Patec Precision Industry Co., Ltd. (2236) AI Stock Analysis

Patec Precision Industry Co., Ltd.

(TWSE:2236)

Select Model

Rating:34Underperform

Price Target:TWD 83.00▼(-10.46% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is critically low, driven primarily by a severe deterioration in financial performance. The company is unprofitable, burning cash from operations, and has taken on high debt, creating substantial financial risk. This is compounded by a persistent technical downtrend and a negative P/E ratio, leaving no fundamental or market-driven support for the stock.

Positive Factors

Revenue ReboundThe sharp 2025 revenue rebound indicates that the company retained the ability to generate substantial top-line growth despite its subsequent profitability deterioration. Continued sales expansion could provide operating scale and a foundation for recovery if margins stabilize over the next several quarters.

Negative Factors

Margin CollapseThe steep and multi-year gross-margin decline signals materially weaker earnings quality and reduced operating leverage. Even with renewed revenue growth, lower retained profit per sale can limit reinvestment, weaken resilience, and make a sustained earnings recovery dependent on reversing cost pressure.

Patec Precision Industry Co., Ltd. (2236) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.67B
Dividend Yield: 0.33%
Average Volume (3M): 678.86K
Price to Earnings (P/E): -12.9
Beta (1Y): 0.67
Revenue Growth: 88.01%
EPS Growth: -191.43%
Country: TW
Employees: 798
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Patec Precision Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Patec Precision Industry Co., Ltd., together with its subsidiaries, provides components manufacturing and engineering solutions to the metal-forming industry in Singapore, Indonesia, China, Thailand, Vietnam, and Europe. The company offers ODM precis...

Patec Precision Industry Co., Ltd. Financial Statement Overview

Summary

Financial health is severely strained. The income statement swung to a net loss, gross margins nearly halved, and operating cash flow is deeply negative. The balance sheet is highly leveraged post-acquisition with a debt-to-equity ratio of 1.28, and free cash flow is a significant negative, indicating a high-risk financial profile.

Income Statement

28Negative

Balance Sheet

45Neutral

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.42B	9.32B	1.78B	1.82B	1.42B	1.37B
Gross Profit	1.20B	995.98M	344.63M	578.95M	394.25M	356.36M
EBITDA	407.36M	307.15M	500.64M	278.62M	203.99M	188.99M
Net Income	-399.18M	-379.82M	383.17M	139.25M	74.86M	67.30M
Balance Sheet
Total Assets	8.44B	8.03B	9.39B	2.49B	2.03B	2.16B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.43B	2.20B	779.11M	465.83M	742.26M
Total Debt	2.75B	2.79B	3.29B	570.81M	534.34M	616.61M
Total Liabilities	6.04B	5.72B	7.09B	915.99M	894.49M	927.83M
Stockholders Equity	2.42B	2.19B	2.12B	1.53B	1.14B	1.15B
Cash Flow
Free Cash Flow	-189.63M	-397.73M	-42.93M	45.19M	-38.97M	97.89M
Operating Cash Flow	153.78M	-152.34M	30.59M	86.21M	-15.43M	128.27M
Investing Cash Flow	-643.23M	-342.24M	-1.75B	-29.03M	-17.88M	12.84M
Financing Cash Flow	-47.84M	-344.75M	2.60B	280.91M	-278.98M	-243.64M

Patec Precision Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2236 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2221	69Neutral	TWD 6.43B	56.44	―	0.90%	18.85%	87.57%
TW:2228	62Neutral	TWD 5.39B	17.08	―	6.81%	-2.44%	-43.17%
TW:3310	62Neutral	TWD 4.74B	17.31	―	5.39%	19.95%	5.00%
TW:9905	58Neutral	TWD 6.33B	12.07	―	5.28%	21.06%	36.11%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2236	34Underperform	TWD 5.90B	-12.86	―	0.33%	88.01%	-191.43%

* General Sector Average

Performance Comparison

TW:2236 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2236	Patec Precision Industry Co., Ltd.	92.70	7.57	8.90%
TW:2221	Tachia Yung Ho Machine Industry Co., Ltd.	167.00	139.45	506.28%
TW:2228	Iron Force Industrial Co., Ltd.	66.10	-20.39	-23.57%
TW:3310	Chialin Precision Industrial Co., Ltd.	64.90	4.67	7.75%
TW:7736	HUSHAN Autoparts, Inc.	68.30	-19.48	-22.19%
TW:9905	Great China Metal Industry Co., Ltd.	20.85	1.88	9.93%

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

Patec Precision Industry Co., Ltd. AI Stock Analysis