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Zeng Hsing Industrial Co (1558) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 6.0B TWD

ZH Zeng Hsing Industrial Co 1558 · TW
Price94.60 TWD
Fair Value106.10 TWD
Upside+12.2%
Quality47/100
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Mixed Growth
Thin margins · 4.5% net margin
Low debt · generates free cash flow
5.53% dividend yield
Ranks above peers (9/14)
Narrow moat 37/100
Evidence: Medium Range 79.58 TWD – 132.63 TWD Share as image

Fair value as of: Jul 23, 2026

From 23 valuation models · updated 18 days ago

Share price +2.4% over the past month.

Below-average quality, screening 12% undervalued on our models.

What matters now

  • Our model range runs from 79.58 TWD (bear) to 132.63 TWD (bull), base 106.10 TWD. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 47/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

151.71 TWD 88.13 TWD Fair Value 106.10 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 23, 2026.

How to read this chart

60‑month range 88.13 TWD – 151.71 TWD · fair‑value band 79.58 TWD – 132.63 TWD · the 94.60 TWD price screens below the 106.10 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

Full chart & analysis →

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Analysis

Zeng Hsing Industrial Co (1558) currently trades at 94.60 TWD, while our model-based Fair Value estimate is 106.10 TWD, implying the stock looks roughly 12.2% undervalued today. The Quality Score stands at 47/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Zeng Hsing Industrial Co generated revenue of 8.0B TWD at a net margin of 4.5%. Revenue declined 5.8% year over year. It earns a return on equity of 7.0%. The balance sheet holds a net cash position of 437M TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 79.58 TWD (bear case) to 132.63 TWD (bull case); at 94.60 TWD, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 16% fair-value upside, at 12%, 1558 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 187.05 TWD 243.98 TWD 318.83 TWD 80
Residual Income 64.08 TWD 67.10 TWD 70.83 TWD 76
Rev-Margin DCF 153.34 TWD 207.84 TWD 267.27 TWD 74
All 23 models by family
DCF Models
FCF DCF 183.55 TWD 245.62 TWD 331.14 TWD 38
Owner Earnings 147.59 TWD 194.26 TWD 258.56 TWD 31
5Y Revenue Exit 153.34 TWD 205.92 TWD 270.11 TWD 39
5Y EBITDA Exit 198.42 TWD 286.59 TWD 385.32 TWD 41
5Y P/E Exit 144.20 TWD 189.57 TWD 234.41 TWD 38
10Y Revenue Exit 160.82 TWD 209.43 TWD 268.86 TWD 36
10Y EBITDA Exit 191.28 TWD 262.90 TWD 351.38 TWD 37
10Y P/E Exit 158.07 TWD 198.59 TWD 243.29 TWD 35
Earnings-Based
Graham-Dodd 38.58 TWD 94.20 TWD 121.85 TWD 54
PEG = 1.0 16.84 TWD 24.06 TWD 31.27 TWD 46
EPV 108.58 TWD 119.63 TWD 129.17 TWD 59
Multiples
P/E Multiple 93.62 TWD 124.82 TWD 156.03 TWD 63
P/S Multiple 72.34 TWD 96.45 TWD 120.57 TWD 58
P/B Multiple 72.34 TWD 96.45 TWD 120.57 TWD 55
EV/EBIT 191.31 TWD 242.21 TWD 293.12 TWD 53
EV/EBITDA 231.17 TWD 295.37 TWD 359.56 TWD 54
EV/Revenue 141.53 TWD 185.65 TWD 229.77 TWD 43
Asset-Based
NCAV (Graham) 40.07 TWD 53.69 TWD 80.14 TWD 50
Growth DCF
Growth DCF 187.05 TWD 243.98 TWD 318.83 TWD 80
Rev-Margin DCF 153.34 TWD 207.84 TWD 267.27 TWD 74
Economic Profit
Residual Income 64.08 TWD 67.10 TWD 70.83 TWD 76
ROIC Compounder 111.53 TWD 127.60 TWD 145.06 TWD 72
Growth Earnings
Growth-Adj P/E 71.40 TWD 102.00 TWD 132.60 TWD 68

Widest divergence: Growth DCF (207.84 TWD) versus Asset-Based (53.69 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 8.0B TWD
Revenue growth (YoY) -5.8%
Net margin 4.5%
Return on equity 7.0%
Free cash flow 915M TWD FY2025
P/E ratio 16.4
More key figures
Operating margin 6.0%
EPS (TTM) 5.50 TWD
Dividend yield 5.5%
EPS growth (YoY) -1.5%
Net cash 437M TWD FY2025

Figures from reported company fundamentals · as of Jul 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 50 · Market factors (momentum, volatility) 55

Profitability 33
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Zeng Hsing Industrial Co., Ltd., together with its subsidiaries, manufactures and sells household sewing machines and related parts, aluminum alloy extrusions, and vacuum cleaners and related parts in Taiwan, China, the United States, Germany, Russia, Turkey, India, and internationally.

