Great China Metal Industry Co., Ltd. (9905) AI Stock Analysis

Great China Metal Industry Co., Ltd.

(TWSE:9905)

Select Model

Rating:58Neutral

Price Target:TWD 21.50▲(3.61% Upside)

Action:initiatedcoverage

Date:11/09/26

Great China Metal scores in the middle of the range. Its financial foundation is solid — minimal debt, a steadily growing equity base, and improving free cash flow that comfortably funds its generous dividend — but multi-year margin compression and flat revenue have cut net income and dragged return on equity to about 5%, which is the primary drag on the score. Technically, the shares are trending lower, sitting below their short- and medium-term moving averages with negative MACD and an RSI near oversold levels. Supporting the score is an inexpensive 12.8x P/E and a 5.3% dividend yield, making this more of an income and stability holding than a growth story until profitability trends improve.

Positive Factors

Conservative Balance SheetStable, low leverage gives Great China Metal financial flexibility through cyclical conditions and reduces pressure from financing costs. The stronger equity base also supports its asset base, leaving more capacity to sustain operations and fund opportunities without depending heavily on additional debt.

Negative Factors

Persistent Margin CompressionSustained margin deterioration indicates that stronger sales are not translating proportionally into operating profit. Continued pricing, mix or cost pressure could limit earnings scalability, weaken resilience during softer demand, and reduce the benefit that revenue growth would otherwise provide to long-term cash generation.

Great China Metal Industry Co., Ltd. (9905) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.33B
Dividend Yield: 5.30%
Average Volume (3M): 116.12K
Price to Earnings (P/E): 11.9
Beta (1Y): 0.12
Revenue Growth: 21.06%
EPS Growth: 36.11%
Country: TW
Employees: 391
Sector: General
Sector Strength: 55
Industry: Packaging & Containers

Great China Metal Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Great China Metal Ind. Co., Ltd., established in 1973 and headquartered in New Taipei City, Taiwan, operates as a prominent international manufacturer and supplier of a wide array of packaging solutions, primarily serving the food and beverage sector...

Great China Metal Industry Co., Ltd. Financial Statement Overview

Summary

A tale of two halves: the balance sheet (75) and cash flow (73) are strong, while the income statement (45) is weak. Debt-to-equity of roughly 0.19 and equity funding ~70% of assets give very low financial risk, and free cash flow jumped to about NT$720 million, covering ~89% of net income — the best conversion in years. Offsetting this, revenue has been flat to declining for three straight years at NT$8.18 billion, gross margin has compressed from ~15.4% to ~9.6%, operating margin halved to ~4.6%, and net income fell ~20% to NT$397 million, pulling return on equity down to about 4.9%. The company is safe and cash-generative but is struggling to restore pricing power and put its large equity base to productive use.

Income Statement

45Neutral

Balance Sheet

75Positive

Cash Flow

73Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.11B	8.18B	8.37B	8.40B	8.77B	8.68B
Gross Profit	968.27M	787.37M	947.74M	911.93M	1.01B	1.28B
EBITDA	788.62M	725.71M	1.04B	982.12M	1.04B	1.22B
Net Income	501.61M	396.90M	498.34M	442.16M	473.30M	601.88M
Balance Sheet
Total Assets	13.13B	11.61B	11.31B	10.75B	11.06B	10.74B
Cash, Cash Equivalents and Short-Term Investments	6.02B	5.92B	5.39B	5.06B	4.59B	4.33B
Total Debt	1.91B	1.52B	1.45B	1.46B	1.66B	1.34B
Total Liabilities	4.29B	3.19B	3.04B	2.94B	3.30B	3.00B
Stockholders Equity	8.57B	8.16B	8.00B	7.54B	7.48B	7.46B
Cash Flow
Free Cash Flow	57.60M	719.58M	521.06M	396.14M	471.31M	1.10B
Operating Cash Flow	165.21M	812.36M	679.88M	590.81M	746.31M	1.25B
Investing Cash Flow	-280.97M	162.12M	-291.61M	-241.39M	-296.85M	-604.19M
Financing Cash Flow	161.75M	-301.92M	-418.85M	-404.15M	-432.52M	-481.81M

Great China Metal Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:9905 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5538	60Neutral	TWD 6.98B	7.86	―	4.32%	2.79%	64.26%
TW:2008	58Neutral	TWD 5.86B	47.48	―	3.26%	-3.73%	39.65%
TW:2029	58Neutral	TWD 6.74B	17.52	―	2.86%	-11.60%	86.76%
TW:9905	58Neutral	TWD 6.33B	11.87	―	5.30%	21.06%	36.11%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2020	53Neutral	TWD 5.94B	10.70	―	8.09%	2.35%	1.68%
TW:2030	49Neutral	TWD 7.28B	13.31	―	1.93%	9.86%	784.76%

* General Sector Average

Performance Comparison

TW:9905 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:9905	Great China Metal Industry Co., Ltd.	20.75	1.78	9.40%
TW:2008	Kao Hsing Chang Iron & Steel Corporation	30.70	3.78	14.05%
TW:2020	Mayer Steel Pipe Corporation	22.25	0.76	3.52%
TW:2029	Sheng Yu Steel Co., Ltd.	21.00	0.65	3.19%
TW:2030	Froch Enterprise Co., Ltd.	25.95	12.37	91.15%
TW:5538	Tong Ming Enterprise Co., Ltd.	34.70	6.98	25.20%

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

Great China Metal Industry Co., Ltd. AI Stock Analysis