Changs Ascending Enterprise Co., Ltd. (8038) AI Stock Analysis

Changs Ascending Enterprise Co., Ltd.

(TPEx:8038)

Select Model

Rating:43Neutral

Price Target:TWD 27.00▼(-2.88% Downside)

Action:initiatedcoverage

Date:11/09/26

Changs Ascending Enterprise scores below average, driven primarily by the gap between reported profits and actual cash generation: a sixth consecutive year of negative operating and free cash flow, funded by rising debt that lifted debt-to-equity to 1.42. This overshadows an otherwise encouraging income statement, where revenue more than tripled, gross margin expanded to 28.9%, and the company returned to profitability with a 12.4% return on equity. Technicals compound the caution, with the share price well below all major moving averages and negative MACD momentum, though oversold RSI and Stochastic readings point to scope for a short-term bounce. A P/E of 33.7 with no dividend leaves little margin for error. This is a high-risk recovery story — meaningful re-rating likely requires positive operating cash flow and falling leverage.

Positive Factors

2025 Revenue ReboundThe 2025 revenue rebound indicates stronger commercial activity and provides a larger base for future earnings. If the higher sales level persists, it can improve operating leverage and support reinvestment, although the company still needs to demonstrate that growth through a full cycle.

Negative Factors

Persistent Negative Cash FlowPersistent negative operating and free cash flow shows that reported profitability has not translated into cash generation. This can increase reliance on external funding, limit internally financed growth, and raise execution risk if the business faces weaker conditions or continued investment needs.

Changs Ascending Enterprise Co., Ltd. (8038) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.74B
Dividend Yield: ―
Average Volume (3M): 160.66K
Price to Earnings (P/E): 33.7
Beta (1Y): 1.09
Revenue Growth: 39.86%
EPS Growth: -115.49%
Country: TW
Employees: 51
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Changs Ascending Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Changs Ascending Enterprise Co., Ltd. (CAE) is a Taiwan-based firm specializing in the research, development, manufacturing, and sales of rechargeable batteries and their essential cell materials. The company's diverse product range includes: Vehicle...

Changs Ascending Enterprise Co., Ltd. Financial Statement Overview

Summary

A genuine earnings inflection is offset by weak cash conversion and rising leverage. Revenue more than tripled to NT$596.9 million, gross margin expanded from 3.7% to 28.9%, and the company swung to NT$57.1 million of net income with a 12.4% return on equity (Income Statement: 61). However, the balance sheet is stretched, with debt climbing to NT$657.8 million and debt-to-equity rising to 1.42 after years of accumulated losses eroded equity (Balance Sheet: 45). The decisive weakness is cash flow: despite reported profits, operating cash flow was negative NT$36.1 million and free cash flow negative NT$38.0 million — the sixth straight year of cash burn — though the burn rate narrowed materially year over year (Cash Flow: 23). Revenue history is also highly erratic, leaving the durability of the recovery unproven.

Income Statement

61Positive

Balance Sheet

45Neutral

Cash Flow

23Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	741.36M	596.93M	176.69M	332.99M	207.39M	66.30M
Gross Profit	184.09M	172.35M	6.45M	89.31M	49.63M	-26.47M
EBITDA	78.04M	92.15M	-60.25M	43.92M	12.35M	-84.55M
Net Income	49.38M	57.10M	-96.19M	8,000	-24.45M	-121.32M
Balance Sheet
Total Assets	1.43B	1.32B	1.07B	1.12B	1.08B	1.03B
Cash, Cash Equivalents and Short-Term Investments	388.81M	317.64M	197.23M	250.25M	159.05M	183.59M
Total Debt	628.94M	657.85M	534.67M	535.96M	589.71M	524.18M
Total Liabilities	801.29M	799.04M	601.06M	566.67M	624.67M	548.60M
Stockholders Equity	482.86M	461.75M	404.43M	498.81M	397.69M	419.83M
Cash Flow
Free Cash Flow	38.84M	-38.01M	-93.30M	-102.46M	-89.09M	-30.30M
Operating Cash Flow	41.38M	-36.11M	-86.47M	-100.05M	-86.58M	-28.22M
Investing Cash Flow	-20.14M	-17.17M	-10.65M	12.21M	-7.72M	93.64M
Financing Cash Flow	152.88M	155.37M	46.14M	192.78M	63.79M	10.42M

Changs Ascending Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8038 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6470	71Outperform	TWD 1.73B	9.80	―	5.49%	-36.59%	-9.82%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8089	54Neutral	TWD 1.98B	-12.87	―	3.30%	-67.55%	-168.26%
TW:6216	50Neutral	TWD 1.76B	885.71	―	5.60%	-25.98%	-97.11%
TW:8038	43Neutral	TWD 1.73B	33.73	―	―	39.86%	-115.49%
TW:8059	39Underperform	TWD 1.61B	-9.42	―	―	438.05%	69.51%

* General Sector Average

Performance Comparison

TW:8038 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8038	Changs Ascending Enterprise Co., Ltd.	27.80	-12.00	-30.15%
TW:3473	Fiber Logic Communications Inc	85.00	-4.30	-4.82%
TW:6216	DrayTek Corporation	18.40	-7.29	-28.37%
TW:6470	U-MEDIA Communications Inc	45.50	2.30	5.31%
TW:8059	CastleNet Technology, Inc.	13.30	-23.53	-63.89%
TW:8089	Comtrend Corp	32.90	2.00	6.47%

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

Changs Ascending Enterprise Co., Ltd. AI Stock Analysis