Chang Type Industrial Co Ltd

Chang Type Industrial Co Ltd maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.39, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium risk, with a current ratio of 1.91, suggesting it can cover its short-term obligations but with limited excess capacity. Free cash flow stands at TWD 91.21 million, which is a positive sign for operational flexibility and reinvestment potential.

Profitability metrics reveal a mixed picture. The company's return on equity (ROE) is 3.06%, which is below the industry median of 5.2% for industrial machinery firms, indicating suboptimal capital efficiency. Return on assets (ROA) is 1.62%, also trailing the industry median of 2.8%, suggesting underperformance in asset utilization. Despite a gross profit of TWD 126.14 million, the company reported an operating loss of TWD 4.07 million, highlighting operational inefficiencies or cost pressures.

Geographically, Chang Type Industrial Co Ltd's revenue is concentrated in a single region, with no disclosed diversification across multiple markets. The company operates in a single business segment, with no material diversification across product lines or services. This lack of diversification increases exposure to regional and sector-specific risks.

Looking ahead, the company's revenue is projected to grow by 2.1% in the current fiscal year and by 3.4% in the next fiscal year. However, this growth is modest compared to the industry median of 5.7% for industrial machinery firms. The company's capital expenditure is minimal at TWD -2.10 million, suggesting a conservative approach to reinvestment.

Risk factors include a liquidity risk score of medium, driven by a negative net cash position after subtracting total debt. The company's dilution risk is assessed as low, with no near-term pressure from share issuance or convertible debt. No material risk factors were disclosed in recent filings that would suggest a significant change in the company's risk profile.

Recent events include a net income of TWD 59.81 million, which is a positive outcome despite the operating loss. The company's operating cash flow of TWD 180.74 million supports its liquidity position, but the free cash flow is constrained by capital expenditures. No material changes in management or strategic direction were disclosed in the latest filings.

Net income surged 118.3% year-over-year to TWD 182.7 million, demonstrating strong recent profitability recovery.

Free cash flow increased 65.1% to TWD 254.3 million, indicating robust cash generation capabilities.

Cash conversion ratio of 3.02 places the company in the top quartile of its peer group.

Debt-to-equity ratio of 0.39 is below the cohort median of 0.2, suggesting manageable leverage levels.

Return on equity of 3.06% lags behind the cohort median of 3.56%, indicating lower shareholder returns.

Revenue declined at a 2.7% compound annual growth rate over the last four years.

The company faces high credit risk and medium liquidity risk according to current risk assessments.

Revenue TWD 4.06B, −34,6% YoY; Operating income −56,8% YoY.

• ▍Revenue TWD 4.06B, −34,6% YoY
• ▍Operating income −56,8% YoY
• ▍Net income −9,1% YoY
• ▍Free cash flow +151,2% YoY
• ▍Net margin 6.7%