Taiwan Chinsan Electronic Industrial Co. (8042) AI Stock Analysis

Taiwan Chinsan Electronic Industrial Co.

(TPEx:8042)

Select Model

Rating:51Neutral

Price Target:TWD 130.00▲(3.59% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by a high valuation multiple that is difficult to justify given the company's thin margins and negative free cash flow. While the business is showing top-line recovery and maintains a stable balance sheet, the inability to convert profits into cash for shareholders is a significant risk. Technical trends are neutral, providing no catalyst to overcome the fundamental concerns.

Positive Factors

Recent Revenue RecoveryThe return to revenue growth indicates improving demand after the earlier contraction and provides a better base for operating leverage. If sustained across its industrial and consumer applications, this recovery can support greater scale, product investment, and more consistent earnings over the next several quarters.

Negative Factors

Negative Free Cash FlowNegative free cash flow means recent accounting profits have not translated into internally available cash, limiting the funds available for debt reduction, dividends, or growth investments. If the shortfall persists, the company may have less flexibility to absorb demand changes or sustain expansion without external funding.

Taiwan Chinsan Electronic Industrial Co. (8042) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 17.25B
Dividend Yield: 0.95%
Average Volume (3M): 11.60M
Price to Earnings (P/E): 33.1
Beta (1Y): 1.64
Revenue Growth: 29.83%
EPS Growth: 1109.06%
Country: TW
Employees: 1,443
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Taiwan Chinsan Electronic Industrial Co. Business Overview & Revenue Model

Company Description

Taiwan Chinsan Electronic Industrial Co., Ltd., operating with its subsidiaries, functions as a global manufacturer, processor, and distributor of capacitors, crucial electronic components utilized across a wide spectrum of electronic equipment. The...

Taiwan Chinsan Electronic Industrial Co. Financial Statement Overview

Summary

Financial performance is mixed. The income statement shows a solid revenue recovery and improving net margins, but profitability remains thin and operating expenses are rising. The balance sheet is stable with manageable leverage, yet return on equity is low. The primary concern is weak cash flow conversion, with negative free cash flow indicating capital-intensive growth that does not yet benefit shareholders.

Income Statement

58Neutral

Balance Sheet

62Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.40B	3.77B	3.43B	3.19B	3.73B	4.30B
Gross Profit	934.36M	754.01M	674.55M	553.56M	665.77M	687.98M
EBITDA	508.86M	408.71M	422.24M	403.36M	379.85M	422.93M
Net Income	494.99M	115.44M	77.43M	92.67M	104.61M	161.13M
Balance Sheet
Total Assets	10.14B	8.93B	8.93B	8.09B	8.13B	7.97B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.07B	2.51B	2.25B	2.12B	1.55B
Total Debt	3.70B	3.83B	3.99B	3.55B	3.56B	3.31B
Total Liabilities	5.49B	4.89B	4.80B	4.18B	4.08B	4.23B
Stockholders Equity	4.55B	3.96B	4.06B	3.85B	3.98B	3.68B
Cash Flow
Free Cash Flow	-766.02M	-24.01M	24.06M	293.65M	291.76M	-52.48M
Operating Cash Flow	8.51M	313.83M	223.74M	700.66M	687.38M	255.30M
Investing Cash Flow	-216.73M	65.49M	-523.53M	-449.92M	-380.42M	-266.99M
Financing Cash Flow	7.21M	-311.00M	73.14M	-274.77M	75.71M	90.55M

Taiwan Chinsan Electronic Industrial Co. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8042 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3357	64Neutral	TWD 20.95B	12.69	―	3.00%	30.96%	30.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5425	52Neutral	TWD 20.28B	22.65	―	2.57%	7.28%	85.43%
TW:8042	51Neutral	TWD 18.15B	33.11	―	0.95%	29.83%	1109.06%
TW:3234	39Underperform	TWD 18.39B	-228.69	―	―	33.49%	56.29%
TW:2340	30Underperform	TWD 18.47B	-22.37	―	―	5.05%	34.85%

* General Sector Average

Performance Comparison

TW:8042 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8042	Taiwan Chinsan Electronic Industrial Co.	125.50	81.47	185.00%
TW:2255	Jet Optoelectronics Co., Ltd.	12.75	-13.90	-52.16%
TW:2340	Taiwan-Asia Semiconductor Corporation	40.05	15.00	59.88%
TW:3234	Truelight Corporation	139.50	102.34	275.43%
TW:3357	TAI-TECH Advanced Electronics Co., Ltd.	169.50	9.75	6.10%
TW:5425	Taiwan Semiconductor Co., Ltd.	78.60	24.62	45.60%

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

Taiwan Chinsan Electronic Industrial Co. AI Stock Analysis