Shihlin Electric & Engineering Corp

Shihlin Electric & Engineering Corp maintains a conservative capital structure with a debt-to-equity ratio of 0.04, indicating minimal leverage relative to shareholder equity. The balance sheet shows total assets of 60.54 billion TWD against total liabilities of 24.24 billion TWD, resulting in total equity of 36.29 billion TWD. Liquidity is assessed as medium, supported by a current ratio of 1.39. However, the company holds only 1.25 billion TWD in cash and equivalents against 1.36 billion TWD in long-term debt, resulting in a negative net cash position. Operating cash flow stands at 4.10 billion TWD, while free cash flow is 784.78 million TWD after capital expenditures of 950.74 million TWD.

Profitability metrics show a return on equity (ROE) of 9.64% and a return on assets (ROA) of 5.78%. The company generated net income of 3.27 billion TWD on revenue of 37.18 billion TWD, yielding a net margin of approximately 8.8%. Operating income was 4.30 billion TWD, reflecting an operating margin of roughly 11.6%. Gross profit was 7.77 billion TWD, indicating a gross margin of approximately 20.9%. These returns are derived from a stable utility and electrical equipment business model, though specific cohort median comparisons are not provided in the input data to benchmark relative performance.

Revenue concentration and segment details are not explicitly broken down in the available data, but the company's activity is centered on Electric Utilities and Electrical Equipment. The geographic exposure is not detailed in the provided sections, implying a primary focus on its domestic market or undisclosed international operations. The lack of segment-specific data limits the ability to assess revenue concentration risks directly, but the overall revenue base of 37.18 billion TWD suggests a diversified operational footprint within its industry classification.

Growth trajectory analysis is constrained by the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income, preventing a year-over-year or multi-year trend analysis. Without historical revenue or net income figures, the company's growth rate cannot be quantified from the provided data. The current valuation multiples, including a P/E of 34.25 and EV/EBITDA of 26.74, suggest the market is pricing in future growth expectations or stability, despite the lack of explicit historical growth metrics in this report.

Risk assessment indicates medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, which may impact short-term financial flexibility. The current ratio of 1.39 provides a buffer for short-term obligations, but the reliance on operating cash flow to service debt and fund capital expenditures is notable. The low dilution risk is supported by the fact that basic and diluted shares outstanding are identical at 520.97 million shares, indicating no significant options or convertible securities currently impacting share count.

Recent events and analyst sentiment show a mean price target of 239.00 TWD and a median target of 230.00 TWD, with a high target of 277.00 TWD and a low of 210.00 TWD. The mean recommendation is 2.00, with two buy ratings and no strong buy or hold ratings recorded. This suggests a cautiously optimistic view from analysts, with the current market price of 230.00 TWD aligning with the median target. No specific filing, news, or transcript observations are provided to detail recent corporate actions or strategic shifts.

Analysts project 17.7% upside to a mean price target of TWD 239, signaling positive sentiment.

Debt-to-equity ratio of 0.04 is well below the 0.75 cohort median, reflecting a conservative capital structure.

Free cash flow dropped 45.6% to TWD 785 million in FY2026, reducing financial flexibility.

Cash conversion ratio of 1.17 is below the 1.65 cohort median, indicating less efficient cash generation.

Revenue TWD 11.56B, +12,3% YoY; Operating income +11,2% YoY.

• ▍Revenue TWD 11.56B, +12,3% YoY
• ▍Operating income +11,2% YoY
• ▍Net income +18,9% YoY
• ▍Free cash flow +7,0% YoY
• ▍Net margin 12.6%

Revenue TWD 9.68B, +8,6% YoY; Operating income +15,6% YoY.

• ▍Revenue TWD 9.68B, +8,6% YoY
• ▍Operating income +15,6% YoY
• ▍Net income −3,3% YoY
• ▍Free cash flow +3,6% YoY
• ▍Net margin 4.4%

Revenue TWD 8.34B, +3,4% YoY; Operating income −22,5% YoY.

• ▍Revenue TWD 8.34B, +3,4% YoY
• ▍Operating income −22,5% YoY
• ▍Net income +4,5% YoY
• ▍Free cash flow +4,6% YoY
• ▍Net margin 8.8%

Revenue TWD 8.86B, +8,4% YoY; Operating income +47,7% YoY.

• ▍Revenue TWD 8.86B, +8,4% YoY
• ▍Operating income +47,7% YoY
• ▍Net income +25,8% YoY
• ▍Free cash flow +8,4% YoY
• ▍Net margin 10.0%

Revenue TWD 10.29B; Operating income TWD 1.66B.

• ▍Revenue TWD 10.29B
• ▍Operating income TWD 1.66B
• ▍Net margin 11.9%

Revenue TWD 8.92B; Operating income TWD 589.5M.

• ▍Revenue TWD 8.92B
• ▍Operating income TWD 589.5M
• ▍Net margin 4.9%

Revenue TWD 8.06B; Operating income TWD 1.02B.

• ▍Revenue TWD 8.06B
• ▍Operating income TWD 1.02B
• ▍Net margin 8.7%

Revenue TWD 8.17B; Operating income TWD 793.6M.

• ▍Revenue TWD 8.17B
• ▍Operating income TWD 793.6M
• ▍Net margin 8.7%

Revenue TWD 37.18B, +6,0% YoY; Operating income +28,1% YoY.

• ▍Revenue TWD 37.18B, +6,0% YoY
• ▍Operating income +28,1% YoY
• ▍Net income +8,0% YoY
• ▍Free cash flow −45,6% YoY
• ▍Net margin 8.8%

Revenue TWD 35.07B, +10,3% YoY; Operating income +36,2% YoY.

• ▍Revenue TWD 35.07B, +10,3% YoY
• ▍Operating income +36,2% YoY
• ▍Net income +28,9% YoY
• ▍Free cash flow +24,4% YoY
• ▍Net margin 8.6%

Revenue TWD 31.81B, +3,4% YoY; Operating income +9,3% YoY.

• ▍Revenue TWD 31.81B, +3,4% YoY
• ▍Operating income +9,3% YoY
• ▍Net income +16,8% YoY
• ▍Free cash flow +2,8% YoY
• ▍Net margin 7.4%

Revenue TWD 30.76B, +11,1% YoY; Operating income +12,8% YoY.

• ▍Revenue TWD 30.76B, +11,1% YoY
• ▍Operating income +12,8% YoY
• ▍Net income +11,4% YoY
• ▍Free cash flow +15,8% YoY
• ▍Net margin 6.5%