This is research, not a buy or sell recommendation. Robo-advice in Taiwan requires an FSC licence; FEAF analyses, explains and monitors, and the investor makes the decision. Judgement thresholds are working rules pending review by the team's finance members.
Plain-language summary of valuation, growth, profitability, balance sheet, and recent MOPS filings.
Mixed picture: 1 strengths against 3 watch-outs. Weigh them against your own goals.
Points to watch for a moderate profile: see the items marked above.
In plain words
Company 1904 presents a mixed financial picture with a P/E ratio of 8.81, which is below the industry median of 17.52, and moderate profitability featuring an 8.6% return on equity and a 5.8% net margin. Revenue recovered with a 21.0% year-on-year increase in Q3 2026 despite falling -4.9% in 2025. However, watch-outs include a heavy debt load with liabilities at 57.0% of total assets in Q3 2026 and negative free cash flow of -1,025 NT$ million in 2025. Ultimately, final investment decisions rest entirely in the hands of the investor.
Written by gemini-3.6-flash from the facts above; every number was checked against them.
Strengths
+P/E 8.81 is well below the Paper and pulp median of 17.52 (6 listed peers): priced cheaper than peers. source (Key Stats) →
Watch-outs
!Revenue fell -4.9% in 2025; latest quarter Q3 2026: 21.0% year on year. source (Financials) →
!Liabilities are 57.0% of total assets (Q3 2026): a heavy debt load. source (Financials) →
!Free cash flow was negative in 2025: -1,025 NT$ million, so spending exceeded operating cash. source (Financials) →
What to check before deciding
?Is the revenue decline temporary or structural?
?Can operating cash cover the debt if conditions tighten?
?What is the spending for, and when does it start paying back?
What the analysis found
+Valuation vs peersP/E 8.81 is well below the Paper and pulp median of 17.52 (6 listed peers): priced cheaper than peers. source →
!GrowthRevenue fell -4.9% in 2025; latest quarter Q3 2026: 21.0% year on year. source →
·ProfitabilityReturn on equity 8.6% with a 5.8% net margin: moderate profitability. source →
!DebtLiabilities are 57.0% of total assets (Q3 2026): a heavy debt load. source →
!Cash flowFree cash flow was negative in 2025: -1,025 NT$ million, so spending exceeded operating cash. source →
·Filings1 verified alert(s); latest on 2026-11-12: 公告本公司董事會通過115年第3季合併財務報告 source →
·Filings1 filing(s) are held or rejected and wait for human review. source →