Chang Wah Electromaterials, Inc. (8070) AI Stock Analysis

Chang Wah Electromaterials, Inc.

(TWSE:8070)

Select Model

Rating:52Neutral

Price Target:TWD 44.00▼(-8.33% Downside)

Action:initiatedcoverage

Date:11/09/26

The score reflects a company with solid financial footing but deteriorating earnings power. Margin compression across every line of the income statement and a halving of net income to NT$716 million (ROE near 4%) are the dominant negatives, only partly offset by resilient cash generation of NT$2.59 billion in operating cash flow and a materially stronger equity base. Technicals compound the caution, with the share price below all major moving averages and a negative MACD. Valuation is a trade-off: a rich 26.6x P/E against earnings under pressure, balanced by a high 6.17% dividend yield backed by positive free cash flow. The investment case rests on management restoring margins and converting revenue growth into profit.

Positive Factors

Semiconductor materials positioningThe company operates in the semiconductor and electronics materials supply chain, with products tied to advanced packaging and assembly. Exposure to these specialized applications can support durable customer relevance as device complexity and packaging requirements continue to develop.

Negative Factors

Material margin compressionThe sharp decline in net and operating margins shows that recent revenue recovery has not translated into comparable earnings strength. Persistent margin pressure would reduce profitability, limit reinvestment capacity, and make results more sensitive to operating changes.

Chang Wah Electromaterials, Inc. (8070) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 33.31B
Dividend Yield: 5.65%
Average Volume (3M): 2.77M
Price to Earnings (P/E): 27.2
Beta (1Y): 0.88
Revenue Growth: 25.04%
EPS Growth: -9.81%
Country: TW
Employees: 2,701
Sector: General
Sector Strength: 55
Industry: Technology Distributors

Chang Wah Electromaterials, Inc. Business Overview & Revenue Model

Company Description

Chang Wah Electromaterials Inc. is a Taiwanese enterprise that primarily functions as an agent for integrated circuit (IC) packaging materials and specialized equipment. Its extensive product range includes various IC packaging materials, along with...

Chang Wah Electromaterials, Inc. Financial Statement Overview

Summary

Chang Wah Electromaterials is financially stable but operationally pressured. Revenue rebounded roughly 12% to NT$19.35 billion, yet profitability eroded sharply: gross margin fell to 18.1% from 20.3% (23.2% in 2022), operating margin compressed to 11.1% from 17.8%, and net income more than halved to NT$716 million, pushing ROE down to about 4%. The balance sheet is the stabilizer, with equity nearly tripling since 2020 and debt-to-equity down to 0.68x, though total debt rose again to NT$12.14 billion just as earnings weakened. Cash flow is the strongest pillar: operating cash flow of NT$2.59 billion exceeded net income more than threefold and free cash flow stayed positive at NT$1.71 billion, albeit declining from NT$2.05 billion and well below the 2022 peak.

Income Statement

44Neutral

Balance Sheet

62Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.65B	19.35B	17.23B	16.49B	21.86B	20.67B
Gross Profit	3.99B	3.51B	3.50B	3.07B	5.07B	4.15B
EBITDA	3.77B	2.90B	3.87B	3.73B	5.37B	3.83B
Net Income	1.19B	716.09M	1.59B	1.48B	3.57B	2.49B
Balance Sheet
Total Assets	52.21B	40.90B	37.90B	36.27B	33.12B	30.31B
Cash, Cash Equivalents and Short-Term Investments	24.17B	16.88B	10.91B	9.94B	8.92B	7.06B
Total Debt	12.30B	12.14B	10.14B	11.54B	10.28B	10.01B
Total Liabilities	20.37B	18.29B	15.55B	16.73B	16.73B	15.59B
Stockholders Equity	26.54B	17.96B	17.46B	15.01B	11.58B	10.89B
Cash Flow
Free Cash Flow	684.16M	1.71B	2.05B	2.29B	4.09B	1.55B
Operating Cash Flow	1.71B	2.59B	2.39B	3.44B	5.46B	2.32B
Investing Cash Flow	-2.53B	-2.27B	-141.34M	-2.88B	-3.08B	-1.52B
Financing Cash Flow	-2.08B	108.89M	-2.96B	-956.01M	-289.99M	850.62M

Chang Wah Electromaterials, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8070 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1773	70Outperform	TWD 44.70B	17.46	―	2.66%	19.58%	31.55%
TW:5234	69Neutral	TWD 27.01B	31.38	―	2.48%	11.98%	23.72%
TW:2328	61Neutral	TWD 24.34B	1.23	―	1.90%	-13.85%	-78.67%
TW:3010	60Neutral	TWD 29.96B	9.91	―	4.49%	16.43%	44.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8112	52Neutral	TWD 43.35B	4.03	―	4.56%	148.84%	1132.71%
TW:8070	52Neutral	TWD 33.78B	27.18	―	5.65%	25.04%	-9.81%

* General Sector Average

Performance Comparison

TW:8070 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8070	Chang Wah Electromaterials, Inc.	48.00	3.55	7.98%
TW:1773	Shiny Chemical Industrial Co., Ltd.	150.50	10.72	7.67%
TW:2328	Pan-International Industrial Corp.	47.40	-2.56	-5.12%
TW:3010	Wah Lee Industrial Corp.	118.00	17.23	17.10%
TW:5234	Daxin Materials Corporation	262.00	-76.79	-22.67%
TW:8112	Supreme Electronics Co., Ltd.	83.40	7.89	10.45%

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

Chang Wah Electromaterials, Inc. AI Stock Analysis