1504:TWSETECO Electric & Machinery Co., Ltd. Analysis

TECO Electric trades at TWD 71.1, comfortably above its 20‑day (≈67.8) and 50‑day (≈65.9) simple moving averages but still below the 200‑day average (≈79.9), indicating short‑term strength within a longer‑term neutral trend. The MACD histogram is positive and the MACD line sits just above its signal, reinforcing a modest bullish bias, while the RSI at 58 suggests the stock is neither overbought nor oversold. Market sentiment is highly optimistic, reflected by an “Extreme Greed” reading of 90.29 on the fear‑greed index, yet trading volume has been tapering, hinting at a possible short‑term consolidation near the identified resistance around TWD 76.4.
Fundamentally, the company posts a PE of 29.4, essentially inline with the industry average of 29.5, but the forward PE collapses to 14.8 as earnings are projected to nearly double (forward EPS ≈ 4.81 vs trailing 2.42). A solid dividend yield of 2.9% coupled with a high payout ratio of 91% is supported by a robust cash balance (≈TWD 27.96 bn) that exceeds total debt (≈TWD 22.58 bn). However, the DCF‑derived fair value of roughly TWD 10.7 is far beneath the current price, flagging a significant overvaluation gap despite analysts’ “buy” consensus and a median target of TWD 80.