Tung Ho Steel Enterprise Corp

Tung Ho Steel maintains a conservative capital structure with a debt-to-equity ratio of 0.23 and a current ratio of 1.82, indicating adequate short-term liquidity despite a medium liquidity risk rating. The company holds TWD 4.2 billion in cash and equivalents against TWD 7.8 billion in long-term debt, resulting in a net cash position that is negative after subtracting total debt. Operating cash flow stands at TWD 8.6 billion, providing sufficient coverage for capital expenditures of TWD 1.2 billion and resulting in free cash flow of TWD 2.3 billion.

Profitability metrics demonstrate strong operational efficiency with a return on equity of 14.09% and a return on assets of 9.31%. The company generates a gross profit of TWD 8.6 billion on revenue of TWD 57.9 billion, yielding a gross margin of approximately 14.8%. Operating income of TWD 5.8 billion translates to a net income of TWD 4.7 billion, reflecting effective cost management and operational leverage within the steel manufacturing value chain.

Revenue concentration data is not available in the provided input, preventing specific analysis of segment or geographic exposure. The company's total revenue of TWD 57.9 billion suggests a significant market presence, but without segment breakdowns, the diversity of revenue streams and regional dependencies cannot be quantified. The absence of segment data limits the ability to assess concentration risk or identify high-growth business units.

Historical growth trajectory data is not provided in the input, preventing analysis of revenue trends or earnings consistency over time. The current financial snapshot shows a robust earnings base with a price-to-earnings ratio of 10.39, suggesting the market values the company's earnings at a reasonable multiple. Without historical periods data, it is not possible to determine if current profitability represents an expansion, contraction, or steady state relative to prior years.

Risk assessment indicates medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The company's current ratio of 1.82 provides a buffer against short-term obligations, but the negative net cash position requires monitoring of debt maturity schedules and refinancing needs. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 730.2 million.

Recent analyst observations show a mean price target of TWD 78.67 and a median target of TWD 79.00, implying upside potential from the current market price of TWD 68.9. The mean recommendation of 1.33 indicates strong buy sentiment, with two strong buy ratings and one buy rating among analysts. This positive analyst consensus suggests confidence in the company's near-term performance and valuation attractiveness within the Metals & Mining sector.

Analysts project 20.7% upside to a mean target price of TWD 78.67, reflecting strong buy consensus.

Long-term debt decreased to TWD 7.77 billion in FY2026, reducing leverage and strengthening the balance sheet.

Free cash flow grew 13.4% year-over-year to TWD 2.27 billion, improving liquidity generation capabilities.

Revenue declined 3.8% year-over-year to TWD 57.86 billion, signaling weakening top-line growth momentum.

Net income CAGR of -5.4% over four years indicates a persistent long-term decline in profitability.

Medium liquidity risk flags potential challenges in meeting short-term obligations or operational cash needs.

Free cash flow turned negative in FY2023, highlighting historical volatility in cash generation stability.

Revenue TWD 13.60B, −6,2% YoY; Operating income +4,1% YoY.

• ▍Revenue TWD 13.60B, −6,2% YoY
• ▍Operating income +4,1% YoY
• ▍Net income +10,9% YoY
• ▍Free cash flow −15,8% YoY
• ▍Net margin 8.9%

Revenue TWD 13.83B, −7,9% YoY; Operating income +8,5% YoY.

• ▍Revenue TWD 13.83B, −7,9% YoY
• ▍Operating income +8,5% YoY
• ▍Net income +22,2% YoY
• ▍Free cash flow −1,2% YoY
• ▍Net margin 10.1%

Revenue TWD 13.85B, −6,9% YoY; Operating income −10,1% YoY.

• ▍Revenue TWD 13.85B, −6,9% YoY
• ▍Operating income −10,1% YoY
• ▍Net income +4,2% YoY
• ▍Free cash flow +10,6% YoY
• ▍Net margin 8.1%

Revenue TWD 15.67B, +1,6% YoY; Operating income +17,6% YoY.

• ▍Revenue TWD 15.67B, +1,6% YoY
• ▍Operating income +17,6% YoY
• ▍Net income −4,6% YoY
• ▍Free cash flow −8,7% YoY
• ▍Net margin 7.0%

Revenue TWD 14.50B; Operating income TWD 1.34B.

• ▍Revenue TWD 14.50B
• ▍Operating income TWD 1.34B
• ▍Net margin 7.5%

Revenue TWD 15.01B; Operating income TWD 1.38B.

• ▍Revenue TWD 15.01B
• ▍Operating income TWD 1.38B
• ▍Net margin 7.6%

Revenue TWD 14.87B; Operating income TWD 1.36B.

• ▍Revenue TWD 14.87B
• ▍Operating income TWD 1.36B
• ▍Net margin 7.3%

Revenue TWD 15.43B; Operating income TWD 1.52B.

• ▍Revenue TWD 15.43B
• ▍Operating income TWD 1.52B
• ▍Net margin 7.5%

Revenue TWD 57.86B, −3,8% YoY; Operating income +2,9% YoY.

• ▍Revenue TWD 57.86B, −3,8% YoY
• ▍Operating income +2,9% YoY
• ▍Net income +5,4% YoY
• ▍Free cash flow +13,4% YoY
• ▍Net margin 8.2%

Revenue TWD 60.16B, −1,3% YoY; Operating income −5,0% YoY.

• ▍Revenue TWD 60.16B, −1,3% YoY
• ▍Operating income −5,0% YoY
• ▍Net income −5,3% YoY
• ▍Free cash flow −34,8% YoY
• ▍Net margin 7.4%

Revenue TWD 60.96B, +3,0% YoY; Operating income +17,2% YoY.

• ▍Revenue TWD 60.96B, +3,0% YoY
• ▍Operating income +17,2% YoY
• ▍Net income +18,4% YoY
• ▍Free cash flow +236,0% YoY
• ▍Net margin 7.8%

Revenue TWD 59.22B, +0,7% YoY; Operating income −27,7% YoY.

• ▍Revenue TWD 59.22B, +0,7% YoY
• ▍Operating income −27,7% YoY
• ▍Net income −32,4% YoY
• ▍Free cash flow −142,4% YoY
• ▍Net margin 6.7%