1414:TSETung Ho Textile Co., Ltd. Analysis

Tung Ho Textile is trading at TWD 16.75, more than 2.8× its discounted cash‑flow fair value of TWD 5.84, and its trailing P/E of 88.2 signals severe overvaluation. The company’s revenue has contracted ‑14.9% YoY, operating margins are negative, and ROE sits at a modest 1.96% while debt‑to‑equity is an alarming 17.6×, underscoring weak fundamentals and a fragile balance sheet.
Technically, the stock is caught in a bearish environment: price sits below the 200‑day SMA (18.66) despite briefly trading above the 20‑ and 50‑day SMAs, RSI hovers at a neutral 57, and the MACD histogram is positive but the broader trend remains down‑sloping. Volatility is high at over 36% on a 30‑day basis, yet beta is near zero, indicating limited market‑wide correlation. Volume is rising but remains far below its 10‑day average, highlighting liquidity concerns, and the dividend yield of 1.19% is unsustainable given a payout ratio above 100%.