Taiwan Hon Chuan Enterprise Co., Ltd. (9939) AI Stock Analysis

Taiwan Hon Chuan Enterprise Co., Ltd.

(TWSE:9939)

Select Model

Rating:49Neutral

Price Target:TWD 119.00▼(-2.46% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is weak, driven primarily by poor financial performance and bearish technicals. The most significant risk is the company's inability to generate positive free cash flow due to heavy capital expenditures, which is compounded by contracting revenue. The stock is also in a clear technical downtrend. A low P/E ratio and high dividend yield provide some valuation support but are not enough to offset the fundamental and momentum headwinds.

Positive Factors

Stable ProfitabilityResilient gross, operating, and net margins indicate that the company has maintained meaningful earnings power despite a softer growth profile. This profitability provides internal resources for reinvestment and supports business stability over the next several quarters.

Negative Factors

Revenue ContractionThe shift from earlier strong growth to a 2025 revenue decline signals weaker demand, pricing, or volume momentum. If this persists, slower sales can limit operating leverage, reduce reinvestment capacity, and make it harder for earnings to expand despite stable margins.

Taiwan Hon Chuan Enterprise Co., Ltd. (9939) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 35.94B
Dividend Yield: 5.08%
Average Volume (3M): 985.62K
Price to Earnings (P/E): 10.8
Beta (1Y): 0.03
Revenue Growth: 0.67%
EPS Growth: 28.86%
Country: TW
Employees: 3,900
Sector: General
Sector Strength: 55
Industry: Packaging & Containers

Taiwan Hon Chuan Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Taiwan Hon Chuan Enterprise Co., Ltd. is a key global provider specializing in the manufacturing and distribution of an extensive range of packaging solutions and related machinery. Their diverse product offerings include various aluminum and plastic...

Taiwan Hon Chuan Enterprise Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak. Revenue growth has stalled and turned negative, while net profit margins are compressing. The balance sheet is leveraged, and critically, heavy capex is causing persistent negative free cash flow, meaning profits are not translating into shareholder cash.

Income Statement

55Neutral

Balance Sheet

48Neutral

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.39B	28.88B	28.41B	26.41B	24.70B	21.38B
Gross Profit	6.98B	6.19B	6.27B	5.62B	5.14B	4.91B
EBITDA	6.91B	6.31B	6.51B	5.77B	5.33B	5.13B
Net Income	3.25B	2.69B	2.83B	2.47B	2.22B	1.96B
Balance Sheet
Total Assets	49.29B	46.80B	43.08B	37.85B	36.64B	33.54B
Cash, Cash Equivalents and Short-Term Investments	4.83B	5.36B	5.03B	6.21B	5.46B	4.95B
Total Debt	23.48B	22.77B	18.96B	18.23B	17.54B	16.16B
Total Liabilities	29.05B	26.18B	22.80B	21.39B	21.10B	19.35B
Stockholders Equity	19.78B	20.07B	19.43B	15.70B	14.91B	13.46B
Cash Flow
Free Cash Flow	-757.56M	-1.07B	-1.17B	1.66B	370.31M	1.42B
Operating Cash Flow	4.67B	5.56B	4.07B	5.09B	3.84B	3.61B
Investing Cash Flow	-6.11B	-8.33B	-5.70B	-3.62B	-3.68B	-2.18B
Financing Cash Flow	1.16B	1.93B	313.52M	-790.60M	-27.97M	-335.44M

Taiwan Hon Chuan Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:9939 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4766	72Outperform	TWD 41.72B	14.59	―	5.29%	2.93%	9.20%
TW:9907	69Neutral	TWD 21.63B	21.09	―	8.46%	-11.46%	-52.40%
TW:1409	57Neutral	TWD 36.07B	10.43	―	3.94%	-7.23%	195.60%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1904	50Neutral	TWD 25.82B	10.93	―	1.91%	-3.09%	1111.63%
TW:9939	49Neutral	TWD 35.35B	10.76	―	5.08%	0.67%	28.86%

* General Sector Average

Performance Comparison

TW:9939 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:9939	Taiwan Hon Chuan Enterprise Co., Ltd.	122.00	0.22	0.18%
TW:1409	Shinkong Synthetic Fibers Corporation	22.85	8.01	53.95%
TW:1904	Cheng Loong Corp.	23.60	5.12	27.69%
TW:4766	Nan Pao Resins Chemical Co. Ltd.	340.00	19.78	6.18%
TW:7909	Ye Siang Enterprise Co., Ltd.	499.50	-421.43	-45.76%
TW:9907	Ton Yi Industrial Corp.	13.95	-3.24	-18.86%

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 10, 2026

Taiwan Hon Chuan Enterprise Co., Ltd. AI Stock Analysis