10B1.05B697.00M
Cash, Cash Equivalents and Short-Term Investments365.37M473.00M616.90M320.49M328.27M213.17M
Total Debt67.91M86.74M94.82M87.19M89.18M93.70M
Total Liabilities596.85M475.54M466.60M446.10M454.24M309.28M
Stockholders Equity1.11B1.15B1.08B643.80M587.25M377.72M
Cash Flow
Free Cash Flow54.76M59.49M-69.73M73.56M109.70M33.23M
Operating Cash Flow368.73M356.28M-2.92M142.55M172.50M43.20M
Investing Cash Flow-308.41M-331.37M-173.61M-87.58M-154.60M-54.12M
Financing Cash Flow-195.76M-177.79M189.31M-62.75M97.21M135.74M

Chin Hsin Environ Engineering Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:6951 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:6951TW:695174OutperformTWD 3.18B11.58―5.08%15.67%-3.73%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:8476TW:847638UnderperformTWD 2.94B66.39―1.13%-0.58%-19.41%

* General Sector Average

Performance Comparison

0%100%200%TW:6951TW:6750TW:7820TW:7846TW:7921TW:8476Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:6951 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:6951Chin Hsin Environ Engineering Co. Ltd.61.60-0.96-1.53%
TW:6750Tech-Top Engineering CO. LTD.55.3016.7043.28%
TW:7820Liying Environmental Protection Technology Co., Ltd.91.00-95.64-51.24%
TW:7846Htc & Solar Tech Service Limited80.9042.47110.52%
TW:7921Recharge Power Co., Ltd.73.10-73.24-50.05%
TW:8476Taiwan Environment Scientific Co., Ltd.17.65-0.60-3.28%
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