Lien Chang Electronic Enterprise Co., Ltd (2431) AI Stock Analysis

Lien Chang Electronic Enterprise Co., Ltd

(TWSE:2431)

Select Model

Rating:40Underperform

Price Target:TWD 9.50▼(-2.66% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by severe profitability deterioration and weak cash generation. Persistent losses and a negative P/E provide no valuation support, while the price remains below all major moving averages; modestly positive MACD and oversold stochastic readings offer only limited technical support.

Positive Factors

Very Low LeverageVery low leverage limits interest and refinancing pressure, preserving financial flexibility while the company restructures its operations. A lightly indebted balance sheet can also provide greater capacity to fund recovery initiatives or withstand continued weakness in demand.

Negative Factors

Sustained Revenue DeclineThe prolonged revenue contraction indicates a significant deterioration in business scale rather than a single weak reporting period. Shrinking sales reduce operating leverage, limit reinvestment capacity, and make it harder for the company to rebuild sustainable earnings over the next several quarters.

Lien Chang Electronic Enterprise Co., Ltd (2431) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.08B
Dividend Yield: ―
Average Volume (3M): 216.99K
Price to Earnings (P/E): -4.5
Beta (1Y): 0.79
Revenue Growth: -39.87%
EPS Growth: -212.53%
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

Severe revenue decline, negative 2025 profitability, and weak, inconsistent cash generation outweigh the strength of very low debt. The component scores average below the permitted minimum, so the score is set at the 37-point floor.

Income Statement

8Very Negative

Balance Sheet

72Positive

Cash Flow

27Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2431 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6418	57Neutral	TWD 1.25B	102.96	―	1.07%	6.54%	-63.74%
TW:6154	56Neutral	TWD 1.09B	12.28	―	3.74%	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%	39.31%
TW:3308	45Neutral	TWD 1.16B	12.02	―	―	13.86%	79.78%
TW:2431	40Underperform	TWD 1.10B	-4.48	―	―	-39.87%	-212.53%
TW:3419	28Underperform	TWD 1.22B	-6.17	―	―	2.16%	-0.50%

* General Sector Average

Performance Comparison

TW:2431 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2431	Lien Chang Electronic Enterprise Co., Ltd	9.76	-2.24	-18.67%
TW:3308	Bestec Power Electronics Co., Ltd	19.00	3.70	24.18%
TW:3419	Wha Yu Industrial Co., Ltd.	10.00	-3.20	-24.24%
TW:3531	Shian Yih Electronic Industry Co., Ltd	20.55	-1.28	-5.85%
TW:6154	Sunfar Computer Co., Ltd.	13.65	0.44	3.35%
TW:6418	Y-S Electronic Co., Ltd.	35.45	-9.51	-21.15%

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

Lien Chang Electronic Enterprise Co., Ltd AI Stock Analysis