Cheng Uei Precision Industry Co Ltd

Cheng Uei Precision Industry Co Ltd has a debt-to-equity ratio of 2.0, indicating a capital structure that is significantly leveraged. The company's liquidity position is assessed as medium, with a current ratio of 1.58, suggesting it can cover its short-term obligations but with limited buffer. Free cash flow is negative at -4.52 billion TWD, and capital expenditures are high at -7.00 billion TWD, indicating a heavy investment in long-term assets.

Profitability metrics show a return on equity of 1.09% and a return on assets of 0.24%, both of which are below the industry median for electronic equipment and parts manufacturers. The company's operating income of 508.54 million TWD and net income of 267.83 million TWD reflect modest profitability, with a gross profit of 2.74 billion TWD. These figures suggest that Cheng Uei is generating limited returns relative to its asset base and equity.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the latest financial report. This lack of diversification increases exposure to regional economic fluctuations and sector-specific risks. No material revenue concentration by geography is reported, but the absence of segmental or geographic breakdowns limits visibility into the company's risk profile.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the current or next fiscal year. The negative free cash flow and high capital expenditures suggest that the company is reinvesting heavily in its operations, which may support long-term growth but could also strain liquidity in the short term.

The risk assessment highlights a medium liquidity risk, primarily due to the company's negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential in the basic shares outstanding. The company's ESG score of 46.01 and a governance pillar score of 20.48 indicate room for improvement in corporate governance practices.

Recent filings and transcripts do not disclose any material events that would significantly alter the company's financial or operational outlook. The company's ESG controversies score of 100 suggests it has not been involved in any major controversies, which is a positive signal for long-term stability.

Free cash flow turned positive in 2024, reaching TWD 1.09 billion, indicating improved operational cash generation capabilities.

Cash conversion ratio of 2.05 significantly exceeds the cohort median of 1.04, demonstrating superior efficiency in converting earnings to cash.

Revenue maintained a modest 2.3% CAGR over four years, showing resilience despite broader market volatility and economic headwinds.

Gross profit remained robust at TWD 12.49 billion in 2025, suggesting underlying pricing power or cost management in core operations.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity value erosion from new issuances.

Debt-to-equity ratio of 2.0 is in the bottom quartile of peers, indicating excessive leverage and heightened financial risk.

Free cash flow swung to a massive TWD 6.54 billion outflow in 2025, severely straining liquidity and solvency prospects.

Operating margin of 2.37% trails the cohort median of 4.13%, highlighting inferior cost structure or pricing power relative to peers.

Revenue TWD 33.13B; Operating income TWD 735.3M.

• ▍Revenue TWD 33.13B
• ▍Operating income TWD 735.3M
• ▍Net margin 1.1%

Revenue TWD 24.83B; Operating income TWD 1.66B.

• ▍Revenue TWD 24.83B
• ▍Operating income TWD 1.66B
• ▍Net margin 2.8%

Revenue TWD 21.45B; Operating income TWD 508.5M.

• ▍Revenue TWD 21.45B
• ▍Operating income TWD 508.5M
• ▍Net margin 1.2%

Revenue TWD 98.40B, +8,7% YoY; Operating income +18,9% YoY.

• ▍Revenue TWD 98.40B, +8,7% YoY
• ▍Operating income +18,9% YoY
• ▍Net income +15,8% YoY
• ▍Free cash flow −697,0% YoY
• ▍Net margin 1.7%

Revenue TWD 90.55B, −3,8% YoY; Operating income −30,2% YoY.

• ▍Revenue TWD 90.55B, −3,8% YoY
• ▍Operating income −30,2% YoY
• ▍Net income −4,3% YoY
• ▍Free cash flow +64,4% YoY
• ▍Net margin 1.6%

Revenue TWD 94.10B, +8,4% YoY; Operating income +96,1% YoY.

• ▍Revenue TWD 94.10B, +8,4% YoY
• ▍Operating income +96,1% YoY
• ▍Net income +65,3% YoY
• ▍Free cash flow +338,8% YoY
• ▍Net margin 1.6%

Revenue TWD 86.80B; Operating income TWD 1.80B.

• ▍Revenue TWD 86.80B
• ▍Operating income TWD 1.80B
• ▍Net margin 1.1%