Taihan Precision Technology Co., Ltd. (1336) AI Stock Analysis

Taihan Precision Technology Co., Ltd.

(TPEx:1336)

Select Model

Rating:45.6Neutral

Price Target:TWD 15.50▲(4.73% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by weakening financial performance: revenue declined, gross margin eroded to 15.4%, net income fell roughly 66%, and return on equity dropped to 3.0%, while two consecutive years of negative free cash flow have been funded partly by a 36% increase in borrowings. The key offset is a conservative balance sheet — equity funds nearly 60% of assets, debt-to-equity is a modest 0.33, and operating cash flow remained resilient at NT$226 million, giving the company capacity to absorb a soft year. Technicals add further pressure, with the share price below its 20-, 50-, and 100-day moving averages and a negative MACD, though deeply oversold RSI and stochastic readings suggest selling may be extended. Valuation offers little cushion at a P/E of nearly 22 on depressed earnings, with a 1.64% dividend yield providing only modest support. Overall, this is a financially stable but operationally challenged business whose re-rating depends on the current investment cycle translating into renewed growth and margin recovery.

Positive Factors

Manageable LeverageModerate leverage and a sizable equity base provide financial resilience for an industrial company. This balance-sheet position can help Taihan Precision absorb operating volatility and preserve flexibility for investment or other capital allocation needs over the coming quarters.

Negative Factors

Revenue Volatility and DeclineThe uneven revenue pattern points to an unstable demand environment rather than dependable expansion. Recent contraction can reduce operating leverage, make capacity and cost planning harder, and limit the company’s ability to grow earnings consistently over the next several quarters.

Taihan Precision Technology Co., Ltd. (1336) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.15B
Dividend Yield: 1.76%
Average Volume (3M): 456.54K
Price to Earnings (P/E): 16.3
Beta (1Y): 0.45
Revenue Growth: 8.95%
EPS Growth: -21.28%
Country: TW
Employees: 47
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Taihan Precision Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Taihan Precision Technology Co., Ltd. is a company that specializes in a comprehensive range of precision manufacturing services, including high-precision plastic injection molding, coating, and sub-component assembly. The company manages the entire...

Taihan Precision Technology Co., Ltd. Financial Statement Overview

Summary

Fiscal 2025 marked a clear operational setback. Revenue slipped about 3% to NT$2.50 billion while profitability deteriorated far more sharply: gross margin narrowed to 15.4%, operating margin halved to 5.2%, and net income fell roughly 66% to NT$55 million — the weakest in six years. The balance sheet remains the standout, with equity funding nearly 60% of assets and debt-to-equity of just 0.33, though borrowings rose 36% year over year and return on equity dropped to 3.0%. Cash flow is mixed: operating cash flow held firm at NT$226 million (about four times net income, signaling sound earnings quality), but heavy capex of NT$304 million drove a second consecutive year of negative free cash flow (-NT$78 million). The company is financially stable but operationally underperforming, with the investment case resting on whether the current capex cycle restores growth and margins.

Income Statement

38Negative

Balance Sheet

66Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.47B	2.50B	2.56B	2.32B	2.67B	2.09B
Gross Profit	340.86M	383.05M	447.41M	389.52M	469.71M	345.05M
EBITDA	179.39M	259.00M	397.67M	358.59M	404.75M	269.94M
Net Income	57.96M	55.08M	162.93M	107.39M	157.81M	77.06M
Balance Sheet
Total Assets	3.39B	3.14B	3.10B	2.63B	2.82B	2.27B
Cash, Cash Equivalents and Short-Term Investments	393.80M	467.87M	443.30M	595.98M	681.77M	539.13M
Total Debt	688.14M	607.28M	447.44M	293.94M	485.04M	323.29M
Total Liabilities	1.50B	1.28B	1.15B	865.25M	1.09B	717.55M
Stockholders Equity	1.90B	1.86B	1.95B	1.77B	1.72B	1.55B
Cash Flow
Free Cash Flow	-112.36M	-78.18M	-355.90M	328.11M	177.96M	10.70M
Operating Cash Flow	62.89M	225.96M	227.29M	424.26M	286.55M	89.25M
Investing Cash Flow	-170.66M	-226.94M	-692.67M	-231.01M	-127.16M	-26.44M
Financing Cash Flow	11.43M	84.58M	165.40M	-229.82M	-48.91M	-147.83M

Taihan Precision Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:1336 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2235	64Neutral	TWD 1.02B	21.44	―	5.18%	-7.77%	4.84%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2063	53Neutral	TWD 1.16B	12.32	―	2.24%	-11.29%	-12.54%
TW:1336	46Neutral	TWD 1.18B	16.29	―	1.76%	8.95%	-21.28%
TW:4528	45Neutral	TWD 1.18B	-20.48	―	1.46%	-3.33%	-515.57%
TW:5015	44Neutral	TWD 1.30B	13.86	―	2.34%	-19.41%	67.34%
TW:1338	40Underperform	TWD 1.12B	-6.15	―	2.32%	1.66%	29.65%

* General Sector Average

Performance Comparison

TW:1336 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:1336	Taihan Precision Technology Co., Ltd.	14.80	-1.43	-8.82%
TW:1338	Hiroca Holdings Ltd.	13.40	-7.52	-35.94%
TW:2063	Sheh Kai Precision Co., Ltd.	22.30	-0.36	-1.59%
TW:2235	I Yuan Precision Industrial Co. Ltd.	28.95	-3.31	-10.25%
TW:4528	Chian Hsing Forging Industrial Co., Ltd.	13.70	-3.40	-19.87%
TW:5015	Rodex Fasteners Corp.	21.35	-5.73	-21.17%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Taihan Precision Technology Co., Ltd. AI Stock Analysis