Lung Hwa Electronics Co., Ltd. AI Stock Analysis
Lung Hwa Electronics Co., Ltd. (2424) AI Stock Analysis
Lung Hwa Electronics Co., Ltd.
(TWSE:2424)
The score is held back primarily by weak financial performance: despite encouraging progress — positive gross margin, positive EBITDA, first positive free cash flow in years, and a sharply deleveraged balance sheet — Lung Hwa is still unprofitable at the operating and net level with negative return on equity and a shrinking asset base. Valuation offers no support, with a negative P/E and no dividend. Technicals are mixed: the stock has recovered above its 50- and 100-day averages with positive MACD momentum, but sits well below its 200-day average with weak short-term readings. The turnaround is real but unproven, warranting a below-average score until operating breakeven and sustained revenue growth are demonstrated.
Lung Hwa Electronics Co., Ltd. (2424) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 676.29M
- Dividend Yield
- ―
- Average Volume (3M)
- 71.78K
- Price to Earnings (P/E)
- -7.3
- Beta (1Y)
- 0.16
- Revenue Growth
- -12.97%
- EPS Growth
- 8.82%
- Country
- TW
- Employees
- 21
- Sector
- General
- Sector Strength
- 55
- Industry
- Consumer Electronics
Lung Hwa Electronics Co., Ltd. Business Overview & Revenue Model
Company Description
Established in Taipei, Taiwan, in 1962, Lung Hwa Electronics Co., Ltd. delivers advanced maritime satellite communication systems, CCTV-driven Internet of Things (IoT) solutions, and robust cybersecurity services. The company operates both within Tai...
Lung Hwa Electronics Co., Ltd. Financial Statement Overview
Summary
Lung Hwa Electronics is an early-stage turnaround. Revenue has scaled to NT$187.7 million (up ~34% year-over-year), gross margin flipped positive to 18.0% from -24%, EBITDA turned positive at NT$27.1 million, and both operating and free cash flow turned positive for the first time in years (FCF of NT$15.9 million versus -NT$101.0 million). The balance sheet is the strongest element: debt nearly halved to NT$131.5 million and debt-to-equity dropped to 0.42 from 0.88, with equity funding about 63% of assets. However, the company remains loss-making with a -36.5% operating margin, a NT$78.1 million net loss, negative return on equity of -25.1%, a shrinking asset base, and only a single year of modest positive cash generation.
Income Statement
30NegativeBalance Sheet
51NeutralCash Flow
48Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 172.07M | 187.75M | 140.07M | 106.67M | 79.43M | 13.11M |
| Gross Profit | 26.22M | 33.72M | -33.95M | -61.63M | -74.54M | -125.75M |
| EBITDA | -11.66M | 27.08M | -83.83M | -91.53M | -66.65M | -105.25M |
| Net Income | -96.50M | -78.13M | -187.10M | -194.56M | -170.04M | -232.37M |
Balance Sheet | ||||||
| Total Assets | 380.29M | 493.53M | 595.77M | 665.44M | 552.54M | 464.32M |
| Cash, Cash Equivalents and Short-Term Investments | 64.58M | 181.28M | 203.79M | 223.81M | 193.11M | 81.06M |
| Total Debt | 76.98M | 131.55M | 255.33M | 317.02M | 233.85M | 220.47M |
| Total Liabilities | 108.90M | 159.58M | 286.11M | 373.60M | 258.17M | 248.48M |
| Stockholders Equity | 252.05M | 310.95M | 290.54M | 279.22M | 293.58M | 215.91M |
Cash Flow | ||||||
| Free Cash Flow | -32.26M | 15.93M | -101.01M | -126.03M | -97.26M | -120.63M |
| Operating Cash Flow | -31.75M | 16.41M | -98.75M | -121.71M | -89.08M | -107.55M |
| Investing Cash Flow | -31.86M | 23.73M | -24.06M | -18.94M | -26.93M | 42.62M |
| Financing Cash Flow | -48.51M | -41.01M | 82.11M | 154.78M | 215.49M | 96.18M |
Lung Hwa Electronics Co., Ltd. Peers Comparison
Overall Rating
- TW:242444Neutral
TW:327239Underperform
TW:610938Underperform
TW:621036Underperform
TW:304332Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:2424 | 44Neutral | TWD 709.06M | -7.32 | ― | ― | -12.97% | 8.82% |
| TW:3272 | 39Underperform | TWD 691.22M | -1.27 | ― | ― | -11.96% | -68.38% |
| TW:6109 | 38Underperform | TWD 800.09M | -10.86 | ― | ― | 19.88% | 48.32% |
| TW:6210 | 36Underperform | TWD 655.40M | -10.22 | ― | ― | 37.29% | 52.12% |
| TW:3043 | 32Underperform | TWD 715.20M | -10.54 | ― | ― | -16.13% | -785.36% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2424 | Lung Hwa Electronics Co., Ltd. | 11.95 | -27.85 | -69.97% | |
| TW:3043 | Powercom Co., Ltd. | 18.25 | -4.35 | -19.25% | |
| TW:3272 | Good Way Technology Co., Ltd. | 11.00 | -9.90 | -47.37% | |
| TW:6109 | Atech OEM Inc. | 8.96 | -3.17 | -26.12% | |
| TW:6210 | Kintech Electronics Co., Ltd. | 18.60 | -0.50 | -2.62% | |
| TW:8119 | Clientron Corp. | 9.90 | 1.09 | 12.37% |
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