Full company description

Zeng Hsing Industrial Co., Ltd., together with its subsidiaries, manufactures and sells household sewing machines and related parts, aluminum alloy extrusions, and vacuum cleaners and related parts in Taiwan, China, the United States, Germany, Russia, Turkey, India, and internationally. The company operates through Sewing Machine and Precision Metal Parts Processing Division. It provides mechanical, computerized, combo, and overlock series sewing machines, as well as accessories. The company also manufactures pneumatic tools, mechanical parts, hardware parts, woodworking lathes, woodworking planning machines, etc.; manufactures forging spare parts; and die-cast metal alloy of aluminum, zinc, and magnesium. In addition, it engages in the processing, manufacturing, trading of optical parts; production and sales of computers, medical equipment, optics, automobiles, optoelectronics, precision hardware, and other parts and products; and research and designs filtration equipment, as well as engages in financial investment business. The company also exports and imports its products. The company was formerly known as Shin Shing Sewing Machines Co. and changed its name to Zeng Hsing Industrial Co., Ltd. in January 1975. Zeng Hsing Industrial Co., Ltd. was incorporated in 1968 and is headquartered in Taichung, Taiwan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zeng Hsing Industrial Co reported revenue of 8.1B TWD in FY2025 versus 7.7B TWD in FY2021, a compound +1.2%/yr. Reported net income was 366M TWD in FY2025, compounding −8.6%/yr from FY2021.

Growth Quality 58/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
8.1B TWD
Latest YoY
−2.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.1%
Avg. growth/yr (16Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.8%
Revenue +1.2%/yr
FY21 7.7B TWD
FY22 7.2B TWD
FY23 7.6B TWD
FY24 8.3B TWD
FY25 8.1B TWD
Net income −8.6%/yr
FY21 525M TWD
FY22 491M TWD
FY23 253M TWD
FY24 453M TWD
FY25 366M TWD
Character of growth · EPS growth decomposed (2014-2025) −12.0 % p.a.
Revenue per share −0.2 pp

of which total revenue +3.1 pp · buybacks/dilution −3.3 pp

EBIT margin −6.1 pp
Tax rate −1.9 pp
Residual (interest, one-offs) −3.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Zeng Hsing Industrial Co Fair Value". https://www.fairvalue-calculator.com/stock/1558

Peer Group

Furnishings, Fixtures & Appliances · 311 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Below median
Fair Value upside +12% · Above median
Return on equity (TTM) 7% · Above median
Return on assets 3% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 6% · Above median
Revenue growth -6% · Below median
Dividend yield (TTM) 5.5% · Top 25%
Debt / equity 0.09× · Higher than median

Valuation Multiples vs Furnishings, Fixtures & Appliances median · lower = cheaper

P/E (TTM) 17.0× · Cheaper than median
P/B 1.17× · Pricier than median
P/S (TTM) 0.76× · Pricier than median
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 2.8× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 50 · sector 22
FUTURE 0 · sector 0
PAST 28 · sector 19
HEALTH 95 · sector 97
DIVIDEND 100 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Jul 23, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥82.71 ¥107.22 +30%
Gree Electric Appliances, Inc 000651 ¥38.25 ¥88.02 +130%
Haier Smart Home Co 600690 ¥21.46 ¥36.04 +68%
King Slide Works Co 2059 8,655 TWD 1,917 TWD -78%
Guangdong Songfa Ceramics Co 603268 ¥155.59 ¥38.95 -75%
SharkNinja, Inc SN $154.53 $89.07 -42%
Hisense Home Appliances Group 000921 ¥26.33 ¥48.03 +82%
Zhejiang Supor Co 002032 ¥43.85 ¥44.84 +2%
COWAY Co 021240 96,700 KRW 112,530 KRW +16%
Ecovacs Robotics Co 603486 ¥50.13 ¥54.11 +8%

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Frequently asked questions

Is Zeng Hsing Industrial Co (1558) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 106.10 TWD versus a price of 94.60 TWD, about +12% (undervalued).
What is the fair value of 1558?
Our model-based fair value for Zeng Hsing Industrial Co is 106.10 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 94.60 TWD.
What is the quality score of 1558?
Zeng Hsing Industrial Co has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Zeng Hsing Industrial Co (1558)?
Zeng Hsing Industrial Co reported trailing-twelve-month revenue of about 8.0B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 1558?
The net profit margin of Zeng Hsing Industrial Co is about 4.5%, meaning it keeps roughly 4.5% of revenue as net income. Based on the latest reported figures.
Does Zeng Hsing Industrial Co pay a dividend?
Zeng Hsing Industrial Co currently shows a dividend yield of about 5.53% relative to its recent price (as of Jul 23, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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