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Yung Chi Paint & Varnish Mfg.Co.,Ltd (1726) Fair Value & Analysis

Basic Materials · TW · Market cap 13.0B TWD

YC Yung Chi Paint & Varnish Mfg.Co.,Ltd 1726 · TW
Price77.30 TWD
Fair Value93.56 TWD
Upside+21.0%
Quality71/100
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Healthy Growth
Thin margins · 9.7% net margin
Low debt · generates free cash flow
Ranks above peers (13/14)
Moderate moat 50/100
Evidence: High Range 70.17 TWD – 116.95 TWD Share as image

Fair value as of: Jul 21, 2026

From 24 valuation models · updated 20 days ago

Share price −1.9% over the past month.

A solid business, screening 21% undervalued on our models.

What matters now

  • Our model range runs from 70.17 TWD (bear) to 116.95 TWD (bull), base 93.56 TWD. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 71/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

83.30 TWD 61.20 TWD Fair Value 93.56 TWD Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range 61.20 TWD – 83.30 TWD · fair‑value band 70.17 TWD – 116.95 TWD · the 77.30 TWD price screens below the 93.56 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Yung Chi Paint & Varnish Mfg.Co.,Ltd (1726) currently trades at 77.30 TWD, while our model-based Fair Value estimate is 93.56 TWD, implying the stock looks roughly 21.0% undervalued today. The Quality Score stands at 71/100 (solid quality), in the Basic Materials 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: high), always confirm before acting.

Over the trailing twelve months, Yung Chi Paint & Varnish Mfg.Co.,Ltd generated revenue of 9.9B TWD at a net margin of 9.7%. Revenue grew 4.2% year over year. It earns a return on equity of 9.0%. The balance sheet holds a net cash position of 1.8B TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 70.17 TWD (bear case) to 116.95 TWD (bull case); at 77.30 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 3% below its 52-week high and 4% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at 21%, 1726 screens cheaper 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 96.74 TWD 126.52 TWD 174.07 TWD 80
Residual Income 54.82 TWD 59.42 TWD 71.88 TWD 76
Rev-Margin DCF 77.61 TWD 106.65 TWD 140.98 TWD 74
All 24 models by family
DCF Models
FCF DCF 93.69 TWD 124.57 TWD 177.22 TWD 38
Owner Earnings 72.98 TWD 96.10 TWD 135.51 TWD 31
5Y Revenue Exit 77.61 TWD 105.22 TWD 142.79 TWD 39
5Y EBITDA Exit 75.23 TWD 101.12 TWD 133.12 TWD 41
5Y P/E Exit 80.15 TWD 109.59 TWD 142.29 TWD 38
10Y Revenue Exit 81.36 TWD 106.59 TWD 135.58 TWD 36
10Y EBITDA Exit 81.58 TWD 103.87 TWD 129.01 TWD 37
10Y P/E Exit 84.62 TWD 109.49 TWD 135.24 TWD 35
Earnings-Based
Graham-Dodd 37.43 TWD 69.10 TWD 85.62 TWD 54
EPV 59.40 TWD 67.41 TWD 74.43 TWD 59
Dividend Discount
Gordon GGM 33.05 TWD 44.16 TWD 55.42 TWD 70
DDM Multi-Stage 33.05 TWD 45.49 TWD 60.30 TWD 61
Multiples
P/E Multiple 70.17 TWD 93.56 TWD 116.95 TWD 63
P/S Multiple 67.95 TWD 90.61 TWD 113.26 TWD 58
P/B Multiple 70.17 TWD 93.56 TWD 116.95 TWD 55
EV/EBIT 81.85 TWD 105.37 TWD 128.88 TWD 53
EV/EBITDA 72.43 TWD 92.80 TWD 113.17 TWD 54
EV/Revenue 72.45 TWD 98.65 TWD 124.85 TWD 43
Asset-Based
NCAV (Graham) 32.19 TWD 43.13 TWD 64.38 TWD 50
Growth DCF
Growth DCF 96.74 TWD 126.52 TWD 174.07 TWD 80
Rev-Margin DCF 77.61 TWD 106.65 TWD 140.98 TWD 74
Economic Profit
Residual Income 54.82 TWD 59.42 TWD 71.88 TWD 76
ROIC Compounder 59.40 TWD 68.04 TWD 77.76 TWD 72
Growth Earnings
Growth-Adj P/E 50.34 TWD 71.92 TWD 93.50 TWD 68

Widest divergence: Growth DCF (106.65 TWD) versus Asset-Based (43.13 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 9.9B TWD
Revenue growth (YoY) +4.2%
Net margin 9.7%
Return on equity 9.0%
Free cash flow 1.3B TWD FY2025
P/E ratio 14.6
More key figures
Operating margin 14.1%
EPS (TTM) 5.49 TWD
EPS growth (YoY) +26.3%
Net cash 1.8B TWD FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 70 · Market factors (momentum, volatility) 60

Profitability 46
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 90
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 82
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

Yung Chi Paint & Varnish Mfg.Co.,Ltd manufactures and sells coatings and paints primarily in Taiwan and internationally. It operates through the Paint Business Department Coating Engineering segments.

