Lien Chang Electronic Enterprise Co., Ltd AI Stock Analysis
Lien Chang Electronic Enterprise Co., Ltd (2431) AI Stock Analysis
Lien Chang Electronic Enterprise Co., Ltd
(TWSE:2431)
The score is held down primarily by deteriorating fundamentals: five consecutive years of revenue decline, a negative gross margin of -23.5%, a NT$233 million net loss and negative operating and free cash flow in 2025. The main mitigating factor is an exceptionally conservative balance sheet — almost no debt and equity funding ~84% of assets — which gives management time, though accumulated losses are steadily draining that capital base. Technicals reinforce the caution, with the price below all key moving averages, while valuation offers no support given negative earnings and no dividend. A return to positive gross margins would be the key catalyst for improvement.
Lien Chang Electronic Enterprise Co., Ltd (2431) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 1.08B
- Dividend Yield
- ―
- Average Volume (3M)
- 216.85K
- Price to Earnings (P/E)
- -4.6
- Beta (1Y)
- 0.78
- Revenue Growth
- -39.87%
- EPS Growth
- -231.52%
- Country
- TW
- Employees
- 84
- Sector
- General
- Sector Strength
- 55
- Industry
- Hardware, Equipment & Parts
Lien Chang Electronic Enterprise Co., Ltd Business Overview & Revenue Model
Company Description
Lien Chang Electronic Enterprise Co., Ltd is a Taiwanese entity primarily engaged in the production and supply of power supply units. Their product range encompasses both flyback transformers and various types of adaptors. Established in 1968, the co...
Lien Chang Electronic Enterprise Co., Ltd Financial Statement Overview
Summary
A severely weak earnings profile offset only partially by a clean balance sheet. Revenue has fallen more than 80% since 2020 to NT$375 million, and the company now sells below production cost, with gross margin at -23.5%, an operating margin of -53% and a net loss of NT$233 million in 2025. Cash flow turned negative again (-NT$30 million operating, -NT$32 million free cash flow), leaving no internal funding cushion. The offsetting strength is a near debt-free structure (debt-to-equity of 0.013) with equity funding ~84% of assets, though that equity base is steadily eroding and ROE has deteriorated to -21.4%.
Income Statement
7Very NegativeBalance Sheet
56NeutralCash Flow
20Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 274.91M | 375.21M | 403.64M | 589.54M | 1.00B | 1.57B |
| Gross Profit | -90.64M | -88.25M | -12.18M | -23.68M | 54.46M | 89.28M |
| EBITDA | -191.73M | -166.64M | -23.04M | -32.64M | 121.75M | 197.06M |
| Net Income | -234.17M | -232.55M | -70.13M | -94.09M | 10.42M | 114.73M |
Balance Sheet | ||||||
| Total Assets | 1.20B | 1.30B | 1.59B | 1.55B | 1.88B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 815.37M | 877.52M | 947.32M | 914.09M | 904.87M | 996.37M |
| Total Debt | 11.68M | 14.46M | 30.44M | 53.43M | 42.35M | 81.29M |
| Total Liabilities | 119.92M | 209.06M | 223.34M | 212.34M | 435.34M | 598.13M |
| Stockholders Equity | 1.08B | 1.09B | 1.36B | 1.34B | 1.45B | 1.47B |
Cash Flow | ||||||
| Free Cash Flow | -123.39M | -32.26M | 14.31M | -70.10M | -4.76M | -96.98M |
| Operating Cash Flow | -121.38M | -30.07M | 37.97M | -61.40M | 26.15M | -83.06M |
| Investing Cash Flow | -169.62M | -254.84M | 5.02M | -102.56M | 23.20M | 358.18M |
| Financing Cash Flow | -14.96M | -22.22M | -16.48M | -39.15M | -75.52M | -35.57M |
Lien Chang Electronic Enterprise Co., Ltd Peers Comparison
Overall Rating
TW:641857Neutral
TW:615456Neutral
TW:353148Neutral
TW:330845Neutral- TW:243141Neutral
TW:341928Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:6418 | 57Neutral | TWD 1.25B | 95.16 | ― | 1.05% | 6.54% | -63.74% |
| TW:6154 | 56Neutral | TWD 1.09B | 11.93 | ― | 3.75% | 3.43% | 163.60% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:3531 | 48Neutral | TWD 1.26B | 32.62 | ― | 2.43% | -24.73% | 39.93% |
| TW:3308 | 45Neutral | TWD 1.16B | 12.62 | ― | ― | 31.63% | 274.35% |
| TW:2431 | 41Neutral | TWD 1.10B | -4.55 | ― | ― | -39.87% | -231.52% |
| TW:3419 | 28Underperform | TWD 1.22B | -6.23 | ― | ― | 2.16% | -0.50% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2431 | Lien Chang Electronic Enterprise Co., Ltd | 9.93 | -2.47 | -19.92% | |
| TW:3308 | Bestec Power Electronics Co., Ltd | 19.40 | 4.50 | 30.20% | |
| TW:3419 | Wha Yu Industrial Co., Ltd. | 10.10 | -3.20 | -24.06% | |
| TW:3531 | Shian Yih Electronic Industry Co., Ltd | 20.55 | -1.28 | -5.85% | |
| TW:6154 | Sunfar Computer Co., Ltd. | 13.60 | 0.49 | 3.73% | |
| TW:6418 | Y-S Electronic Co., Ltd. | 36.30 | -11.82 | -24.56% |
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