Pontex Polyblend Co. Ltd. (8935) AI Stock Analysis

Pontex Polyblend Co. Ltd.

(TPEx:8935)

Select Model

Rating:39Underperform

Price Target:TWD 16.50▼(-5.17% Downside)

Action:initiatedcoverage

Date:11/09/26

Pontex Polyblend scores poorly, driven primarily by a weak financial profile: four consecutive years of revenue decline, gross margin compression below 7%, and widening losses that are now eroding the equity base. A conservatively managed balance sheet (debt-to-equity of 0.59x, equity exceeding borrowings) and a return to positive operating and free cash flow in 2025 provide a partial cushion, but cash generation is minimal. Technicals reinforce the caution, with the stock trading below all major moving averages and negative MACD momentum. Valuation offers no offset given negative earnings and the absence of a dividend. Earnings call and corporate event data were unavailable and excluded, with their weight redistributed to the remaining components.

Positive Factors

Positive Free Cash FlowPositive operating and free cash flow in 2025 shows the company still converted operations into cash despite reporting a net loss. Although modest and volatile, this provides some internal funding capacity and is a more durable stabilizer than accounting profitability alone.

Negative Factors

Persistent Revenue DeclineA multi-year revenue decline signals weakening demand, volume, or pricing power rather than a brief quarterly setback. Continued contraction reduces operating leverage, limits reinvestment capacity, and makes it harder for the company to absorb fixed costs or rebuild profitability.

Pontex Polyblend Co. Ltd. (8935) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.95B
Dividend Yield: ―
Average Volume (3M): 116.46K
Price to Earnings (P/E): -28.7
Beta (1Y): 0.92
Revenue Growth: -13.84%
EPS Growth: 12.29%
Country: TW
Employees: 215
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Pontex Polyblend Co. Ltd. Business Overview & Revenue Model

Company Description

Pontex Polyblend Co., Ltd., established in 1982 and headquartered in Taichung City, Taiwan, is a global enterprise specializing in two core areas: the production of engineering plastics compound materials and footwear manufacturing through injection...

Pontex Polyblend Co. Ltd. Financial Statement Overview

Summary

Fundamentals are weak and deteriorating. Revenue has fallen four straight years (from NT$1.38bn in 2021 to NT$518m in 2025, -62% cumulatively), gross margin has compressed to just 6.9%, and the company posted an operating loss of NT$86.9m and a net loss of NT$86.6m (-16.7% net margin), with EBITDA now sharply negative. The balance sheet is the relative bright spot: debt has been cut to NT$510m, equity of NT$866m exceeds borrowings, and debt-to-equity sits at a conservative 0.59x — though equity is eroding from accumulated losses and ROE is roughly -10%. Cash flow improved modestly, with operating cash flow swinging to +NT$25.7m and free cash flow to +NT$15.5m, but the absolute level is minimal (about 5% of revenue) and its sustainability is questionable while earnings remain deeply negative.

Income Statement

15Very Negative

Balance Sheet

50Neutral

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	492.63M	518.24M	553.24M	594.31M	946.48M	1.38B
Gross Profit	58.60M	35.63M	58.56M	67.56M	172.44M	210.31M
EBITDA	-23.78M	-46.88M	-11.92M	136.00K	96.77M	111.82M
Net Income	-65.00M	-86.60M	-73.34M	-69.90M	27.36M	43.46M
Balance Sheet
Total Assets	1.44B	1.45B	1.50B	1.55B	1.72B	1.77B
Cash, Cash Equivalents and Short-Term Investments	282.48M	253.65M	192.59M	190.43M	217.45M	143.46M
Total Debt	516.62M	510.16M	464.83M	587.88M	787.88M	857.96M
Total Liabilities	575.68M	587.94M	537.23M	679.78M	883.17M	984.07M
Stockholders Equity	866.57M	865.80M	967.49M	865.75M	837.87M	783.67M
Cash Flow
Free Cash Flow	44.65M	15.47M	-32.29M	58.58M	135.02M	20.41M
Operating Cash Flow	55.40M	25.68M	-4.01M	79.51M	146.99M	39.30M
Investing Cash Flow	4.99M	8.62M	-21.91M	-39.01M	-46.82M	-18.08M
Financing Cash Flow	62.77M	45.13M	31.00M	-77.78M	-75.89M	-4.56M

Pontex Polyblend Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8935 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1742	56Neutral	TWD 1.99B	-40.88	―	―	-39.62%	56.82%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1735	53Neutral	TWD 1.90B	16.50	―	3.37%	1.82%	132.90%
TW:1323	51Neutral	TWD 1.99B	17.09	―	4.15%	-3.86%	-37.34%
TW:1220	44Neutral	TWD 1.79B	154.70	―	2.03%	-5.47%	-79.97%
TW:1325	41Neutral	TWD 2.16B	-42.66	―	1.19%	-21.19%	47.07%
TW:8935	39Underperform	TWD 1.96B	-28.69	―	―	-13.84%	12.29%

* General Sector Average

Performance Comparison

TW:8935 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8935	Pontex Polyblend Co. Ltd.	17.40	-1.25	-6.70%
TW:1220	Tai Roun Products Co.,Ltd.	9.87	-2.66	-21.20%
TW:1323	Yonyu Plastics Co., Ltd	21.70	2.99	15.98%
TW:1325	Universal Incorporation	25.30	-5.95	-19.04%
TW:1735	Evermore Chemical Industry Co., Ltd.	19.30	4.87	33.72%
TW:1742	Taiwan Wax Co., Ltd.	21.20	7.50	54.74%

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

Pontex Polyblend Co. Ltd. AI Stock Analysis