Space Shuttle Hi-Tech Co. Ltd. (2440) AI Stock Analysis

Space Shuttle Hi-Tech Co. Ltd.

(TWSE:2440)

Select Model

Rating:37Underperform

Price Target:TWD 12.50▼(-11.35% Downside)

Action:initiatedcoverage

Date:11/09/26

Space Shuttle Hi-Tech scores at the low end of the range, driven primarily by weak fundamentals: four consecutive years of net losses, gross margin eroding below 4%, declining revenue, and persistently negative operating cash flow (negative in five of the last six years) that keeps the company dependent on external financing. A reasonably solid balance sheet — equity at ~56% of assets and leverage edging lower — plus early signs of a turnaround (positive operating profit, a halved net loss, and a narrower cash burn) provide some cushion but not enough to offset the core weaknesses. Technicals reinforce the caution, with the price below all key moving averages and negative MACD, although oversold RSI and Stochastic readings leave room for a short-term bounce. Valuation adds little support, with a P/E near 99 unsupported by earnings and no dividend. Sustained gross margin expansion and a return to positive operating cash flow would be the key catalysts for an improved score.

Positive Factors

Manageable LeverageDebt remains moderate relative to equity, reducing balance-sheet strain compared with a highly leveraged capital structure. This provides some financial flexibility while the company works to restore profitability, although negative returns mean the balance-sheet benefit does not yet translate into strong shareholder value creation.

Negative Factors

Weak Revenue and ProfitabilityDeclining revenue alongside a sub-1% net margin shows that the business currently has little earnings cushion. The roughly 4% gross margin leaves limited room to absorb cost increases or weaker volumes, making durable profit recovery dependent on both renewed growth and better operating efficiency.

Space Shuttle Hi-Tech Co. Ltd. (2440) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.89B
Dividend Yield: ―
Average Volume (3M): 254.63K
Price to Earnings (P/E): 104.7
Beta (1Y): 0.42
Revenue Growth: 2.38%
EPS Growth: ―
Country: TW
Employees: 83,573
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Space Shuttle Hi-Tech Co. Ltd. Business Overview & Revenue Model

Company Description

Space Shuttle Hi-Tech Co., Ltd., together with its subsidiaries, manufactures and sells telecommunication wires and cables in Taiwan. It operates through four divisions: Wires, Electrical Products, Optical Cables, and Optic Electrical. The company of...

Space Shuttle Hi-Tech Co. Ltd. Financial Statement Overview

Summary

Weak across the board, with only partial offsets. The income statement (31) shows revenue falling ~5.9% to NT$3.49bn, gross margin compressed to 3.8% from ~9.0% in 2020, and a fourth straight annual net loss (NT$32.6m, -0.9% net margin), though operating profit did swing positive to NT$10.5m and the loss nearly halved. Cash flow is the weakest link (18): operating cash flow was negative NT$188m and has been negative in five of the past six years, with free cash flow at negative NT$191m despite minimal capex — the burn stems from operations and working capital, forcing reliance on external funding. The balance sheet is the relative strength (53), with equity up to NT$1.58bn (~56% of assets) and debt-to-equity easing to 0.69, but ROE has been negative for four consecutive years, showing the equity base is sustained by financing rather than earnings.

Income Statement

31Negative

Balance Sheet

53Neutral

Cash Flow

18Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.94B	3.49B	3.98B	2.96B	3.14B	4.20B
Gross Profit	162.28M	132.72M	145.98M	69.19M	187.31M	308.71M
EBITDA	89.50M	45.51M	29.65M	-58.93M	65.61M	211.67M
Net Income	19.32M	-32.64M	-59.50M	-137.48M	-23.36M	104.69M
Balance Sheet
Total Assets	3.22B	2.83B	2.31B	2.17B	2.12B	2.51B
Cash, Cash Equivalents and Short-Term Investments	561.31M	409.25M	423.35M	570.30M	497.37M	502.30M
Total Debt	1.02B	1.10B	911.37M	828.57M	505.98M	811.73M
Total Liabilities	1.41B	1.25B	1.08B	936.99M	726.33M	1.10B
Stockholders Equity	1.81B	1.58B	1.23B	1.23B	1.40B	1.41B
Cash Flow
Free Cash Flow	-272.56M	-190.77M	-250.03M	-228.67M	452.56M	-119.39M
Operating Cash Flow	-281.24M	-187.99M	-244.91M	-221.63M	472.45M	-103.70M
Investing Cash Flow	155.94M	-1.13M	-43.30M	-83.94M	94.57M	-31.42M
Financing Cash Flow	107.75M	185.10M	48.81M	330.84M	-492.98M	154.47M

Space Shuttle Hi-Tech Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2440 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6185	61Neutral	TWD 1.72B	-73.48	―	3.44%	32.52%	-171.96%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6134	43Neutral	TWD 1.74B	29.31	―	0.92%	37.45%	―
TW:3092	40Underperform	TWD 1.92B	-4.22	―	―	-6.23%	12.14%
TW:3550	38Underperform	TWD 1.98B	1885.00	―	―	13.15%	―
TW:2440	37Underperform	TWD 1.93B	104.68	―	―	2.38%	―

* General Sector Average

Performance Comparison

TW:2440 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2440	Space Shuttle Hi-Tech Co. Ltd.	14.10	1.50	11.90%
TW:3092	Hotron Precision Electronic Industrial Co. Ltd.	16.90	0.85	5.30%
TW:3550	Copartner Technology Corporation	18.70	5.30	39.55%
TW:6134	Wanshih Electronic Co., Ltd	21.75	-1.02	-4.50%
TW:6185	Plastron Presicion Co., Ltd.	11.40	-3.77	-24.84%
TW:6272	Wieson Technologies Co., Ltd.	19.40	-37.92	-66.16%

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

Space Shuttle Hi-Tech Co. Ltd. AI Stock Analysis