Citi rates Feng Tay stock Sell. Gross margin drops 5.00 points

Published on 10/06/2026 at 03:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half 2026 revenue fell 4.00 percent YoY to TWD 39.62 billion. Citi assigns Feng Tay stock a TWD 60 target in its Sell call on August 26, 2026.

Feng Tay, TW0009910000, Illustration mit AI erstellt.

Feng Tay Enterprises (ISIN TW0009910000) is facing a sharper margin test after Citi rated Feng Tay stock Sell on August 26, 2026, with a TWD 60 price target. The company's second-quarter gross margin fell 5.00 percentage points year over year to 19.00 percent, according to MarketScreener.

Margins remain the key risk

Feng Tay generated operating revenue of TWD 20.38 billion in the second quarter of 2026, up 6.00 percent from the first quarter. Net income reached TWD 1.03 billion, a 54.00 percent quarter-over-quarter increase, while earnings per share rose to TWD 1.03 from TWD 0.68.

The quarterly rebound did not erase the first-half pressure. Revenue for the six months ended June 30, 2026, declined 4.00 percent year over year to TWD 39.62 billion, and net income attributable to owners fell 9.60 percent to TWD 1.69 billion, according to Quartr.

Profit recovery meets weaker cash flow

Quartr's September 18, 2026 summary shows first-half gross margin at 18.00 percent, down from 23.00 percent a year earlier. Net cash from operating activities was TWD 1.14 billion, compared with TWD 2.44 billion in the prior year, while cash and cash equivalents stood at TWD 3.77 billion on June 30, 2026.

That combination gives the Citi rating a concrete operating backdrop: quarterly profit improved from the first quarter, but the six-month comparison still shows lower sales, thinner margins and weaker operating cash generation. The company's production footprint also remains broad, with 43.00 percent of fiscal year 2025 production in Vietnam, 35.00 percent in India, 14.00 percent in Indonesia and 8.00 percent in China, according to MarketScreener.

Feng Tay market value and range

Market capitalization stood at TWD 65.9 billion as of October 5, 2026. The 52-week range was TWD 66.40 to TWD 136.00, placing the quoted value near the lower end of that span and making the TWD 60 analyst target a closely watched reference.