Sumeeko Industries Co., Ltd. (2066) AI Stock Analysis

Sumeeko Industries Co., Ltd.

(TPEx:2066)

Select Model

Rating:49Neutral

Price Target:TWD 47.00▼(-1.36% Downside)

Action:initiatedcoverage

Date:11/09/26

Sumeeko Industries scores below average, driven primarily by weakening fundamentals: four straight years of revenue decline, a severe margin squeeze that cut net income to NT$59 million, return on equity of just 2.8%, and free cash flow that covers only a fraction of reported earnings. Technicals reinforce the caution, with the share price below all major moving averages and negative MACD, although deeply oversold RSI and Stochastic readings suggest downside may be stretched in the near term. Offsetting these risks are a sound balance sheet (equity funding about 56% of assets, debt-to-equity near 0.60), an inexpensive 12.7x P/E and an attractive 4.5% dividend yield. The investment case rests on a margin recovery; until operating leverage improves, the risk-reward remains limited despite the cheap valuation.

Positive Factors

Precision Manufacturing CapabilitiesSumeeko operates in a specialized precision-manufacturing niche, producing machined parts and assemblies for equipment and system makers. These capabilities can support durable customer relevance because engineered components require technical production expertise and consistent execution.

Negative Factors

Revenue and Margin PressureThe simultaneous decline in revenue and sharp margin compression signals weaker operating performance and less stable earnings power. If this persists, lower profitability could constrain reinvestment, reduce resilience to cost pressure, and weaken the company's ability to compound returns.

Sumeeko Industries Co., Ltd. (2066) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.10B
Dividend Yield: 4.51%
Average Volume (3M): 51.77K
Price to Earnings (P/E): 13.0
Beta (1Y): 0.42
Revenue Growth: -2.41%
EPS Growth: 82.10%
Country: TW
Employees: 250
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Sumeeko Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Sumeeko Industries Co., Ltd. is a prominent provider of metallic components, serving both domestic Taiwanese and international markets. Their extensive product portfolio includes a wide array of parts for the automotive sector, such as powertrains, s...

Sumeeko Industries Co., Ltd. Financial Statement Overview

Summary

Financial results are mixed-to-weak. The income statement is the main drag (score 36): revenue has declined four consecutive years to NT$2.49 billion (-3.8% YoY), operating margin collapsed to 4.6% from 13.8%, and net income fell to NT$59 million from NT$265 million. Cash flow is similarly soft (score 44), with operating cash flow halving to NT$144 million and free cash flow of just NT$36 million covering only about a quarter of net income. The balance sheet is the relative bright spot (score 61): equity funds roughly 56% of assets and debt-to-equity of about 0.60 is manageable, though leverage ticked up and return on equity fell to just 2.8%. Solvency is comfortable, but earnings power and capital efficiency have deteriorated sharply.

Income Statement

36Negative

Balance Sheet

61Positive

Cash Flow

44Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	2.60B	2.49B	2.76B	2.78B	2.85B	2.28B
Gross Profit	795.85M	745.45M	911.77M	931.43M	866.86M	632.75M
EBITDA	280.23M	221.50M	474.42M	538.32M	482.20M	286.80M
Net Income	162.28M	59.24M	264.74M	329.91M	295.63M	143.16M
Balance Sheet
Total Assets	3.76B	3.75B	3.94B	3.42B	3.21B	2.97B
Cash, Cash Equivalents and Short-Term Investments	866.35M	886.01M	999.75M	945.24M	711.64M	496.60M
Total Debt	1.12B	1.26B	1.10B	959.37M	910.88M	1.25B
Total Liabilities	1.60B	1.63B	1.71B	1.52B	1.42B	1.64B
Stockholders Equity	2.16B	2.12B	2.23B	1.90B	1.71B	1.25B
Cash Flow
Free Cash Flow	130.56M	36.05M	-86.41M	374.96M	356.90M	-196.89M
Operating Cash Flow	248.52M	144.31M	249.51M	396.24M	382.80M	-183.94M
Investing Cash Flow	-136.66M	-18.75M	-344.93M	-60.65M	59.46M	-65.50M
Financing Cash Flow	-242.01M	-164.48M	159.12M	-130.88M	-174.43M	411.39M

Sumeeko Industries Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2066 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4535	58Neutral	TWD 1.96B	22.41	―	3.09%	-11.46%	-28.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1531	55Neutral	TWD 1.94B	39.81	―	9.30%	-9.49%	―
TW:2065	53Neutral	TWD 2.15B	9.26	―	4.42%	8.17%	259.31%
TW:2066	49Neutral	TWD 2.08B	13.04	―	4.51%	-2.41%	82.10%
TW:1586	45Neutral	TWD 2.19B	45.26	―	1.63%	4.79%	―
TW:4534	35Underperform	TWD 2.15B	53.16	―	―	15.46%	―

* General Sector Average

Performance Comparison

TW:2066 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2066	Sumeeko Industries Co., Ltd.	47.65	-0.88	-1.82%
TW:1531	Kaulin Manufacturing Co. Ltd.	10.75	-0.19	-1.72%
TW:1586	China Fineblanking Technology Co., Ltd.	17.80	-9.54	-34.88%
TW:2065	Sheh Fung Screws Co., Ltd.	33.90	6.13	22.07%
TW:4534	Trinity Precision Technology Co., Ltd.	32.11	13.18	69.66%
TW:4535	Fine Blanking & Tool Co., Ltd.	25.85	-1.47	-5.40%

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

Sumeeko Industries Co., Ltd. AI Stock Analysis