Thinking Electronic Industrial Co., Ltd. (2428) AI Stock Analysis

Thinking Electronic Industrial Co., Ltd.

(TWSE:2428)

Select Model

Rating:68.6Neutral

Price Target:TWD 203.00▲(4.64% Upside)

Action:initiatedcoverage

Date:11/09/26

Thinking Electronic earns a moderately above-average score driven primarily by dependable fundamentals: record revenue, strong 40% gross margins, a conservatively financed balance sheet (debt-to-equity of 0.17) and robust free cash flow that comfortably covers dividends and reinvestment. Valuation adds further support, with a 13.5x P/E and a 3.17% yield. The score is held back significantly by the technical setup — the stock trades far below all major moving averages with a sharply negative MACD, signalling a sustained downtrend, even though RSI and stochastic readings show deeply oversold conditions. Investors should also monitor 2025's margin compression and the four-year slide in return on equity, which suggest profitability momentum, rather than financial stability, is the key risk.

Positive Factors

Sustained ProfitabilityHealthy gross and net margins across six years indicate a structurally profitable business rather than earnings dependent on a single period. This profitability provides internal funding capacity, supports resilience through demand cycles, and leaves room to absorb moderate operating pressure.

Negative Factors

Sharp Revenue DeclineThe steep 2025 revenue contraction signals meaningful demand or pricing pressure and creates a substantial headwind for near-term earnings recovery. Even with strong historical margins, sustained top-line weakness could reduce operating leverage and limit the company’s ability to grow profit.

Thinking Electronic Industrial Co., Ltd. (2428) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 24.47B
Dividend Yield: 3.04%
Average Volume (3M): 1.34M
Price to Earnings (P/E): 13.8
Beta (1Y): 1.36
Revenue Growth: 19.78%
EPS Growth: 25.02%
Country: TW
Employees: 435
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Thinking Electronic Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Thinking Electronic Industrial Co., Ltd. manufactures, processes, sells, and trades in electronic components, thermistors, varistors, and wires in Taiwan, Mainland China, Europe, and internationally. It operates through The Company, Thinking Changzho...

Thinking Electronic Industrial Co., Ltd. Financial Statement Overview

Summary

Fundamentals are solid across all three statements. Revenue hit a record NT$8.03 billion in 2025 (+7%), with gross margin improving for a third year to 40.2% and net margin near 19%. The balance sheet is conservatively funded — equity of NT$11.17 billion supports two-thirds of assets and debt-to-equity is just 0.17. Cash generation is a standout: operating cash flow rose 22% to NT$2.18 billion (1.4x net income) and free cash flow reached NT$1.68 billion. Offsetting these strengths, operating margin narrowed to 25.0% from 27.8%, net income slipped slightly despite higher sales, and return on equity has declined for four straight years to 13.5%, indicating the growing capital base is not yet generating proportionate profit growth.

Income Statement

76Positive

Balance Sheet

83Very Positive

Cash Flow

81Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.84B	8.03B	7.52B	7.08B	7.46B	7.50B
Gross Profit	3.27B	3.23B	2.98B	2.74B	2.63B	3.24B
EBITDA	2.57B	2.45B	2.51B	2.13B	2.20B	2.49B
Net Income	1.80B	1.51B	1.55B	1.31B	1.37B	1.58B
Balance Sheet
Total Assets	18.68B	16.58B	15.79B	13.65B	13.76B	12.67B
Cash, Cash Equivalents and Short-Term Investments	6.80B	5.88B	4.89B	4.12B	4.95B	4.47B
Total Debt	1.87B	1.87B	1.79B	1.35B	1.94B	1.68B
Total Liabilities	6.76B	5.30B	5.08B	4.20B	4.81B	4.39B
Stockholders Equity	11.81B	11.17B	10.59B	9.31B	8.81B	8.16B
Cash Flow
Free Cash Flow	928.23M	1.68B	1.32B	1.25B	893.72M	708.53M
Operating Cash Flow	1.42B	2.18B	1.79B	2.13B	1.87B	1.57B
Investing Cash Flow	-1.38B	-1.11B	-938.95M	-1.70B	-393.33M	-1.32B
Financing Cash Flow	-132.40M	-687.55M	-630.66M	-1.33B	-546.14M	-168.79M

Thinking Electronic Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2428 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2428	69Neutral	TWD 24.85B	13.78	―	3.04%	19.78%	25.02%
TW:2472	66Neutral	TWD 28.33B	17.52	―	2.03%	20.68%	44.10%
TW:3357	64Neutral	TWD 19.96B	15.66	―	2.96%	30.96%	30.72%
TW:6173	63Neutral	TWD 33.31B	43.11	―	1.23%	23.02%	140.90%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8042	51Neutral	TWD 17.60B	34.30	―	0.94%	22.17%	1207.91%

* General Sector Average

Performance Comparison

TW:2428 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2428	Thinking Electronic Industrial Co., Ltd.	194.00	6.50	3.46%
TW:2472	Lelon Electronics Corp.	172.00	65.12	60.93%
TW:3357	TAI-TECH Advanced Electronics Co., Ltd.	171.50	16.17	10.41%
TW:3595	Alliance Material Co., Ltd.	649.00	378.28	139.73%
TW:6173	Prosperity Dielectrics Co., Ltd.	208.00	136.82	192.20%
TW:8042	Taiwan Chinsan Electronic Industrial Co.	127.00	81.19	177.26%

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

Thinking Electronic Industrial Co., Ltd. AI Stock Analysis