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6965:TSEHamamatsu Photonics K.K. Analysis

Data as of 2026-03-14 - not real-time

NT$82.50

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

Chung Jye Investment is trading at TWD 82.5, just above its 20‑day SMA (82.1) but below both the 50‑day (84.1) and 200‑day (92.3) averages, confirming a bearish bias despite a bullish MACD histogram and neutral RSI around 50. Volume is on the rise, yet the stock faces a key resistance near TWD 85.4 and support at TWD 74.6. The company’s fundamentals are fragile – revenue has slumped 32% YoY, gross margin sits at only 12%, and operating margin is a razor‑thin 0.7%, producing modest ROE (8%) and ROA (2%). Cash on hand (TWD 4.6 bn) comfortably exceeds debt (TWD 0.4 bn), but the payout ratio exceeds 100% (7.27% dividend yield on a 6 TWD dividend), raising questions about dividend sustainability. While the DCF model suggests a fair value near TWD 119, analyst targets cluster around TWD 86.4, implying only a modest upside of ~4–5% from current levels.

Market Outlook

Short Term

< 1 year
Cautious
Model confidence: 6/10

Key Factors

  • Bearish technical positioning below key moving averages
  • Significant revenue contraction and thin margins
  • Dividend payout exceeding earnings raises sustainability concerns

Medium Term

1–3 years
Neutral
Model confidence: 5/10

Key Factors

  • Attractive dividend yield if earnings stabilize
  • Potential modest upside toward analyst target of TWD 86.4
  • Strong cash buffer to support operations and possible share buy‑backs

Long Term

> 3 years
Neutral
Model confidence: 5/10

Key Factors

  • Undervalued relative to DCF fair value suggests upside if turnaround occurs
  • Cyclical consumer exposure may improve with economic recovery
  • Low debt and ample liquidity provide resilience over time

Key Metrics & Analysis

Financial Health

Revenue Growth-32.40%
Profit Margin3.69%
P/E Ratio14.0
ROE8.29%
ROA2.40%
Debt/Equity3.50
P/B Ratio1.1
Op. Cash FlowNT$1.1B
Free Cash FlowNT$1.1B

Technical Analysis

TrendBearish
RSI50.0
SupportNT$74.60
ResistanceNT$85.40
MA 20NT$82.12
MA 50NT$84.09
MA 200NT$92.28
MACDBullish
VolumeIncreasing
Fear & Greed Index72.88

Valuation

Fair ValueNT$119.17
Target PriceNT$86.40
Upside/Downside4.73%
GradeUndervalued
TypeValue
Dividend Yield7.27%

Risk Assessment

Beta0.97
Volatility28.98%
Sector RiskHigh
Reg. RiskLow
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.