Sunonwealth Electric Machine Industry Co., Ltd. (2421) AI Stock Analysis

Sunonwealth Electric Machine Industry Co., Ltd.

(TWSE:2421)

Select Model

Rating:75Outperform

Price Target:TWD 141.00▲(2.55% Upside)

Action:initiatedcoverage

Date:11/10/26

Strong financial performance is the primary support, reinforced by reasonable valuation and a solid dividend yield. The main drag is weak technical momentum, with the share price below all stated moving averages and negative MACD.

Positive Factors

Profitability ExpansionSunonwealth has materially improved profitability, with expanding gross, net, and EBIT margins supporting stronger earnings quality. Sustained margin gains can strengthen internal funding capacity, improve resilience against cost pressure, and reinforce the company’s ability to invest in its cooling-product franchise.

Negative Factors

Cash-Flow VolatilityAlthough recent cash generation is positive, the uneven history shows that earnings do not translate into consistently rising free cash flow. Recurring working-capital swings or higher reinvestment needs could constrain funding flexibility and make shareholder returns less predictable over the next several quarters.

Sunonwealth Electric Machine Industry Co., Ltd. (2421) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 38.90B
Dividend Yield: 3.81%
Average Volume (3M): 3.14M
Price to Earnings (P/E): 14.3
Beta (1Y): 1.05
Revenue Growth: 22.04%
EPS Growth: 41.51%
Country: TW
Employees: 826,608
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Sunonwealth Electric Machine Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Sunonwealth Electric Machine Industry Co., Ltd., together with its subsidiaries, researches, manufactures and sells precision motors and cooling fans worldwide. The company engages in general investment, real estate, sells garden fans. Sunonwealth El...

Sunonwealth Electric Machine Industry Co., Ltd. Financial Statement Overview

Summary

Strong profitability and balance sheet quality, supported by improving margins, 24.4% ROE, rising equity, and low leverage. Positive cash flow is a strength, although lower free-cash-flow conversion limits the score.

Income Statement

86Very Positive

Balance Sheet

91Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.29B	18.68B	14.62B	12.91B	14.06B	13.56B
Gross Profit	6.28B	5.62B	4.16B	3.60B	3.17B	2.54B
EBITDA	3.96B	3.36B	2.52B	2.33B	1.98B	1.13B
Net Income	2.66B	2.17B	1.49B	1.33B	1.09B	429.25M
Balance Sheet
Total Assets	21.14B	17.43B	15.00B	12.61B	12.19B	11.52B
Cash, Cash Equivalents and Short-Term Investments	6.95B	5.26B	4.91B	4.25B	2.67B	2.17B
Total Debt	1.29B	1.58B	1.75B	1.11B	2.06B	2.90B
Total Liabilities	10.61B	8.54B	7.08B	5.40B	6.99B	7.15B
Stockholders Equity	10.52B	8.89B	7.92B	7.22B	5.20B	4.37B
Cash Flow
Free Cash Flow	1.82B	2.10B	1.11B	1.86B	1.75B	-267.71M
Operating Cash Flow	3.16B	3.05B	1.68B	2.17B	2.16B	190.85M
Investing Cash Flow	-1.54B	-1.11B	-744.67M	-354.07M	-437.89M	-480.42M
Financing Cash Flow	-202.89M	-1.51B	-410.48M	-208.39M	-1.19B	585.49M

Sunonwealth Electric Machine Industry Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2421 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2421	75Outperform	TWD 39.45B	14.31	―	3.81%	22.04%	41.51%
TW:2428	69Neutral	TWD 24.85B	13.78	―	3.04%	19.78%	25.02%
TW:1514	62Neutral	TWD 23.09B	23.18	―	2.39%	23.50%	36.14%
TW:6412	59Neutral	TWD 22.08B	9.26	―	6.72%	-13.69%	-25.90%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6282	49Neutral	TWD 30.18B	28.90	―	2.27%	24.20%	―

* General Sector Average

Performance Comparison

TW:2421 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2421	Sunonwealth Electric Machine Industry Co., Ltd.	137.50	-40.96	-22.95%
TW:1514	Allis Electric Co., Ltd.	83.70	-13.79	-14.15%
TW:2428	Thinking Electronic Industrial Co., Ltd.	194.00	12.35	6.80%
TW:6282	AcBel Polytech Inc.	35.25	-3.10	-8.08%
TW:6412	Chicony Power Technology Co., Ltd.	55.10	-32.03	-36.76%
TW:7892	META Green Cooling Technology Co., Ltd.	406.50	53.93	15.29%

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 10, 2026

Sunonwealth Electric Machine Industry Co., Ltd. AI Stock Analysis