Lung Hwa Electronics Co., Ltd. (2424) AI Stock Analysis

Lung Hwa Electronics Co., Ltd.

(TWSE:2424)

Select Model

Rating:45Neutral

Price Target:TWD 10.50▼(-12.13% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by continued substantial operating and net losses despite improved debt levels and positive cash flow. Mixed technical indicators provide limited support, while the negative P/E offers no valuation benefit.

Positive Factors

Margin recoveryThe return to positive gross profit and EBITDA after deeply negative margins in 2020–2024 indicates meaningful operational stabilization. If maintained, improved unit economics can support stronger internal funding, better resilience, and eventual conversion of the recovery into sustainable earnings.

Negative Factors

Persistent net lossesLung Hwa has not yet translated its gross-margin and EBITDA recovery into bottom-line profitability. Continuing EBIT and net losses weaken retained capital, keep returns on equity negative, and create substantial execution risk because the turnaround still depends on further improvement in core earnings.

Lung Hwa Electronics Co., Ltd. (2424) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 697.14M
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

Financial condition improved through lower debt and positive operating and free cash flow, but revenue declined, EBIT and net income remained negative, and profitability is not yet restored. Score reflects the greater weight given to weak income performance.

Income Statement

25Negative

Balance Sheet

65Positive

Cash Flow

60Neutral

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2424 against its peers
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	45Neutral	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

TW:2424 and its peers over the selected period
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%

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

Lung Hwa Electronics Co., Ltd. AI Stock Analysis