Full company description

Yung Chi Paint & Varnish Mfg.Co.,Ltd manufactures and sells coatings and paints primarily in Taiwan and internationally. It operates through the Paint Business Department Coating Engineering segments. The company offers architecture coatings, including solvent-based acrylic paints, water cement paints, exterior wall paints, exterior clear coatings, water-based epoxy paints, wood coatings, and other used architecture coatings; and waterproof coatings comprising water-based waterproof paints, polyurea elastomer, and polyurethane waterproof paints. It also provides heavy duty coatings, such as top-long, polyurethane, vinyl ester, chlorinated rubber, yung flon, epoxy, alkyd, and polysiloxane paints, as well as anti- corrosive and Zinc rich primers. In addition, the company offers marine paints, including anti-fouling, marine primers, and rainbow paints; and fire-retardant coatings. Further, the company provides specialty coatings, which comprise galvanized steel emulsions, anti-midew, baking, and heat-resisting paints; and varnishes, putty, traffic paints, black/white board paints, hammer tone paints, paint oils, magnetic paints, weldable anti-corrosive primers, and golden colored paints. Additionally, it offers can coatings and coil maintenance coatings; continental coatings, including heat-resisting, thinners, architecture, polyurethane, zinc coatings, fluorocarbon contifluor, and siloxane; and floor coatings, such as epoxy floor coating paints. Furthermore, the company provides paint pigments, synthetic resins, fire protection coatings, cement products, and steel drums, as well as can, nuclear, and curtain wall coatings; and engages in the coating, anti-corrosive, lining coating, rust removal by water-jet, and wet sand blasting construction, as well as electrolytic protection activities. Yung Chi Paint & Varnish Mfg.Co.,Ltd was founded in 1951 and is headquartered in Kaohsiung, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Yung Chi Paint & Varnish Mfg.Co.,Ltd reported revenue of 9.8B TWD in FY2025 versus 8.9B TWD in FY2021, a compound +2.5%/yr. Reported net income was 892M TWD in FY2025, compounding +0.3%/yr from FY2021.

Growth Quality 67/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
9.8B TWD
Latest YoY
+2.7%
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.
+0.2%
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.
+4.1%
Avg. growth/yr (25Y) 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.
+2.8%
Revenue +2.5%/yr
FY21 8.9B TWD
FY22 9.7B TWD
FY23 9.4B TWD
FY24 9.5B TWD
FY25 9.8B TWD
Net income +0.3%/yr
FY21 882M TWD
FY22 814M TWD
FY23 831M TWD
FY24 856M TWD
FY25 892M TWD
Character of growth · EPS growth decomposed (2014-2025) −1.8 % p.a.
Revenue per share +2.0 pp

of which total revenue +2.0 pp · buybacks/dilution +0.0 pp

EBIT margin −4.1 pp
Tax rate −0.5 pp
Residual (interest, one-offs) +0.8 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). "Yung Chi Paint & Varnish Mfg.Co.,Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1726

Peer Group

Specialty Chemicals · 673 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 71 · Top 25%
Fair Value upside +21% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 6% · Top 25%
Net margin (TTM) 10% · Above median
Operating margin (TTM) 14% · Top 25%
Revenue growth 4% · Above median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 14.6× · Cheaper than 75% of peers
P/B 1.25× · Cheaper than median
P/S (TTM) 1.31× · Pricier than median
P/FCF 0.3× · Cheaper than median
EV/EBITDA 8.3× · Cheaper than median
PEG 0.52× · 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 61 · sector 0
FUTURE 21 · sector 19
PAST 36 · sector 23
HEALTH 100 · sector 95
DIVIDEND 0 · sector 25

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $489.98 $222.03 -55%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is Yung Chi Paint & Varnish Mfg.Co.,Ltd (1726) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 93.56 TWD versus a price of 77.30 TWD, about +21% (undervalued).
What is the fair value of 1726?
Our model-based fair value for Yung Chi Paint & Varnish Mfg.Co.,Ltd is 93.56 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 77.30 TWD.
What is the quality score of 1726?
Yung Chi Paint & Varnish Mfg.Co.,Ltd has a Quality Score of 71/100. 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 Yung Chi Paint & Varnish Mfg.Co.,Ltd (1726)?
Yung Chi Paint & Varnish Mfg.Co.,Ltd reported trailing-twelve-month revenue of about 9.9B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 1726?
The net profit margin of Yung Chi Paint & Varnish Mfg.Co.,Ltd is about 9.7%, meaning it keeps roughly 9.7% of revenue as net income. Based on the latest reported figures.

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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