Yulon Nissan Motor Co., Ltd. (2227) AI Stock Analysis

Yulon Nissan Motor Co., Ltd.

(TWSE:2227)

Select Model

Rating:41Neutral

Price Target:TWD 40.00▲(3.09% Upside)

Action:initiatedcoverage

Date:11/09/26

Yulon Nissan scores poorly overall. The dominant issue is deteriorating operating performance: a multi-year revenue decline, margin compression, an operating loss in the latest period, and negative operating and free cash flow in four of the last six years, meaning reported profits are not backed by cash. Technicals reinforce the caution, with the price below all key moving averages and negative MACD momentum. Valuation offers little help — the P/E is negative and not meaningful, leaving only a modest 2.0% dividend yield. The key offset is a fortress balance sheet: near-zero debt, equity funding roughly 79% of assets and low beta (0.39), which materially limits solvency risk and gives the company time to engineer a turnaround. Until vehicle demand, pricing or cost structure improves, the risk/reward remains unattractive.

Positive Factors

Conservative Balance SheetVery low leverage gives Yulon Nissan substantial financial flexibility and limits balance-sheet risk. A large, relatively stable equity base supports asset coverage and provides capacity to manage operating volatility, fund necessary investment, or withstand weaker industry conditions.

Negative Factors

Revenue and Margin DeteriorationFalling revenue and sharply lower margins indicate weakening demand or reduced operating effectiveness across the business. If this trend persists, it can reduce scale benefits, constrain reinvestment, and make it harder for the company to restore the stronger profitability achieved in earlier years.

Yulon Nissan Motor Co., Ltd. (2227) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 11.60B
Dividend Yield: 2.16%
Average Volume (3M): 53.07K
Price to Earnings (P/E): -10.4
Beta (1Y): 0.40
Revenue Growth: -14.55%
EPS Growth: -318.18%
Country: TW
Employees: 6,558
Sector: General
Sector Strength: 55
Industry: Auto - Manufacturers

Yulon Nissan Motor Co., Ltd. Business Overview & Revenue Model

Company Description

Yulon Nissan Motor Co., Ltd, together with its subsidiaries, engages in the research, development, and sale of vehicles in Taiwan and internationally. The company operates through Vehicle, Parts, Investment, and Other segments. It also sells parts. Y...

Yulon Nissan Motor Co., Ltd. Financial Statement Overview

Summary

A blend of a weak income statement (33), a very strong balance sheet (80) and poor cash generation (23). Revenue has roughly halved since 2020 (NT$29.7bn to NT$15.1bn), gross margin compressed from 13.8% to 9.5%, and the core business swung to an operating loss of about NT$612m in 2025 — the small remaining net profit is carried by non-core items. Operating cash flow was negative in four of the last six years (about -NT$340m in 2025), so earnings are not converting to cash. Offsetting this, the capital structure is effectively debt-free (debt/equity 0.03, equity funding ~79% of assets), giving significant staying power, though ROE has collapsed from 30.2% to 2.2%.

Income Statement

33Negative

Balance Sheet

80Positive

Cash Flow

23Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.63B	15.13B	23.13B	26.14B	23.61B	24.67B
Gross Profit	1.14B	1.43B	2.66B	3.06B	2.94B	2.81B
EBITDA	-464.93M	815.85M	751.45M	1.88B	3.64B	4.51B
Net Income	-71.12M	389.93M	1.67B	1.16B	2.41B	3.03B
Balance Sheet
Total Assets	22.64B	22.84B	24.15B	22.61B	24.51B	24.65B
Cash, Cash Equivalents and Short-Term Investments	6.18B	6.38B	7.88B	8.60B	4.96B	4.59B
Total Debt	497.61M	520.94M	557.58M	607.10M	658.02M	689.01M
Total Liabilities	4.90B	4.75B	4.88B	4.87B	5.29B	5.65B
Stockholders Equity	17.74B	18.09B	19.27B	17.73B	19.22B	19.00B
Cash Flow
Free Cash Flow	-604.48M	-369.05M	-571.78M	1.11B	-2.28B	-548.90M
Operating Cash Flow	-558.65M	-340.46M	-533.66M	1.16B	-2.04B	-150.49M
Investing Cash Flow	90.59M	214.13M	118.30M	6.05B	3.24B	2.95B
Financing Cash Flow	-1.22B	-1.22B	-1.09B	-2.22B	-2.77B	-5.61B

Yulon Nissan Motor Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2227 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5306	68Neutral	TWD 10.60B	12.04	―	4.52%	-2.06%	-17.27%
TW:6279	64Neutral	TWD 11.90B	8.76	―	5.62%	12.67%	15.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3162	50Neutral	TWD 11.07B	105.25	―	1.12%	36.58%	-66.59%
TW:2227	41Neutral	TWD 11.95B	-10.37	―	2.16%	-14.55%	-318.18%
TW:8937	39Underperform	TWD 10.58B	183.46	―	0.10%	655.50%	80.09%
TW:2231	34Underperform	TWD 10.66B	-88.27	―	0.63%	-20.55%	-146.86%

* General Sector Average

Performance Comparison

TW:2227 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2227	Yulon Nissan Motor Co., Ltd.	38.80	-15.63	-28.72%
TW:2231	CUB Elecparts, Inc.	79.00	-22.00	-21.78%
TW:3162	United Alloy-Tech Company Ltd	77.40	21.70	38.95%
TW:5306	KMC (Kuei Meng) International Inc.	84.10	-4.38	-4.94%
TW:6279	Hu Lane Associate, Inc.	97.90	-26.47	-21.28%
TW:8937	Her Chee Industrial Co., Ltd.	23.85	-15.65	-39.62%

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

Yulon Nissan Motor Co., Ltd. AI Stock Analysis