Taiwan Cogeneration Corporation (8926) AI Stock Analysis

Taiwan Cogeneration Corporation

(TWSE:8926)

Select Model

Rating:64Neutral

Price Target:TWD 56.00▲(6.46% Upside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Cogeneration scores moderately above average. The strongest support comes from fundamentals: a sharp rebound in cash generation (NT$2.24bn free cash flow), widening margins, improved ROE of 11.3% and a conservatively funded balance sheet. Valuation reinforces the case, with a modest 13.1x P/E, a 4.08% dividend yield and low volatility. Offsetting this, the share price sits below all major moving averages with negative MACD, reflecting a sustained downtrend, although oversold RSI and Stochastic readings suggest selling pressure may be stretched. Key fundamental risks are the cyclical revenue base, a 61% increase in borrowings, and heavy dependence on non-operating income for reported profits.

Positive Factors

Improved ProfitabilityThe sharp improvement in gross and net margins indicates stronger recent earnings economics and better profitability from the company’s operations. If these gains persist, they can support reinvestment, strengthen returns, and provide greater resilience against moderate changes in revenue.

Negative Factors

Revenue ContractionThe revenue decline indicates that recent earnings improvement has not been accompanied by top-line expansion. Exposure to end-market or project cyclicality can make future growth less predictable and may pressure margins if the company must absorb lower activity through its fixed operating base.

Taiwan Cogeneration Corporation (8926) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 42.76B
Dividend Yield: 4.03%
Average Volume (3M): 2.39M
Price to Earnings (P/E): 12.3
Beta (1Y): 0.56
Revenue Growth: 324.33%
EPS Growth: 63.71%
Country: TW
Employees: 239
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Taiwan Cogeneration Corporation Business Overview & Revenue Model

Company Description

Taiwan Cogeneration Corporation, together with its subsidiaries, engages in the operation and management of cogeneration plants in Taiwan. It operates through Guantian Cogeneration Plant, and Construction and Consulting Services segments. The company...

Taiwan Cogeneration Corporation Financial Statement Overview

Summary

Solid overall financial health. Cash flow is the standout (score 77): operating cash flow more than doubled to NT$3.01bn and free cash flow reached NT$2.24bn (~29% of revenue), with operating cash flow covering net income about 1.7x. The balance sheet (score 70) is well capitalized, with equity of NT$15.8bn funding roughly half of a NT$30.8bn asset base and ROE improving to 11.3%, though total debt jumped about 61% to NT$9.0bn to fund asset growth. The income statement (score 64) shows improving quality at the operating level — gross margin widened to 14.2% and operating margin to 7.4% — but revenue fell about 7.5% to NT$7.6bn and remains highly cyclical (NT$4.7bn–NT$9.3bn over six years). Net profit of NT$1.79bn is roughly three times operating profit, signalling heavy reliance on non-operating income and weaker earnings predictability.

Income Statement

64Positive

Balance Sheet

70Positive

Cash Flow

77Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	38.17B	7.61B	9.13B	5.35B	4.67B	6.41B
Gross Profit	3.69B	1.08B	780.69M	543.26M	628.23M	776.50M
EBITDA	3.56B	1.02B	878.63M	1.84B	673.59M	797.54M
Net Income	3.50B	1.79B	1.35B	1.25B	906.77M	897.88M
Balance Sheet
Total Assets	81.11B	30.79B	27.28B	26.16B	24.98B	24.05B
Cash, Cash Equivalents and Short-Term Investments	8.19B	2.58B	2.33B	2.66B	3.75B	2.77B
Total Debt	33.11B	8.95B	5.56B	5.79B	8.12B	7.40B
Total Liabilities	50.47B	15.02B	11.90B	10.57B	13.13B	12.08B
Stockholders Equity	19.88B	15.78B	15.38B	15.45B	11.69B	11.83B
Cash Flow
Free Cash Flow	-217.09M	2.24B	897.55M	-1.12B	1.13B	1.18B
Operating Cash Flow	831.04M	3.01B	1.27B	-92.75M	1.79B	1.77B
Investing Cash Flow	-4.98B	-4.60B	-23.69M	-1.74B	-482.61M	-763.28M
Financing Cash Flow	6.25B	1.84B	-1.33B	20.11M	-343.01M	156.63M

Taiwan Cogeneration Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8926 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2211	73Outperform	TWD 31.31B	10.47	―	8.42%	5.27%	-13.78%
TW:8926	64Neutral	TWD 44.25B	12.33	―	4.03%	324.33%	63.71%
TW:1722	57Neutral	TWD 38.22B	128.47	―	5.14%	3.95%	-81.06%
TW:8422	57Neutral	TWD 32.47B	19.67	―	5.02%	25.08%	-12.23%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3576	44Neutral	TWD 28.22B	26.59	―	―	-32.61%	―
TW:1314	32Underperform	TWD 28.88B	-9.58	―	―	-34.68%	-40.38%

* General Sector Average

Performance Comparison

TW:8926 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8926	Taiwan Cogeneration Corporation	52.60	10.31	24.38%
TW:1314	China Petrochemical Development Corporation	7.56	-1.32	-14.86%
TW:1722	Taiwan Fertilizer Co., Ltd.	38.90	-6.64	-14.58%
TW:2211	Evergreen Steel Corporation	77.20	-27.54	-26.29%
TW:3576	United Renewable Energy Co., Ltd.	17.75	11.20	170.99%
TW:8422	Cleanaway Co., Ltd.	23.85	-0.09	-0.37%

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 Cogeneration Corporation AI Stock Analysis