Taiwan Fu Hsing Industrial Co., Ltd. (9924) AI Stock Analysis

Taiwan Fu Hsing Industrial Co., Ltd.

(TWSE:9924)

Select Model

Rating:57Neutral

Price Target:TWD 39.00▲(4.14% Upside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Fu Hsing scores in the mid-range, held back primarily by deteriorating fundamentals: four straight years of revenue decline, a ~41% drop in net income, meaningful margin compression, and a swing to negative free cash flow as operating cash generation fell nearly 80%. Offsetting this is an exceptionally conservative balance sheet — essentially debt-free with equity covering more than three-quarters of assets — which sharply limits financial risk and provides a cushion through the downturn. Technicals are negative, with the price below all major moving averages and a negative MACD, though momentum readings suggest the stock is nearing oversold levels. Valuation provides the main support: an undemanding ~11x P/E and a very high dividend yield, albeit one whose sustainability is questionable given falling earnings and negative free cash flow. The result is a low-risk capital structure paired with an unproven operational turnaround.

Positive Factors

Conservative Balance SheetLow leverage and a substantial equity base provide resilience during a softer construction cycle. Limited debt exposure can reduce solvency pressure, preserve financing flexibility, and allow management to continue supporting operations while profitability works through its recent decline.

Negative Factors

Multi-Year Revenue DeclineA prolonged revenue contraction indicates weaker demand or reduced business volume rather than a single-quarter fluctuation. Continued top-line pressure can limit operating leverage, reduce reinvestment capacity, and make a durable recovery in earnings more difficult.

Taiwan Fu Hsing Industrial Co., Ltd. (9924) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.65B
Dividend Yield: 12.02%
Average Volume (3M): 112.26K
Price to Earnings (P/E): 10.8
Beta (1Y): 0.21
Revenue Growth: -6.41%
EPS Growth: -17.43%
Country: TW
Employees: 979
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Taiwan Fu Hsing Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Taiwan Fu Hsing Industrial Co., Ltd. is a global provider specializing in the manufacture and distribution of a diverse range of door hardware and related accessories, serving markets across the United States, Asia, Europe, and other international re...

Taiwan Fu Hsing Industrial Co., Ltd. Financial Statement Overview

Summary

A mixed picture dominated by weakening operations. The balance sheet is a genuine fortress (score 83) — debt-to-equity of just 0.06 and equity funding 77% of assets — leaving minimal financial risk. However, the income statement (48) shows a fourth consecutive year of revenue decline to NT$7.38bn, with net income down ~41% to NT$533m and EBIT margin halving to 9.6%. Cash flow is the weakest link (34): operating cash flow collapsed ~79% to NT$304m and free cash flow swung to negative NT$273m, meaning the business did not self-fund its capital needs. The debt-free position buys time, but revenue stabilization, margin recovery, and positive free cash flow are needed before the trend can be called healthy.

Income Statement

48Neutral

Balance Sheet

83Very Positive

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.03B	7.38B	8.04B	9.07B	9.53B	9.69B
Gross Profit	1.42B	1.62B	1.91B	2.06B	1.85B	1.69B
EBITDA	813.61M	924.03M	1.45B	1.51B	1.43B	1.05B
Net Income	550.40M	533.49M	909.51M	947.27M	909.76M	667.48M
Balance Sheet
Total Assets	9.04B	9.10B	9.69B	9.64B	9.21B	8.82B
Cash, Cash Equivalents and Short-Term Investments	1.81B	2.55B	3.51B	3.08B	2.64B	2.15B
Total Debt	604.61M	442.50M	315.70M	381.99M	408.63M	390.17M
Total Liabilities	2.12B	2.01B	2.15B	2.60B	2.50B	2.71B
Stockholders Equity	6.87B	7.04B	7.49B	6.98B	6.65B	6.05B
Cash Flow
Free Cash Flow	-306.46M	-273.22M	1.16B	393.67M	822.44M	634.25M
Operating Cash Flow	408.19M	303.61M	1.44B	842.77M	1.37B	801.14M
Investing Cash Flow	-731.50M	-301.33M	-568.60M	-470.23M	-567.86M	-36.59M
Financing Cash Flow	-516.76M	-857.88M	-644.03M	-572.58M	-477.01M	-514.01M

Taiwan Fu Hsing Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:9924 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6690	82Outperform	TWD 5.61B	17.36	―	4.71%	13.31%	14.02%
TW:8083	75Outperform	TWD 5.46B	12.96	―	6.37%	6.92%	36.21%
TW:1535	69Neutral	TWD 5.55B	12.21	―	6.73%	-23.64%	-8.34%
TW:9924	57Neutral	TWD 5.65B	10.79	―	12.02%	-6.41%	-17.43%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:9924 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:9924	Taiwan Fu Hsing Industrial Co., Ltd.	37.45	-12.36	-24.81%
TW:1535	China Ecotek Corp.	44.55	-7.17	-13.86%
TW:6690	Acer Cyber Security, Inc.	191.00	27.92	17.12%
TW:6990	Plum-Monix Industry Co Ltd	101.00	75.56	297.06%
TW:7689	Climax Technology Co., Ltd.	100.00	-67.24	-40.20%
TW:8083	Pro-Hawk Corporation	157.00	11.95	8.24%

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 Fu Hsing Industrial Co., Ltd. AI Stock Analysis