Senao International Co. Ltd. (2450) AI Stock Analysis

Senao International Co. Ltd.

(TWSE:2450)

Select Model

Rating:53Neutral

Price Target:TWD 28.00▲(1.63% Upside)

Action:initiatedcoverage

Date:11/09/26

Senao International scores in the below-average range, driven primarily by deteriorating profitability: margins have compressed every year, net margin is now just 1.3%, and operating cash flow more than halved in the latest year. A conservative, equity-funded balance sheet with low debt provides genuine downside protection, but returns on that equity keep shrinking. Technicals reinforce the caution, with the stock trading below all major moving averages and MACD negative, though the depressed RSI and Stochastic readings suggest the decline is extended. The offset is valuation: a 15.1x P/E, a 5.6% dividend yield and very low volatility give income-focused investors something to hold onto. Overall, a stable but structurally low-margin business whose appeal rests on yield rather than growth.

Positive Factors

Conservative Balance SheetConservative financing, with debt-to-equity around 0.09–0.18 and equity consistently large relative to debt, reduces financial risk. This gives Senao greater resilience through operating volatility and preserves flexibility to fund operations, dividends, or strategic investment.

Negative Factors

Margin CompressionPersistent compression in gross and operating profitability indicates that revenue is producing less earnings than in earlier periods. With net margin also below its 2023 peak, Senao has less buffer to absorb costs and limited scope for profit growth without stronger pricing or efficiency.

Senao International Co. Ltd. (2450) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 7.13B
Dividend Yield: 5.63%
Average Volume (3M): 90.45K
Price to Earnings (P/E): 15.1
Beta (1Y): 0.21
Revenue Growth: 16.30%
EPS Growth: 14.23%
Country: TW
Employees: 3,752
Sector: General
Sector Strength: 55
Industry: Technology Distributors

Senao International Co. Ltd. Business Overview & Revenue Model

Company Description

Headquartered in New Taipei City, Taiwan, Senao International Co., Ltd. was founded in 1979. The company specializes in the sales and distribution of mobile communication devices and related accessories, predominantly within the Chinese market. Its c...

Senao International Co. Ltd. Financial Statement Overview

Summary

A mixed picture weighted toward caution. The balance sheet is the clear strength (score 69): equity funds roughly 60% of assets and debt-to-equity is a conservative 0.18, though borrowings nearly doubled year over year and ROE has slipped from 11.0% to 6.9%. Earnings quality is weaker (income statement 46): revenue grew to NT$33.1bn, but gross margin fell from 11.4% in 2020 to 9.3% in 2025, operating margin is just 1.0%, and net income declined to NT$445m from NT$706m in 2023. Cash flow (48) has turned erratic, with operating cash flow dropping to NT$391m from NT$904m, though free cash flow remains positive at NT$311m on light capex. Net result: a low-risk capital structure supporting an increasingly thin-margin, less cash-generative business.

Income Statement

46Neutral

Balance Sheet

69Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	35.49B	33.12B	32.31B	31.27B	31.16B	31.04B
Gross Profit	3.36B	3.07B	3.50B	3.41B	3.40B	3.47B
EBITDA	646.72M	728.02M	888.53M	798.84M	1.19B	1.11B
Net Income	418.59M	445.29M	478.31M	705.68M	658.04M	596.95M
Balance Sheet
Total Assets	10.76B	10.69B	10.41B	9.83B	10.46B	11.09B
Cash, Cash Equivalents and Short-Term Investments	1.70B	1.91B	1.90B	2.17B	1.86B	2.98B
Total Debt	1.17B	1.19B	660.15M	657.21M	628.67M	546.17M
Total Liabilities	4.54B	4.24B	3.97B	3.41B	4.14B	4.95B
Stockholders Equity	6.22B	6.44B	6.44B	6.41B	6.31B	6.13B
Cash Flow
Free Cash Flow	-41.09M	311.13M	842.88M	1.08B	-366.61M	604.00M
Operating Cash Flow	4.04M	391.17M	903.51M	1.15B	-329.15M	654.18M
Investing Cash Flow	-76.58M	-14.22M	-438.50M	37.01M	36.67M	215.47M
Financing Cash Flow	-482.54M	-388.53M	-818.14M	-873.25M	-826.21M	-690.08M

Senao International Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2450 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6227	63Neutral	TWD 8.26B	8.82	―	4.15%	47.32%	96.76%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4973	54Neutral	TWD 7.64B	6.50	―	0.85%	54.23%	―
TW:2450	53Neutral	TWD 7.11B	15.14	―	5.63%	16.30%	14.23%
TW:2419	43Neutral	TWD 8.11B	120.58	―	―	13.36%	―
TW:2457	43Neutral	TWD 7.73B	-17.50	―	―	-12.04%	-42.72%
TW:3032	39Underperform	TWD 7.51B	-21.21	―	4.11%	41.24%	-89.74%

* General Sector Average

Performance Comparison

TW:2450 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2450	Senao International Co. Ltd.	27.55	-0.14	-0.51%
TW:2419	Hitron Technologies Inc.	25.25	2.00	8.60%
TW:2457	Phihong Technology Co., Ltd.	18.20	-13.35	-42.31%
TW:3032	Compucase Enterprise Co., Ltd.	66.30	-24.20	-26.74%
TW:4973	Silicon Power Computer & Communications Inc.	117.00	77.66	197.41%
TW:6227	Macnica Galaxy Inc.	108.50	21.92	25.31%

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

Senao International Co. Ltd. AI Stock Analysis